Profile: Terra Nitrogen Company, L.P. (TNH)

Terra Nitrogen Company, L.P. (TNCLP) is a limited partnership that produces and distributes nitrogen fertilizer products. Its principal products are anhydrous ammonia (or ammonia) and urea ammonium nitrate solutions (UAN), which the Company manufactures at its facility in Verdigris, Oklahoma. The Company conducts its operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP or the Operating Partnership). Terra Nitrogen GP Inc. (TNGP or General Partner) is the general partner of both TNCLP and TNLP and owns a consolidated 0.05% interest in the Partnership. The General Partner is an indirect, wholly owned subsidiary of Terra Industries Inc. (Terra). Terra is a producer and marketer of nitrogen products, serving agricultural and industrial markets.

The Company sells its products primarily in the Central and Southern Plains and Corn Belt regions of the United States. The Company’s products are marketed and distributed by Terra Industries Inc., which provides services to the Partnership. All of its sales are at the wholesale level. Its customers for fertilizer products are dealers, national farm retail chains, distributors and other fertilizer producers and traders.

Urea Ammonium Nitrate Solutions

UAN can be applied to crops directly or mixed with crop protection products, permitting the application of several materials simultaneously. UAN may be applied from ordinary tanks and trucks and sprayed or injected into the soil, or applied through irrigation systems. In addition, UAN may be applied throughout the growing season. UAN may be used for no-till row crops where fertilizer is spread on the surface of the soil. During the year ended December 31, 2008, the Company produced and sold approximately two million tons of UAN.

Anhydrous Ammonia

The Company produces ammonia, the simplest form of nitrogen fertilizer and the feedstock for the production of other nitrogen fertilizers, including urea, ammonium nitrate (AN) and UAN. In 2008, the Company produced approximately 1.2 million tons of ammonia. It sold a total of 0.3 million tons of ammonia and consumed approximately 0.9 million tons of ammonia as a raw material to manufacture its other nitrogen products.