PERSPECTIVE FOR NOVEMBER 14, 2012

   LIKE MANY PEOPLE, I TIRED OF THE PHRASE “A WIN WIN SITUATION” YEARS AGO.   BUT THAT’S AN APPROPRIATE DESCRIPTION FOR PLANS TO BUILD TWO NITROGEN FERTILIZER PRODUCTION FACILITIES IN THE NORTHERN PLAINS.

  LAST WEEK, OFFICIALS OF THE NORTH DAKOTA FARMERS UNION PRESENTED TO THE AG COMMITTEE OF THE BISMARCK-MANDAN CHAMBER OF COMMERCE DETAILS OF THE PLAN BY CHS TO BUILD A FERTILIZER PRODUCTION FACILITY NEAR SPIRITWOOD.  CHS IS THE NATION’S LARGEST AGRICULTURAL COOPERATIVE.

  THE PLANT WOULD TAKE NATURAL HAS WHICH IS NOW BEING FLARED IN THE WESTERN NORTH DAKOTA OIL FIELDS AND TURN IT INTO NITROGEN FERTILIZER.. PRIMARILY ANHYDROUS AMMONIA, BUT ALSO UREA AND LIQUID NITROGEN – 22-HUNDRED TONS OF ANHYDROUS EQUIVALENT EVERY DAY.

   IN KANSAS CITY, ALLAN GOLDSBY OF CHS TOLD ME THAT THE LOCATION IN NORTH DAKOTA IS IDEAL… NOT JUST BECAUSE OF THE ACCESSABILITY OF THE FLARED NATURAL GAS… BUT BECAUSE FARMERS IN THE NORTHERN PLAINS ARE AT THE END OF THE SUPPLY LINE FOR NITROGEN FERTILIZER… AND SO THEY PAY MORE… AND THERE IS NOT ALWAYS AN ADEQUATE SUPPLY WHEN IT IS NEEDED.

   THOSE ARGUMENTS ALSO APPLY TO THE SECOND PLANT… ENVISIONED BY A GROUP CALLED NORTHERN PLAINS NITROGEN.  THEY’RE ABOUT TO ASK FARMERS TO INVEST IN THEIR VENTURE… WHICH WOULD ALSO USE FLARED NATURAL GAS.. AND WOULD BE LOCATED SOMEWHERE IN THE DAKOTAS OR MINNESOTA.

   THE FACT IS THERE IS MORE THAN ENOUGH FLARED NATURAL GAS TO SUPPORT TWO PLANTS… AND MORE THAN ENOUGH DEMAND FOR THE OUTPUT.   WHETHER EITHER OR BOTH WILL BE BUILT REMAINS TO BE SEEN… BUT IF THEY ARE, IT WILL, INDEED, BE A WIN WIN SITUATION.

  WITH PERSPECTIVE, I’M AL GUSTIN.