Wednesday, December 30, 2015

US Nitrogen Seeks to Triple Some Emissions


By Walter F. Roche Jr.

US Nitrogen has submitted a proposed amendment to one of its environmental permits that would allow the company to vastly increase the amount of nitrous oxide it can emit from its yet-to-open Midway operations.
The application, which was submitted to the Tennessee Department of Environment and Conservation (TDEC), calls for an increase in allowable emissions from .01 to .035 pounds per million British Thermal Units for nitrous oxides and smaller hikes in greenhouse gases,  carbon monoxide and volatile organic compounds (VOC).
In a statement released in response to questions about the amendments, US Nitrogen said that the higher emission levels are still within limits set by the U.S. Environmental Protection Agency and TDEC.
"US Nitrogen has equipment and processes in place to minimize emissions," the company statement reads, citing an "ultra low nitrous oxide burner and flue gas recirculation in its industrial boilers."
The proposed amendment comes as the company nears a scheduled 2016 start up of operations for the $200 million ammonium nitrate manufacturing facility.
The permit application notes that the amendment would also reduce the annual amount of natural gas used to fire its boiler from 470 to 380 million cubic feet.
According to the application, the amendment would increase nitrous oxide emissions by less than five tons per year.
The revised permit would also cover the operation of flares used to control emissions during shutdown and startup operations.
In addition to the ammonium nitrate production operations the permit applies to a nitric acid plant, a carbon dioxide liquefaction plant and a fuel dispensing facility, according to the public notice of the application.
TDEC, in a recently published public notice,  asked interested parties to comment on the application.
In its statement US Nitrogen attributed the changes to "more detailed engineering being conducted on the plant as construction is concluded." 

Contact: wfroche999@gmail.com

Saturday, December 26, 2015

TDEC: "No Problem Found" With Crane In River


By Walter F. Roche Jr.

Tennessee environmental officials have dismissed a Dec. 7 complaint about a crane partially submerged in the Nolichucky River after having a telephone conversation with US Nitrogen officials.
Records of the Tennessee Department of Environment and Conservation show that on Dec. 7 an unnamed resident called the agency to express concern about a crane that was partially submerged in overflow from the Nolichucky after heavy rainfall.
According to the department records an agency official then contacted US Nitrogen officials Hollie Binkley and Lori Jones.
According to the records, US Nitrogen officials "stated that the highest water level reached was approximately two-thirds the height of the crane's tires.
"The crane was on wheels, not greased tracks; the housing was never encroached," the brief report continues.
The report adds that the crane was subsequently removed and returned to its owner, C & C Millwright.
The report concluded stating that an inspection of the crane "verified that there were no leaks or releases from this equipment."
The heading on the report states: "Status: No problem found."
Pictures of the partially submerged crane are posted on the website of Save The Nolichucky, a group opposed to the US Nitrogen project.







Wednesday, December 23, 2015

US Nitrogen Announces New Local Leader


By Walter F. Roche Jr.

US Nitrogen today formally announced the appointment of a new manager for the new $200 million ammonium nitrate manufacturing facility slated to open next month.
Jim Boldt, chief financial officer for Austin Powder, US Nitrogen's parent, said Andrew Velo has taken over the job of plant manager from Justin Freark,  who is taking on a new role with the parent company.
Stating that Velo "stood out for his exceptional leadership skills and attention to detail," Boldt said the firm would continue "its laser focus on safety."
Velo joined US Nitrogen in March as construction and maintenance manager. Prior to that he worked for Rentech Nitrogen Partners serving as site general manager at a fertilizer facility in Texas.
Velo, a Navy veteran, took on the plant manager's job on Nov. 3o.
Freeark, according to the company announcement, has been appointed as director of nitrogen engineering projects for Austin. He will continue to reside in Tennessee.
State environmental officials were informed of the leadership change in a Dec. 15 letter from Freeark.
The change comes as US Nitrogen officials say they are preparing for a January start of operations of the new facility.

Tuesday, December 22, 2015

Key US Nitrogen Job Changes Hands As Opening Looms


By Walter F. Roche Jr.

With the expected startup just a month away, a new local manager has been named to oversee the operations of US Nitrogen.
In a letter to officials of the Tennessee Department of Environment and Conservation, US Nitrogen disclosed that Plant Manager Justin Freeark is being replaced by Andrew Velo, who previously held the title of Maintenance and Construction Manager.
In recent filings with the state, Velo is listed as "maintenance manager."
The brief Dec. 15 letter signed by Freeark himself, states that the change became effective Nov. 30 and that Velo is now the "responsible official" for state reporting purposes.
The change comes as the $200 million ammonium nitrate is being readied for a January opening.
Asked for comment Tuesday, Amanda Jennings, a US Nitrogen spokeswoman, said she would be releasing information on the management shift on Wednesday.
The letter dated Dec. 1 does not disclose what Freeark's future role will be. He has served as the chief manager for the new plant before construction actually began.
Previously he worked for US Nitrogen's parent company,  Ohio based Austin Powder.
Recently Freeark's role in signing a land option agreement in behalf of US Nitrogen has been the source of controversy.
Freeark signed an agreement in 2013 giving US Nitrogen an option on land owned by a company headed by J.W. Douthat, a member of the Industrial Development Board of Greeneville and Greene County. That panel played a key role in bringing US Nitrogen to Greene County.
Douthat abstained on one board vote on US Nitrogen, but later voted in favor of submitting an application to the Tennessee Department of Transportation for a US Nitrogen pipeline plan.
Both Douthat and US Nitrogen have repeatedly insisted there was nothing improper in the arrangement. Recently a Greene County grand jury apparently declined to take any action on the matter following a presentation by Don Bible, a local resident opposed to the project.
Bible has cited the fact that Douthat also was a member of the board of the local utility district, which could have ended up as a major provider of water to US Nitrogen. Ultimately US Nitrogen abandoned plans to purchase millions of gallons of water per day from the utility district in favor of the current arrangement under which water is piped directly from the Nolichucky River via a 12-mile pipeline.
Contact:wfrochejr999@gmail.com


Sunday, December 20, 2015

Approval Sought for New Facilities for Greene Valley Residents


By Walter F. Roche Jr.

A state agency is being asked to approve at least 14 new group homes to house the remaining residents of the state run Greene Valley Development Center, which is under a federal court closure order.
A review of applications pending before the state Health Department shows one provider alone, Open Arms Care, already the largest provider of services to the mentally and physically disabled in Tennessee, is seeking approval to build nine new facilities. Each would house four current residents of state run Greene Valley.
Under state law applicants for most new health facilities must seek approval from the state Health Department for a certificate of need as part of the licensing process. 
The applications for those certificates show that none of the new facilities are expected to be completed by June 30, 2016, the date originally set for the complete closure of Greene Valley.  In fact a state panel will only begin consideration of the applications next month.
Officials of the state Department of Developmental and Intellectual Disabilities, which runs Greene Valley, recently conceded that the June 30 shutdown date was unlikely to be met and funding would be necessary to keep Greene Valley in operation.
Cara Kumari, a DIDD spokeswoman, said that all of the beds in the pending applications are earmarked for specific current Greene Valley residents.
"These providers were chosen by people living at Greene Valley and their conservators," Kumari wrote in a written response to questions.
She said the agency set up fairs for entities willing to provide services so they could meet with families of Greeneville residents and interested parties and arrange agency tours "to ensure families had all the information they needed to make an informed decision."
"All of these beds have been currently claimed by a person leaving Greene Valley," Kumari added.

While June 30, 2016 was the agreed closing date under a federal court decree, the estimated opening dates, according to the pending applications stretch to November of 2016 and beyond.
In addition the number of beds sought in the pending applications falls short of the estimated 75 current Greene Valley residents who have opted to move to these four bed facilities. According to filings with the state health agency, 45 of the 75 have indicated they wish to remain in Greene County.
The estimated daily charges for each resident, according to the applications, are slightly under $800. That would mean an annual cost of nearly $300,000 for each of the 75 residents
In addition to Open Arms, a nonprofit incorporated in Georgia, applications have been submitted by D & S Residential, a Texas firm, and Sunrise Community of Tennessee, a subsidiary of a Florida firm.
While Sunrise does currently operate in Tennessee, D & S does not.
Open Arms is seeking approval to open three facilities in Greene County, four in Knoxville and two in Georgetown, Hamilton County.
Two of the Open Arms facilities would be located on East Church Lane in Greeneville and one on Chuckey Pike in Chuckey. However the application for the Chuckey Pike property contains legal documents relating to the Church Lane property.
The Georgetown homes are slated be located on Gamble Road, while the Knoxville homes will be built on Bishops Bridge Road and Northshore Drive.
Although Open Arms is a non profit, the application shows the management of their homes will be performed by a separate firm, Integra Resources LLC. Integra, which is not a non-profit,  is owned by the SMI Group and Flatrock Investors.
SMI is owned by George Stevens and Jeffery Mastroleo, while Flatrock is owned by Joseph Torrence and Richard L. Brown, the application states.
Integra is the same company that bought 32 group homes from Open Arms in May of this year for $11.5 million, according to the application files.
Open Arms won't actually own the new homes either, but a separate non-profit will rent them.
Sunrise, meanwhile, has applied to open a four bed home at 680 Quaker Knob Road and 640 Old Shiloh Road in Chuckey
D & S is seeking to open homes on Erwin Highway in Afton and Old Stage Road in Greeneville.
Contact wfrochejr999@gmail.com
PROPOSED HOME LOCATIONS

Open Arms Care Corp.

1817 Bishops Bridge Road Knoxville
12621 South Northshore Drive Knoxville
Chuckey Pike Chuckey
East Church Road Greeneville
 --------------------------------------------------
Sunrise Community of Tennessee

680 Quaker Knob Road Chuckie
640 Old Shiloh Road
--------------------------------------------------
D & S Residential

2609 Erwin Highway Afton
2619 Erwin Highway Afton
Old Stage Road Greeneville






Monday, December 7, 2015

Yara Purchasing California Property

From a Manitoba newspaper

http://www.manitobacooperator.ca/daily/yara-to-buy-agrium-fertilizer-upgrading-plant

Admissions Frozen at Limestone Facility


By Walter F. Roche Jr.

A Nashville nursing home is closing its doors voluntarily, while the state has put a freeze on any new admissions at a Limestone facility recently cited for multiple violations.
Closing by Dec. 15 is the Belcourt Terrace Nursing Home in Nashville, Tenn. which is licensed for 49 beds, but recently had only 23 residents.
Woody McMillin, a spokesman for the state Health Department said the closure was voluntary and the Belcourt staff were assisting patients and their families with finding other placement.
The facility is owned by an Ohio firm AHF/Central State Services. Company officials did not respond to a request for comment.
In a legal notice the home said it would be placing the state license on inactive status and would be withdrawing from the Medicare and Medicaid programs.
The home has a history of rules violations but recently received clearance on a long list of corrective actions.
The facility had been cited earlier this year for patients having developed bed sores and leaving patients in bed for extended periods of time during the day.
In Limestone state Health Commissioner John Dreyzehner has imposed a freeze on any new admissions to John M. Reed Health and Rehabilitation. He also fined the home $4,000 citing multiple violations of state and federal requirements.
The 63-bed nursing home in Limestone was inspected on Nov. 5 and cited for failure to provide basic services and failing to maintain proper medical records.
Dreyzehner also named an independent monitor to oversee the operation of the home.
Last week the federal Centers for Medicare and Medicaid Services announced it would not pay for any new patients admitted to the Reed facility.
CMS cited the same findings the state used to order a freeze on admissions.




Tuesday, December 1, 2015

State Confirms US Nitrogen Permit Status


By Walter F. Roche Jr.

Tennessee environmental officials confirmed today that an administrative extension was granted to US Nitrogen for a key wastewater discharge permit that was scheduled to expire Monday.
Eric Ward, a spokesman for the Department of Environment and Conservation, confirmed the extension of the permit authorizing the disposal of millions of gallons of wastewater to the Nolichucky River.
"Since the permittee submitted an application in a timely fashion and the permit was not reissued by its expiration date, discharges from the facility will be automatically authorized through administrative extension of the permit," Ward wrote in an email response to questions.
The permit was originally issued in 2014 and US Nitrogen submitted a renewal application on June 2, 2015.
The permit is a major component of US Nitrogen's plans to begin producing ammonium nitrate at its newly constructed Greene County facility.

Monday, November 30, 2015

Key US Nitrogen Permit "Administratively Extended"


By Walter F. Roche Jr.

A key state permit granted to US Nitrogen by the Tennessee Department of Environment and Conservation has gone past its original expiration date, but has been "administratively extended" as state officials review a renewal application.
TDEC records show the permit allowing US Nitrogen to discharge millions of gallons of wastewater in the Nolichucky River had a Nov. 30, 2015 expiration date.
US Nitrogen submitted a renewal application on June 2 and TDEC records indicate that state officials subsequently made a site visit to the new ammonium nitrate facility in Midway. Those officials made note of the fact that the facility has not yet gone into operation.
A spokeswoman for US Nitrogen said Monday that the company was told by state officials that the existing permit was extended.
"The permit is administratively extended as they (US Nitrogen) submitted a complete application in a timely manner," Amanda Jennings said US Nitrogen officials were told by state officials.
The existing permit was issued in June of last year.
Company officials have announced plans for a phased-in start up late this year.
The state records show local residents, including Donahue Bible, have written the state agency expressing their opposition to the permit.
The permit file also shows that magnesium levels in all groundwater monitoring spots recently showed levels substantially exceeding benchmark levels. The company has attributed the readings to naturally occurring factors and the recent application of fertilizers.
US Nitrogen has already constructed a 12-mile double pipeline to move water to and from the river. According to the application, the pipeline enters the river at 20.8 miles from its origin.
Contact: wfrochejr999@gmail.com




Monday, November 23, 2015

Bible Disappointed With Grand Jury Session


By Walter F. Roche Jr.

The Greene County resident who brought his concerns about the US Nitrogen project to a grand jury expressed disappointment following his appearance today.
"Secrecy laws prevent me from saying anything more than that I was disappointed to not  be able to get any documentation past the three member panel of grand jury foreman and two jurors," Donahue Bible said in a brief statement following his meeting with the three grand jury members.
"I have never been more ashamed of Greene County in my 79 years," he added.
Bible has questioned three land transactions between US Nitrogen and J.W. Douthat, a local resident who serves on the Industrial Development Board of Greeneville and Greene County.
Douthat also served on the board of the Old Knox Utility District until April of 2014.
Douthat and US Nitrogen have insisted there was nothing improper about the land option and two subsequent property purchases from Douthat.
Bible asked for the opportunity to appear before the panel after District Attorney General Dan Armstrong told Bible and his attorney that he saw no violations of state law in the transactions.
Bible has pointed out that Douthat voted once on a measure involving US Nitrogen's pipeline proposal.
The pipeline allowed US Nitrogen to bypass the utility district in obtaining and disposing of millions of gallons of water for its ammonium nitrate manufacturing facility.

Contact:wfrochejr999@gmail.com

Sunday, November 22, 2015

Grand Jurors to Hear Details of Land Transactions


By Walter F. Roche Jr.

A Greene County resident is set to appear tomorrow before members of a county grand jury to give testimony about three land transactions involving a local official and US Nitrogen.
Donahue Bible, a longtime opponent of the US Nitrogen project, made a personal plea to the grand jury foreman Ron Metcalfe for the opportunity to present details of the three transactions all involving US Nitrogen and J.W. Douthat.
He made the plea under a rarely used provision of state law under which private citizens can personally bring information to the panel.
Metcalfe agreed and the Monday date for an appearance was set.
Bible made the personal appeal after District Attorney Dan Armstrong told Bible and his attorney that he did not believe the transactions involved any criminal conduct.
Bible will meet with Metcalfe and two other grand jurors. They will then bring the matter to the full grand jury which will then determine whether to initiate a formal investigation or drop the matter.
Both US Nitrogen and Douthat have denied any wrongdoing.
The first transaction, a land option agreement, was signed on Sept. 13, 2013, while Douthat was a member of the Old Knox Utility District and the Industrial Development Board of Greeneville and Greene County. Both boards have played major roles in the US Nitrogen project.
 Douthat abstained from an earlier vote on the project, but then did vote as an IDB board member at a July 18, 2014 IDB meeting on a motion to resubmit for state approval a 12 mile double barrelled pipeline to be located along the rights of way of two state highways.
The motion was approved and the state, in an apparent reversal, also endorsed the pipeline plan.
With the pipeline to the Nolichucky River, US Nitrogen was able to avoid purchasing millions of gallons a month from the utility district. Douthat eventually resigned from the utility district board.
Though the company says the option agreement was never exercised, Douthat's company did later sell two parcels to US Nitrogen.
A 13.67 acre property was sold to US Nitrogen for $148,740 on Oct. 9 of last year. Douthat Properties, LLC sold a second larger tract to US Nitrogen for $851,251.38 on Oct. 24.
US Nitrogen subsequently sold that second parcel for $550,000, a nearly $300,000 or 35 percent loss.
Contact: wfrochejr999@gmail.com

 


Friday, November 20, 2015

Citations Issued in US Nitrogen Inspection


By Walter F. Roche Jr.

A two-day on site state inspection of the sprawling US Nitrogen facility in Mosheim Greene County turned up several violations of regulations but officials concluded it "generally appeared to be consistent" with multiple environmental permits.
The results of the mid-September inspection were posted recently on the state Department of Environmental Conservation website. US Nitrogen is required to file an action plan within 30 days with a proposed implementation schedule.
The state officials also noted that some items, such as  records and equipment, were missing simply because the ammonium nitrate manufacturing facility is not yet in operation.
"Some pieces of equipment, such as cartridge filters were noted as missing from the process diagram," the seven-page report states, adding that available records were limited because the plant is "not yet in operation."
The report dated Oct. 29 was based on a visit conducted on Sept. 15 and 16.
Deficiencies cited include a lack of required data in stormwater runoff reports and a missing signage required under state permits.
Also cited was the need for flow monitors and some deficiencies in erosion preventon and sediment control with straw bales in disrepair. Some records retention requirements were "inconsistent" and for some needed verifications were missing, the report states.
They noted US Nitrogen did not yet have a needed industrial users permit from Mosheim.
 But the report also cites positive findings
"Areas disturbed for installed pipelines generally appeared to be stabilized with vegetative cover," the report states, adding that "production areas appear to be largely complete."
And "rockcheck dams "appear to be properly installed."
The inspection team quoted US Nitrogen's Justin Freeark as stating that actual operations were expected to being in 2016.
A cooling tower was already operational and had been filled with water from the Old Knox Utility District a few days earlier, according to the report.
Contact: wfrochejr999@gmail.com


Friday, October 30, 2015

Judge Allows One Landowners Suit to Go Forward


By Walter F. Roche Jr.

A Davidson County judge today allowed a suit challenging the legality of a  permit issued by the state for the construction of a 12-mile pipeline serving the US Nitrogen plant in Midway to go forward.
In a session of a little under one hour, Chancery Court Judge Claudia Bonnyman dismissed another parallel suit turned filed by opponents of the pipeline.
Attorneys for the Tennessee Department of Transportation had argued that the landowners lacked the legal standing to challenge the permit issued for the pipeline to the Nolichucky River.
"We are alive and standing," said Nashville attorney Elizabeth Murphy, who represents the landowners.
Murphy said she will now file an amended complaint and the next step in the suit could be an effort to conduct depositions and subpoena documents.
Murphy said the remaining case will now go forward on the issue of whether TDOT had the legal authority to issue the permit.
She has asked for a for a declaratory judgment that the agency exceeded its authority when it issued the permit last year.
Though the pipeline is apparently complete, the plant, which will produce ammonium nitrate, is not yet in operation. A phased-in startup is expected by the end of the calendar year.
Contact:wfrochejr999@gmail.com

Monday, October 26, 2015

Pipeline Opponent Makes Direct Appeal to Grand Jury


By Walter F. Roche Jr.

Rebuffed by the district attorney general, a Greene County resident has made a direct appeal to the foreman of the Greene County Grand Jury to gather evidence about a transaction related to the US Nitrogen project.
In an Oct. 12 letter to Ron Metcalfe, the jury foreman, Donahue Bible asked for a meeting to discuss a land option agreement between a local official and US Nitrogen.
Bible made the direct appeal after District Attorney General Dan Armstrong concluded in a letter to Bible and his attorney that he saw nothing illegal in the option agreement between J. W. Douthat and US Nitrogen.
"I am requesting a meeting with you at your earliest convenience," Bible wrote in the letter to Metcalfe, citing a state law that gives private citizens the right to bring evidence directly to a county grand jury.
Bible noted that he has been a resident of Greene County for 50 years and his property abuts the Nolichucky River.
The US Nitrogen project includes a 12 mile double barrelled pipeline from the Nolichucky River to the newly constructed US Nitrogen manufacturing facility.
"We have not been able to convince Attorney General Armstrong to take our evidence to the grand jury," Bible continued.
Despite several meetings and discussions, Bible said all of his efforts have been unsuccessful.
Bible said he wants the panel to look into the Sept. 11, 2013 land option agreement between Douthat and US Nitrogen.
At the time Douthat was a member of the Industrial Development Board of Greeneville and Greene County and the Old Knox Utility District, both of which played major roles in the project.
Though he abstained from an earlier vote on the US Nitrogen project, Douthat cast a favorable vote at a July 18 IDB meeting on a motion to resubmit an application to the state for approval of the pipeline project. The motion was approved.
The pipeline made it possible for US Nitrogen to bypass the Old Knox Utility District for the purchase of millions of gallons of water per week.
Two Douthat properties were eventually sold to US Nitrogen.
A 13.67 acre property was sold to US Nitrogen for $148,740 on Oct. 9 of last year. Douthat Properties, LLC sold a second larger tract to US Nitrogen for $851,251.38 on Oct. 24. 
US Nitrogen subsequently sold that second parcel for $550,000, a nearly $300,000 loss or 35 percent loss.
Contact: wfrochejr999@gmail.com


Sunday, October 25, 2015

Pipeline Opponents Charge Permit Is Recruitment Tool, Political Favor


By Walter F. Roche Jr.

Opponents of a 12 mile pipeline to the Nolichucky River are charging that the permit for that pipeline
was issued as a political favor and a corporate recruitment tool.
The charges are included in an 18-page motion for summary judgment filed in Davidson Chancery Court in a suit challenging the legality of a state permit that made the US Nitrogen pipeline possible.
The motion states that the Tennessee Department of Transportation, which issued the permit on July 31, 2014, does not have the authority "to issue a utility occupancy permit to chemical manufacturers."
The filing comes as an opposing motion seeking outright dismissal of the suit is scheduled for a Friday hearing in Nashville before Chancellor Claudia Bonnyman.
The suit was filed by Nashville attorney Elizabeth Murphy, who represents Greene County landowners, including two who have charged that US Nitrogen trespassed on their property to install the pipeline.
TDOT, US Nitrogen and the Industrial Development Board "came across private farms with the disputed pipeline" accompanied by armed security, the motion states. 
TDOT lawyers have asked for the suit to be dismissed asserting that the agency does have the legal authority to issue a permit on state highway right-of-way.
Citing the applications filed by US Nitrogen to TDOT last year, the summary judgment motion notes that the application itself cites the support of Gov. Bill Haslam.
Referring to the state law governing right-of-way permits, the filing states that the permits should only be granted to utilities and not as "political gift packages."
Instead of going to a utility serving the general public, the permit was issued as a "corporate recruitment tool promoted by politicians to bring chemical manufacturers to East Tennessee,"the motion states.
Also filed by Murphy was a 10-page statement of undisputed facts, which recounts the history of the pipeline application, including an initial rejection by TDOT.
Stating that US Nitrogen "can pay for water like everyone else," the filing notes that the company initially said it planned to purchase needed water from local utilities, but then abandoned those plans.
The hearing on the summary judgment motion is scheduled for Nov. 6.
Contact: wfrochejr999@gmail.com




Saturday, October 17, 2015

Amended Complaint Filed in US Nitrogen Suit


By Walter F. Roche Jr.

Opponents of the US Nitrogen project have filed an amended complaint in a suit filed to challenge the legality of a permit issued for a 12 mile pipeline.
The amended complaint comes as an Oct. 30 date has been set for a hearing on motions to dismiss the complaint in its entirety.
The amended complaint filed in behalf of local residents Ann Calfee, Jack Renner, Jeremiah Cluesman, Ruth Dolin and Rueben Stone, asks a Davidson County Chancery Judge to declare that the permit issued by the Tennessee Department of Transportation (TDOT) is invalid.
Originally the plaintiffs had asked for an injunction to halt construction of the pipeline, but that issue became moot as US Nitrogen went forward with the pipeline which connects to the Nolichucky River.
"Petitioners request the court to declare that the statutes governing TDOT ... do not authorize it to grant use of public highway rights-of-way to non-utilities and do not allow granting the rights of way for economic development other than for gas lines via bridge attachments," the new complaint states.
The suit is one of the few remaining as several other efforts to block the US Nitrogen project in the courts have been turned back.
Attorneys for TDOT have denied the charges in the suit and have asked Chancery Court Judge Claudia C. Bonnyman to dismiss the case.
The $200 million US Nitrogen project is nearing completion and company officials have announced a phased-in startup for later this year.
The amended complaint filed earlier this month by Nashville attorney Elizabeth L. Murphy repeats the details of the original complaint.
"The TDOT permit No. TN 81566 does not conform to state law or TDOT rules," the new filing concludes.
Contact: wfrochejr999@gmail.com

Tuesday, October 6, 2015

Excess Magnesium Runoff Reported at US Nitrogen Site


By Walter F. Roche Jr.

An official of US Nitrogen has reported to Tennessee regulators that storm water runoff at its Midway site exceeded by more than 100 times the national cut off on concentration limits for magnesium.
In a Sept. 18 letter to the state Department of Enviroment and Conservation, Justin Freeark, US Nitrogen plant manager  reported the high magnesium concentrations were recorded at three separate locations.
The two-page letter did not specify when the high readings were recorded, but the company said in a statement that the readings came in a recent annual test required under its state permit.
"Magnesium concentrations of 6.44 milligrams per liter (mg/L), 8.54 mg/L and 12.3 mg/L were reported, respectively. The cut-off concentration for magnesium is 0.64 mg/L," the letter to TDEC states.
Freeark noted that the plant, which will produce ammonium nitrate, is not yet in operation. Company officials have announced a phased in start-up pegged to begin by year's end.
In the letter, which was sent to TDEC's regional office in Johnson City, Freeark added, "Once operations do begin, industrial activities at the facility will not utilize magnesium or materials containing notable levels of magnesium."
According to the letter, the company suspects the high concentrations comes "from background concentrations, potential fertilizer application, and/or from water flowing through or across rock."
Freeark stated that magnesium levels exceeding the benchmark level "have been detected in water samples collected in the Nolichucky River and other area surface waters."
In a footnote, Freeark reported that magnesium levels of 4.5 mg/L were found in test samples from the Nolichucky and 2.6 mg/L in Greeneville's public water supply. Those samples were tested and collected by a private firm on contract to US Nitrogen.
He also disclosed that magnesium was a component of the fertilizer applied on the site to establish a permanent vegetative cover.
In the statement issued today, US Nitrogen noted that the test result were "self reported." The company stated that the benchmark standard "is not locally adjusted to account for existing levels of magnesium in the Greene County environment."
The company added that since this was the first annual report, it was the first time that magnesium levels have been recorded.
"US Nitrogen would emphasize that the company has not begun operations and therefore, the magnesium levels could not have come from any of its processes.
"Based on an investigation, US Nitrogen has submitted to TDEC that the reasons behind the magnesium levels are primarily from pre-existing background concentrations," the company statement concluded.
Contact:wfrochejr999@gmail.com

Wednesday, September 23, 2015

Nolichucky Discharge Permit

PUBLIC NOTICE The TDEC Division of Water Resources (DWR) proposes to issue a water quality National Pollutant Discharge Elimination System (NPDES) permit: Applicant: Denzil Bowman Wastewater Treatment Plant (Greeneville STP) Permit Number: TN0021229 Permit Writer: Jim McAdoo Rating: Major County: Greene EFO Name: Johnson City Location: 4520 Old Asheville Highway City: Greeneville, Tn Activity Description: Treatment of municipal sewage in an activated sludge plant followed by final settling clarifiers with chlorination Effluent: Treated municipal wastewater from Outfall 001 Receiving Stream: Davy Crockett Reservoir at Nolichucky River mile 47.5 Latitude: 36.11 Longitude: -82.84 The proposed permit contains limitations on the amounts of pollutants to be discharged, in accordance with Federal and State standards and regulations. Permit conditions are tentative and subject to public comment. For more information, or to review and/or copy documents from the permit file (there is a nominal charge for photocopies), contact Jim McAdoo at (615) 532-0684 or the Johnson City Environmental Field Office at (423) 854-5400. To comment on this permit issuance or proposed conditions submit written comments to TDEC-DWR, William R. Snodgrass - Tennessee Tower, 312 Rosa L. Parks Avenue, 11th Floor, Nashville, Tennessee 37243. Comments should be received within 30 days from the Legal Notice and should include the applicant name and NPDES Number. Interested persons may request a public hearing on any application. The request must be filed within the comment period and must indicate the interest of the filing party and reasons for the request. If there is significant interest, a hearing will be held pursuant to Rule 0400-40-05-.06(9)a, and the Director will make determinations regarding permit issuance. 9/24/15
----------------
PUBLIC NOTICE The Town of Greeneville requests proposals for purchase and redevelopment of approx. 100 acres on Hwy. 172 in Hardin Industrial Complex. The Town is seeking developers, businesses or individuals who can provide private capital investment to the property and generate strong employment opportunities for Greeneville residents. For more information, visit www.greenevilletn.gov, click on "Town Government" and "Bid Portal." Proposals to purchase/lease must be mailed or hand-delivered to: Town Hall, Attn. Todd Smith, City Administrator, 200 North College Street, Greeneville, TN 37745. Deadline for receipt of proposals is 10 a.m. (EDLST) Oct. 1, 2015. 9/17/15

Wednesday, September 9, 2015

IDB Votes to Accept US Nitrogen Settlement



By Walter F. Roche Jr.






With only one dissenting vote the Industrial Development Board of Greeneville and Greene County has voted to accept the proposed settlement of a lawsuit challenging the legality of a key element of the US Nitrogen project.
The panel gave its expected approval after opponents of the project, including Park Overall, expressed their strong disapproval.
Charging that the IDB action violated its bond agreements, Overall said the agreement would not benefit Greene County or its citizens.
"This is not legal representation, this is corruption" she said in a prepared statement.
Casting the lone opposing vote was Greene County Mayor David Crum. Jerry Fortner, whose firm was a major contractor for the project abstained.
Among those voting in favor was J.W. Douthat, whose company sold extensive property to US Nitrogen.
US Nitrogen paid nearly $1 million for 2 Douthat properties. It later sold one of them, a 78.7 acre tract, to a third party for $550,000 a loss of about 35 percent.
Under the settlement the Old Knox Utility District will drop its objections to the free use of Nolichucky River water by US Nitrogen. Old Knox also will allow two other companies, Yara North America and Praxair, to use water from the Nolichucky. The specific language of the agreement would allow the substitution of another company for Praxair.
The suit filed for the utility district had challenged the legality of an arrangement allowing the companies to bypass the utility, thus avoiding the need to purchase water from the district.
The 11-page settlement agreement already has been approved by the utility district and US Nitrogen officials have announced their approval.
Any other companies seeking to use the pipeline would be required to give the utility district a 60-day right of first refusal to provide any needed services.
Also included in the settlement is a one time payment of $50,000 by US Nitrogen to the district, but half of that total would be set aside for services or improvements benefiting US Nitrogen or the other two companies.
US Nitrogen also has agreed to pay the district a minimum of $10,000 a month for potable water purchased from the district.
The settlement awaits only the approval of a judge to be finalized. The Old Knox Utility District already voted for its approval and US Nitrogen has also given its assent.
Contact: wfrochejr999@gmail.com





Friday, September 4, 2015

Opponents Prepare for IDB US Nitrogen Vote



By Walter F. Roche Jr.

With a key vote just days away, opponents of the $200 million US Nitrogen project are signing up for a chance to voice their concerns to the Industrial Development Board of Greeneville and Greene County.
The IDB has set an 8:30 a.m. meeting time on Wednesday to vote on the settlement of a suit that challenged the legality of a major aspect of the project: the free use of millions of gallons of water per day from the Nolichucky River.
Those wishing to speak at the session must notify the mayor's office at 798-1766 by 9:30 a.m. Tuesday.
Among those who have signed up to testify are Park Overall and Scott Hurley, an attorney who represents several of the US Nitrogen project. The vote comes as the  plant, which will produce tons of ammonium nitrate per week, is nearing operational status.
Under the settlement the Old Knox Utility District will drop its objections to the free use of Nolichucky River water by US Nitrogen. Old Knox also will allow two other companies, Yara North America and Praxair, to use water from the Nolichucky. The specific language of the agreement would allow the substitution of another company for Praxair.
The suit filed for the utility district had challenged the legality of an arrangement allowing the companies to bypass the utility, thus avoiding the need to purchase water from the district.
The 11-page settlement agreement already has been approved by the utility district and US Nitrogen officials have announced their approval.
Any other companies seeking to use the pipeline would be required to give the utility district a 60-day right of first refusal to provide any needed services.
Also included in the settlement is a one time payment of $50,000 by US Nitrogen to the district, but half of that total would be set aside for services or improvements benefiting US Nitrogen or the other two companies.
US Nitrogen also has agreed to pay the district a minimum of $10,000 a month for potable water purchased from the district.
Contact: wfrochejr999@gmail.com





Thursday, August 20, 2015

IDB To Vote on US Nitrogen Settlement


By Walter F. Roche Jr.

A vote on whether to accept a proposed settlement in a lawsuit challenging a key aspect of the US Nitrogen project has been scheduled for Sept. 9 by the Industrial Development Board of Greeneville and Greene County.
Notice of the 8:30 a.m. meeting of the panel was published this week. The notice also states that residents who wish to speak at the meeting must call the county mayor's office at 798-1766 by 9:30 a.m. Sept. 8.
The settlement will likely end a suit filed by the Old Knox Utility District challenging part of the US Nitrogen project that will bypass the district  by pumping water from the Nolichucky River.
The 11-page agreement already has been approved by the utility district board. US Nitrogen officials have also signaled agreement.
Under the agreement US Nitrogen, Yara North America and Praxair "or related, substitute, or other entities" will be able to use a 12-mile double barrelled pipeline to draw water from the river.
Other new companies seeking to use the pipeline would be required to give the utility district a 60-day right of first refusal to provide any needed services.
The inclusion of the two additional companies could overcome concerns by state officials that the pipeline would serve only one company. State transportation officials rejected the original pipeline proposal for that reason.
Under the agreement US Nitrogen will pay $50,000 to the utility district, but half of that total will be set aside for services or improvements to US Nitrogen and the other two companies.
In addition to the $50,000 payment, the agreement calls for US Nitrogen to provide a monthly $10,000 guaranty of payments for potable water that will be used at the Mosheim facility.
Contact: wfrochejr999@gmail.com

Wednesday, August 19, 2015

US Nitrogen Contractor No Longer Qualified In Tennessee


By Walter F. Roche Jr.


A South Carolina company on contract to provide security services to US Nitrogen had its charter to conduct business in the state of Tennessee revoked early this year.
State corporate records show ASG or A Services Group LLC had its authority to conduct business in Tennessee revoked by state officials on Jan. 14, 2015. Filings say the action was taken due to ASG's failure to file an annual report with state tax officials.
Earlier this week US Nitrogen announced it had hired new security personnel who would be working with ASG, which already was under contract with the Greene County ammonium nitrate manufacturing firm.
In a statement issued Wednesday in response to questions about ASG's corporate status, US Nitrogen said that ASG's status had been checked before it was brought on as a subcontractor.
"When US Nitrogen began its relationship with ASG the company was in good standing with the state of Tennessee," the company statement reads.
US Nitrogen officials said ASG has informed them that they are currently working to renew a state business license "that lapsed due to late paperwork filed during an office move."
"US Nitrogen has been assured by ASG that the company has submitted all necessary materials to the state to renew its license. US Nitrogen will follow up to confirm that the company has returned to good standing with the State of Tennessee and will evaluate any further action, as needed," the US Nitrogen statement concluded.
Tennessee corporate records from prior years list Dann Steadman of Greeneville as the resident agent, while Walter A. Glenn of Conway, S.C. is listed as a corporate officer.
US Nitrogen officials have stated that actual operation of the $200 million plant will begin later this calendar year.
Contact: wfrochejr999@gmail.com

Monday, August 17, 2015

US Nitrogen Brings On Security Team, Preparing for Startup


By Walter F. Roche Jr.

Officials of US Nitrogen announced today they have hired eight persons who will serve as a permanent security staff for the $200 million Greene County facility.
The hires were announced by Justin Freeark, the company's top official, who also disclosed that a total of 85 employees have been hired to man the plant which will produce ammonium nitrate.
"Our Team is ready" Freeark said in a prepared statement. He added that more than 85 percent of those hired reside in Greene County.
He said some of those employees have been training for over a year.
A company spokeswoman said actual production will begin on a phased basis later this year.
According to the company statement, the new security personnel will be working along with a private security company, A Services Group, already working for US Nitrogen.
The announcement comes as legal challenges to the new facility and a controversial pipeline are making their way through the courts. Last month the state appellate court rebuffed an appeal by one group challenging the legality of the project.
The court found that the appeal had been filed a day after the deadline.
Other challenges include a case pending in Davidson Chancery Court and suits by local residents.
Contact: wfrochejr999@gmail.com

Wednesday, July 22, 2015

Proposed Settlement Benefits US Nitrogen and Two Other Firms




By Walter F. Roche Jr.


A proposed settlement agreement between the Old Knox Highway Utility District, local government agencies and US Nitrogen would allow two other firms to draw water from the Nolichucky River through a controversial 12-mile pipeline.
The 11-page agreement, which was approved by the utility district board at a Monday evening meeting would end a lawsuit that challenged the legality of the agreements that made construction and use of the pipeline possible.
Included in the agreement is a provision that US Nitrogen, Yara North America and Praxair "or related, substitute, or other entities" could continue to use the pipeline to draw water from the river.
Other new companies seeking to use the pipeline would be required to give the utility district a 60-day right of first refusal to provide the needed services.
The inclusion of the two additional companies could overcome concerns by state officials that the pipeline would serve only one company. State transportation officials rejected the original pipeline proposal for that reason.
Under the agreement, which must be approved by the Industrial Development Board of Greeneville and Greene County, US Nitrogen would pay $50,000 to the utility district, but half of that total would be set aside for services or improvements to US Nitrogen and the other two companies.
The proposed settlement was voted on Monday evening by two of the three current members of the utility district board. The proposal has yet to come before the industrial development board, but US Nitrogen officials said they would sign it.
"Old Knoxville Highway Utility District will be valuable partner as we near the completion and startup of our state-of-the-art plant. US Nitrogen will be a long-term monthly customer of the utility district purchasing potable water needed for its facility from the utility district," US Nitrogen plant manager Justin Freeark said in a written statement. 
In addition to the $50,000 payment, the agreement calls for US Nitrogen to provide a monthly $10,000 guaranty of payments for potable water that will be used at the Mosheim facility.
Donahue Bible, a local resident and opponent of the project, said he was present at the Monday meeting along with two other residents who share his views on the pipeline.
He said he urged the panel to continue the court fight and felt betrayed by the board's decision.
"I thought we were all on the same side and would fight the battle together," he said, adding that the settlement "virtually pulled the plug out from under us."
Contact: wfrochejr999@gmail.com
______________________________________________________________________

PROPOSED SETTLEMENT

IN THE 3RD JUDICIAL DISTRICT OF THE STATE OF TENNESSEE
GREENE COUNTY CHANCERY COURT
OLD KNOXVILLE HIGHWAY )
UTILITY DISTRICT, )
)
Plaintiff, )
)
v. ) Civil Action No. 20140215
)
INDUSTRIAL DEVELOPMENT )
BOARD OF THE TOWN OF )
GREENEVILLE AND GREENE ) JURY DEMAND
COUNTY; and )
US NITROGEN LLC, )
)
Defendants. )
SETTLEMENT AGREEMENT AND RELEASE
THIS SETTLEMENT AGREEMENT AND RELEASE is made and entered into this
_____ day of July, 2015, by, between, and among Old Knoxville Highway Utility District
(“Plaintiff”), on the one hand, and The Industrial Development Board of the Town of Greeneville
and Greene County, Tennessee (“IDB”) and US Nitrogen LLC (“US Nitrogen”) (collectively
with the IDB, “Defendants”), on the other hand.
The Plaintiff filed the above-styled proceeding in the Greene County Chancery Court (the
“Proceeding”). In the Proceeding, the Plaintiff sought to enjoin the Defendants from operating a
non-potable water system constructed by the IDB that begins at the Nolichucky River near the
Conway Bridge, runs along State Highways 340 and 348, and terminates at US Nitrogen’s
facility located at 471 Pottertown Road, Midway, Tennessee 37809 (“US Nitrogen Facility”),
which is designed to take water out of and discharge water into the Nolichucky River (“Water
System”).
4816-5346-9986.9
2
Recognizing that bona fide disputes and controversies exist as to the claims against and
the liability of the Defendants, the undersigned have entered into this Settlement Agreement and
Release in order that each and every aspect of such disputes and controversies and all claims can
be resolved between the Defendants and the Plaintiff and that the risk and cost of any further
litigation between them can be forever avoided.
IT IS THEREFORE AGREED AS FOLLOWS:
I.
RELEASE, ACQUITTAL, AND DISCHARGE
In consideration of the items fully detailed in Section II below, the Plaintiff hereby
completely releases, acquits, and forever discharges the following:
(a) US Nitrogen and its employees, representatives, attorneys, assigns,
predecessors, successors, corporate parents, subsidiaries, affiliates,
divisions, officers, members, managers, and/or directors; and
(b) The IDB and its employees, representatives, attorneys, assigns,
predecessors, successors, corporate parents, subsidiaries, affiliates,
divisions, officers, members, managers, and/or directors.
All of the individuals or entities named or referred to above are hereinafter collectively
referred to as the “Released Parties.” The Released Parties are completely released, acquitted,
and discharged from the following claims:
(a) All claims that are asserted in the Proceeding; and
(b) Any and all known or unknown claims related to the Proceeding or the
construction and operation of the Water System that have accrued as of the
Effective Date.
4816-5346-9986.9
3
All of the aforementioned claims are referred to as the “Released Claims.” The Released Claims
shall not include any breach of this Settlement Agreement and Release.
II.
PAYMENTS AND CONSIDERATION
As consideration for the promises, agreements, obligations, releases, and representations,
and any and all other undertakings included in this Settlement Agreement and Release, the
Plaintiff and Defendants agree to the following terms:
(a) US Nitrogen shall pay the sum of FIFTY THOUSAND DOLLARS ($50,000.00)
(“Settling Payment”), to the order of the Plaintiff as the “Old Knoxville Highway
Utility District.” The Plaintiff agrees to hold one-half of the Settling Payment, or
twenty-five thousand dollars ($25,000.00), for future maintenance or upgrades of
the water infrastructure facilities of the Plaintiff or the Defendants at or around
the US Nitrogen Facility that directly benefit the US Nitrogen Facility. The
Plaintiff shall make these expenditures within fifteen (15) years of the Effective
Date of this Settlement Agreement and Release. The Plaintiff may use the
remainder of the Settling Payment for any purposes it wishes.
(b) The Defendants agree not to knowingly make any water or any part of the Water
System available to any past, current, or future customer of the Plaintiff, with the
exception of US Nitrogen and its co-locating companies.
(c) The Defendants shall, in the event any individual or entity not being served by the
Plaintiff on the Effective Date requests service from the Water System (such
individual or entity is a “Potential Customer”), provide written notice of such to
the Plaintiff. The Plaintiff shall have sixty (60) days from the date of such written
4816-5346-9986.9
4
notice to agree to provide service to such Potential Customer (“Plaintiff’s Right of
First Refusal”). The Plaintiff’s Right of First Refusal shall not apply to the first
two companies currently exploring or that may explore a co-location agreement
with US Nitrogen (Yara North America, Inc.; Praxair, Inc.; or related, substitute,
or other entities), and the parties acknowledge that these co-locating companies
may obtain non-potable water service via the Water System. The Plaintiff’s Right
of First Refusal shall apply to all other companies co-locating at the US Nitrogen
Facility that may require water other than those described herein. The Plaintiff
shall have only the obligation to agree to provide service as part of the Plaintiff’s
Right of First Refusal within sixty (60) days of the written notice to the Plaintiff
from the IDB or US Nitrogen that a Potential Customer seeks service from the
Water System, and the Plaintiff will not be required to provide service within that
sixty (60) day period. Once notice is given by the Plaintiff that it intends to
provide service to a Potential Customer, such Potential Customer shall be
considered a “current” customer of the Plaintiff as used in subsection (b) of this
Section.
(d) US Nitrogen agrees to pay to the Plaintiff the greater of (1) a $10,000 monthly
service fee or (2) the value of the actual total amount of water obtained from the
Plaintiff and used in a given calendar month at the Plaintiff’s water rate in effect
at the time the water is provided to US Nitrogen, if and when the following
condition is met: US Nitrogen operates at nameplate capacity (i.e., the intended
sustained output of the facility as specified in the facility’s engineering
specifications) for at least twenty (20) days per calendar month.
4816-5346-9986.9
5
(e) The Plaintiff and US Nitrogen shall review the terms of subsection (d) of this
Section every five (5) years and renegotiate these terms at that time or at any
other time as mutually agreed.
(f) The parties agree that the payment of their respective attorneys’ fees and costs,
including referral fees, and the repayment or compromise of any and all claims
and liens, including but not limited to subrogation, property damage, and
attorneys’ liens or claims, or any other liens or third-party claims, will be the sole
responsibility of each party.
(g) The Defendants and the Plaintiff hereby state and acknowledge that no portion of
the proceeds paid under this Settlement Agreement and Release represents
exemplary, punitive, or mental anguish damages, nor pre-judgment or postjudgment
interest, nor damages on account of physical injuries.
(h) The Plaintiff and US Nitrogen shall negotiate in good faith a Water Service
Agreement that contains any details necessary to effectuate this Settlement
Agreement and Release and that governs the relationship of the two parties with
respect to potable water supplied by the Plaintiff to US Nitrogen. The parties
acknowledge that any such Water Service Agreement shall be consistent with the
Plaintiff’s Rules and Regulations as currently applicable to US Nitrogen and not
inconsistent with this Settlement Agreement and Release. The Plaintiff and US
Nitrogen shall negotiate and sign this Water Service Agreement on or before
September 1, 2015, unless both parties agree to an extension. US Nitrogen
projects it will require from Plaintiff potable water at the rate of approximately
300 gallons per minute (gpm) on average calculated daily on or about September
4816-5346-9986.9
6
1, 2015, or soon thereafter, for a period of several months during start-up of the
US Nitrogen Facility. Plaintiff agrees to use its best efforts to provide US
Nitrogen with potable water at this rate for the duration of start-up of the US
Nitrogen Facility, such startup not to exceed four months. Plaintiff’s obligation to
supply potable water shall be conditioned on its ability to so do in light of all
relevant circumstances, including without limitation environmental conditions,
drought and other acts of nature, emergencies due to mechanical failures,
unlawful acts of others, fire and other catastrophes, and restrictions imposed by
law or by state or federal officials. In any of these events, Plaintiff’s obligation to
supply US Nitrogen shall be limited to using its best efforts to supply such
quantities of water as is equitable in light of all relevant circumstances.
III.
DISMISSAL WITH PREJUDICE AND COSTS
The parties hereby agree to execute through their respective attorneys an Agreed Order of
Dismissal with Prejudice dismissing with prejudice the Proceeding and all of the Plaintiff’s
claims against the Defendants in the Proceeding, and with the clerk’s mandatory costs assessed
to the Plaintiff.
IV.
REPRESENTATIONS AND WARRANTIES
OF THE DEFENDANTS
The Defendants expressly warrant and represent to the Plaintiff that:
1. They are legally competent to execute this Settlement Agreement and Release.
2. They are the owners and/or operators of the Water System.
4816-5346-9986.9
7
3. They understand and agree that this Settlement Agreement and Release is in their
best interests.
4. They understand and agree that this Settlement Agreement and Release terminates
the Proceeding.
5. They have had the benefit of professional advice of attorneys of their own
choosing, and they are fully satisfied with that advice, and have relied solely and
completely upon their own judgment, together with that professional advice.
6. No promise or representation of any kind has been expressed or implied to them
by the Plaintiff, or by anyone acting for it, except as is expressly stated in this
Settlement Agreement and Release.
7. They are not relying upon any advice of the Plaintiff, or of its counsel or
representatives, as to the legal and tax consequences of this Settlement Agreement
and Release.
8. They have read, had explained to them by their respective attorneys to their
satisfaction, and understand the dismissal with prejudice to be entered by the
Court in the Proceeding, and have authorized its entry.
V.
REPRESENTATIONS AND WARRANTIES
OF THE PLAINTIFF
The Plaintiff expressly warrants and represents to the Defendants that:
1. It is legally competent to execute this Settlement Agreement and Release.
2. It understands and agrees that generally, the IDB will own the Water System and
that US Nitrogen will operate the Water System to supply its non-potable water
4816-5346-9986.9
8
requirements, and does not object to the IDB and US Nitrogen owning and
operating the Water System.
3. It understands and agrees that this Settlement Agreement and Release is in its best
interest.
4. It understands and agrees that this Settlement Agreement and Release terminates
the Proceeding.
5. It has had the benefit of professional advice of attorneys of its own choosing, and
it is fully satisfied with that advice, and has relied solely and completely upon its
own judgment, together with that professional advice.
6. No promise or representation of any kind has been expressed or implied to it by
the Defendants, or by anyone acting for them, except as is expressly stated in this
Settlement Agreement and Release.
7. It is not relying upon any advice of the Defendants, or of their counsel or
representatives, as to the legal and tax consequences of this Settlement Agreement
and Release.
8. It has read, had explained to it by its attorney to its satisfaction, and understands
the dismissal with prejudice to be entered by the Court in the Proceeding, and has
authorized its entry.
VI.
ADDITIONAL DOCUMENTS
All parties agree to cooperate fully and execute any and all supplementary documents
and to take all additional actions that may be necessary or appropriate to give full force and
effect to the basis and intent of this Settlement Agreement and Release.
4816-5346-9986.9
9
VII.
ENTIRE AGREEMENT AND SUCCESSORS IN INTEREST
This Settlement Agreement and Release contains the entire agreement between the
Defendants and the Plaintiff with regard to the matters set forth in it and shall be binding upon
and inure to the benefit of the executors, administrators, personal representatives, heirs,
successors, and assigns of each. Other than water service agreements (existing and to be
written) and related documents, there are no other understandings or agreements, oral or
otherwise, in relation thereto, between the parties. No oral understandings, statements,
promises, or inducements contrary to or inconsistent with the terms of this Settlement
Agreement and Release exist. This Settlement Agreement and Release is not subject to any
modification, waiver, or addition that is made orally. This Settlement Agreement and Release
is subject to modification, waiver, or addition only by means of a writing signed by all parties.
This provision may not be waived.
VIII.
CONSTRUCTION
This Settlement Agreement and Release is not to be construed in favor of any particular
party and is to be construed as if drafted by all parties to this Settlement Agreement and Release.
A determination that any provision of this Settlement Agreement and Release is unenforceable,
invalid, or illegal shall not affect the enforceability, validity, or legality of any other provision.
A determination that the application of any provision of this Settlement Agreement and Release
to any person or circumstance is unenforceable, invalid, or illegal shall not affect the
enforceability, validity, or legality of such provision as it may apply to other persons or
circumstances.
4816-5346-9986.9
10
IX.
EFFECTIVENESS
This Settlement Agreement and Release shall become effective immediately upon
execution by the Plaintiff and both of the Defendants.
X.
GOVERNING LAW
The laws of the State of Tennessee and applicable federal laws shall apply to this
Settlement Agreement and Release, without regard to conflicts of law principles.
XI.
PARAGRAPH HEADINGS
Paragraph headings herein are for convenience and reference only and in no way define,
limit, or enlarge the rights and obligations of the parties under this Settlement Agreement and
Release.
XII.
MULTIPLE ORIGINALS
This Settlement Agreement and Release can be executed in multiple originals, all of
which, when taken together, shall constitute the original.
4816-5346-9986.9
11
Defendants
US Nitrogen LLC
Name: __________________________
Title: ___________________________
Date: ___________________________
The Industrial Development Board of the
Town of Greeneville and Greene County,
Tennessee
Name: __________________________
Title: ___________________________
Date: ___________________________
Plaintiff
_________________________________
Old Knoxville Highway Utility District
Name: ______________________________
Title: _______________________________
Date: _______________________________
Approved:
_____________________
Benjamin A. Gastel
Counsel for Plaintiff
______________________
Michael K. Stagg
Counsel for Defendant US Nitrogen LLC
______________________
Jerry L. Laughlin
Counsel for Defendant The Industrial Development Board of the Town of Greeneville and
Greene County, Tennessee

















Tuesday, July 21, 2015

US Nitrogen Shipments Could Stay In Tennessee


By Walter F. Roche Jr

Truckloads of ammonium nitrate from the new US Nitrogen plant in Mosheim could be shipped not to some distant location but just 106 miles down the road to a federally licensed explosives manufacturing facility in LaFollette, TN.
State and federal records show Austin Powder, the parent company of US Nitrogen, operates the Tennessee explosives manufacturing facility that has been in operation since 2002 in LaFollette at 375 Austin Powder Lane.
US Nitrogen officials did not immediately respond to questions about the LaFollette plant and whether some or all of the ammonium nitrate produced in Mosheim will be shipped to LaFollete for processing to manufacture explosives.
In public statements and on its website US Nitrogen has repeatedly stressed that explosives will not be produced in Mosheim and they have stated that the ammonium nitrate will be shipped to Austin plants across the country.
"The majority of the product will be shipped east of the Mississippi River as far north as Canada and as far south as Florida," the US Nitrogen's website states.
The LaFollette plant, state licensing records show, was found to be out of compliance on May 19 of this year for failure to conduct required quarterly inspections of an unnamed stream that flows into nearby Big Creek.
State reports show that the site was found to be back in compliance with state regulations on July 10.
 According to the state report, the plant is on a 115 acre site and 40 of those acres are used for manufacturing.
The report states that the facility uses ammonium nitrate and fuel oil to "produce Austinite Blasting Agents. A mobile mix plant is used to produce emulsion blasting agent several times a month."

The same facility was cited by officials of the federal Bureau of Tobacco and Firearms in 2004 for making false entries in records required under Austin's federal license.
A total of 25 violations were recorded during a three day inspection of the facility in mid-April of 2005.
The Tennessee violations were among dozens from other Austin Powder facilities across the country noted in a 2005 plea agreement filed in U.S. District Court in Pennsylvania. Austin agreed to a five day shutdown of the LaFollete plant as part of the settlement.
Under the plea deal Austin agreed to pay a little over $1 million in fines and penalties. Several of its other facilities were shutdown for similar periods of time, court records show.
Nearly a decade earlier Austin was fined $7 million when it entered a  guilty plea to price fixing charges.
In addition to the LaFollette plant, records show Ohio based Austin owns two parcels of land in Sullivan County that were purchased in 2007. One parcel is 11 acres and the other 43 acres.
CONTACT: wfrochejr999@gmail.com

Saturday, June 27, 2015

Austin Powder Appeal Denied

By plant Walter F. Roche Jr.


An administrative law judge has turned down an appeal by the Austin Powder Co. of fines imposed by a federal mining agency for violations cited in 2012 for a facility in Decatur County.
In a decision handed down earlier this month Administrative Law Judge Kenneth Andrews concluded that Austin still must pay a fine for violations cited by the U.S. Mine Safety and Health Administration (MSHA).
The violations were found at an explosives storage facility Austin operates on rented land in Decatur County. The land, known as Parsons Quarry, is owned by Vulcan Construction Materials
Austin is the owner of US Nitrogen which is completing construction of a more than $200 million ammonium nitrate manufacturing facility in Greene County.
Attorneys for Austin had argued that the company did not get adequate notice that it was subject to the federal agency's jurisdiction.
They noted that the same agency had vacated previous citations against Austin because of a lack of jurisdiction. The citations issued in 2008 involved lack of protective gear to protect against an electric charge causing an explosion.
Andrews, however, concluded in his 23-page decision, that federal law made it clear that Austin was indeed subject to agency regulation and the company should have been aware of it.
"A plain language reading of the Mine Act shows that MSHA has jurisdiction over the respondents leased property at Parson Quarry," Andrews wrote, adding that the language of the statute "is clear and unambiguous."
He also rejected Austin's claims that its use of the storage area was "de minimus" and not subject to agency oversight.
He ordered the two parties to confer over the next 30 days in an attempt to reach a compromise on the fines and penalties to be imposed.

Friday, May 29, 2015

Trespass Suit Filed On USN Pipeline

By Walter F. Roche Jr.

Four Greene County residents have filed suit charging that a controversial 12-mile pipeline was illegally installed on their property and they are seeking up to $2.5 million in damages.
The six-page suit filed today in Greene County Circuit Court names as defendants US Nitrogen and the Industrial Development Board of Greeneville and Greene County.
The complaint seeks up to $500,000 in regular damages and up to $2 million in punitive damages.
"Despite repeated warnings the defendants and their agents entered upon the private property of the plaintiffs without permission, consent or any right to do so," the suit states.
It charges that not only were parts of the pipeline placed on private property, but the defendants unlawfully appropriated truckloads of dirt and soil belonging to the plaintiffs.
Those filing the suit are Donahue Bible, Jack and Margaret Renner and Donna Snowden.
The suit is but the latest in a series of legal challenges to the pipeline which will be used to supply water to US Nitrogen's $200 million ammonium nitrate manufacturing facility.
Plans call for more than a million gallons of water per day to be pumped from the Nolichucky River to the US Nitrogen plant.
One legal challenge to the plant and pipeline was  rebuffed last week in a ruling by Greene County Chancellor Douglas Jenkins. Another challenge is pending in Davidson County Chancery Court.
Officials of US Nitrogen have insisted that the pipeline was being properly placed on the rights-of-way for Routes 340 and 348.
The new suit charges that US Nitrogen and the IDB engaged in "outrageous conduct" and were intentionally reckless thus justifying an award for punitive damages.
wfrochejr999@gmail.com

Tuesday, May 26, 2015

US Nitrogen Declines to Identify Employers in Drug Arrests

By Walter F. Roche Jr.


Officials of US Nitrogen will not disclose the companies that employed three workers on the company's $200 million Greene County project who were arrested last week on drug charges.
Responding Tuesday to questions about the arrests, US Nitrogen spokeswoman Amanda Jennings would only say that the three were not directly employed by US Nitrogen.
"The individuals in question were employed by independent contractors working on the US Nitrogen site," she wrote in an email.
Records show that two of the three arrested had prior arrests and one of those, Howie C. Carver, 44, from South Carolina, had an extensive record including multiple drug convictions.
Also arrested were Michael C. Hayes, 21, of Bybee and Shane P. Andrews, 31, from Alabama. Andrews had prior arrests in Alabama.
Carver was charged with one count of possession of marijuana and Hayes was charged with two counts of simple possession. They were both arrested Tuesday.
Andrews was arrested Thursday following a traffic accident and charged with possession of drug paraphernalia.
Jennings issued a brief statement on US Nitrogen's drug policy when asked about the arrests.
"US Nitrogen follows the State of Tennessee’s Drug-Free Workplace program for its employees and requires that all independently contracted companies at its worksite have a robust drug screening policy in place," she wrote in an email.
"US Nitrogen requires contracting companies to screen every employee before US Nitrogen will issue employee credentials to its construction site. Each independent contractor company is required to administer and monitor a drug-screening program for new employees upon hire and for current employees at random intervals," she continued. 
Asked whether US Nitrogen took any action against the employers of the three, Jennings did not directly respond.
"I can only confirm that they are independent contractors and not employed by US Nitrogen," she wrote.
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Friday, May 22, 2015

US Nitrogen Suit Tossed in Greene County

Greene County Chancellor Douglas Jenkins has thrown out the remaining claims in a suit brought by local residents opposed to the US Nitrogen project on Pottertown Road.
Jenkins, who already had dismissed many of the claims in the original suit, announced the decision in a Friday court session.
The suit against the county and various boards and agencies challenged the legality of favorable actions for the project by county commissioners.
Jenkins, however, dismissed the claims, including charges that the state open meeting law was violated in the approval process.
Jenkin's order of summary judgment can be challenged in an appeal, but plaintiffs could not be reached for comment on that possibility.
A second suit challenging the project and approvals given by the Tennessee Department of Transportation is still pending in Davidson Chancery Court.
A motion for dismissal in that case is pending.
The court action comes as US Nitrogen announced plans this week to begin testing of the $220 million ammonium nitrate manufacturing facility, including a double barreled 12 mile pipeline from the plant to the Nolichucky River.
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Wednesday, May 20, 2015

Link to US Nitrogen Start-Up Flier

https://bay179.mail.live.com/mail/ViewOfficePreview.aspx?messageid=mgZJe3tvj-5BGlFwAhWtiBjA2&folderid=flinbox&attindex=2&cp=-1&attdepth=2&n=91930798

US Nitrogen to Begin Startup Process

By Walter F. Roche Jr.

US Nitrogen officials announced today that with construction of its manufacturing facility nearly complete, it will begin the process of putting the plant online.
In a statement issued today, US Nitrogen plant manager Justin Freeark said the start-up and testing will take place over the summer and fall with actual production being phased in.
The facility will produce ammonium nitrate which will be shipped to other facilities for the manufacture of explosives.
The start-up comes as the company continues to face legal challenges in courts in Davidson and Greene Counties.
“Testing and startup processes for our facility will take place over several months, because we are taking every safety precaution with each phase. Additionally, comprehensive training has been completed,” Freeark said.
As part of that process, Freeark said, the company will begin utilizing a double pipeline from the plant to the Nolichucky River.
Freeark acknowledged that the testing and start-up processes will be at times noisy.
“We are committed to keeping the public up-to-date on the progress of our facility’s operation,” Freeark said. “As part of that commitment, we want to make residents aware of some noise and sights they might experience as part of the routine start-up processes and essential safety procedures,” he added.
He said the company has issued fact sheets to residents within a two-mile radius of the Pottertown Road facility.
Among the expected noises are "air blows" which will be used to remove dust and debris accumulated during the construction process. Freeark also said clouds of steam  will be visible during the start-up.
Flare systems also will be tested and visible flairs are likely on the facilities stacks.

Friday, May 15, 2015

US Nitrogen Awards Scholarships


US Nitrogen sponsored two $1,000 scholarships each for two high school seniors at West Greene High School, according to company spokeswoman Amanda Jennings.  Winners were Erica Reynolds and Devan Johnson. Reynolds is valedictorian and participates in multiple sports. She hopes to become a pharmacist.  Johnson is a volunteer at Takoma Regional Hospital and his church. He hopes to become a medical transport pilot.

Saturday, May 2, 2015

US Nitrogen Sells Douthat Property for $300,000 Loss

By Walter F. Roche Jr.

US Nitrogen, which has purchased hundreds of acres of Greene County property, has sold, at a substantial loss, a 78.7 acre parcel it purchased from a local official's company just five months ago.
State and county land records show US Nitrogen sold the property along Fish Hatchery Road to Chandley Farms, LLC for $550,000 on March 24. The company had purchased the property from Douthat Properties, LLC for $851,251.38 on Oct. 24 of last year.
The property is valued at $495,400, according to Greene County assessment records.The recent sales price is 35 percent below the amount US Nitrogen paid for the same property late last year.
Signing the October  deed for Douthat Properties was J.W. Douthat, who has served on the Industrial Development Board of Greeneville and Greene County and the Old Knox Utility District.
Douthat records show cast a favorable vote for the US Nitrogen project while serving on the IDB last July. He had recused himself during an earlier vote by the same body.
Officials of US Nitrogen did not respond to questions about why the company would purchase land it apparently didn't need and then sell it so quickly at a loss.
The 78.7 acre parcel was one of two land deals between Douthat and US Nitrogen, which is completing construction of a more than $200 million ammonium nitrate manufacturing facility in the county.
Douthat Properties sold a 13.67 acre property to US Nitrogen for $148,740 on Oct. 9 of last year.
US Nitrogen also purchased property from J & J Warehousing, a firm headed by Jerry Fortner. The 3.58 acre parcel was sold Dec. 11 for $75,000.
Fortner, also an IDB member, heads C & C Millwright, the leader contractor on the US Nitrogen construction project. Fortner did abstain from voting on US Nitrogen issues before the IDB.
While US Nitrogen has sold some of the parcels it purchased to the IDB for a nominal sum, the sale to Chandley Farms is the first to a private entity.
Records show US Nitrogen also recently purchased two additional county parcels for $11,250 each. The sellers were Martha Jennings and members of the Gregg family.
US Nitrogen is facing several lawsuits seeking to block some or all of its development proposal but thus far courts in Greene and Davidson County have looked unfavorably on those challenges.
In a recent decision Greene County Chancery Judge Douglas T. Jenkins concluded that the Greene County Regional Planning Commission and the Greene County Commission did not exceed their legal authority in approving aspects of the US Nitrogen project. He also dismissed claims against the Greene County Partnership.
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Saturday, April 25, 2015

Yara Posts Profits

http://www.nasdaq.com/press-release/yara-reports-strong-firstquarter-results-20150424-00036

Tuesday, April 21, 2015

Cofferdam on Nolichucky Won't Be Replaced

By Walter F. Roche Jr.

A cofferdam on the Nolichucky River was damaged during recent severe weather and a spokeswoman for US Nitrogen says it will not be replaced.
The cofferdam became completely submerged during recent storms, according to local residents, with only a small section of blue plastic showing above the river's waterline. It was constructed as part of a $200 million project to build an ammonium nitrate manufacturing facility in neighboring Greene County.
Company spokeswoman Amanda Jennings said Tuesday the construction on the riverbed had already been completed and the cofferdam was scheduled to be removed in a few days.
"No delay are anticipated in the completion of the pipeline and the water system," she said in an email response to questions.
Her comments come just a day after a Cocke County board voted to ask the U.S. Environmental Protection Agency to complete an environmental impact report on the effect of the pipeline on Cocke County.
Opponents of the project had asked the commission to seek the environmental review.
Jennings said that prior to the vote US Nitrogen officials had presented the board with documentation of the permits and approvals the project has obtained from state, federal and local agencies.
The 12 mile pipeline will be used to take a million gallons of water per day from the river for use in the manufacturing process.
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Tuesday, April 7, 2015

Cansler Land History Includes Hazardous Waste Charges

By Walter F. Roche Jr.


It was more than two decades ago when state and local officials held a news conference to announce a series of indictments stemming from a two year investigation of charges that a foam rubber manufacturing firm had engaged in widespread illegal dumping of hazardous wastes.
Some of that illegal disposal, the indictment charged, occurred on acres of Greene County farmland owned by the Cansler family.
Employees of Recticel, the indictment charged, buried "drums, containers and boxes containing hazardous waste at a dairy farm and other property in Greene County owned and leased by Steve Cansler."
Steve Cansler and the company Recticel, later renamed Foamex, were among those indicted. Cansler was identified as a maintenance supervisor for Recticel.
At the Sept. 8, 1992 press conference then U.S. Attorney Jerry G. Cunningham called the case the largest prosecution ever brought in the state of Tennessee for environmental violations.
Now some 23 years later Greene County properties once owned by the Cansler family are in the headlines again as the subsidiary of an Ohio explosives manufacturer is putting the final touches on a facility that will produce millions of gallons of ammonium nitrate a week. To make way for that project, US Nitrogen purchased hundreds of acres of county property and Cansler family holdings accounted for a substantial portion.
Even before the indictments, state environmental officials had warned of illegal hazardous waste disposal in Greene County and specifically referred to findings on Cansler family property
"No one knows where all the waste has gone. We'll never be able to account for all of it," D. Larry Gilliam, then a top state environmental official told a reporter for Trilogy magazine in the Spring of 1992.
State and county land records show several properties owned by the Canslers or related companies were sold to US Nitrogen.
They include 43.5 acres from Johnnie Cansler for a $500,000 purchase price in February of 2012. A month earlier US Nitrogen purchased 74.5 acres from Cansler for $558,750.
Records of the U.S. Environmental Protection Agency indicate two sites on the Cansler properties have been listed as hazardous waste sites. One site was described as a dairy barn. The second was located on Route 1 in Midway.
On one site alone state and federal enforcement records list 37 violations dating back to the early 90s.
Though published reports in 1993 state that Cansler entered a guilty plea to two counts of the 1992 indictment, he denied in a brief telephone interview that he did so. Asked if any of the pollution sites were sold to US Nitrogen , he said, "I can't help you."
He hung up when asked to explain.
US Nitrogen officials did not respond to requests for comment.
Records do show that some of the charges against Recticel were overturned.
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Saturday, April 4, 2015

Hearing Set For Monday in New Pipeline Suit

By Walter F. Roche Jr.

A new suit aimed at blocking a pipeline to the Nolichucky River has been set for 1 p.m. Monday before Chancery Judge Claudia Bonnyman in Nashville.
The case was assigned to Bonnyman earlier this week after Chancellor Russell Perkins recused himself from a related suit citing his friendship with the attorney representing the Tennessee Deparment of Transportation.
The new suit parallels another filed in Nashville challenging the authority of TDOT to issue a permit to build the 10 mile double barreled pipeline from the US Nitrogen plant to the Nolichucky River.
The latest challenge focuses on charges that the pipeline is intruding on property owned by the Renner family and Don Bible.
US Nitrogen has repeatedly denied that the pipeline is being built on private property.
Perkins abrupt recusal came as a surprise since he had been presiding over the parallel suit for several weeks. Both suits include TDOT as a defendant.
A hearing also is expected in yet another legal challenge pending in Greene County Chancery Court.
The pipeline, which is nearing completion, is expected to bring over 1 million gallons of water a day to US Nitrogen's new ammonium nitrate manufacturing facility.
wfroche999@gmail.com

Tuesday, March 31, 2015

TDOT Petitioned to Lift Pipeline Permit

By Walter F. Roche Jr.

Two Greene County families are petitioning the Tennessee Department of Transportation to suspend  the permit that has allowed US Nitrogen to install part of a 10 mile double barreled 10-mile pipeline along their properties.
The petition comes as the Bible and Renner families have publicly charged that the pipeline is being installed on their respective properties without permission and in violation of a court order.
In the petition filed by Nashville attorney Elizabeth L. Murphy, the Renners and Bibles charge that the permit issued by TDOT violated state law and never should have been issued in the first place.
A US Nitrogen spokeswoman denied that the pipeline work and the pipeline itself infringed on private property.
"The Industrial Development Board and US Nitrogen have deployed a registered land surveyor conducting field verifications to ensure that construction occurs only in the TDOT-established rights-of-way or on property owned by US Nitrogen and the IDB," company spokewoman Amanda Jennings wrote in an email response to question.
She said that the pipeline was being installed "within the boundary of all other utilities, thereby ensuring construction is contained in the state right-of-way."
The Renner and Bible petition filed with TDOT, charges that US Nitrogen has taken "a take-now, pay-later" approach that is causing "irreparable harm" to the properties.
"The Renner and Bible families took all reasonable steps to avoid this," the petition states, adding that "TDOT had no authority to issue the permits."
Affidavits from  Don Bible and the Renner family were attached to the petition.
The petition parallels claims in a pending lawsuit in Davidson Chancery Court which concludes that TDOT cannot issue a right of way permit for the benefit of a private company that is not a public utility.
In a surprise development in that court case Tuesday, Chancellor Russell T. Perkins, who has been presiding over the case for more than a month, suddenly recused himself citing his friendship with the general counsel for TDOT.
Perkins' abrupt exit came before considering an emergency motion filed by Murphy that, if granted, could have brought an immediate halt to the ongoing pipeline construction.
In the motion Murphy charged that US Nitrogen was rapidly proceeding with the construction despite a court approved agreement not to trespass on private property.
"The history of events shows a contemptuousness for the court rarely displayed so publicly and intentionally," the motion states.
A hearing in a parallel Greene County suit could come later this week.
The petition filed with TDOT states that work on property owned by the Renners has been going on since March 18 despite pleas by the family that the workers with Sheriff's deputies looking on, are trespassing on private property.
The TDOT filing is just one of several ongoing legal challenges to the US Nitrogen project which will be used to bring more than a million gallons of water a day to the nearly completed Greene County US Nitrogen ammonium nitrate manufacturing facility.

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