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Coffeyville Resources Nitrogen Fertilizers Restarts Production Facility
Friday July 13, 10:54 am ET

Repairs Completed after Record Floods Swept Through Facility

COFFEYVILLE, Kan.--(BUSINESS WIRE)--Coffeyville Resources Nitrogen Fertilizers, LLC announced today that it has initiated startup at its production facility and expects to resume shipping ammonia and urea ammonium nitrate (UAN) fertilizer next week.

Operators shut down the plant and evacuated all personnel on Saturday, June 30, when record flooding caused the Verdigris River to overtop nearby levees. The fertilizer plant and nearby refinery, owned by subsidiaries of Coffeyville Resources, LLC, were flooded. The fertilizer plant situated on slightly higher ground sustained less damage than the refinery, which remains down pending completion of repairs.

"With this rapid return to production and because of the seasonal nature of our business, we expect to meet all commitments to our customers," said Kevan A. Vick, executive vice president and general manager for Coffeyville Resources Nitrogen Fertilizers. "Our dedicated employees, suppliers and contractors have worked tirelessly around the clock to refurbish and repair this facility, most of which was under water nearly two weeks ago."

Bringing the plant back on line involved:

  • Replacing or repairing 30 percent of all electric drives in the entire plant.
  • Repairing 60 percent of the plant's motor control centers, with scope of work ranging from cleaning to complete replacement.
  • Refurbishing 100 percent of distributive control systems and programmable logic controllers, with repairs needed including component replacement, cleaning, and reprogramming.
  • Repairing the main control room, including removal of silt, replacing lower walls, repainting and refurnishing.

"Aside from the well-deserved thanks for the amazing response of our employees, I would like to offer my gratitude to all of our vendors, contractors and BOC Gases, which supplies oxygen and nitrogen for our processes," said Jack Lipinski, chief executive officer of Coffeyville Resources. "This was truly a team effort."

BOC Gases, which is located next to the fertilizer plant, began its startup sequence this morning, and Coffeyville Resources Nitrogen Fertilizers began preheating its gasifier. The company said it expected to begin producing ammonia early next week and have its UAN plant in full operation a short time later.

Repairs to rail and truck loading racks were expected to be complete by the middle of next week, allowing first shipments to customers as regional rail lines return to more normal operations.

Coffeyville Resources Nitrogen Fertilizers primarily delivers its products to customers in Missouri, Kansas, Texas, Nebraska and Iowa, but also ships to the West Coast and as far east as Indiana, Illinois and Ohio.

The Coffeyville Resources Nitrogen Fertilizer plant is the only fertilizer plant in North America that uses petroleum coke, as opposed to costly natural gas, as the primary feedstock to produce nitrogen fertilizers. In 2006, the facility produced approximately 369,300 short tons of ammonia, two-thirds of which was further upgraded to 633,100 short tons of urea ammonium nitrate (UAN).

About Coffeyville Resources, LLC

Coffeyville Resources, LLC is an independent refiner and marketer of high value transportation fuels and a producer of ammonia and urea ammonia nitrate, or UAN, fertilizers. Coffeyville Resources is one of only seven petroleum refiners and marketers in the Coffeyville supply area (Kansas, Oklahoma, Missouri, Nebraska and Iowa) and, at current natural gas prices, the lowest cost producer and marketer of ammonia and UAN in North America. Coffeyville Resources' group of companies includes Coffeyville Resources Refining & Marketing LLC, a 108,000 BPD oil refinery in Coffeyville, Kansas; Coffeyville Resources Crude Transportation, LLC, a crude oil gathering system serving central Kansas and northern Oklahoma; Coffeyville Resources Terminal, LLC, a refined products terminal in Phillipsburg, Kansas; Coffeyville Resources Pipeline, LLC; and Coffeyville Resources Nitrogen Fertilizers, LLC, which operates a unique coke gasification-based nitrogen fertilizer plant adjacent to the refinery that annually produces over 700,000 tons of nitrogen fertilizer products. Coffeyville Resources generated approximately $3 billion in combined net sales in 2006.

Source: Coffeyville Resources, LLC

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