Iowa DNR News
Environmental Protection Division

For immediate release
Friday, April 12, 2002

DNR REACHES SETTLEMENT WITH SHELDON COOP FOR JANUARY FISH KILL

DES MOINES - A settlement of $150,000 for damages and an agreement to
implement a number of environmental projects has been reached between
Midwest Farmer's Cooperative in Sheldon and the Iowa Department of Natural
Resources.

The final agreement met the goal of both Midwest Farmers Cooperative and the
DNR in creating local projects to improve and protect the environment.

The agreement, signed Friday by DNR Director Jeff Vonk, specifies a damage
payment of $150,000 for the estimated value of fish killed and other natural
resources damages that occurred on the Floyd River in January as a result of
a nitrogen fertilizer spill. The final count of dead fish was estimated at
1,034,843 fish along a 55.6-mile stretch of the Floyd River. Money collected
for damages will be used for projects in Sioux and Plymouth counties
involving improvements on streams. Preference will be given to projects on
the Floyd River or its watershed.

The liquid nitrogen fertilizer spilled onto the ground when a transfer pipe
leading to a bulk storage tank froze and then split at Midwest Farmer's
Co-op on Jan. 7. Up to 7,896 gallons of the nitrogen used for fertilizer was
lost in the spill. The nitrogen landed outside of a containment dike
designed to prevent accidents, then flowed to a storm drain that eventually
empties into the river.

Midwest Farmers Co-op was also responsible for a fish kill in September of
1998 along the same stretch of the Floyd River when fertilizer-contaminated
water was cleaned out from a containment basin and flushed downstream. That
incident resulted in more than 400,000 fish being killed along 14.7 miles of
stream. The company eventually paid $55,000 in fish restitution and a
$10,000 penalty.

In addition to the payment for damages, the cooperative has agreed to
implement a number of environmentally beneficial projects in northwest Iowa,
particularly in O'Brien, Sioux and Plymouth counties near the Floyd River in
lieu of paying penalties. The cost of implementing the required
environmental projects is estimated at more than $30,000.

The projects required by the agreement are:

· Sponsoring, at an estimated cost of  $7,000, a Full Mock Spill Training
Session for Agribusiness Firms in northwest Iowa, by September 1, 2002.  The
session will include at a minimum Advance Classroom (5 hours); fire;
exercises in dry fertilizer spill, broken 2.5 gallon container, 30 gallon
container spill, patching plug in 30 gallon container, summer pipe rack, and
transfer from liquid tender to applicator; and reporting and paperwork.

· Sponsoring and hiring necessary industry technical experts, at an
estimated cost of $5,000, two larger group-training sessions on spill
processes, regulation, media responses, and working with the DNR and other
regulatory agencies, by March 31, 2003.

· Assigning a Certified Crop Agronomist [CCA] to the steering committee of
the Floyd River Valley Watershed Project.  Train six CCAs in the
filter-strip program and promote the program to customers bordering the
Floyd River in O'Brien, Sioux, and Plymouth Counties.

· Establishing an environmental, land stewardship and leadership program for
4-H and FFA in Sioux and O'Brien Counties, with financial support for the
programs of between $4,000-6,000 annually for the next two years.

· Assisting the Sheldon vocational Agribusiness Department and its
environmental, crop production and livestock management classes and outdoor
farm classroom by providing technical classroom instruction and laboratory
exercises.  Materials and staff is estimated to be about $3,300 annually for
two years.

· Donating land and access across Midwest's property for the Sheldon
Community Recreation (Bike and Hiking) Trail, and provide grass seeding to
complete the on-site project [est. $3,000 value].

· Continuing to promote GPS Precision Applied Manure in farmer meeting [est.
$961 cost in the past year].

· Engineering evaluation of fertilizer storage and transportation facilities
is required.  Written report is due by May 15, 2002.

"The DNR's primary interest is in protecting the environment, not handing
out penalties," said Vonk.

"This agreement will result in some meaningful improvements to the
environment while at the same time sending a message that parties are going
to be held responsible when an incident like this occurs," Vonk said.

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