Agrium US Inc.
Agrium U.S. Inc. purchases water from the City of Borger for cooling water needs and for steam purposes. The water to generate steam comes from wells that are owned and operate by the City of Borger and the water for cooling needs comes from Lake Meredith via a pipeline that is owned and operated by the City of Borger. Due to existing drought conditions the water levels at Lake Meredith have been falling and are at record lows. In addition the quality of the water has deteriorated as the water levels have fallen. In 2004 the City of Borger approached Agrium and based on historical data the City of Borger projected that the drought would be lasting for approximately five years and that more water wells may need to be drilled to prevent any disruptions in providing water to the community and industry. The City of Borger operates a wastewater treatment plant and under a permit from the TCEQ, approval was being provided for disposal of the treated water into a nearby creek. The City of Borger proposed to provide the treated wastewater to Agrium's ammonia plant to reduce the water that was being provided from Lake Meredith and to reduce the amount of the treated wastewater disposed into the nearby creek. A pipeline from the treatment plant was installed and the project was completed in 2005. Agrium started taking the treated wastewater from the city in July 2005.
Agrium agreed to fund a project to install approximately 8,750 feet of a 12 inch pipeline from the wastewater treatment plant to an existing concrete reservoir where the water would be collected and diverted to Agrium's facility through an existing pipeline. The cost of the project totaling approximately $497,000 consisted of engineering services, surveying, right-of-way fees, TCEQ approval, contractor and material costs. Permission to purchase the treated wastewater was obtained from the TCEQ and the TxDOT and after receiving approval the project was continued It was also agreed that at the conclusion of the project the City of Borger would take ownership of the pipeline and this includes repairs, maintenance, and operating costs. There are several benefits of this project. It prevented disruptions of water supply to Agrium's plant. The City of Borger significantly reduce the amount of treated wastewater disposed into the creek - The price of the treated wastewater is $0.10/1,000 gallons less than the water from Lake Meredith. The treated wastewater is much better quality than the lake water and therefore requires less chemicals for cooling water use.
Details of Reductions
Additional Information :
Agrium U.S. Inc. owns and operates a 1500 ton/day ammonia plant and a 300 ton/day urea plant that is located approximately 3 miles southwest of Borger, Texas in Hutchinson County. Agrium is a Canadian company that is headquartered in Calgary, Alberta and in addition to the Borger plant, Agrium owns other plants in the US, Canada, and has 50% ownership of a plant that is located in Argentina. Agrium started taking water from the wastewater treatment facility in July 2005 and a good historical data has not been compiled. However, it is estimated that the use of water from Lake Meredith was reduced from 1.36 Mgal/ton ammonia to 0.65 Mgal/ton which is a reduction of approximately 52%. The project allows for up to 1.5 million gallons of the treated wastewater to be re-used at Agrium's facility