All Posts from December 4, 2012

Simplot acquires Texas company

Migl Feed and Grain, an agricultural supply company located in Hallettsville, Texas, will join the J. R. Simplot Company’s Grower Solutions network. “Our goal at Simplot Grower Solutions is to continue to grow our business by expanding our reach in strategic areas such as the Texas Gulf Coast as we focus on meeting customer needs,” said Dave Dufault, head of Simplot Grower Solutions retail stores. “Migl fits in very well.”

“We felt that Simplot Grower Solutions was the best fit for our community, our employees, and our customers. Their commitment to agriculture is well known throughout the industry,” said Frank Migl, owner of Migl Feed and Grain. They will remain focused on providing customers with a full line of crop nutrients, crop protection, seed, specialty products and agricultural technology.

“For over 75 years, the Simplot Company has played a significant role in various sectors of the global food and agriculture system and this long term commitment continues,” said Garrett Lofto, president of Simplot AgriBusiness. He added, “Migl Feed and Grain fits in very well with our existing Texas operations and we look forward to their employees joining our Simplot team.”

Simplot Grower Solutions has more than 250 crop advisors and more than 90 retail locations.

The J.R. Simplot Co., a privately held agribusiness firm headquartered in Boise, Idaho, has an integrated portfolio that includes phosphate mining, fertilizer manufacturing, farming, ranching, cattle production, food processing, food brands, and other enterprises related to agriculture. Simplot’s major operations are located in the U.S., Canada, Mexico, Australia, New Zealand, and China, with products marketed in more than 40 countries worldwide.

Sanders acquires G&H

Pinnacle Agriculture Holdings LLC has announced that its subsidiary, Jimmy Sanders Inc. has acquired G&H Seed Co. Inc. and its related company Liq-Quick Fertilizer Co. Inc. Based in Crowley, Louisiana, G&H was founded in 1968 by Raymond and Kitty Hensgens. It now includes seven retail outlets plus a strong wholesale business servicing Texas, Arkansas, Missouri, Mississippi and Louisiana.

"We are excited about G&H Seed," states Kenny Cordell, CEO of Pinnacle. "This acquisition, along with JSI, creates a significant platform to launch Pinnacle and achieve national coverage."

Barry Knight, President of JSI, adds, "G&H will fit ideally with the Sanders’ culture and will help expand our retail footprint into South Louisiana."

Wayne Hensgens, G&H Seed Operations Manager and President of Liq-Quick Fertilizer Co., notes that, "The Pinnacle merger not only allows us to expand our operations but it gave us the best opportunity to keep our management team, staff and philosophy in place. That was essential in our decision because it allows us to continue to deliver the quality of service our customers are accustomed to while embracing the overall Pinnacle strategy, which is quite exciting."

LSB gives update on El Dorado acid plants

LSB Industries Inc. today announced that its chemical business’ El Dorado, Arkansas facility has signed an agreement with Weatherly Inc. for the licensing, engineering, and procurement of major manufacturing equipment for a new 1,100 ton per day 65 percent strength nitric acid plant. The new plant is expected to be operational by mid-2015.

In addition, the company is currently negotiating a contract for the purchase of a plant to work in conjunction with the new nitric acid plant that further concentrates a portion of the output up to 98.5 percent strength.

The cost of the new nitric acid plant, the nitric acid concentrator plant and supporting facilities, including construction, is anticipated to total approximately $120 million, a significant portion of which is expected to be paid from insurance proceeds resulting from the May 15, 2012 event that damaged the El Dorado facility. The amount of insurance proceeds is not known at this time.

LSB also announced today the recommencement of operations at the El Dorado facility’s sulfuric acid plant. This represents the final phase of repair and production recovery at the facility following the May 15, 2012 event, other than the construction of the aforementioned new nitric acid plant and acid concentrator plant.

“All of the plants at the El Dorado facility are up and running, other than the DSN plant, which is being replaced by the new Weatherly nitric acid plant,” said Jack Golsen, LSB’s board chairman and CEO. “With the addition of a new nitric acid plant and concentrator, we believe that the El Dorado facility will be able to regain its position as a leading merchant marketer of concentrated nitric acid in the United States.”

Salazar issues order on NM potash, oil & gas development

As part of President Obama’s all-of-the-above energy strategy to promote domestic energy and mineral production, Secretary of the Interior Ken Salazar today issued a new Secretarial Order to facilitate the co-development of oil, natural gas and potash resources within the 500,000-acre Designated Potash Area (DPA) in southeast New Mexico.

“This comprehensive strategy will allow us to move beyond years of disagreement and litigation between the energy and potash industries and provides a balanced approach that will strengthen New Mexico’s economy,” Secretary Salazar said. “I want to thank the members of the Joint Industry Technical Committee for their efforts in working toward a solution to this longstanding issue.”

The final strategy, first released in draft form in July, would provide greater certainty to mineral lessees and allow for increased production in the oil-rich Permian Basin. At the same time, the Order offers more certainty for the orderly development of potash resources that are important to U.S. agriculture, including some deposits that are internationally unique and significant. The Secretarial Order reflects the collaborative work of leaders from the potash and oil and gas industries, as well as feedback from the public. The action supports the Administration’s goal of continuing to increase domestic oil and gas production, which has grown each year the President, has been in office. Domestic oil production last year was higher than any time in nearly a decade and natural gas production is at its highest level ever. Foreign oil imports now account for less than 50 percent of the oil consumed in America – the lowest level since 1995.

The DPA contains significant deposits of both potash – the common name for potassium bearing minerals, primarily used for fertilizer – and oil and gas in New Mexico, most of which is managed by the Bureau of Land Management (BLM). The DPA currently produces 75 percent of the potash mined in the United States and is also home to nearly 800 federal oil and gas leases. Co-development, or the safe and orderly concurrent development of oil, gas, and potash in the DPA, supports regional job creation and will increase the supplies of important energy and fertilizer resources.

“This Secretarial Order protects New Mexico jobs, ensuring the co-development of potash, oil, and gas," said U.S. Senator Jeff Bingaman. “I applaud Secretary Salazar and the potash and oil and gas communities for their coordinated efforts to resolve this issue.”

“I applaud Secretary Salazar, the BLM, and members from the oil, gas and potash industries for coming together on this matter after too many years of unproductive conflict,” said U.S. Senator Tom Udall. “The responsible co-development of these natural resources is key to job creation in our southeast region and the energy and food security of our nation.”

The Secretarial Order calls for the use of emerging technologies associated with horizontal drilling and production of oil and gas to help minimize impacts and surface disruption. The designation of Development Areas where oil and gas wells could be drilled from one or more Drilling Islands will reduce the number of roads, power lines and other facilities that can impact potash resources and the safety of potash miners. These techniques will result in more orderly development and greater recovery of potash and oil and gas resources.

The Secretarial Order also encourages regular, constructive discussion among the industries and the BLM and provides an industry forum to jointly address any concerns that arise in specific situations.

Salazar had met with the Potash/Oil and Gas Joint Industry Technical Committee (JITC) in Carlsbad, New Mexico on January 5, 2012, to support the ongoing dialogue between representatives of these industries, wh