NITROCHEM ENERGY CORPORATION

ONE EMPLOYEE KILLED AND ONE EMPLOYEE INJURED IN EXPLOSION

Employee #1, a front-end loader operator, and Employee #2, a laboratory technici an, were engaged in the process of burning reject product, an ammonium nitrate b ased blasting agent manufactured by the company, at their designated reject burn site. An uncontrolled explosion occurred. Employee #1 was killed in the explosi on, and Employee #2 who was standing in the immediate area was seriously injured . The company did not have a formal written procedure for the burning disposal o f reject materials.