CHS request to lower permit fee for nitrogen plant delayed

14 November 2013 22:18  [Source: ICIS news]

HOUSTON (ICIS)--North Dakota officials confirmed on Thursday that they have tabled a request to reduce the cost of the building permit for a proposed $1.5bn (€1.11bn) nitrogen fertilizer facility by CHS, the largest farmer-owned cooperative in the US.

CHS is in the planning stages for a nitrogen facility located in Spiritwood, North Dakota, that is anticipated to produce 2,200 tons/day of ammonia with a projected commencement of operations set for the second-half of 2016.

The plant is being located in that region to take advantage of abundance of natural gas feedstock resources and will not only produce ammonia but enhance the company’s ability to distribute urea and urea ammonium nitrate (UAN) liquid fertilizer to the area’s retailers and farmers.

CHS has asked the town officials to consider reducing the current building permit fee from the present level of $1 per $1,000 of construction cost. The company has estimated the construction cost to be at least $1bn of the projected total expenditures, which would result in a $1m building permit fee.

While not revealing what it would consider a more reasonable fee, CHS officials have said a decrease in the permit cost would assist in moving the project forward.

Earlier this week, the town supervisors were unable to reach a consensus on the request by CHS and voted unanimously to table the matter and requested that CHS present a proposal on how it plans to address infrastructure issues, namely the additional roadways that would be needed to accommodate the increased traffic around the plant site.

The next scheduled meeting of the board of supervisors is set for 9 December, but town officials said a special meeting could be called prior to that date in order to expedite a decision on the fee reduction request.

($1 = €0.74)

By: Mark Milam
+1 713 525 2653

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