Environmental News
Contact:
Rowena L. Michaels
(913) 551-7003
IMMEDIATE RELEASE
June 26, 1998
TERRA AGREES TO $750,00 SETTLEMENT TO RESOLVE EPA COMPLAINT
The U.S. Environmental Protection Agency (EPA) Region 7 announces that under a consent decree with Terra International, Inc., and Terra Industries Inc., Sergeant Bluff, Iowa, the companies have agreed to pay a penalty of $500,000 to settle claims alleged in an EPA complaint. Terra also agreed to pay $150,000 to reimburse past response costs.
These EPA claims resulted from a 1994 explosion at Terra's Port Neal, Iowa, ammonium nitrate plant which killed four workers, injured 18, and forced evacuation of more than 2,500 nearby residents. The explosion released approximately 4,200 tons of anhydrous ammonia and 100 tons of nitric acid.
In addition, Terra spent approximately $100,000 on supplemental environmental projects (SEPS). The SEPS included improved hazardous materials planning and preparedness projects in the Sergeant Bluff area, such as installing emergency sirens and equipping local fire departments with anhydrous ammonia monitors.
The consent decree was lodged with the United States District Court for the Northern District of Iowa Western Division June 26, 1998 and the complaint was filed the same day. The complaint alleged Terra violated the Clean Air Act (CAA); the Emergency Planning and Community Right-to-Know Act (EPCRA); and the Comprehensive Environmental Response and Recovery Act (CERCLA). All violations were uncovered during investigations following the explosion.
The consent decree is the first settlement of a CAA Section 112(r) action in the nation for a company's alleged violation of the "general duty" clause. Section 112(r) states that owners and operators of facilities producing extremely hazardous substances have a general duty to identify hazards; design and maintain a safe facility; and minimize accidental releases. The EPA complaint alleged Terra violated the CAA Section 112(r).
The complaint also alleged that Terra:
--failed to submit required Toxic Release Inventory (TRI) information to EPA in a timely manner for the manufacture, process, or otherwise use of six toxic chemicals (ammonia, ammonium nitrate, nitric acid, chlorine, formaldehyde, and methanol) during the 1994 reporting year.
--failed to timely report a hazardous substance release to several response authorities in the aftermath of the explosion, including the Omaha Tribal Emergency Response Commission.
--failed to submit a complete emergency and hazardous chemical inventory form to authorities.
--failed to include (in data submitted to EPA) releases of more than 17 million pounds of toxic chemicals to the environment in the 1994 TRI report. This reporting error emphasizes the necessity of accurate emissions reporting.
Because of the toxic chemicals reporting error, Terra was not ranked as one of the nation's largest emitters of toxic chemicals for the 1994 reporting year. Such reporting errors can skew TRI data and prevent the public from its "Right-To-Know."
An EPA telephone hotline helps industry and the public understand technical environmental regulations at 1-800-424-9346. Workshops are conducted yearly in the region to provide compliance assistance to companies submitting reports to EPA. In addition, EPA, Region 7, Kansas City, KS, operates a public hotline, 1-800-223-0425. You may also access the EPA web site at www.epa.gov.