Conda Phosphate Operations Gypsum Spill

Release Date: 12/29/2006

Calgary, Alberta – Agrium Inc. (TSX and NYSE: AGU) announced that there was a dike failure on December 27 at one of the gypsum ponds at our Conda Phosphate Operations which resulted in the release of up to four million gallons of gypsum water.  The water leakage was stopped the same morning and over one million gallons of water has already been recovered.  The water has been contained on site and in a nearby field.   There were no injuries and the Conda facility has continued to operate, however, this particular pond will not be used until we understand how and why the breach occurred. 
 
We take any impact to our environment resulting from our operations very seriously and are working closely with the agencies to contain and remediate the spill.  The Idaho Department of Environmental Quality was immediately notified along with other regulatory and public authorities, including the Environmental Protection Agency. 

The water has low phosphate content but is somewhat acidic in nature, which can be harmful to grass and trees in the immediate area.  Specialists have been brought in to assist in our recovery efforts.