New OSHA Policy Could Shake Up Fertilizer Industry

The Occupational Safety and Healthy Administration (OSHA) has updated its rule regarding what constitutes a retail anhydrous ammonia (AKA fertilizer) facility -- the keyword being "retail."

In order for a retail facility to produce and sell sell fertilizer, the fertilizer must have some type of suitable binding material that's at least five inches thick. This is done to reduce the risk of explosions and fires, which can prove deadly when it involves fertilizer. Under OSHA's new rule, however, retail fertilizer facilities must use a binder that's twice as thick, adding a new element of difficulty to this industry.

There's no denying the fact that OSHA has good intentions with this recent rule change. Back in 2013, a massive explosion occurred at a Texas fertilizer storage facility, resulting in 15 deaths and more than one hundred injuries. Investigators believe a fire at the facility spread to the fertilizer, triggering the deadly explosion. The cause of the fire, however, remains unknown at this time.

Of course, that's just one of the many instances in which a fertilizer facility has exploded. Most standard fertilizer contains a concentration of 10% nitrogen, 10% phosphate, and 10% potash, making it highly volatile when exposed to fire or extreme heat.

By increasing the binder requirements for retail fertilizer facilities, OSHA is hoping to avoid similar situations such as the 2013 Texas fertilizer explosion incident. However, not everyone is thrilled with these new changes, including North Dakota Agriculture Commissioner Doug Goehring. According to Goehring, the new policy will have disruptive consequences on North Dakota fertilizer producers.

“This abrupt change of a longstanding, straight-forward, and effective policy will disproportionately negatively affect North Dakota small- and medium-sized facilities, operators and farmers,” said North Dakota Agriculture Commissioner Doug Goehring. "This new OSHA policy is similar to having a small corner gas station maintain the same regulatory requirements as a massive oil refinery complex.”

Some estimates suggest that retail fertilizer companies will be required to spend roughly $18,000 to $30,000 in order to comply with the new rule. For North Dakota, that means 283 facilities must spend the money to make the necessary upgrades; otherwise, they face fines or other penalties handed down by OSHA.