We actively monitor the constantly evolving environmental regulatory landscape and proactively adapt our business to comply with anticipated or potential changes.

We have taken preemptive measures to reduce certain emissions from our East Dubuque facility. In 2011, we voluntarily installed on one of our nitric acid plants what we believe is the first tertiary nitrous oxide catalytic converter in the United States that is designed to reduce the emissions of nitrous oxide from that plant by 90%. Assuming this conversion rate and the amount of nitric acid produced at the relevant nitric acid plant in 2010, it is expected that the converter would reduce nitrous oxide emissions at the facility by over 550 tons per year.

We have installed a selective catalytic reduction converter on one of our nitric acid plants at our East Dubuque facility. The post-installation nitrogen oxide emissions limit represents an 80% decrease from the pre-installation nitrogen oxide emissions limit.

In addition, we retrofitted three of our compressor engines, which compress the synthesis gas at our East Dubuque facility, with improved combustion control systems and combustion chambers which has improved efficiency and reduced the generation of nitrogen oxides and other pollutants at the source.

We plan to implement the same proactive approach to environmental compliance we use at our East Dubuque facility to our Pasadena facility, which we acquired at the end of 2012.