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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 17, 1995
TERRA INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
MARYLAND 1-8520 52-1145429
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
TERRA CENTRE
600 FOURTH STREET
P.O. BOX 6000
SIOUX CITY, IOWA 51102-6000
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (712) 277-1340
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ITEM 5. Other Events.
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On July 17, 1995, Terra Industries Inc. issued the press release contained in
Exhibit 1 hereto, which is incorporated by reference herein.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TERRA INDUSTRIES INC.
By: /s/ George H. Valentine
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George H. Valentine
Vice President, General Counsel
and Corporate Secretary
Date: July 21, 1995
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EXHIBIT 1
[LOGO OF TERRA INDUSTRIES]
Terra Industries Inc.
600 Fourth Street
P.O. Box 6000
Sioux City, IA 51102-6000
Telephone: (712) 277-1340
Telefax (712) 233-3648
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NEWS RELEASE
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For Immediate Release Contact: Paula C. Norton
(712) 277-5438
TERRA INDUSTRIES ANNOUNCES RESULTS OF ITS INVESTIGATION
INTO THE CAUSE OF THE EXPLOSION AT ITS PORT NEAL PLANT
Sioux City, Iowa (July 17, 1995) -- Terra Industries Inc. (NYSE symbol: TRA)
today announced that the investigative team it assembled to determine the cause
of the explosion on December 13 at its Port Neal nitrogen fertilizer production
facility has concluded its investigation. The 12-member team, which included
independent experts, believes the explosions (there were actually two nearly
simultaneous explosions) were caused by a defect in the design of the nitric
acid sparger in the neutralizer vessel of the ammonium nitrate plant. This
design deficiency caused the trapping and confinement of ammonium nitrate inside
the nitric acid sparger, a problem compounded by the fact that the sparger was
made of titanium, a material now known to increase the sensitivity of ammonium
nitrate.
Other secondary factors were also present on the morning of December 13, but
according to the committee, none of the other factors, in any combination, would
have caused the explosion without the design defect in the nitric acid sparger.
The nitric acid sparger is a tube, perforated with two rows of small holes,
through which liquid nitric acid is injected into the neutralizer. The day
before the explosion, the nitric acid plant was shut down for maintenance, and
the flow of nitric acid through the sparger was stopped. Ammonium nitrate from
the neutralizer entered the nitric acid line through the sparger, as is normal,
and mixed with free nitric acid. As part of the procedure to shut down the
neutralizer, the line was purged with air to force the entire contents of the
line through the sparger and into the neutralizer. However, because of the
placement of the holes in this particular sparger, a small but significant
amount of ammonium nitrate remained trapped inside. Specifically, the sparger's
design had holes at about the 4:00 o'clock and 8:00 o'clock positions on its
circumference, which allowed the material between those two points to remain
confined. The Port Neal sparger also increased the sensitivity of the material
trapped inside, i.e., the sparger was made from titanium and investigative
analysis has revealed that titanium enhances the sensitivity of ammonium
nitrate.
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ADD ONE - CAUSE OF PORT NEAL EXPLOSION
To complete the neutralizer shutdown procedure, a heat source -- pressurized
steam -- was introduced to keep the lines warm and open. The application of
this heat over several hours caused the material trapped in the sparger to begin
decomposition and ultimately to cause a violent rupture within the small
confines of the sparger. This internal rupture caused the neutralizer to
detonate which, in turn, initiated an explosion in the rundown tank from which
ammonium nitrate solution is pumped to storage tanks. These two explosions
occurred within less than a second of each other.
On the day of the explosion, Terra formed an incident investigation committee to
investigate and, if possible, determine the cause of the explosion. This group
consisted of nationally renowned forensic and ammonium nitrate experts, as
well as Terra employees. They worked individually and as a group for over six
months, conducting interviews, analyses and simulations.
As a result of their findings, the committee also made recommendations,
specifically, that the new neutralizer in the Port Neal plant have a nitric acid
sparger that will not permit the ammonium nitrate solution to become trapped and
confined within it. They also recommend that titanium not be used for the
construction of any new nitric acid sparger. Lastly, the committee made general
recommendations on practices, procedures and equipment design for consideration
prior to starting up Port Neal's ammonium nitrate plant in early 1996.
Burt Joyce, Terra President and CEO, said, "Terra is very grateful to the
investigative committee for their efforts. We, as a company, will certainly
benefit from the committee's recommendations. And the chemical industry as a
whole -- particularly other nitrogen fertilizer producers -- will be able to
make appropriate adjustments to prevent these circumstances from ever occurring
again."
Terra Industries Inc. is a leading marketer and producer of nitrogen fertilizer,
crop protection products, seed and services for agricultural, turf, ornamental
and other growers. Terra also produces nitrogen products and methanol for
industrial customers.
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