Federal working group issues chemical safety options; ARA, ACC voice concerns about potential new regs

The Agricultural Retailers Association (ARA) said on Jan. 7 that it is concerned about “potentially burdensome new regulations” under consideration by a working group of federal agencies tasked with improving chemical safety and security in the wake of the April 17, 2013, ammonium nitrate (AN) explosion in West, Texas.

In response to an executive order issued by President Obama last August (GM Aug. 5, 2013), the working group on Jan. 3 issued a series of policy options and regulatory changes that it is considering, and asked stakeholders to submit comments on the proposed changes by March 31, 2014.

The working group consists of representatives from the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) and Mine Safety and Health Administration (MSHA); the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the U.S. Department of Homeland Security’s National Protection and Programs Directorate (NPPD), Transportation Security Administration (TSA), and U.S. Coast Guard (USCG); the U.S. Department of Agriculture (USDA); the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA); and the U.S. Environmental Protection Agency (EPA).

Among its proposals, the working group said that it is broadly considering options to improve the safe and secure storage, handling, and sale of AN; to expand OSHA’s Process Safety Management (PSM) standard and EPA’s Risk Management Program (RMP) rule to address additional regulated substances and types of hazards, and to potentially revise the PSM retail exemption; and to add chemicals to the Chemical Facility Anti-Terrorism Standards (CFATS) chemicals of interest list, and change the screening threshold quantity for certain substances on that list.

Under the regulatory scope of OSHA, EPA, and NPPD, the working group says it is considering a number of options that have raised concerns with the chemical industry in the past, including “assessing safer alternatives as mechanisms to reduce chemical risk,” and expanding regulatory coverage of reactive substances and explosive chemical hazards such as AN. “There are a number of potential mechanisms to improve these areas, including voluntary programs, policy changes, new agency guidance, and regulations,” the working group said.

The group’s list of options for improving AN safety and security include adding AN to EPA’s RMP list of regulated substances; reducing the threshold quantity reporting requirement for AN under CFATS Top-Screen standard, which is currently set at 5,000 pounds or more of explosives-grade AN, 400 pounds or more of explosives-grade AN in transportation packaging, or 2,000 pounds of agricultural grade AN in transportation packaging; changing or eliminating a top-screen filing extension that is currently granted to agricultural facilities; using third-party audits “conducted by appropriate independent auditors who make process safety and regulatory compliance recommendations;” and evaluating the implementation of safer alternatives and best practices for AN.

Regarding the latter, the working group said several stakeholders have suggested incorporating “inherently safer technologies” into risk and process safety programs. “The agencies are requesting additional information on how this concept would be defined, accomplished, and measured,” the working group said. “In addition, the agencies are requesting comment on the potential costs and benefits of implementing such an approach as opposed to other approaches.”

The American Chemistry Council (ACC) issued a response on Jan. 6 to the working group report, saying that while it was encouraged to see “some of the concepts we have recommended,&rdquo

Pryor plant back offline

LSB Industries Inc. said today that as part of the company’s safety policy, LSB has determined to take down the anhydrous ammonia plant at its Pryor, Okla., chemical facility due to excessive vibrations in the second stage of the compressor detected by recently installed monitors. The second stage compressor of the ammonia plant has been sent to Sulzer Turbo Services’ Houston, Texas laboratory for high speed testing and diagnosis. At the present time, based on available information, the company expects the ammonia plant at the Pryor facility to be returned to service before the end of January. As previously announced on Dec. 30, 2013, the ammonia plant at the Pryor facility was restarted, after having been down for most of the fourth quarter 2013.

Koch, Helena settle litigation

Koch Agronomic Services, LLC (KAS), a subsidiary of Koch Fertilizer, LLC (KF), and Helena Chemical Company (HCC) said today that litigation between the two companies over intellectual property rights has been settled.

HCC will continue to market both its N-FIXX™ nitrogen stabilizer brands as well as KAS’s AGROTAIN® nitrogen stabilizers. The parties said they look forward to future collaboration on products and services, and believe that joint efforts between the companies will provide value to all users of nitrogen stabilizer products. Details of the litigation and terms of the settlement were not disclosed.

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