For companies that provide insurance to agricultural facilities storing bulk fertilizer grade ammonium nitrate (FGAN) in Texas, including surplus lines insurers and Texas-registered risk retention groups, develop and issue guidance to assist in underwriting risk and conducting annual loss control surveys. Guidance should include the following:
a. Combustible materials of construction for facilities and bins storing FGAN
b. Storage of combustible materials near FGAN piles
c. Adequate ventilation for indoor FGAN storage areas
d. Automatic sprinklers and smoke detection systems for indoor FGAN storage areas
e. Separation distances between FGAN and other hazardous materials onsite
f. Potential for offsite consequences from a fire or explosion, including the proximity of FGAN facilities to nearby residences, schools, hospitals, and other community structures.
Provide references in the guidance document to existing materials from the following sources or to other equivalent guidance:
a. National Fire Protection Association (NFPA), NFPA 400, Hazardous Materials Code, 2016 Edition, Chapter 11, “Ammonium Nitrate”
b. FM Global, “Property Loss Prevention Data Sheet 7-89”
c. U.S. Environmental Protection Agency, Occupational Safety and Health Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives; “Chemical Advisory: Safe Storage, Handling, and Management of Solid Ammonium Nitrate Prills”
d. TDI, “Best Practices for the Storage of Ammonium Nitrate”
e. National Fire Protection Research Foundation, “Separation Distances and NFPA Codes and Standards.”