US Nitrogen Wants Any Fines Waived

By Walter F. Roche Jr.

Contending it has always been transparent in its dealings with regulators, US Nitrogen is asking Tennessee officials to waive any fines based on its failure to seek a separate permit for the construction and operation of an ammonia storage facility.
In a Friday letter responding to a violation notice dated June 28. Andrew Velo, the manufacturing director for the Midway, Tenn. chemical firm asked officials of the Tennessee Department of Environment and Conservation to "exercise its discretion and not assess civil penalties in this instance."
The June 28 violation notice issued by TDEC did not specify whether or not a fine would be imposed or suggest any amount should a fine be levied.
In his letter Velo suggested that it was a decision by the division itself that led to the confusion about the use of a flare to burn off any excess ammonia vapors.
The three-page letter was in response to the charge that the ammonium nitrate manufacturer had constructed an ammonia storage facility without first seeking a permit and providing data on any projected environmental impact.
"US Nitrogen has always worked closely with the Division, meeting with Division personnel numerous times before ever submitting it first permit application in 2011," Velo wrote in the letter to TDEC deputy director James P. Johnson.
Stating that there was "no intent to construct without a permit," Velo wrote that his company had "consistently worked in good faith with the division as a partner, sharing information and being absolutely transparent."
Velo added that his company, the subsidiary of explosives manufacturer Austin Powder, had been "transparent that ammonia storage and loading is an integral part of our process."
As to questions about the use of flares to burn off emissions, Velo said it was the state agency that "decided it best to permit the flare alone in its own permit."
"Had the decision been made to permit the flare as a control device early on, the flare likely would have received more attention and it would have been clear that emissions from ammonia storage were vented to the flare," Velo stated.
In addition Velo wrote that the company had been clear "over the years" that the flare might have some ammonia emissions.
The company manager also argued that a permit amendment submitted late last year "could be treated by the division as a disclosure under the department's self disclosure policy."
"Therefore," Velo concluded, "we should not be penalized for voluntarily clarifying the source of gas vented to the OSBL flare, especially since the emissions from this flare did not materially change."
In another related action, US Nitrogen this week applied for yet another amendment to one of its TDEC permits. Citing "accelerated corrosion" in its cooling tower operations, the company said it "needs to alter the composition of the cooling water make-up."
The amendment seeks permission to increase the conductivity of the cooling tower operations which will increase the emissions, according to the data submitted to TDEC.
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