BY ANDY TAYLOR
chronicle@taylornews.org

COFFEYVILLE — A legal dispute between Coffeyville Resources Nitrogen Fertilizers and the City of Coffeyville concerning the City’s electrical power to the fertilizer plant was officially settled on Tuesday.
City commissioners voted unanimously to accept a settlement agreement with Coffeyville Resources Nitrogen Fertilizers after attorneys for both parties reached an agreement during mediation meetings more than one week ago.

In November 2008, Coffeyville Resources Nitrogen Fertilizers filed a lawsuit against the City of Coffeyville concerning the electric rates assessed by the City for the fertilizer company. Coffeyville Resources officials said in a press statement Tuesday that the lawsuit was filed for what the company thought was excessive charges beyond what the City and the company had agreed to in an existing electrical use contract (the City of Coffeyville provides electrical power to the fertilizer company).

The City of Coffeyville does not dispute that additional charges were applied but contends that the additional charge was a tariff that the City found necessary as a result of new power supply and transmission agreements. A press statement issued by the City of Coffeyville on Tuesday said the new power supply agreement was created after fertilizer company had expressed “an unwillingness” to negotiate any substantive changes to the previous 2004 electric use agreement.

Under the terms of the settlement, the City of Coffeyville will immediately refund Coffeyville Resources Nitrogen Fertilizers $4.79 million. During the process of the lawsuit, the City of Coffeyville sat aside $5 million of the company’s electric use payments for such a contingency.
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A Coffeyville resident expressed concerns Tuesday about the lack of information begin made available to him about possible bomb-making activities at a neighboring property.

Dustin Foust, 1403 S. Maple, alerted city commissioners into an investigation into a neighboring property last weekend. Foust was alerted to the investigation at 3 a.m., when a law enforcement officer awakened Foust and asked he and his family to evacuate the home until the investigation was completed.
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