Federal Judge Blocks WOTUS Rule in 24 States

A federal judge in North Dakota on April 12 issued a temporary injunction blocking the US Environmental Protection Agency (EPA) and Army Corps of Engineers from implementing or enforcing the new “Waters of the United States” (WOTUS) rule in 24 states.

The ruling comes less than a week after President Joe Biden vetoed a US Congressional resolution that would have overturned the WOTUS rule (GM April 7, p. 1), which came into effect on March 20 after being announced in late 2022 (GM Jan. 6, p. 1).

The states include West Virginia, North Dakota, Georgia, Iowa, Alabama, Alaska, Arkansas, Florida, Indiana, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wyoming. The injunction follows a federal court order in March blocking the rule in Texas and Idaho.

The 24 states, led by West Virginia, have “persuasively shown that the new 2023 rule poses a threat to their sovereign rights and amounts to irreparable harm,” Judge Daniel L. Hovland of the US District Court for the District of North Dakota ruled on April 12. “The states involved in this litigation will expend unrecoverable resources complying with a rule unlikely to withstand judicial scrutiny,” he said.

With the new WOTUS rule now barred in more than half the country, EPA issued a statement saying it and the Corps are reviewing the federal judge’s decision and their options. EPA noted, however, that the rule still stands in the states not included in the injunction, and it said it continues to believe the rule is “the best” interpretation of the Clean Water Act.

“The agencies continue to believe the rule, which is informed by the text of the relevant provisions of the Clean Water Act and the statute as a whole, as well as the scientific record, relevant Supreme Court case law, input from public comment, and the agencies’ experience and technical expertise after more than 45 years of implementing the longstanding pre-2015 regulations defining waters of the United States, is the best interpretation of the Clean Water Act,” EPA said in the statement.

“The agencies remain committed to establishing and implementing a durable definition of ‘waters of the United States’ informed by diverse perspectives,” the EPA statement continued. “Our goal is to protect public health, the environment, and downstream communities while supporting economic opportunity, agriculture, and industries that depend on clean water.”

The new WOTUS rule has been criticized by numerous industry trade groups, including The Fertilizer Institute (TFI), as being confusing and overreaching. In January a coalition of 17 trade groups filed a lawsuit against EPA and the Corps challenging the rule (GM Jan. 27, p. 1), followed in February by a similar lawsuit lodged by the attorneys general from 23 states (GM Feb. 24, p. 1).

“Once again, the courts have affirmed that the Biden administration’s WOTUS rule is overreaching and harmful to America’s beef farmers and ranchers,” said Todd Wilkinson, President of the National Cattlemen’s Beef Association in an April 12 statement. “Cattle producers in 26 states now have some additional certainty while this rule is being litigated, and we are optimistic that the Supreme Court will provide nationwide clarity on the federal government’s proper jurisdiction over water.”

Environmental Groups Sue EPA for CWA Violations; Fertilizer Listed Among Polluting Industries

A coalition of environmental groups sued the US Environmental Protection Agency (EPA) on April 11 for failing to set limits on chemicals like cyanide, benzene, mercury, and chlorides in wastewater emitted by oil refineries and plants that produce chemicals, fertilizer, plastics, pesticides, and nonferrous metals.

The lawsuit alleges that EPA has violated the Clean Water Act (CWA) by failing to set limits on the amount of pollution that these industries can discharge into waterways. The lawsuit also claims that EPA has failed to update effluent limitation guidelines (ELGs) that were set in the mid-1980s for oil refineries, plastics manufacturers, and fertilizer plants.

According to a statement from the Environmental Integrity Project (EIP), which is coordinating the legal action on behalf of 13 environmental groups, a total of 59 fertilizer manufacturing plants discharged nearly 90 million pounds of pollution into waterways in 2019, including 21 nitrogen plants that discharged 7.7 million pounds of total nitrogen.

“The EPA has set no limits on several fertilizer plant pollutants, including selenium, total chromium, zinc, iron, nickel, cadmium, cyanide, and lead,” the statement claims. “The current effluent guidelines for fertilizer factories have not been updated since 1986.”

The lawsuit was filed in the U.S. Court of Appeals for the 9th Circuit in San Francisco by the EIP, the Center for Biological Diversity, Clean Water Action, Waterkeeper Alliance, Food & Water Watch, Environment America, Bayou City Waterkeeper, Black Warrior Riverkeeper, Healthy Gulf, San Antonio Bay Estuarine Waterkeeper, San Francisco Baykeeper, the Surfrider Foundation, and Tennessee Riverkeeper.

“No one should get a free pass to pollute. It’s completely unacceptable that EPA has, for decades, ignored the law and failed to require modern wastewater pollution controls for oil refineries and petrochemical and plastics plants,” said Jen Duggan, EIP Deputy Director. “We expect EPA to do its job and protect America’s waterways and public health as required by the Clean Water Act.”

CHS, MKC Expand Grain Marketing Joint Venture

CHS Inc. and Mid-Kansas Cooperative (MKC) announced on April 10 that they will expand their grain marketing joint venture to increase market access for growers in the Southern Plains. The expansion includes a new grain terminal with rail access near Sterling, Kan., which will be operational in 2024.

The joint venture was launched in 2013 (GM March 11, 2013) and includes a high-speed shuttle loading facility in Canton, Kan. The expansion follows CHS’s announcement earlier this year (GM Jan. 13, p. 27) that the company’s joint venture with Cargill, TEMCO LLC, will increase its grain export capabilities through Cargill’s 6 million-bushel terminal in Houston, Texas.

“CHS has been successfully partnering with MKC through joint ventures for more than 10 years,” said John Griffith, executive vice president, ag business, CHS. “This initiative expands our collaborative presence and maximizes our complementary asset base in the region to create an efficient, integrated supply chain to connect cooperative- and farmer-owners in the Southern Plains with customers around the world while leveraging the TEMCO terminal in Houston, Texas.”

CHS and MKC said both companies will continue to independently own and operate assets throughout the Southern Plains while expanding their grain marketing joint venture to move grain more efficiently through the distribution channel. The companies expect to begin to operate the expanded 50/50 joint venture this summer.

“Expanding our relationship with CHS will open up market access and create new opportunities for our farmers,” said MKC President and CEO Brad Stedman. “Our track record of successful partnership and shared vision to create value for cooperative-owners and customers makes MKC and CHS the right partners to link farmers with a more defined southern supply chain.”

Peak Minerals to Invest $30M in SOP Project

Peak Minerals, Salt Lake City, Utah, announced on March 27 that it has entered into a convertible loan agreement with a global strategic investor to invest $30 million in the continued development of the company’s Sevier Playa Sulfate of Potash (SOP) Project in west-central Utah.

The proceeds of the financing will be used to fund front-end engineering and design (FEED) for the project, complete final permitting activities, prepare the site in advance of construction, refinance the company’s existing senior debt obligations, and for general corporate purposes.

As part of the loan agreement, Peak Minerals and the investor have also entered into a binding term sheet for the long-term supply of 65,000 st/y of SOP from Phase 1 of the Project, which is targeting total SOP production of 215,000 st/y.

“We are pleased to announce the completion of this financing, and to have attracted a high caliber investor to the company,” said Jason Chang, CEO of EMR Capital, which operates Peak Minerals as a wholly owned subsidiary.

“As we move the Sevier Playa Project towards construction and operation, this investment marks an important milestone for the company,” Chang continued. “These funds will provide us with the necessary capital and financial flexibility to grow our internal technical team, complete FEED, initial site works, and contract negotiation, and arrangement of project finance as we advance towards a construction decision.”

The loan matures 30 months from the date of issuance, and the principal amount of the loan is convertible into common shares of the company at the option of the holder, upon completion of certain conditions. The interest payable can be capitalized to the loan at the option of Peak Minerals.

“Peak is a truly unique and exciting opportunity to invest in the potash sector and to support long-term domestic fertilizer availability and food security in North America in a product in which farmers in the US are partially import dependent,” Chang said.

ADM to Offer BiOWiSHFertilizer Enhancement

Chicago-based Archer Daniels Midland (ADM) and BiOWiSH Technologies Inc., Cincinnati, Ohio, announced that ADM will now offer a BiOWiSH® Fertilizer Enhancement as a dry fertilizer treatment option for urea, MAP, DAP, and NPK blends. The new product will be available from ADM Farm Direct Fertilizer, as well as the company’s wholesale business.

“We’re extremely excited to partner with ADM,” said BiOWiSH CEO Graham Beesley. “Together we will ensure that more farmers in the US will be able to experience the benefits of high-quality biologically enhanced fertilizers, which are designed to increase crop production economically, safely, and sustainably.”

The BiOWiSH® Fertilizer Enhancement is a blend of proprietary microbial cultures, including BiOWiSH’s proprietary HoloGene 3™ technology and BiOWiSH® endophytic Bacillus, which is coated onto dry fertilizer or mixed with liquid fertilizers to create an enhanced efficiency fertilizer. ADM said it plans to offer it as an option to be coated onto dry fertilizers sold through several of its terminals for the 2023 season.

“ADM is committed to delivering solutions that will enhance farmer profitability and help them sustainably meet growing demand for agricultural products. BiOWiSH is one of those solutions,” said Graig Whitehead, ADM Director of Biologicals and New Technology. “It is an easy addition to a fertility program for farmers looking to benefit from improved nutrient use efficiency and increased yield potential.”

ADM said The BiOWiSH® Fertilizer Enhancement is available at its US fertilizer terminals in Blytheville, Ark., Camanche, Iowa, Madison, Ill., Ottawa, Ill., Owensboro, Ky., St. Paul, Minn., and Winona, Minn. Additional locations in the US and Canada are expected to offer the enhancement soon.

Last summer, BiOWiSH partnered with Riyadh-based SABIC Agri-Nutrients Co. to launch a new bio-enhanced urea product, which was offered for a limited time in select areas through ADM and American Plant Food (APF) facilities (GM July 29, 2022).

Koch Agronomic Services – Management Brief

Koch Agronomic Services, Wichita, Kan., reported that Michael Berry is starting a new position as Vice President, Customer Activation and Branding. Berry has been with the company for more than five years, previously serving as Director, Brand Expansion, and Director, Ag Market Portfolio.

Berry previously worked with United Suppliers as Segment Marketing Manager from December 2015 to November 2017, and earlier with Verdesian Life Sciences as Senior Marketing Manager from November 2015 to November 2015. He began his career with SFP, serving as Brand Manager from January 2011 to March 2013, Director of Marketing from March 2013 to January 2014, and Vice President of Business Relations from January to October 2014.

Ferticell – Management Brief

Ferticell, an organic fertilizer producer based in Tempe, Ariz., announced that Paul Johnson is joining the company as a Sales Agronomist for the Southern and Central California/Southwest US region. Ferticell said Johnson has more than 20 years of experience in business development and plant nutrition sales and research in prior roles with Sunkist Growers, BASF, Compass Minerals, and several organic nutritional companies. Johnson holds PCA and CCA licenses and BS and MS degrees in Agronomy from the University of California.

Rayonier Advanced Materials Inc. – Management Brief

Rayonier Advanced Materials Inc., Jacksonville, Fla., announced on April 10 that Michael Osborne has joined the company as Vice President, Manufacturing. He is replacing Bill Manzer, who plans to retire after more than 12 years with Rayonier. Manzer will remain with the company through March 2024 to facilitate the transition and finish several projects.

Rayonier said Osborne has more than 30 years of manufacturing experience, most recently serving as Vice President, Global Manufacturing for Kraton Pine Chemicals. He began his career with Georgia Pacific, eventually serving as Director of Strategic Planning. In 2011 he joined Arizona Chemical Company as Senior Plant Manager at their Panama City, Fla., facility.

Osborne was promoted to Director, Global Engineering in 2015, shortly before Arizona Chemical was acquired by Kraton in 2016. He was then promoted to Director of Global Manufacturing in December 2019, and later became Vice President, Global Manufacturing for the Pine Chemicals division. He holds a BS in Chemistry from the University of Southern Mississippi, an MS in Chemical Engineering from the Georgia Institute of Technology, and an MBA from the University of Southern Mississippi.

SABIC Completes Deal for Stake in ETG Inputs

Riyadh-based SABIC Agri-Nutrients Co. Ltd. has completed the procedures to acquire 49% of the share capital of Dubai-based agri-nutrient blender and distributor ETG Inputs Holdco Ltd., the Saudi company announced in an April 10 filing to Saudi’s Tadawul.

SABIC Agri-Nutrients and ETG Inputs Holdco’s parent company, ETC Group, also based in Dubai, signed a binding transaction for the stake acquisition early last year (GM Jan. 13, 2022). The Saudi firm at the time said it agreed to pay an enterprise value of $320 million for the shareholding, based on cash free, debt free, and changes in the working capital adjustment that would be determined at transaction completion.

It did not disclose the final transaction value in its latest filing, but said it expects the financial impact of the deal to appear during the second quarter of the fiscal year ended Dec. 31, 2023. The company is financing the acquisition using its own resources.

ETG owns more than 350 distribution centers across sub-Saharan Africa, and blends and distributes specialized fertilizers and agro chemicals. SABIC Agri-Nutrients said the acquisition of the ETG stake is part of its strategy to integrate the value chain to include blending and distribution of agri-nutrients in global markets and move closer to farmers and end customers.

Acron Group Sees 3% Rise in 1Q Fert Production

Russia’s Acron Group saw its commercial fertilizer output increase by 3% in the first quarter, to 1.86 million mt from 1.80 million mt in last year’s first quarter, the producer said on April 13. Production of ammonia rose by just under 1%, to 750,000 mt, all of which was consumed in-house.

Production of nitrogen fertilizers grew by 1%, to 1.47 million mt from 1.44 million mt the previous year. Of this total, output of urea for agricultural use increased by 16% year-over-year, reaching 493,000 mt versus the year-ago 426,000 mt. UAN output also grew, increasing 10% to a total of 370,000 mt during the first quarter.

However, first-quarter production of ammonium nitrate (AN) for fertilizer use was down by 15% compared with a year-ago, falling to 583,000 mt from 682,000 mt.

Complex fertilizers production also fell in the quarter, declining 1% year-over-year to 609,000 mt, reflecting a 55% drop in output of bulk blends. In contrast, NPK output was up by 2%, reaching 596,000 mt versus 587,000 mt in the first quarter of 2022.

Meanwhile, the group’s production of apatite concentrate in the first quarter increased by 4%, to 307,000 mt from 294,000 mt last year. Some 250,000 mt of the first-quarter output was consumed in-house, and 57,000 mt was sold to third parties.

Acron Group’s industrial products production in the first quarter was down 10%, falling to 271,000 mt from 302,000 mt last year. Industrial products include industrial urea and low-density and technical-grade AN, as well as methanol, formalin, and calcium carbonate, among others.

Acron Group 1Q Fertilizer Production (‘000 mt)

  1Q-2023 1Q-2022 % change
Ammonia 750 744 +0.8
Nitrogen fertilizers 1,465 1,444 +1
AN 583 682 (15)
Urea 493 426 +16
UAN 370 336 +10
Calcium nitrate 20 0
Complex fertilizers 609 615 (1)
NPK 596 587 +2
Bulk blends 13 29 (55)
Total commercial output of fertilizers 1,858 1,803 +3
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