$2,400 Fine.
Billions in Revenue.
Toxic Gas. No Audit.
CHS Inc. • Craigmont, Idaho • Clean Air Act Violation • EPA Settlement 2025
TL;DR
- The Facts CHS Inc., one of the largest agricultural cooperatives in America, stored dangerous quantities of anhydrous ammonia at its Craigmont, Idaho facility and was legally required to audit its safety plan every three years.
- The Misconduct CHS skipped its mandatory 2020 safety audit entirely, leaving a gap of nearly five years between compliance checks at a facility handling a chemical that can kill at low concentrations.
- The Misconduct The EPA confirmed the violation and fined CHS exactly $1,200 per violation count, for a total penalty of $2,400 (roughly the price of two months of groceries for a single person), while the maximum allowable fine per day was $59,114 ($59,114 per day could cover a month of rent for a working-class family).
- The Facts CHS neither admitted nor denied the factual allegations, signed away its right to contest or appeal, and the case was closed in a quiet administrative process with no jury, no public hearing, and no criminal charges.
- What’s at Stake Anhydrous ammonia is a chemical weapon-grade hazardous substance; its mismanagement near agricultural communities puts farmworkers, rural families, and first responders directly in the line of risk.
CHS Inc. skipped a legally mandated safety audit on a facility storing enough anhydrous ammonia to kill every person in Craigmont, Idaho, and the United States government’s response was to bill them $2,400 (roughly what most Americans spend on car insurance in a year).
They Stored a Killing Agent and Stopped Checking If It Was Safe
Anhydrous ammonia is used widely in agriculture as a fertilizer, but its chemistry does not care about its intended purpose. At concentrations above 300 parts per million, it causes pulmonary edema, chemical burns, and death. The federal government classifies it as a regulated substance under the Clean Air Act’s Risk Management Program precisely because an accidental release at an inadequately maintained facility can devastate an entire community before anyone can evacuate.
Federal law requires that any operator storing more than a threshold quantity of anhydrous ammonia in a covered process must run a formal compliance audit every three years. The audit is not a suggestion. It exists to verify that safety procedures work, that equipment is maintained, and that workers and nearby residents are protected. For CHS Inc.’s facility at 707 East Highway 95 in Craigmont, Idaho, that deadline fell on March 27, 2020.
CHS did not conduct that audit. The company’s own records on file show the previous audit dated March 27, 2017, and the next audit dated March 15, 2022. That is a gap of nearly five years, with zero verified compliance check in between, during a period that included a global pandemic when supply chains were stressed, facilities were short-staffed, and hazardous material oversight was already stretched thin.
“Respondent failed to evaluate compliance of their Risk Management Program at least every three years as required.”
Who Is CHS Inc., Exactly?
CHS Inc. is one of the largest cooperatives in the United States, dealing in grain, energy, and crop inputs. It operates hundreds of facilities across the country, reported billions in annual revenue in recent years, and employs thousands of people. This is a company with a legal department, a compliance infrastructure, and a Senior Director of EHS (Environment, Health, and Safety) who signed this very settlement document.
The facility in Craigmont, Idaho, is not some forgotten outpost. It sits on a highway in a rural agricultural community. Craigmont itself is a small town in Lewis County, where the nearest trauma center is not around the corner. A chemical release event there would not look like a headline in a major city newspaper. It would look like a local emergency with limited response capacity and a community left to absorb the damage alone.
The Penalty Gap: What CHS Paid vs. What Was Legally Possible
The Non-Financial Ledger
What the Settlement Document Won’t Tell You
The people who live near 707 East Highway 95 in Craigmont, Idaho, did not receive a letter from CHS explaining that their facility had gone without a formal safety compliance audit for nearly five years. They did not receive a hotline number, a press release, or a public apology. They received nothing, because in the world of expedited administrative settlements, the public is not considered a party to the proceeding. The community’s safety was the entire reason the regulation existed, but the community had no seat at the table when CHS and the EPA agreed on a $2,400 (roughly what a low-wage worker earns in two weeks) resolution.
Rural agricultural communities like Craigmont are not abstract statistics. They are intergenerational families, farmworkers, school bus routes, and volunteer fire departments that would be the first called to respond to a chemical release event. Anhydrous ammonia releases are not slow-moving disasters. They are fast, invisible at first, and lethal before most people realize what is happening. The entire architecture of the Risk Management Program, the audits, the certifications, the three-year compliance cycle, exists because Congress and the EPA understood that rural communities facing an ammonia release do not have the luxury of federal response teams arriving in time to matter.
The audit that CHS skipped in 2020 was designed to answer one specific question: are the procedures and practices we put on paper actually being followed in real life? That question went unanswered for nearly five years. No one at the facility, no regulator, no outside auditor verified that the safety systems, the emergency procedures, the equipment checks were all functioning as designed. The residents near that highway, the farmworkers who may work near or at that facility, and the local first responders who would have had to respond to any incident operated for five years in proximity to a risk that was quietly, legally unverified.
The settlement document records that CHS “neither admits nor denies the specific factual allegations.” That legal phrase, standard in administrative settlements, does real damage in the real world. It means CHS pays a fine smaller than a month’s rent in most American cities ($2,400, roughly what many people pay for a single month in a one-bedroom apartment), closes the case, and carries no formal acknowledgment of wrongdoing forward. No worker gets to read a court finding that said their employer failed them. No community gets to point to a document that holds the company accountable by name for what it did, or rather, what it chose not to do. The mechanism that was built to protect people instead delivered a quiet, private resolution that cost CHS less than rounding error in its annual budget.
Legal Receipts: The Document, Word For Word
These Are the Exact Words in the Federal Settlement
“Respondent failed to evaluate compliance of their Risk Management Program at least every three years as required by Β§ 68.58(a).”
EPA Expedited Settlement Agreement, Part III, Allegation 10
“Respondent’s compliance audit was due on March 27, 2020. The two most recent compliance audits on file are dated March 27, 2017 and March 15, 2022.”
EPA Expedited Settlement Agreement, Part III, Allegation 9
“Under Section 113(d)(1) of the CAA, 42 U.S.C. Β§ 7413(d)(1), and 40 C.F.R. Part 19, the EPA may assess a civil penalty of not more than $59,114 per day of violation.”
EPA Expedited Settlement Agreement, Part III, Allegation 11
“After considering these factors, the EPA has determined and Respondent agrees that an appropriate penalty to settle this action is $1,200 (the ‘Assessed Penalty’).”
EPA Expedited Settlement Agreement, Part IV, Terms of Settlement, Paragraph 14. Note: The document contains two separate violations assessed at $1,200 each, for a total of $2,400.
“Respondent neither admits nor denies the specific factual allegations contained in this ESA.”
EPA Expedited Settlement Agreement, Part IV, Terms of Settlement, Paragraph 13
“The EPA may assess a civil penalty of not more than $59,114 per day of violation.” CHS paid $2,400 total. The math is the accountability failure.
The Compliance Audit Timeline: Five Years of Unverified Risk
Societal Impact Mapping
Public Health: A Chemical That Kills Fast in a Place Where Help Is Far Away
Anhydrous ammonia’s danger profile is not theoretical. The EPA places it on the list of regulated substances under 40 C.F.R. Β§ 68.130 specifically because its accidental release can cause immediate, mass-casualty events. Exposure causes severe burns to the respiratory system, eyes, and skin. In an agricultural setting, where the substance is stored in bulk quantities for fertilizer application, a tank failure, valve malfunction, or transfer accident can release lethal concentrations in seconds.
The Risk Management Program compliance audit that CHS failed to conduct by March 2020 is the mechanism designed to catch exactly the kind of equipment degradation, procedural drift, and human error that leads to these releases. The audit is a structured verification that the facility’s emergency response plans, safety equipment, training records, and operating procedures are current, functional, and being followed. Skipping it for nearly five years means that none of those systems received formal external verification during a stretch of time that included operational stress from a global pandemic.
Craigmont is a rural Idaho community. Rural emergency response systems operate with fewer resources, longer response times, and smaller crews than urban departments. First responders at a volunteer or small-town fire department facing an anhydrous ammonia release require specialized equipment and training that many rural departments strain to maintain. The federal audit requirement exists partly because rural communities cannot rely on rapid hazmat team response the way a major city can. CHS’s failure to audit transferred risk directly onto those already-stretched community resources.
Economic Inequality: Who Pays When a Billion-Dollar Company Pays $2,400
The maximum civil penalty the EPA was legally authorized to impose was $59,114 ($59,114 could cover a month’s mortgage for multiple working-class families) per day of violation. The violation period, defined by the gap between the missed 2020 audit and the eventual 2022 audit, spans roughly two years. Even a single day’s maximum penalty would have been 24 times what CHS actually paid. The actual settlement of $2,400 (roughly the cost of a used laptop and some groceries) represents a staggering asymmetry between the company’s resources and the price it faced for leaving a hazardous chemical facility unaudited for five years.
CHS Inc. generates billions of dollars in annual revenue. Its legal and compliance infrastructure is staffed by professionals like the Senior Director of EHS who signed this settlement document. This is not a small family farm that forgot a paperwork deadline. This is a corporation with the institutional capacity to maintain compliance and the financial resources to absorb far larger penalties without any meaningful operational impact. The $2,400 fine ($2,400 is less than the average American pays in a single month for housing, food, and transportation combined) does not function as a deterrent. It functions as a licensing fee for non-compliance.
Working-class people in agricultural communities near CHS facilities bear the residual risk of this enforcement gap. They do not have lobbyists advocating for stronger penalties. They do not have attorneys reviewing the settlement terms. They are told, implicitly, that the regulatory system protects them, while the regulatory system simultaneously negotiates a fine that costs a billion-dollar corporation less than a rounding error. The economic inequality here is structural: the people most exposed to the physical risk of a chemical release are the least represented in the administrative process that resolved it.
The “Cost of a Life” Metric
What Now? Here’s Who Is Watching, and What You Can Do
The People Who Signed This Document
CHS Inc. Matt Surdick, Senior Director of EHS, signed this settlement on behalf of CHS Inc. on October 14, 2025. He is the senior environment, health, and safety officer responsible for compliance oversight at a company operating facilities across the country that store regulated hazardous substances.
EPA Region 10 Edward J. Kowalski, Director of the Enforcement and Compliance Assurance Division at EPA Region 10, signed as Complainant on October 16, 2025. His division negotiated and accepted the $2,400 penalty.
The Regulatory Watchlist
- EPA Region 10 Enforcement and Compliance Assurance Division: responsible for Clean Air Act enforcement in Idaho, Washington, Oregon, and the Pacific Northwest. Demand transparency on how penalty amounts are calculated and why maximum penalties are rarely applied.
- EPA Office of Inspector General: the watchdog inside the EPA. File a complaint asking why a billion-dollar corporation with a five-year compliance gap received a $2,400 (roughly what many Americans spend on one car payment) total fine.
- OSHA: if CHS workers at the Craigmont facility were exposed to unverified risk during the audit gap, workplace safety complaints can be filed directly with the Occupational Safety and Health Administration.
- DOJ Environment and Natural Resources Division: the Department of Justice has joint authority over Clean Air Act penalty actions. Ask why criminal referral was not considered for a multi-year failure to audit a facility storing a mass-casualty chemical agent.
- State of Idaho Department of Environmental Quality: state-level environmental agencies can exercise independent oversight and enforcement authority beyond federal minimums.
Local Action Matters More Than You Think
Rural communities near agricultural chemical storage facilities have the most to lose and the least institutional support. Connect with local mutual aid networks, rural environmental justice organizations, and community emergency preparedness groups. Find out if your town’s volunteer fire department has the equipment and training to respond to an anhydrous ammonia release. Demand that your county government publish a list of all facilities storing regulated substances near residential areas. Corporate accountability at the federal level moves slowly; community-level pressure moves faster, and it saves lives.
The source document for this investigation is attached below.
The second PDF (the one down below) can be found at https://yosemite.epa.gov/OA/rhc/EPAAdmin.nsf/Filings/961EABCB117EEB9F85258D290041F6BF/$File/ESA%20CHS%20Grangeville%20CAA%2010%202024%200239.pdf
The first PDF (the one found up top) can be found at https://yosemite.epa.gov/OA/rhc/EPAAdmin.nsf/Filings/A1192CD13271428885258D290041F64B/$File/ESA%20CHS%20Craigmont%20CAA%2010%202024%200238.pdf
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