Magnablend

Univar to acquire Magnablend; has history of chemical spills

A press release issued December 5, 2012 by Univar indicates that the global chemical company plans to acquire Magnablend before the end of the year.

The Wall Street Journal reported in September that Magnablend was on the market. However, Magnablend issued a press release to the Waxahachie Daily Light on October 3, 2012 denying Magnablend was for sale.

Univar is a large, global chemical company that has been purchasing other chemical companies rapidly. The company has over 260 distribution facilities in North America, Europe, Asia-Pacific and Latin America. Their portfolio includes over 11,000 chemical products including acids and bases, surfactants, glycols, inorganic compounds, alcohols, as well as general and other specialty chemicals used extensively throughout hundreds of end markets. Univar provides chemicals to a variety of industries that include oil and gas, agriculture, water treatment, environmental sciences, pharmaceutical, industrial cleaning, coatings and adhesives, food and personal care. Additionally, Univar is the largest distributor of pest control products and equipment in North America.

Univar is no stranger to environmental and community disasters.

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Magnablend: For sale and facing a $9.6 million lawsuit (update)

Magnablend's problems started in October 2011 with environmental violations, chemical leaks, fires, explosions and the total destruction of one of its plants in Waxahachie, Texas. The company's problems continued to mount as it faced fines related the fire and fought against residents to open a new plant in a rural agricultural area. Despite the massive opposition, the company proceeded with the move.

Now it appears the company is facing new problems with a recent lawsuit seeking $9.6 million for an alleged breach of contract and a report in the Wall Street Journal that the company is on the market.

Magnablend Facing $9.6 Million Lawsuit

A lawsuit was filed in United States District Court Eastern District of New York on Sept. 25, 2012 by Wego Chemical & Mineral Corp. against Magnablend Inc.

The suit alleges breach of contract for two purchase orders totalling $1,1040,000. Magnablend paid a 10% deposit, but the suit alleges that Magnablend failed to uphold the terms of the contracts, refused to take delivery of the product and refused to pay an outstanding balance of $9,666,000.

Wego Chemical & Mineral Corp. is requesting a minimum of $9,666,000 plus interest, costs and fees associated with the legal action and additional relief the Court deems just and proper.

Click here to read the court filings.

Magnablend For Sale

In related news, the Wall Street Journal reported on Sept. 20, 2012 that Magnablend Inc. is for sale and could fetch as much as $800 million. Click here to read the full Wall Street Journal article.

October 3, 2012 Update

The Waxahachie Daily Light reported Oct. 3, 2012 that Magnablend is not for sale. The company claims they are only seeking funding for additional growth.

Attachments:

Lawsuit: Wego Chemical & Mineral Corp vs Magnablend (09/25/2012)

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TCEQ alleges four more violations against Magnablend

The Texas Commission on Environmental Quality (TCEQ) issued a Notice of Enforcement to Magnablend on April 19, 2012 for four alleged violations relating to the October 3, 2011 fire at the Magnablend Central Facility located in Waxahachie, Texas.

Brett Shipp broke the story Wednesday on WFAA.

"Failure to comply with 30 TAC 101.5, by causing a traffic hazard to Highway 287, in Waxahachie, Texas on October 3, 2011, during the facility fire at Magnablend which caused Incident no. 160425."

"Failure to comply with the requirements of 30 TAC 101.201(g), by failing to submit an emissions event into STEERS within 48 hours of discovery of the event." The event was not submitted into the system until nine days after the incident.

"Failure to comply with the requirements of 30 TAC 106.261(a)(3), by exceeding the stated emissions limitations during Incident no. 160425."

"Failure to comply with 30 TAC 101.4, by creating nuisance conditions to nearby receptors during, and immediately following the fire which occurred on October 3, 2011, at the Magnablend Central Facility."

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Wyoming DEQ cites Magnablend for asbestos violations

Magnablend was cited by the Wyoming Department of Environmental Quality on February 15, 2012 for failure to remove Regulated Asbestos Containing Material (RACM) from the facility, failure to adequately wet RACM during stripping operations, failure to use trained individuals to strip, remove, handle or disturb the regulated asbestos containing waste material and failure to properly dispose of asbestos containing waste material. These violations occured in December 2011.

The notice sent to Magnablend also stated "Normally, the Department and this Division would refer these types of violations to the State Attorney General's Office for recovery of appropirate penalties. However, in this case, I'm issuing this Notice of Violation as a warning and to put you on notice that future violations of the asbestos regulatory requirements will result in enforcement action seeking penalties as settlement."

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Magnablend cited by OSHA for seven serious violations; lives put at risk

OSHA issued a press release on Friday, March 30, 2012 with its findings from the October 3, 2011 fire at the Magnablend central facility on Hwy 287 in Waxahachie, Texas. KRLD 1080 broke the news at 2:00 p.m.

OSHA cited Magnablend with seven serious violations. OSHA considers serious violations to include a "substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known."

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Legal response on behalf of one of The Dubious Five

The County and District Attorney of Ellis County filed a response to Carl Watson's Petition Requesting Depositions from Ellis County Judge Carol Bush with the 40th Judicial District Court of Ellis County on February 13, 2012.

On page five of the response, the County Attorney stated "As the presiding officer of the Ellis County Commissioners Court and the only member with a constituency comprised of the entire County, the Ellis County Judge has a vast array of daily legal and practical duties. Ellis County should not have its County Judge subjected to an interrogation to further a dubious investigation regarding litigation which has not commenced."

The County Attorney stated on page six "At each meeting of the Ellis County Commissioners Court, discussion and action is taken regarding matters affecting the general public. Each decision of the Ellis County Commissioners Court is likely to generate support and dissent. The jurisdiction of the 40th Judicial District Court should not be utilized as a weapon for a dissenter to harass a member of the Ellis County Commissioners Court under the ruse of furthering a fictitious pre-suit investigation."

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Ellis County Concerned Citizens Feb. 16 Townhall Meeting Audio

There was a great turnout at the Townhall Meeting hosted by the Ellis County Concerned Citizens on February 16, 2012. The main topic of discussion was Magnablend's plans for expanding on the old Superconducting Super Collider property that they purchased in January 2012. Discussion of the October 3, 2011 fire, the aftermath, and information about becoming involved in the TCEQ permitting process was also included. Because this is an election year and government officials from Ellis County and our State Representive have not been helpful to residents, candidates running for office were permitted to speak to attendees.

We have made audio of the entire meeting available in case you were unable to attend.

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The Magnablend battle will continue

Now that local and metroplex media have had the opportunity to break the story about Magnablend purchasing the old Superconducting Super Collider (SSC) property on FM 1446 in Waxahachie, it's our turn.

Because we were talking with the media about the breaking news, we chose to let them break the story rather than us. Plus, we were very busy conducting more research, answering questions, and speaking with other residents.

At about 10:20 am Tuesday, we conducted a document search on the Ellis County Clerk's records system. We found new records for the SSC property that were filed on Monday.

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Magnablend's new history for Waxahachie

Magnablend CEO Scott Pendery keeps touting a 32 year compliance and safety record for Magnablend. However, the facts are painting a different picture.

It was an 82 degree day on June 3, 2005 with 9 mph winds blowing from the east when the Magnablend Liquid Facility on Sterrett Road in Waxahachie settled civil case number 06-2005-3540 filed by the Environmental Protection Agency (EPA). Magnablend was charged with a violation of section 112(r)(7) of the Clean Air Act.

Section 112(r)(7) of the Clean Air Act required Magnablend to implement a Risk Management Plan (RMP) that contained a hazard assessment, a prevention program, and an emergency response program.

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Is Pendery qualified to run Magnablend?

Is Magnablend CEO Scott Pendery capable of safely operating a hazardous chemical plant?

Magnablend founders David and Darlene Pendery retired from Magnablend in 2011. On May 31, 2011, Cotton Creek Capital, Austin Ventures and TGF Magagement Corp joined Scott Pendery in taking ownership.

Shortly after four months into the new ownership, with Scott Pendery now the CEO of Magnablend, the plant violently explodes.

Scott Pendery took a company with a 32-year history of no major accidents and immediately destroyed that reputation and an entire facility in a single day on October 3, 2011.

Is Scott Pendery capable of safely operating a hazardous chemical plant? He's not off to a good start yet.

Residents are now voicing concern over Pendery's ability to safely operate in their community after realizing Pendery was in control for such a short time when the accident happened. How many residents are at risk from the other Magnablend locations in Waxahachie with Pendery's poor four month track record?

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