EPA v. TERRA INDUSTRIES, INC. (NATIONAL CASE)

Case summary

3/31/10 - This is a civil judicial referral asserting Clean Air Act (CAA) claims against Terra Industries, Inc. and Terra Nitrogen Company, L.P. (Terra) for violations at its Yahoo City, Mississippi nitric acid manufacturing facility (Yazoo City Facility). EPA alleges that Terra failed to comply with CAA new source performance standards and constructed, modified, and operated its nitric acid manufacturing facility without obtaining the appropriate CAA pre-construction and operating permits and without installing best available control technology. For these violations, EPA seeks both penalties and injunctive relief. 6/6/11 - EPA AND DOJ ANNOUNCED TERRA INDUSTRIES, INC., ONE OF THE NATION'S LARGEST PRODUCERS OF NITRIC ACID AND NITROGEN FERTILIZERS, HAS AGREED TO PAY $625,000 IN CIVIL PENALTIES TO SETTLE ALLEGED VIOLATIONS OF THE FEDERAL CAA AT 9 OF ITS PLANTS IN IA, MS, AND OK. AS PART OF THE SETTLEMENT, TERRA WILL ALSO SPEND AN ESTIMATED $17 MILLION TO INSTALL AND IMPLEMENT NEW CONTROLS AND TECHNOLOGIES THAT ARE EXPECTED TO REDUCE HARMFUL NITROGEN OXIDE EMISSIONS AT ITS FACILITIES BY AT LEAST 1,200 TONS PER YR. ILLEGAL AIR POLLUTION FROM THE PRODUCTION OF NITRIC ACID CAN LEAVE THE PUBLIC VULNERABLE TO LONG-TERM HEALTH PROBLEMS SUCH AS RESPIRATORY ILLNESS AND ASTHMA, SAID CYNTHIA GILES, ASST ADMINISTRATOR FOR EPA'S OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE. BRINGING TERRA INTO COMPLIANCE WITH THE CAA WILL PROTECT THE PUBLIC HEALTH OF COMMUNITIES ACROSS IA, MS, AND OK. THIS AGREEMENT WILL REQUIRE TERRA TO MAKE IMPORTANT IMPROVEMENTS IN POLLUTION CONTROL TECHNOLOGY AT 9 ACID-PRODUCING FACILITIES THAT WILL RESULT IN CLEANER AND HEALTHIER AIR FOR THE BENEFIT OF COMMUNITIES IN IA, MS, AND OK, SAID IGNACIA S. MORENO, ASST ATTY GENERAL FOR THE ENVIRONMENT AND NATURAL RESOURCES DIV OF DOJ. THIS IS A NOTABLE ACHIEVEMENT IN OUR EFFORTS, ALONGSIDE THE EPA, TO ADDRESS THE LARGEST SOURCES OF HARMFUL AIR POLLUTION AND BRING ABOUT COMPANY-WIDE COMPLIANCE WITH THE CAA. TERRA IS A MAJOR PRODUCER OF NITROGEN FERTILIZERS, INCLUDING ANHYDROUS AMMONIA, UREA, AMMONIA NITRATE, AND UREA-AMMONIUM NITRATE (UAN). THE COMPANY ALSO PRODUCES NITRIC ACID, A KEY INTERMEDIATE IN THE MANUFACTURE OF AMMONIUM NITRATE AND UAN. THE PRODUCTION OF NITRIC ACID RESULT IN THE EMISSION OF NITROGEN OXIDES, WHICH CAN CAUSE LUNG DAMAGE, WORSEN RESPIRATORY DISEASES, CONTRIBUTE TO ACID RAIN, AND LEAD TO THE FORMATION OF SMOG. TERRA, HEADQUARTERED IN SIOUX CITY, IA, WILL PAY $325,000 TO THE U.S. AND $100,000 TO EACH STATE (IA, MS, AND OK). TERRA'S 9 PLANTS COVERED BY THE SETTLEMENT INCLUDE 4 NITRIC ACID PLANTS AT YAZOO CITY, MS; TWO EACH AT SERGEANT BLUFF, IA, AND VERDIGRIS, OK; AND ONE AT WOODWARD OK. ACCORDING TO THE CD, TERRA ALLEGEDLY CONSTRUCTED, MODIFIED, AND OPERATED ITS FACILITIES WITHOUT OBTAINING APPROPRIATE PRE-CONSTRUCTION AND OPERATING PERMITS, AND WITHOUT INSTALLING BEST AVAILABLE CONTROL TECHNOLOGY FOR CONTORLLING AIR POLLUTION. TERRA ALSO ALLEGEDLY VIOLATED THE CAA BY FAILING TO COMPLY WITH APPLICABLE AIR EMISSION LIMITS AND ONGOING REQUIREMENTS FOR EMISSIONS MONITORING, RECORDKEEPING, AND REPORTING AT SOME OF ITS FACILITIES.

Defendants (5)

• TERRA INDUSTRIES, INC.Named in complaintNamed in settlement
• TERRA MISSISSIPPI NITROGEN, INC.Named in complaintNamed in settlement
• TERRA NITROGEN, LIMITED PARTNERSHIPNamed in complaintNamed in settlement
• TERRA INTERNATIONAL (OKLAHOMA) INC.Named in complaintNamed in settlement
• PORT NEAL CORPORATIONNamed in complaintNamed in settlement

Facilities (2)

• CF INDUSTRIES NITROGEN LLC

  4608 HIGHWAY 49 EAST, YAZOO CITY, MS, 39194

  Registry ID: 110000741485

• TERRA MISSISSIPPI NITROGEN, INC.

  4612 HWY 49E, YAZOO CITY, MS, 39194

  Registry ID: 110008513689

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 111 — New Source Performance Standards

Enforcement conclusions (1)

• TERRA INDUSTRIES, INC. (NATIONAL CASE) (04-2011-C016)entered 2011-06-06

  Primary law: CAA

  Federal penalty: $108,333 · State/local: $100,000

Timeline (8 milestones)

• 2010-03-31Referred To Dept Of Justice
• 2010-03-31Enforcement Action Data Entered
• 2011-04-19Final Order Lodged
• 2011-04-19Complaint Filed With Court
• 2011-06-06Concluded
• 2011-06-06Final Order Entered
• 2018-01-19Enforcement Action Closed
• 2018-01-19Air Resolved