Iowa officials unveil anti-meth additive; product based on Yara-supplied calcium nitrate

Iowa has done the testing, found that its meth-inhibiting additive does the job, and is making it available right away to retailers to combine with anhydrous ammonia for farmers to use in the field. With the hoopla of a campaign rally, high-level state and federal officials, joined by industry representatives at a capitol press conference, declared that the additive – actually the commonly used fertilizer calcium nitrate – has completed a six-year, $1.2 million research effort and has been proven to deter thieves by rendering anhydrous virtually useless in making meth.

“The inhibitor can be obtained as soon as someone orders and receives their shipment,” Dale Woolery, spokesman for the governor’s drug control office, told Green Markets. “Our plan in Iowa is voluntary, and relies on injection at the local/retail level.” Agriculture retailers who participate will receive the formula for injecting calcium nitrate into ammonia, as well as a supply of the same Agribusiness Association of Iowa’s “STOP METH” signs that were displayed on a nurse tank for the press event.

Officials at the Oct. 9 gathering, which included Iowa Gov. Tom Vilsack, Secretary. of Agriculture Patty Judge, Sen. Tom Harkin (D-Iowa), agriculture committee chairman, and Rep. Leonard Boswell (D-Iowa), along with U.S. Drug Enforcement Administration representatives, also put to rest any idea that the additive may not be needed with recent successes restricting pseudoephedrine sales and the growing use of tank locks.

“Despite a 77 percent drop in Iowa’s meth labs, we know meth cooks continue to go to multiple pharmacies to get enough pseudoephedrine to produce the drug,” said Marvin Van Haaften, Iowa’s drug policy coordinator and Director of the Governor’s Office of Drug Control Policy. “There is no silver bullet to totally eliminate meth, but the new inhibitor will help get us closer.”

Industry officials also applauded the announcement as a breakthrough in the fight against methamphetamine. “We are extremely pleased with the results of research efforts by Iowa State in cooperation with federal, state and local law enforcement agencies and industry,” remarked Dave Coppess, Agricultural Retailers Assn. chairman and Heartland Co-op vice president of sales and marketing, who also attended the press conference. President and CEO Jack Eberspacher said ARA was proud to assist in securing federal funding for the research and “intends to continue to work closely with Congress and the Administration in securing grant funding to help the industry cover part of the costs of purchasing the new additive.”

The additive research started at Iowa State University and also involved an independent lab for structural and corrosion testing and field testing in vulnerable locations in the state. “We used three different sites,” reported Woolery, “and in every case theft attempts stopped almost immediately as word got out that it was ‘bad stuff.’ The original test site hasn’t been hit for about three years.” He said recently concluded Dept. of Transportation tests found no additional corrosion or stress cracking. Nurse tanks have already passed the tests, he added, but more structural testing will be done when funding is available in the near future.

These tests have also shown that calcium nitrate, a common greenhouse fertilizer already proven to be non-toxic and safe for food supplies, has no adverse impact on the environment or farm equipment, and when added to anhydrous reduces what meth makers get from methamphetamine to two percent or less. The inhibitor also reduces the purity of the drug.

Yara North America already has a foothold in Iowa as the primary supplier. Yara has supported the Iowa research from the start and is the largest distributor of calcium nitrate in North America, importing about 200,000 tons a year in liquid and dry form from factories in Norway. Yara also owns 50 percent of Merschman Fertilizer LLC, which the Iowa Dept. of Agriculture has identified for stocking the product. Merschman, headquartered at West Point, Iowa, has a storage and blending plant in Fort Madison and other facilities at Burlington and Fulton, Ill. Yara also has liquid calcium nitrate positioned in Wisconsin. According to the Ag Dept.’s John Whipple, “This compound will be merchandised like any other fertilizer material.” Whipple noted that “Price will be FOB at the Merschman or any other distributor location.” Whipple’s staff will also assist retailers needing help on introducing the inhibitor in NH3 tanks.

Jack Gale, Yara North American president, said his company is waiting on guidance from state agriculture and transportation officials, but expects the dealers will have a bigger job getting ready than the suppliers. One of the issues, he added, will be where the liquid will be injected at each dealer location. “We don’t know the scale or how much may be mandated, but we’re ready to build whatever distribution system is required,” Gale suggested.

With approximately 26,000 anhydrous ammonia nurse tanks statewide, applying the inhibitor in Iowa may run between $62,000 and $1.2 million annually. State agriculture officials estimate that it will cost $24 per injection per nurse tank. But officials believe a more realistic approach would involve strategic injections on a seasonal basis in as few as 10 percent of the nurse tanks at a cost of around $120,000. For the time being, Iowa has no plans to spread the word about calcium nitrate nationwide. Dale Woolery said interest has been expressed by officials in New York, Illinois, and Canada, but added that he “cannot speak to anyone’s intent.”

Simplot expects mine expansion despite court decision

A federal district court’s Sept. 20 ruling that reinstated the Clinton administration’s 2001 ban on road construction in national forests should not block the J.R. Simplot Co.’s expansion of the Smoky Canyon Mine near the Idaho/Wyoming border, a Simplot spokesman said.

U.S. District Judge Elizabeth Laporte singled out the Simplot mine’s expansion into the 12,000 acre Sage Creek Roadless Area in overturning the Bush administration’s 2005 petition plan, under which states could develop their own plans for roadless areas and petition the U.S. Forest Service to implement them. By coincidence, Idaho Gov. Jim Risch announced his proposed changes to Forest Service management plans for 9.3 million acres of roadless areas in Idaho’s national forests the same day Laporte made her ruling. The Bureau of Land Management and Forest Service granted Simplot permits for exploratory drilling three years ago, and later upheld that decision following a series of public hearings.

Environmental groups have hailed Laporte’s decision, which they say – if it’s upheld – could halt Simplot’s Smoky Canyon mine expansion in the previously protected Sage Creek area, and block the extraction of more than four million tons of phosphate ore that would be used in fertilizer production at Simplot’s Pocatello processing plant.

Fred Zerza, a Simplot spokesman, disputes that. “Under either the Clinton or Bush roadless rules, we have a legal right to develop the Smoky Canyon property. Our existing right precedes the effective date of either of those rules,” Zerza said, noting the Forest Service and BLM upheld Simplot’s expansion plans despite appeals by environmental groups. “So, the bottom line is none of this as far as the courts’ decisions – and there are several out there and probably several more in the future – is an issue as far as expansion of the Smoky Canyon Mine is concerned. We just don’t anticipate any impact on the current process for Smoky Canyon.”

Simplot expects the mine expansion’s final Environmental Impact Statement will be issued in December or January as scheduled, Zerza said. “This is probably not the last litigation connected with this issue. We think it will be tied up in the courts in the foreseeable future, but again, that will not impact our right to proceed.”

Simplot feels Gov. Risch’s roadless decision was correct and appropriate, based on recommendations of land management officials and a great deal of local input, Zerza said. “So, we certainly concur with that decision. It’s refreshing to have a governor who doesn’t succumb to the demands of the preservationist community.” Risch told the Associated Press that Idaho plans to join other states in appealing Laporte’s decision.

Charles Ross, general manager of Agrium’s Conda phosphate operation near Soda Springs, said the federal court ruling is a “non issue” for Agrium in Caribou County. “Based on the ages of our leases and when they’re done here, I see this will have essentially no effect on us. If they were new leases, it might be different, but the deposit has been identified,” Ross said. Agrium shifted its phosphate mining operations from North Rasmussen Ridge to the Dry Valley slightly more than a year ago. Ross anticipates the Dry Valley mining will continue for another three to four years, when Agrium would return to North Rasmussen Ridge.

Mosaic reports minor explosion at Faustina plant

Plymouth, Minn.-The Mosaic Co. had a minor explosion at its Faustina, La., anhydrous ammonia plant on Wednesday evening, Oct. 11. No injuries resulted from the explosion, which is believed to have occurred in a vessel that contained hydrogen used in the conversion to ammonia. The combustion of hydrogen results in water – therefore, no toxic releases occurred, according to the company. Damage to the Faustina plant is estimated to be minimal, but the company has temporarily shut down its phosphate granulations operations to complete its investigation of the incident. It is not expected that this event will have a material impact on the company’s production operations at the facility.

Florida counties pushing phosphate EIS

Naples, Fla. -Three Florida counties – Charlotte, Lee, and Sarasota – have agreed to put up $500,000 each to attempt to get the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency to perform a regional environmental impact study on the effects of phosphate mining in the Peace River and Myakka River watersheds. Those counties were also attempting to get two other counties, Manatee and DeSoto, to pledge an equal amount, but DeSoto has said no and Manatee was asking why it was necessary, according to Mosaic spokesman David Townsend. The three counties will also ask the Florida Legislature to help fund the study. The last regional impact study was conducted in 1978, which was around the time the state began requiring phosphate companies to do remediation of mined phosphate lands. Townsend said the industry has significantly changed its methods of mining during that 28 year period. Townsend added that the company does not object to an area-wide environmental impact study, but said it should include all environmental impacts, such as development and agriculture, and not just phosphate mining. The southwestern area of Florida is one of the fastest growing regions in the country, and development in recent years has been extensive. He also said the state Department of Environmental Protection and the Southwest Florida Water Management District were already in the process of conducting a similar study, and the company was in the process of doing the same. Phosphate companies own about 95,000 acres in the area, which has not yet been permitted for mining. Currently, the Corps conducts studies on individual mining permit applications, but not on the entire area. The counties have already spent approximately $12 million fighting mining permits in the region, but Charlotte has spent the most by far.

Only small amount of ferts stored at N.C. blast site

Apex, N.C.-Fertilizer and pesticides were included in the waste chemicals stored at EQ Industrial Services, which was hit by a chemical explosion Oct. 5 and caused the evacuation of thousands of residents, company officials confirmed. “There was nothing (of that nature) in large volume,” spokesman Robert Doyle reported. He said the hazardous material storage facility had many types of chemical waste, including paint, cleaning supplies, oils, and pool chemicals, and the fertilizers would have been bagged material intended for household and outside use. Doyle said the cause is still under investigation.

Audio conference explores new fert technologies

Silver Spring, Md.-Registrants to Green Markets‘ Oct. 11 audio conference heard interesting insights into controlled release fertilizer products from three companies at the forefront of this growing technology. Speakers for the event included Todd Denzin, sales manager for Agrium Diversified Products; Allen Sutton, vice president of research and development for AGROTAIN International LLC; and Dr. Terry Tindall, senior agronomist for J.R. Simplot Company. Denzin discussed ESN®, Agrium’s patented-process controlled release nitrogen product for broad acre crops. Denzin noted the company’s expanded ESN150 production facility at Carseland, Alberta, where total capacity of 150,000 mt/year makes it the largest polymer-coated controlled release fertilizer production facility in the world. He also discussed Agrium’s research into ESN® use in developing markets such as tobacco and cotton, and its suitability as an alternative to ammonium nitrate. Sutton spoke on AGROTAIN’s proprietary nitrogen sources utilizing urease and nitrification inhibitors to stabilize urea and UAN and minimize volatilization, noting the products’ growth and success in numerous field tests. Total volumes for AGROTAIN-containing products in Spring 2006 was more than 600,000 mt. Dr. Tindall spoke on Simplot’s AVAIL polymer-coating phosphate technology, noting test results showing the product’s success at promoting cell division, root formation, seedling development, crop maturation, and resistance to drought, disease, and cold temperatures. An audio recording of the 90-minute conference is available on CD-ROM for $199, and can be ordered by visiting http://www.pf.com/eventDetail.asp?id=62&type=2.

ARA unveils new website

Washington, D.C.– The Agricultural Retailers Association (ARA) on Oct. 12 announced the launch of its new Web site, sponsored by Agriliance. The new site features technological enhancements, such as a membership directory, online conference registration, and a “links” page with important government contact information. “This new Web site is a fundamental necessity in meeting ARA members’ needs,” said Jack Eberspacher, ARA president and CEO. “The staff now has the capability to post news and updates in real-time, making this a valuable information hub.” Added George Thornton, Agriliance president and CEO, “Agriliance is proud to sponsor ARA’s new Web site. In order for ag retailers and distributors to be competitive they must be in the information-know on the public policy issues that can potentially impact their bottom line.” The new ARA Web site can be accessed at www.aradc.org.

Trinity appealing $9.6 M ammonia tank verdict

Dallas, Tex.-Trinity Industries Inc. is appealing the recent $9.6 million judgment in a suit over the death of one person and the injuries to another from a 2003 anhydrous ammonia tank explosion in Iowa, according to press reports. Trinity spokesman James Perry at the company’s Dallas office declined to confirm the report, saying that “there would be no comment because the company has not said anything publicly about the case.” Industry observers said the April 15, 2003, incident prompted the new federal regulations to have nurse tanks periodically pressure and thickness tested and visually inspected by a certified inspector, and should be a reminder to have employees who work with anhydrous ammonia properly trained as competent attendants. Companies also need to have in place an emergency response plan to be reviewed periodically with employees and local emergency response groups.

Miss Phos tabs Trammo for export sales

Pascagoula, Miss.-Mississippi Phosphates Corp. said Oct. 6 that following the termination of its membership in the Phosphate Chemicals Export Association Inc., (GM Oct. 9, p. 1) effective Dec. 31, 2006, its export sales will be marketed by Transammonia Inc. Miss Phos produces approximately 800,000 st of DAP per year at its production facility in Pascagoula.

Suit claims fraud over desert fertilizer

St. Louis-Seven St. Louis area residents have filed suit claiming they were victims of an investment scam by Las Vegas businessmen who said they can turn minerals from the Nevada desert into fertilizer. Their attorney, Albert Watkins, is accusing officials with Earthly Minerals Solutions of committing fraud and misrepresentation to get his clients to invest more than $800,000 in an elaborate Ponzi scheme, which used money from one investor to pay another. Officials with Earthly Minerals couldn’t be contacted, but one of those named in the suit, CEO Roy Higgs, told a St. Louis TV station he had nothing to say but would be “looking at the lawsuit if there’s one filed.” On its web site, the company touts remineralization as a way to provide solutions to many earthly problems, such as soil quality and plant health, by restoring minerals into areas that are “demineralized.” A natural energizer is offered in three formulas. Watkins said the investors bringing the suit were flown to Las Vegas as part of the sales pitch and taken to a virtually deserted warehouse, described as the industrial center for the mineralization process. Then they went by tour bus to a remote desert area on the outskirts of Las Vegas over an expansive desert. The suit charges violation of six counts, including Missouri’s Blue Sky law, sale of unregistered securities, and breach of fiduciary duty.

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