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Bloomberg: Obama considering tougher rules on fertilizer plants

  • The Obama administration is considering measures to toughen rules on fertilizer plants, farmers and oil drillers using or storing explosive chemicals such as those tied to a fatal blast in rural Texas last year, Bloomberg reports.
  • Among policies being considered: lowering the threshold at which the government would be notified that ammonium nitrate is being used or stored; requiring farmers and oil drillers to report on explosive chemicals they possess; and adding chemicals to the hazardous substances lists.
  • Related stocks: POT, CF, TNH, MOS, IPI, AGU, MON, BG, SQM.
Comments (8)
  • tomlos
    , contributor
    Comments (1183) | Send Message
     
    Who needs congress when you can make rules yourself.
    6 Jan 2014, 12:37 PM Reply Like
  • aretailguy
    , contributor
    Comments (1292) | Send Message
     
    Who needs rules when you can grant yourself an exception to your own rules?
    6 Jan 2014, 01:01 PM Reply Like
  • Chris Damas
    , contributor
    Comments (1357) | Send Message
     
    Only CF Yazoo City of that list could potentially be affected. Small part of their operations.

     

    AGU does not sell dry AN to the ag market - only to some mining explosive customers.

     

    And you missed the most important one - LSB Industries (LXU) which sells dry AN to ag market with distribution centers.
    6 Jan 2014, 12:47 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1792) | Send Message
     
    ".Toughen rules on fertilizer plants, farmers and oil drillers using or storing explosive chemicals such as those tied to a fatal blast in rural Texas last year, Bloomberg reports..." and "...lowering the threshold at which the government would be notified that ammonium nitrate is being used or stored; requiring farmers and oil drillers to report on explosive chemicals they possess; and adding chemicals to the hazardous substances lists..." Just reporting rules changes. Will not increase the cost of fertilizer by more than the cost of a postage stamp to send the notification to the government.
    6 Jan 2014, 01:03 PM Reply Like
  • bullfeathers
    , contributor
    Comments (146) | Send Message
     
    But then you also have to pay the government to open it and read it...
    6 Jan 2014, 02:21 PM Reply Like
  • Chris Damas
    , contributor
    Comments (1357) | Send Message
     
    Government compliance and reporting adds to the burden of business if you are an ag dealer or trader. The big problem is poor storage practices which could be improved, again, adding to cost.

     

    But proximity of dealers to sensitive land uses not so easily changed. You'd have to force a dealer to move its location.
    6 Jan 2014, 01:13 PM Reply Like
  • Medscape
    , contributor
    Comments (43) | Send Message
     
    MON does not produce fertilizers, ammonium nitrate or otherwise.
    6 Jan 2014, 02:48 PM Reply Like
  • frank paxman
    , contributor
    Comments (884) | Send Message
     
    Per Ruffdog, "Will not increase the cost of fertilizer by more than the cost of a postage stamp to send the notification to the government." Totally agree. This is a simple change that feeds into existing reporting processes. One might consider that such a reporting protocol is surely worth whatever effort it takes if it prevents yet another facility blowing up and killing employees; endangering nearby citizens and their homes; imposing loss and rebuilding costs; incurring loss of production and sales; and increasing insurance costs, etc. The incident track record shows current processes aint hacking it.
    6 Jan 2014, 09:12 PM Reply Like
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