CF Industries Reaches Settlement Resolving EPA Complaint

CF Industries Holdings, Inc. has reached a global settlement on the terms of a consent decree with the U.S. EPA, Oklahoma Department of Environmental Quality, Iowa Department of Natural Resources, and Mississippi Department of Environmental Quality involving compliance with the Clean Air Act (CAA). The settlement resolves a complaint relevant to potential emissions standards deficiencies at the company’s U.S.-based nitric acid manufacturing facilities acquired through its April 2010 purchase of Terra Industries Inc. The consent decree will not be final until it has been approved by a federal court.

Under the terms of the settlement, the company will pay a civil penalty of $625,000 and undertake capital projects to achieve lower nitrous oxide emission limits at its nitric acid facilities in Iowa, Mississippi, and Oklahoma. The company estimates that the total cost of emission control and monitoring equipment will be approximately $17 million.

“We are pleased this matter has been resolved through a negotiated settlement that reflects our commitment to environmental compliance,” said Stephen R. Wilson, chairman, president and chief executive officer of CF Industries. “Stewardship is at the core of our environmental philosophy.”

The consent decree arose from an EPA information request to Terra Industries in August 2007. The company worked with the EPA to reach a settlement and develop a plan to implement emissions reduction initiatives that exceed CAA compliance standards. In doing so, the company has not admitted any violation of law or regulation.

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