DENVER, Jan 07, 2009 (BUSINESS WIRE) --
Intrepid Potash, Inc. (NYSE:IPI) today reports that the Bureau of Land
Management ("BLM") has determined that an Environmental Impact Statement
("EIS") will be required to evaluate the environmental impacts of
Intrepid's proposed HB Solar Solution Mine project in Carlsbad, New
Mexico. As a consequence, final permitting and approval of the HB Solar
Solution Mine will be delayed and related capital expenditures deferred
for an as-yet-undetermined period. The delay will not have any impact on
2009 potash production volumes. Once the necessary regulatory approvals
are obtained, construction will begin and first production should result
approximately one year later with full production anticipated
approximately two years after approvals are obtained and construction
begins.
As Intrepid previously reported, after several years of consultation
with the BLM and numerous meetings and presentations, in May 2008,
Intrepid submitted a Mine Plan to the BLM to proceed with development of
its HB Solar Solution Mine project. In the summer of 2008, a draft
Environmental Assessment thoroughly addressing all environmental impacts
associated with the project was completed. Since that time, Intrepid has
worked closely with the BLM to address concerns raised by the BLM with
regard to the environmental impacts of the project. In September 2008,
the BLM hosted two several-hour-long, well-attended public meetings in
Carlsbad, New Mexico concerning the project. At these meetings, Intrepid
presented the technical aspects of the project and answered citizen
questions. The BLM then provided a 30-day public comment period
following these public meetings. The BLM received no public comments
during the 30-day period. An oil and gas company thereafter submitted
objections to the project based on alleged environmental impacts.
Intrepid's CEO, Bob Jornayvaz, stated, "We are clearly disappointed with
the BLM's decision to allow an oil and gas company to delay such an
environmentally friendly project in our nation's potash reserve. The
project has been extensively publicized and supported by the community,
and remains so, because it takes advantage of an unused, non-potable
water source to recover potash from the existing Eddy potash mine and
produce it in solar evaporation ponds rather than having to burn natural
gas or coal. Potash solution mining is a widely used and accepted
technology. The oil and gas company's actions are further disappointing
because the solar solution mining project, which is funded for immediate
construction, creates numerous long-term jobs in the face of the
nation's current economic crisis and actually opens more areas for oil
and gas drilling. There were no public objections raised about the
project other than by an oil and gas company in the area with whom we
are in litigation over their planned drilling in the nation's Potash
Enclave and the resulting destruction and waste of potash. We worked
diligently with the BLM to address the environmental impacts alleged by
this oil and gas company and showed them to be without merit. While the
determination, if followed by the BLM, will lengthen the timeframe for
approval of the HB Solar Solution Mine project, it does not change the
criteria for the final BLM decision."
The Company routinely posts important information about the Company on
its website under the Investor Relations tab. The Company's website
address is www.intrepidpotash.com.
Certain statements in this press release, and other written or oral
statements made by or on behalf of us, are "forward-looking statements"
within the meaning of the federal securities laws. Statements regarding
future events and developments and our future performance, as well as
management's expectations, beliefs, plans, estimates or projections
relating to the future, including statements regarding guidance, are
forward-looking statements within the meaning of these laws. Although we
believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, there can be no
assurance that our expectations will be realized. These forward-looking
statements are subject to a number of known and unknown risks and
uncertainties, many of which are beyond our control that could cause
actual results to differ materially and adversely from such statements.
These risks and uncertainties include: changes in the price of potash or
langbeinite; operational difficulties at our facilities; changes in
demand and/or supply for potash or langbeinite; changes in our reserve
estimates; our ability to achieve the initiatives of our business
strategy, including but not limited to the development of the HB Mine as
a solution mine; changes in the prices of our raw materials, including
but not limited to the price of natural gas; fluctuations in the costs
of transporting our products to customers; changes in labor costs and
availability of labor with mining expertise; the impact of federal,
state or local government regulations, including but not limited to
environmental and mining regulations; competition in the fertilizer
industry; declines in U.S. or world agricultural production; declines in
oil and gas drilling; changes in economic conditions; adverse weather
events at our facilities; our ability to comply with covenants inherent
in our current and future debt obligations to avoid defaulting under
those agreements; continued disruption in credit markets; governmental
policy changes that may adversely affect our business and the risk
factors detailed in our filings with the Securities and Exchange
Commission. Please refer to those filings for more information on these
risk factors. These forward-looking statements speak only as of the date
of this presentation, and we undertake no obligation to publicly update
or revise any forward-looking statement, whether as the result of future
events, new information or otherwise.
SOURCE: Intrepid Potash, Inc.
Intrepid Potash, Inc.
William Kent, 303-296-3006
Copyright Business Wire 2009