10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________

FORM 10-Q/A

(Amendment No. 1)

_______________________________________________________

x	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended June 30, 2016
or
¨	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ______ to ______

Commission File Number: 001-34025

INTREPID POTASH, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	26-1501877
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
707 17th Street, Suite 4200, Denver, Colorado	80202
(Address of principal executive offices)	(Zip Code)

(303) 296-3006

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.) Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨(Do not check if asmaller reporting company) Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of July 27, 2016, the registrant had outstanding 76,597,669 shares of common stock, par value $0.001.

Explanatory Note

This Form 10-Q/A amends the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, as filed on August 2, 2016. The purpose of this amendment is solely (1) to add conformed signatures to the certifications filed as Exhibits 31.1, 31.2, 32.1, and 32.2, and (2) to add Exhibit 95.1. The confirmed signatures and Exhibit 95.1 were inadvertently omitted from the original Form 10-Q.

Except as specifically noted above, this Form 10-Q/A does not modify or update disclosures in the original Form 10-Q. Accordingly, this Form 10-Q/A does not reflect events occurring after the filing of the original Form 10-Q or modify or update any related or other disclosures.

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INTREPID POTASH, INC.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION	1
ITEM 1. Condensed Consolidated Financial Statements (Unaudited)	1
Condensed Consolidated Balance Sheets	1
Condensed Consolidated Statements of Operations	2
Condensed Consolidated Statements of Comprehensive (Loss) Income	3
Condensed Consolidated Statements of Stockholders' Equity	4
Condensed Consolidated Statements of Cash Flows	5
Notes to Condensed Consolidated Financial Statements	6
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	22
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk	37
ITEM 4. Controls and Procedures	37
PART II - OTHER INFORMATION	38
ITEM 1. Legal Proceedings	38
ITEM 1A. Risk Factors	38
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	38
ITEM 3. Defaults upon Senior Securities	38
ITEM 4. Mine Safety Disclosures	38
ITEM 5. Other Information	39
ITEM 6. Exhibits	39
Signatures	40

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PART I - FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

	June 30,			December 31,
	2016			2015
ASSETS
Cash and cash equivalents	$	30,984		$	9,307
Short-term investments	16,599			50,523
Accounts receivable:
Trade, net	8,986			9,743
Other receivables, net	2,352			1,470
Inventory, net	109,570			106,531
Prepaid expenses and other current assets	3,070			18,141
Total current assets	171,561			195,715
Property, plant, equipment, and mineral properties, net	404,690			419,476
Long-term parts inventory, net	18,389			17,344
Long-term investments	—			3,799
Other assets, net	4,558			3,635
Total Assets	$	599,198		$	639,969
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable:
Trade	$	11,835		$	15,709
Related parties	82			45
Accrued liabilities	10,115			15,429
Accrued employee compensation and benefits	7,895			7,409
Other current liabilities	1,321			547
Total current liabilities	31,248			39,139
Long-term debt, net	147,840			149,485
Asset retirement obligation	23,832			22,951
Other non-current liabilities	—			1,868
Total Liabilities	202,920			213,443
Commitments and Contingencies
Common stock, $0.001 par value; 400,000,000 and 100,000,000 shares authorized; and
75,838,782 and 75,702,700 shares outstanding at June 30, 2016, and December 31, 2015, respectively	76			76
Additional paid-in capital	581,755			580,227
Accumulated other comprehensive loss	(3		)	(52		)
Retained deficit	(185,550		)	(153,725		)
Total Stockholders' Equity	396,278			426,526
Total Liabilities and Stockholders' Equity	$	599,198		$	639,969

See accompanying notes to these condensed consolidated financial statements.

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INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Sales	$	51,840		$	73,651		$	125,117		$	190,672
Less:
Freight costs	8,931			6,898			19,263			17,810
Warehousing and handling costs	2,538			3,437			5,202			7,184
Cost of goods sold	41,850			55,435			101,627			138,717
Lower-of-cost-or-market inventory adjustments	2,930			5,276			11,937			5,636
Costs associated with abnormal production and other	1,057			—			1,707			—
Gross (Deficit) Margin	(5,466		)	2,605			(14,619		)	21,325
Selling and administrative	4,536			8,424			11,106			15,892
Accretion of asset retirement obligation	442			424			884			848
Restructuring expense	1,914			—			2,314			—
Other operating income	(1,801		)	(2,312		)	(1,905		)	(2,246		)
Operating (Loss) Income	(10,557		)	(3,931		)	(27,018		)	6,831
Other Income (Expense)
Interest expense, net	(3,000		)	(1,602		)	(5,229		)	(3,246		)
Interest income	101			200			224			355
Other income	59			46			201			373
(Loss) Income Before Income Taxes	(13,397		)	(5,287		)	(31,822		)	4,313
Income Tax (Expense) Benefit	(1		)	350			(3		)	(2,721		)
Net (Loss) Income	$	(13,398	)	$	(4,937	)	$	(31,825	)	$	1,592
Weighted Average Shares Outstanding:
Basic	75,838,782			75,683,075			75,797,658			75,636,343
Diluted	75,838,782			75,683,075			75,797,658			75,731,910
(Loss) Earnings Per Share:
Basic	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02
Diluted	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02

See accompanying notes to these condensed consolidated financial statements.

2

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(In thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net (Loss) Income	$	(13,398	)	$	(4,937	)	$	(31,825	)	$	1,592
Other Comprehensive Income:
Unrealized gain on investments available for sale, net of tax	19			(35		)	49			(25		)
Other Comprehensive Income (Loss)	19			(35		)	49			(25		)
Comprehensive (Loss) Income	$	(13,379	)	$	(4,972	)	$	(31,776	)	$	1,567

See accompanying notes to these condensed consolidated financial statements.

3

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share amounts)

	Common Stock			Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Retained Deficit			Total Stockholders' Equity
	Shares	Amount
Balance, December 31, 2015	75,702,700	$	76	$	580,227		$	(52	)	$	(153,725	)	$	426,526
Unrealized gain on investments available for sale, net of tax	—	—		—			49			—			49
Net loss	—	—		—			—			(31,825		)	(31,825		)
Stock-based compensation	—	—		1,700			—			—			1,700
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting	136,082	—		(172		)	—			—			(172		)
Balance, June 30, 2016	75,838,782	$	76	$	581,755		$	(3	)	$	(185,550	)	$	396,278

See accompanying notes to these condensed consolidated financial statements.

4

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Six Months Ended June 30,
	2016			2015
Cash Flows from Operating Activities:
Net (loss) income	$	(31,825	)	$	1,592
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Deferred income taxes	—			2,754
Depreciation, depletion, and accretion	24,209			40,673
Amortization of deferred financing costs	1,666			186
Stock-based compensation	1,700			2,595
Lower-of-cost-or-market inventory adjustments	11,937			5,636
Allowance for parts inventory obsolescence	618			—
Other	435			862
Changes in operating assets and liabilities:
Trade accounts receivable, net	757			12,919
Other receivables, net	(726		)	(3,671		)
Refundable income taxes	91			(174		)
Inventory, net	(16,638		)	(10,903		)
Prepaid expenses and other current assets	14,677			1,063
Accounts payable, accrued liabilities, and accrued employee compensation and benefits	(5,401		)	244
Other liabilities	(1,097		)	1,418
Net cash provided by operating activities	403			55,194
Cash Flows from Investing Activities:
Additions to property, plant, equipment, and mineral properties	(11,775		)	(18,989		)
Purchases of investments	(1,500		)	(72,227		)
Proceeds from sale of investments	37,375			9,748
Net cash provided by (used in) investing activities	24,100			(81,468		)
Cash Flows from Financing Activities:
Debt issuance costs	(2,654		)	—
Employee tax withholding paid for restricted stock upon vesting	(172		)	(1,030		)
Net cash used in financing activities	(2,826		)	(1,030		)
Net Change in Cash and Cash Equivalents	21,677			(27,304		)
Cash and Cash Equivalents, beginning of period	9,307			67,589
Cash and Cash Equivalents, end of period	$	30,984		$	40,285
Supplemental disclosure of cash flow information
Net cash paid (refunded) during the period for:
Interest	$	3,221		$	3,124
Income taxes	$	(88	)	$	41
Accrued purchases for property, plant, equipment, and mineral properties	$	544		$	5,557

See accompanying notes to these condensed consolidated financial statements.

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INTREPID POTASH, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

"Intrepid," "our," "we," or "us" means Intrepid Potash, Inc. and its consolidated subsidiaries.

Note 1 — COMPANY BACKGROUND

We are the only producer of muriate of potash ("potassium chloride" or "potash") in the United States and one of two producers of langbeinite ("sulfate of potash magnesia"), which we market and sell as Trio^®. We sell potash and Trio^® primarily into the agricultural market as a fertilizer. We also sell these products into the animal feed market as a nutritional supplement and sell potash into the industrial market as a component in drilling and fracturing fluids for oil and gas wells and other industrial inputs. Our revenues are generated exclusively from the sale of potash and Trio^®. We also produce salt and magnesium chloride from our potash mining processes, the sales of which are accounted for as by-product credits to our cost of sales. These by-product credits represented approximately 2% to 3% of total cost of goods sold in each of the last three years.

During the first half of 2016, we produced potash from three solution mining facilities and two conventional underground mining facilities. Our solution mining production comes from our HB solar solution mine near Carlsbad, New Mexico, a solar solution mine near Moab, Utah, and a solar brine recovery mine in Wendover, Utah. Our conventional production of potash came from our underground West and East mines near Carlsbad, New Mexico. We also operate the North compaction facility near Carlsbad, New Mexico, which services the West and HB mines. We produce Trio^® from our underground conventional East mine.

In April 2016, we converted our East facility from a mixed-ore facility that produced both potash and Trio^® to a Trio^®-only facility. We expect our commissioning activities related to that transition to continue into the second half of 2016. Subsequent to the transition, we no longer produce potash at our East facility.

In May 2016, we initiated a plan to idle mining operations at our West facility and transition it into a care-and- maintenance mode due to the decline in potash prices. As we completed the transition in July 2016, all of our potash is now produced from our three solution mining facilities.

Until the second quarter of 2016, we had one reporting segment; the extraction, production, and sale of potassium-related products. As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio^®-only and the idling of our West facility, the chief operating decision maker separately evaluates our potash and Trio^® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio^®.

Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation—Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included.

The lenders under our credit facility have agreed to waive until no later than September 30, 2016, the requirements under our credit facility that we comply with certain financial covenants and that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. In addition, the holders of our senior notes have agreed to waive until September 30, 2016, the requirement under the terms of the senior notes that we comply with certain financial covenants for the first and second quarters of 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-

6

party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes and any amounts outstanding under the credit facility. If the lenders were to make such a demand for repayment, we would be unable to pay the obligations as we do not have existing facilities or sufficient cash on hand to satisfy these obligations. With this material uncertainty surrounding compliance with our debt covenants, declining revenues, lower-of-cost-or-market inventory adjustments, and negative cash flows from operations, there is substantial doubt about our ability to continue as a going concern. While we will continue to work with our lenders, there can be no assurance that we will be successful. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Recently Adopted Accounting Standard—Certain prior period amounts have been reclassified in order to conform to the current period presentation. In accordance with the adoption of a new accounting standard, we have reclassified $515,000 of deferred financing costs associated with our outstanding debt from "Other current assets" and "Other assets" to "Long-term debt, net" as of December 31, 2015 to conform to the June 30, 2016 presentation.

Use of Estimates—The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions.

Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, valuation of investments, the valuation of receivables, valuation of our deferred tax assets, and estimated blended income tax rates utilized in the current and deferred income tax calculations. There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures. Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs. The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items, including depletion; the net carrying value of our mineral properties; the useful lives of related property, plant, and equipment; depreciation expense; and estimates associated with recoverability of long-lived assets and asset retirement obligations. Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing state income tax rates and the blend of state tax rates.

Revenue Recognition—Revenue is recognized when evidence of an arrangement exists; risks and rewards of ownership have been transferred to customers, which is generally when title passes; the selling price is fixed and determinable; and collection is reasonably assured. Title passes at the designated shipping point for the majority of sales, but, in a few cases, title passes at the delivery destination. The shipping point may be the plant, a distribution warehouse, a customer warehouse, or a port. Title passes for some international shipments upon payment by the purchaser; however, revenue is not recognized for these transactions until shipment because the risks and rewards of ownership have not transferred pursuant to a contractual arrangement. Prices are generally set at the time of, or prior to, shipment. In cases where the final price is determined after shipment and agreed to with our customer, revenue is recognized when the final sales price is fixed and determinable and the other revenue recognition criteria have been met.

Sales are reported on a gross basis. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. When a sale occurs on a delivered basis, we incur and, in turn, bill the customer and record as gross revenue the product sales value, freight, packaging, and certain other distribution costs. Many customers, however, arrange and pay for these costs directly and, in these situations, only the product sales are included in gross revenues.

Inventory—Inventory consists of product and by-product stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and by-product inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits.

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We evaluate our production levels and costs to determine if any should be deemed abnormal and therefore excluded from inventory costs and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal.

Property, Plant, Equipment, Mineral Properties, and Development Costs—Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress.

Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio^®, as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position.

(Loss) Earnings per Share—Basic net income or loss per common share of stock is calculated by dividing net income or loss available to common stockholders by the weighted average basic common shares outstanding for the respective period.

Diluted net income or loss per common share of stock is calculated by dividing net income or loss by the weighted average diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings or loss per share calculation consist of awards of non-vested restricted shares of common stock, non-vested performance units, and non-qualified stock options. The dilutive effect of stock based compensation arrangements are computed using the treasury stock method. Following the lapse of the vesting period of restricted shares of common stock, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations.

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Note 3 — (LOSS) EARNINGS PER SHARE

Potentially dilutive securities, including non-vested restricted common stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury stock method is used to measure the dilutive impact of non-vested restricted common stock, stock options outstanding, and performance units. The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted average shares outstanding computations:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Anti-dilutive shares of non-vested restricted common stock	447,661	474,481	407,186	161,675
Anti-dilutive shares of stock options outstanding	218,886	319,563	227,370	320,241
Anti-dilutive shares of non-vested performance units	126,050	194,374	127,651	131,621

The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net (loss) income	$	(13,398	)	$	(4,937	)	$	(31,825	)	$	1,592
Basic weighted average common shares outstanding	75,839			75,683			75,798			75,636
Add: Dilutive effect of non-vested restricted common stock	—			—			—			90
Add: Dilutive effect of performance units	—			—			—			6
Diluted weighted average common shares outstanding	75,839			75,683			75,798			75,732
(Loss) earnings per share:
Basic	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02
Diluted	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02

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Note 4— CASH, CASH EQUIVALENTS, AND INVESTMENTS

The following table summarizes the fair value of our cash and investments held in our portfolio, recorded as cash and cash equivalents or short-term or long-term investments as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016		December 31, 2015
Cash	$	8,691	$	9,056
Commercial paper and money market accounts	22,293		251
Total cash and cash equivalents	$	30,984	$	9,307
Corporate bonds	$	15,592	$	49,518
Certificates of deposit and time deposits	1,007		1,005
Total short-term investments	$	16,599	$	50,523
Corporate bonds	$	—	$	3,799
Total long-term investments	$	—	$	3,799
Total cash, cash equivalents, and investments	$	47,583	$	63,629

The following tables summarize the cost basis, unrealized gains and losses, and fair value of our available-for-sale investments held in our portfolio as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Corporate bonds	$	15,596	$	2	$	(5	)	$	15,593
Certificates of deposit and time deposits	1,007		—		—			1,007
Total available-for-sale investments	$	16,603	$	2	$	(5	)	$	16,600

	December 31, 2015
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Corporate bonds	$	53,403	$	6	$	(92	)	$	53,317
Certificates of deposit and time deposits	1,005		—		—			1,005
Total available-for-sale investments	$	54,408	$	6	$	(92	)	$	54,322

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Note 5 — INVENTORY AND LONG-TERM PARTS INVENTORY

The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value, as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016		December 31, 2015
Finished goods product inventory	$	64,195	$	65,200
In-process mineral inventory	24,085		19,769
Total product inventory	88,280		84,969
Current parts inventory, net	21,290		21,562
Total current inventory, net	109,570		106,531
Long-term parts inventory, net	18,389		17,344
Total inventory, net	$	127,959	$	123,875

Parts inventories are shown net of any required allowances. At June 30, 2016, and 2015, allowances for parts inventory obsolescence were $3.3 million and $0.5 million, respectively.

During the six months ended June 30, 2016, and 2015, we recorded charges of approximately $11.9 million and $5.6 million, respectively, as a result of routine assessments of the lower of weighted average cost or estimated net realizable value of our finished goods product inventory.

During the first half of 2016, we suspended potash production at our East facility for a total of seven days as we performed a langbeinite-only testing run and converted the East facility to a Trio^®-only facility. As a result of the suspension of production, we determined that approximately $1.1 million and $1.7 million of production costs at our East facility would have been allocated to additional tons produced, assuming we had been operating at normal production rates for the three- and six-month periods ending June 30, 2016, respectively. Accordingly, these costs were excluded from our inventory values and instead expensed in the three- and six-month periods in 2016 as period production costs. We compare actual production relative to what we estimated could have been produced if we had not incurred the production suspensions and lower operating rates in order to determine the abnormal cost adjustment.

Note 6 — PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES

"Property, plant, equipment, and mineral properties, net" were comprised of the following (in thousands):

	June 30, 2016			December 31, 2015
Buildings and plant	$	83,488		$	81,208
Machinery and equipment	221,430			209,920
Vehicles	4,875			4,747
Office equipment and improvements	12,177			12,001
Ponds and land improvements	57,731			55,951
Total depreciable assets	379,701			363,827
Accumulated depreciation	(101,754		)	(80,707		)
Total depreciable assets, net	$	277,947		$	283,120
Mineral properties and development costs	$	140,250		$	139,751
Accumulated depletion	(19,235		)	(17,254		)
Total depletable assets, net	$	121,015		$	122,497
Land	$	719		$	719
Construction in progress	$	5,009		$	13,140
Total property, plant, equipment, and mineral properties, net	$	404,690		$	419,476

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We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Depreciation	$	8,862	$	18,485	$	21,344	$	37,364
Depletion	537		488		1,981		2,461
Accretion	442		424		884		848
Total incurred	$	9,841	$	19,397	$	24,209	$	40,673

Note 7 — DEBT

Unsecured Credit Facility—We have an unsecured credit facility, led by U.S. Bank, as administrative agent, and Wells Fargo Bank, as syndication agent. Throughout the first seven months of 2016, we entered into a series of amendments that ultimately reduced the amount available to us under the credit facility to a maximum of $1 million, which amount may be used only for letters of credit. Any availability of the credit facility is subject to our compliance with financial covenants that provide that our leverage ratio may not exceed 3.5 to 1, and our fixed charge coverage ratio may not be below 1.3 to 1. We were not in compliance with these covenants as of March 31, 2016, and June 30, 2016; however, the lenders under the credit facility have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016, and June 30, 2016. Further, the lenders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the credit facility until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after the waiver expires, or our failure to comply with similar covenants under the terms of our senior notes after September 30, 2016, will result in an event of default that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility. In addition, the amount available under the credit facility would be reduced to zero. The maturity date for the credit facility is the earliest of (1) September 30, 2016, (2) any date on which the aggregate commitment under the credit facility is reduced to zero, and (3) the effective date for a new credit facility.

The credit facility also has a covenant that requires us to provide to the lenders audited annual financial statements within 90 days of the end of each year. The audit report must not contain any going concern modification. The audit report accompanying our financial statements for the year ended December 31, 2015, contains a going concern modification, and therefore does not satisfy the credit facility covenant. The lenders under the facility agreed to waive until September 30, 2016, the requirement that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. Further, the lenders agreed that the existence of audited annual financial statements for the year ended December 31, 2015, with a going concern modification will not constitute a default or event of default under the facility until September 30, 2016. Our continued failure to comply with this covenant after September 30, 2016, will result in an event of default that, if not cured or waived could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility.

    The financial covenants under the credit facility are calculated as follows:

• Our maximum leverage ratio (calculated as the ratio of funded indebtedness to adjusted EBITDA for the prior four fiscal quarters) is 3.5 to 1, where funded indebtedness is calculated as total funded indebtedness minus cash and cash equivalent investments on hand up to a maximum of $75 million. Our leverage ratio at June 30, 2016, was 10.3 to 1.

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• Our minimum fixed charge coverage ratio (calculated as the ratio of adjusted EBITDA for the prior four fiscal quarters, minus maintenance capital expenditures and cash paid for income taxes, to interest expense plus scheduled principal amortization of long-term funded indebtedness) is 1.3 to 1, where annual maintenance capital expenditures is set at $20 million. Our fixed charge coverage ratio at June 30, 2016, was (1.4) to 1.

These ratios and other restrictive covenants under the credit facility could limit our ability to engage in activities that we believe are in our long-term best interests.

The facility is unsecured and is guaranteed by our material subsidiaries. As of June 30, 2016, we had a $0.5 million letter of credit outstanding under the facility.

Unsecured Senior Notes—In April 2013, we issued $150 million aggregate principal amount of unsecured senior notes (the "Notes") pursuant to a note purchase agreement entered into in August 2012. The Notes consist of the following series:

• $60 million of 3.23% Senior Notes, Series A, due April 16, 2020

• $45 million of 4.13% Senior Notes, Series B, due April 14, 2023

• $45 million of 4.28% Senior Notes, Series C, due April 16, 2025

The Notes are senior unsecured obligations and rank equally in right of payment with any other unsubordinated unsecured indebtedness of ours. The Notes are subject to the same leverage ratio and fixed charge coverage ratio as apply under the credit facility, as described above. In January 2016, we amended the note purchase agreement to provide that the interest rate for the senior notes will be increased by 0.25% during any time that our leverage ratio exceeds 2.25 to 1. As we did not meet our leverage ratio and fixed charge ratio beginning as of March 31, 2016, in accordance with the terms of the note purchase agreement, the above interest rates increased by 2% beginning April 1, 2016 through July 28, 2016. As part of an amendment and waiver extension in July 2016, the above interest rates increased 3.5% above the rates indicated above beginning July 29, 2016, and will remain at that level as long as we are not meeting these ratios. As described above, these ratios and other restrictive covenants under the Notes could limit our ability to engage in activities that we believe are in our long-term best interests.

Our outstanding long-term debt, net, is as follows as of June 30, 2016 and December 31, 2015 (in thousands):

	June 30, 2016			December 31, 2015
Unsecured Senior Notes	$	150,000		$	150,000
Less deferred financing costs	(2,160		)	(515		)
Long-term debt, net	$	147,840		$	149,485

We were not in compliance with the financial covenants under the Notes as of March 31, 2016, and June 30, 2016; however, the noteholders have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016, and June 30, 2016. Further, the noteholders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the Notes until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA will not be sufficient for us to return to compliance with these covenants through 2016. We are working with the noteholders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of our credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of the Notes and any amounts outstanding under the credit facility.

The obligations under the Notes are unconditionally guaranteed by our material subsidiaries.

Interest is paid semiannually on April 16 and October 16 of each year. Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $3.1 million and $1.7 million for the three months ended June 30, 2016, and 2015, respectively. Included in the gross interest expense for the

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three months ended June 30, 2016, is the expensing of deferred financing costs of $0.8 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.1 million and an immaterial amount of interest during the three months ended June 30, 2016, and 2015, respectively. For the six months ended June 30, 2016, and 2015, we incurred gross interest expense of $5.4 million and $3.3 million, respectively. Included in the gross interest expense for the six months ended June 30, 2016, is the expensing of deferred financing costs of $1.5 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.2 million and an immaterial amount of interest during the six months ended June 30, 2016, and 2015, respectively.

Note 8 — FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT

Intrepid Potash, Inc., as the parent company, has no independent assets or operations, and operations are conducted solely through its subsidiaries. Cash generated from operations is held at the parent company level as cash on hand and short- and long-term investments. Cash on hand and short- and long-term investments totaled $47.6 million and $63.6 million at June 30, 2016, and December 31, 2015, respectively. In the event that one or more of our wholly-owned operating subsidiaries guarantee public debt securities in the future, those guarantees will be full and unconditional and will constitute the joint and several obligations of the subsidiary guarantors. Our other subsidiaries are minor. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the subsidiary guarantors, except those imposed by applicable law.

Note 9 — ASSET RETIREMENT OBLIGATION

We recognize an estimated liability for future costs associated with the abandonment and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired.

Our asset retirement obligation is based on the estimated cost to abandon and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are revisions to estimated costs. The credit adjusted risk-free rates used to discount our abandonment liabilities range from 6.9% to 8.5%. Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated abandonment costs or economic lives, or if federal or state regulators enact new requirements regarding the abandonment or reclamation of mines.

Following is a table of the changes to our asset retirement obligation for the following periods (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Asset retirement obligation, at beginning of period	$	23,393		$	22,461		$	22,951		$	22,037
Liabilities settled	(3		)	(16		)	(3		)	(16		)
Liabilities incurred	—			—			—			—
Changes in estimated obligations	—			—			—			—
Accretion of discount	442			424			884			848
Total asset retirement obligation, at end of period	$	23,832		$	22,869		$	23,832		$	22,869

The undiscounted amount of asset retirement obligation was $58.4 million as of June 30, 2016.

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Note 10 — COMPENSATION PLANS

Cash Bonus Plans—During 2015, we had cash bonus plans that allow participants to receive varying percentages of their aggregate base salary. Any awards under the cash bonus plans are based on a variety of elements related to our performance in certain production, operational, financial, and other areas, as well as the participants' individual performance. We accrue cash bonus expense related to the current year's performance. In December 2015, we suspended our cash bonus programs for most employees for 2015 and have not implemented a cash bonus plan for 2016 as part of our cost savings initiatives.

Equity Incentive Compensation Plan—Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Equity Incentive Plan, as Amended and Restated (the "Plan"). We have issued common stock, restricted shares of common stock, performance units, and non-qualified stock option awards under the Plan. As of June 30, 2016, the following awards were outstanding under the Plan: 760,303 shares of non-vested restricted shares of common stock; non-vested performance units representing 252,100 shares of common stock; and options to purchase 218,857 shares of common stock. As of June 30, 2016, approximately 6.4 million shares of common stock remained available for issuance under the Plan.

Common Stock—In the second quarter of 2015, the Compensation Committee of the Board of Directors (the "Compensation Committee") granted shares of common stock under the Plan to our non-employee directors as compensation for service for the period ending on the date of our annual stockholders' meeting for the following year. These shares of common stock were granted without restrictions and vested immediately.

Non-vested Restricted Shares of Common Stock—The Compensation Committee has granted restricted shares of common stock under the Plan to executive officers, other key employees, non-employee directors and consultants. The awards contain service conditions associated with continued employment or service and provide voting and regular dividend rights. Upon vesting, the restrictions on the restricted shares of common stock lapse and the shares are considered issued and outstanding.

In the first quarter of 2015, the Compensation Committee granted restricted shares of common stock under the Plan to our executive management team and other selected employees as part of an annual equity award program. These awards vest ratably over three years. From time to time, the Compensation Committee grants restricted shares of common stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives. These restricted shares of common stock generally vest over one- to four-year periods. In the second quarter of 2016, the Compensation Committee granted 562,010 restricted shares of common stock under the Plan to members of our Board of Directors, including one employee director. These restricted shares of common stock vest one year after grant.

In measuring compensation expense associated with the grant of non-vested restricted shares of common stock, we use the fair value of the award, determined as the closing stock price for our common stock on the grant date. Compensation expense is recorded monthly over the vesting period of the award. Total compensation expense related to the non-vested restricted shares of common stock awards was $0.5 million and $0.8 million for the three months ended June 30, 2016, and 2015, respectively. Total compensation expense was $1.2 million and $1.7 million for the six months ended June 30, 2016 and 2015, respectively. These amounts are net of estimated forfeiture adjustments. As of June 30, 2016, there was $2.2 million of total remaining unrecognized compensation expense related to non-vested restricted shares of common stock that will be expensed through 2018.

A summary of activity relating to our non-vested restricted shares of common stock for the six months ended June 30, 2016, is presented below.

			Weighted Average Grant-Date Fair Value
	Shares
Non-vested restricted shares of common stock, beginning of period	459,663		$	14.93
Granted	562,010		$	1.28
Vested	(211,861	)	$	15.53
Forfeited	(49,509	)	$	14.46
Non-vested restricted shares of common stock, end of period	760,303		$	11.09

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Performance Units—In 2015, the Compensation Committee granted at-risk performance units under the Plan to a member of our executive team as part of their annual compensation package. The performance units vest in February 2018, and payout, if any, is based on market-based conditions relating to one-, two- and three-year performance periods beginning on the grant date. No shares were earned under the first one-year performance period. A total of 252,100 shares of common stock are available for future payout under these performance units, subject to continued employment through the vesting date.

Non-qualified Stock Options—From 2009 to 2011, the Compensation Committee issued non-qualified stock options under the Plan in the first quarter of each year to our executive management and other selected employees as part of our annual award program. All outstanding stock options are fully vested.

Realized tax benefits from tax deductions for exercised options in excess of the deferred tax asset attributable to stock compensation for these options are recorded as "excess tax benefits" when the tax deductions occur.

A summary of our stock option activity for the six months ended June 30, 2016, is as follows:

	Shares	Weighted Average Exercise Price	Aggregate Intrinsic Value1	Weighted Average Remaining Contractual Life (in years)
Outstanding non-qualified stock
options, end of period	218,857	$25.74	$—	3.1
Vested or expected to vest, end
of period	218,857	$25.74	$—	3.1
Exercisable non-qualified
stock options, end of period	218,857	$25.74	$—	3.1

¹  The intrinsic value of a stock option is the amount by which the market value exceeds the exercise price as of the end of the period presented.

Note 11 — INCOME TAXES

Our effective tax rate is impacted primarily by the amount of taxable income associated with each jurisdiction in which our income is subject to income tax, permanent differences between the financial statement carrying amounts and tax bases of assets and liabilities.

A summary of the provision for income taxes is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Current portion of income tax expense (benefit)	$	1		$	(148	)	$	3		$	(34	)
Deferred portion of income tax (benefit) expense	—			(202		)	—			2,755
Total income tax expense (benefit)	$	1		$	(350	)	$	3		$	2,721
Effective tax rate	—		%	6.6		%	—		%	63.1		%

During the three- and six-month periods ended June 30, 2016, our effective tax rate differed from the statutory rate primarily as a result of the impact of recording a valuation allowance to offset the amount of additional deferred tax asset generated during the period. For the three- and six-month periods ended June 30, 2015, our effective tax rate differed from the statutory rate primarily as a result of the benefit from estimated depletion deductions that exceed the tax basis in the mineral reserves.

The blended state tax rate applied to the deferred tax calculation is subject to change due to changes in state laws and changes in the mix of our business and the states in which we have a taxable relationship. This creates fluctuations in the value of our net deferred tax asset.

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As of June 30, 2016, we do not believe it is more likely than not that we will fully realize the benefit of the deferred tax assets. As such, we increased the valuation allowance related to our deferred tax assets by $13.8 million for the six months ended June 30, 2016. Our deferred tax asset, net of the valuation allowance, at June 30, 2016, and December 31, 2015, is zero.

A summary of our valuation allowance activity is as follows (in thousands):

	Six Months Ended June 30,
	2016		2015
Valuation allowance, beginning of period	$	300,601	$	268
Additions	13,847		—
Reversals	—		—
Valuation allowance, end of period	$	314,448	$	268

Note 12 — COMMITMENTS AND CONTINGENCIES

Reclamation Deposits and Surety Bonds—As of June 30, 2016, we had $19.5 million of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of our various facilities. Of this total requirement, as of June 30, 2016, $2.0 million consisted of long-term restricted cash deposits reflected in "Other assets, net" on the condensed consolidated balance sheets, and $17.5 million was secured by surety bonds issued by an insurer. The surety bonds are held in place by an annual fee paid to the issuer.

We may be required to post additional security to fund future reclamation obligations as reclamation plans are updated or as governmental entities change requirements.

Legal—In February 2015, Mosaic Potash Carlsbad Inc. ("Mosaic") filed a complaint and application for preliminary injunction and permanent injunction against Steve Gamble and us in the Fifth Judicial District Court for County of Eddy in the State of New Mexico. Mr. Gamble is a current Intrepid employee and former Mosaic employee. The complaint alleges against us violations of the Uniform Trade Secrets Act and tortious interference with contract relating to alleged misappropriation of Mosaic’s trade secrets. Mosaic seeks monetary relief of an unspecified amount, including damages for actual loss and unjust enrichment, exemplary damages, attorneys' fees, and injunctive relief and has alleged that it has spent hundreds of millions of dollars to research and develop its alleged trade secrets. In August 2015, the court denied Mosaic's application for preliminary injunction. The lawsuit is currently progressing through discovery. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any.

In July 2016, Mosaic filed a complaint against Steve Gamble and us in US District Court for the District of New Mexico.  The complaint alleges violations of the Computer Fraud and Abuse Act, conversion, and civil conspiracy relating to alleged misappropriation of Mosaic's confidential information.  Mosaic seeks injunctive relief and compensatory and punitive damages of an unspecified amount. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any.

We are subject to other claims and legal actions in the ordinary course of business. While there are uncertainties in predicting the outcome of any claim or legal action, we believe that the ultimate resolution of these other claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows.

Future Operating Lease Commitments—We have operating leases for land, mining and other operating equipment, offices, and railcars, with original terms ranging up to 20 years. In May 2015, we exercised an option to terminate our existing corporate office lease prior to its original expiration date. Under the provisions of the lease agreement, we incurred a termination penalty of $1.1 million, which was included in selling and administrative expense in the second quarter of 2015. In December 2015, we paid $0.5 million of this termination penalty in connection with an amendment reducing the leased square footage and extending the expiration date to May 2017. We expect to pay the remaining $0.6 million in March 2017. Our monthly lease commitment was $83,331 from January 2016 through May 2016, and increased to $85,626 for the period June 2016 through May 2017.

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Rental and lease expenses are shown below for the indicated periods (in thousands):

2016
For the three months ended June 30, 2016	$	1,530
For the six months ended June 30, 2016	$	3,078
2015
For the three months ended June 30, 2015	$	1,977
For the six months ended June 30, 2015	$	3,721

Note 13 — FAIR VALUE MEASUREMENTS

We applied the provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification™ ("ASC") Topic 820, Fair Value Measurements and Disclosures, for all financial assets and liabilities measured at fair value on a recurring basis. The topic establishes a framework for measuring fair value and requires disclosures about fair value measurements. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The topic establishes market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The topic also establishes a hierarchy for grouping these assets and liabilities based on the significance level of the following inputs, as follows:

• Level 1—Quoted prices in active markets for identical assets and liabilities.

• Level 2—Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model‑derived valuations whose inputs are observable or whose significant value drivers are observable.

• Level 3—Significant inputs to the valuation model are unobservable.

The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2016, and December 31, 2015 (in thousands):

			Fair Value at Reporting Date Using
	June 30, 2016		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments
Corporate bonds	$	15,593	$	—	$	15,593	$	—

			Fair Value at Reporting Date Using
	December 31, 2015		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments
Corporate bonds	$	53,317	$	—	$	53,317	$	—

Financial assets or liabilities are categorized within the hierarchy based upon the lowest level of input that is significant to the fair value measurement. Below is a general description of our valuation methodologies for financial assets and liabilities, which are measured at fair value and are included on the condensed consolidated balance sheets.

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Our available-for-sale investments consist of corporate bonds that are valued using Level 2 inputs. Market pricing for these investments is obtained from an established financial markets data provider.

The methods described above may result in a fair value estimate that may not be indicative of net realizable value or may not be reflective of future fair values and cash flows. While we believe that the valuation methods used are appropriate and consistent with the requirements of ASC Topic 820 and the methods used by other marketplace participants, we recognize that third parties may use different methodologies or assumptions to determine the fair value of certain financial instruments that could result in a different estimate of fair value at the reporting date.

Financial Instruments—The carrying values and estimated fair values of our financial instruments as of June 30, 2016, and December 31, 2015, were as follows (in thousands):

	June 30, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	$	150,000	$	137,000	$	150,000	$	138,000

For cash and cash equivalents, certificates of deposit and time deposit investments, accounts receivable, refundable income taxes, and accounts payable, the carrying amount approximates fair value because of the short-term maturity of these instruments. The estimated fair value of the senior notes is estimated using a discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings (a Level 2 input) and is designed to approximate the amount at which the instruments could be exchanged in an arm's length transaction between knowledgeable willing parties.

Note 14 — RESTRUCTURING CHARGE

In January 2016, in response to declining potash prices, we undertook a number of cost saving actions that were intended to better align our cost structure with the business environment. These initiatives included the elimination of approximately 5% of the workforce, elimination of the bonus programs for most employees, as well as reductions in compensation.

In April we converted our East facility from a mixed-ore facility to a Trio^®-only facility. In May 2016, we initiated a plan to idle mining operations at our West facility and transition it into a care-and-maintenance mode due to the decline in potash prices.

For the three months ended June 30, 2016, we recognized restructuring expense of $1.9 million for severance-related payments related to the idling of the West facility, as well as the conversion of our East facility. The majority of the $1.9 million severance-related charge will be paid in the third quarter 2016.

For the six months ended June 30, 2016, we recognized restructuring expense of $2.3 million related to these events.

Note 15 — BUSINESS SEGMENTS

As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio^®-only and the idling of our West facility, the chief operating decision maker separately evaluates our potash and Trio^® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio^®. The reportable segments are determined by management based on a number of factors including the types of potassium based fertilizer produced, production processes, markets served and the financial information available for our chief operating decision maker. We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments. Information for each segment is provided in the tables below:

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Three Months Ended June 30, 2016	Potash			Trio			Corporate		Consolidated
Sales	$	39,196		$	12,644		$	—	$	51,840
Less: Freight costs	6,882			2,049			—		8,931
Warehousing and handling costs	2,132			406			—		2,538
Cost of goods sold	32,502			9,348			—		41,850
Lower-of-cost-or-market inventory adjustments	2,930			—			—		2,930
Costs associated with abnormal production and other	—			1,057			—		1,057
Gross (Deficit) Margin	$	(5,250	)	$	(216	)	$	—	$	(5,466	)
Depreciation, depletion and amortization incurred1	$	8,647		$	879		$	315	$	9,841
Six Months Ended June 30, 2016	Potash			Trio			Corporate		Consolidated
Sales	$	92,891		$	32,226		$	—	$	125,117
Less: Freight costs	13,433			5,830			—		19,263
Warehousing and handling costs	4,286			916			—		5,202
Cost of goods sold	79,790			21,837			—		101,627
Lower-of-cost-or-market inventory adjustments	11,937			—			—		11,937
Costs associated with abnormal production and other	650			1,057			—		1,707
Gross (Deficit) Margin	$	(17,205	)	$	2,586		$	—	$	(14,619	)
Depreciation, depletion and amortization incurred1	$	20,880		$	2,554		$	775	$	24,209
Three Months Ended June 30, 2015	Potash			Trio			Corporate		Consolidated
Sales	$	57,093		$	16,558		$	—	$	73,651
Less: Freight costs	4,478			2,420			—		6,898
Warehousing and handling costs	2,771			666			—		3,437
Cost of goods sold	45,867			9,568			—		55,435
Lower-of-cost-or-market inventory adjustments	5,276			—			—		5,276
Costs associated with abnormal production and other	—			—			—		—
Gross (Deficit) Margin	$	(1,299	)	$	3,904		$	—	$	2,605
Depreciation, depletion and amortization incurred1	$	15,890		$	3,063		$	444	$	19,397
Six Months Ended June 30, 2015	Potash			Trio			Corporate		Consolidated
Sales	$	147,822		$	42,850		$	—	$	190,672
Less: Freight costs	11,684			6,126			—		17,810
Warehousing and handling costs	5,779			1,405			—		7,184
Cost of goods sold	113,320			25,397			—		138,717
Lower-of-cost-or-market inventory adjustments	5,636			—			—		5,636
Costs associated with abnormal production and other	—			—			—		—
Gross Margin	$	11,403		$	9,922		$	—	$	21,325
Depreciation, depletion and amortization incurred1	$	33,633		$	6,294		$	746	$	40,673

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¹Depreciation, depletion and amortization incurred for potash and Trio^® includes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory.

Total assets are not presented for each reportable segment as they are not reviewed by, nor otherwise regularly provided to, the chief operating decision maker. All sales of both segments are to external customers.

During the three months ended June 30, 2016, we recorded restructuring charges of $1.9 million, all of which was attributable to the potash segment.

During the six months ended June 30, 2016, we recorded restructuring charges of $2.3 million, of which $2.1 million was attributable to the potash segment and $0.2 million was attributable to corporate.

Note 16 — RECENT ACCOUNTING PRONOUNCEMENTS

Pronouncements Issued But Not Yet Adopted—In August 2013, the FASB issued Accounting Standards Update No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in the financial statements. The new standard applies to all entities for the first annual period in fiscal years ending after December 15, 2016, and interim periods thereafter. We are currently evaluating the requirements of this standard, and have not yet determined the impact on our consolidated financial statements and disclosures.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, as amended by Accounting Standards Update No. 2016-12, "Revenue from Contracts with Customers (Topic 606)," which requires revenue to be recognized based on the amount an entity is expected to be entitled to for promised goods or services provided to customers. The standard also requires expanded disclosures regarding contracts with customers. The guidance in this standard supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry-specific guidance. This guidance is effective for us beginning January 1, 2018, with retrospective application required, subject to certain practical expedients. We are currently evaluating the requirements of this standard, and have not yet determined the impact on our results of operations or financial position.

In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." An entity using an inventory method other than last-in, first-out or the retail inventory method should measure inventory at the lower of cost and net realizable value. The new guidance clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation and is effective for us beginning January 1, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02 , "Leases (Topic 842)," which requires, among other things, lessees to recognize lease assets and liabilities on their balance sheets for those leases classified as operating leases under previous generally accepted accounting principles. These assets and liabilities must be recorded generally at the present value of the contracted lease payments, and the cost of the lease must be allocated over the lease term on a straight-line basis. This guidance is effective for us for annual and interim periods in fiscal years beginning after December 15, 2018, with a modified retrospective transition method mandated. We are currently evaluating the requirements of this standard and have not yet determined the impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This standard changes several aspects of how we account for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, classification of excess tax benefits on the statement of cash flows, forfeitures, minimum statutory tax withholding payments, and classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. This standard is effective for us for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption, as specified in the guidance, is permitted in any interim or annual period provided that the entire standard is adopted. We are currently evaluating the requirements of this standard and have not yet determined the impact on our consolidated financial statements.

Recently Adopted Accounting Standard—In April 2015, the FASB issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which became effective for us beginning January 1, 2016, and requires retrospective adoption. In accordance with this standard, our deferred financing costs associated with outstanding debt balances have been reclassified from "Prepaid expenses and other current assets" and "Other assets, net" to "Long-term debt, net." Amortization of such costs continues to be reported as "Interest expense, net."

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains forward‑looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Securities Act of 1933, as amended (the "Securities Act"). These forward‑looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this Quarterly Report on Form 10-Q other than statements of historical fact are forward‑looking statements. Forward-looking statements include statements about our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, among other things. In some cases, you can identify these statements by forward‑looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "will," "could," "predict," and "continue." Forward‑looking statements are only predictions based on our current knowledge, expectations, and projections about future events.

These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including the following:

• our ability to successfully adapt to our new business model after the idling of our West facility and the transition of our East facility to Trio^®-only production

• our ability to comply with covenants in our debt-related agreements to avoid a default under those agreements; our ability to come to an agreement with our current and potential future lenders on definitive terms for our debt-related agreements going forward; or a further reduction in the total amount available to us under our credit facility

• changes in the price, demand, or supply of potash or Trio^®/langbeinite

• adverse impacts to our business as a result of our independent auditor having expressed substantial doubt as to our ability to continue as a going concern due to the existence of a material uncertainty

• the costs of, and our ability to successfully construct, commission, and execute, any of our strategic projects

• declines or changes in agricultural production or fertilizer application rates

• further write-downs of the carrying value of our assets, including inventories

• circumstances that disrupt or limit our production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems

• changes in our reserve estimates

• currency fluctuations

• adverse changes in economic conditions or credit markets

• the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes

• adverse weather events, including events affecting precipitation and evaporation rates at our solar solution mines

• increased labor costs or difficulties in hiring and retaining qualified employees and contractors, including workers with mining, mineral processing, or construction expertise

• changes in the prices of raw materials, including chemicals, natural gas, and power

• our ability to obtain and maintain any necessary governmental permits or leases relating to current or future operations

• declines in the use of potash products by oil and gas companies in their drilling operations

• interruptions in rail or truck transportation services, or fluctuations in the costs of these services

• our inability to fund necessary capital investments

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• the other risks, uncertainties, and assumptions described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2015, as updated by our subsequent Quarterly Reports on Form 10-Q

In addition, new risks emerge from time to time. It is not possible for our management to predict all risks that may cause actual results to differ materially from those contained in any forward-looking statements we may make.

In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in these forward-looking statements. As a result, you should not place undue reliance on these forward-looking statements. We undertake no duty to update or revise publicly any forward-looking statements to conform those statements to actual results or to reflect new information or future events.

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Our Company

We are the only producer of potash in the United States and are one of two producers of langbeinite, which we market and sell as Trio^®. We sell potash and Trio^® primarily into the agricultural market as a fertilizer. We also sell these products into the animal feed market as a nutritional supplement and sell potash into the industrial market as a component in drilling and fracturing fluids for oil and gas wells and other industrial inputs. Our revenues are generated exclusively from the sale of potash and Trio^®. We also produce salt and magnesium chloride from our potash mining processes, the sales of which are accounted for as by-product credits to our cost of sales. These by-product credits represented approximately 2% to 3% of total cost of goods sold in each of the last three years.

During the first half of 2016, we produced potash from three solution mining facilities and two conventional underground mining facilities. Our solution mining production comes from our HB solar solution mine near Carlsbad, New Mexico, a solar solution mine near Moab, Utah, and a solar brine recovery mine in Wendover, Utah. Our conventional production of potash came from our underground West and East mines near Carlsbad, New Mexico. We also operate the North compaction facility near Carlsbad, New Mexico, which services the West and HB mines. We produce Trio^® from our underground conventional East mine.

In April 2016, we converted our East facility from a mixed-ore facility that produced both potash and Trio^® to a Trio^®-only facility. We expect commissioning activities related to that transition to continue into the second half of 2016. We no longer produce potash at our East facility.

In May 2016, we initiated a plan to idle mining operations at our West facility and transition it into a care-and-maintenance mode due to the decline in potash prices. We completed the transition in early July. Accordingly, beginning in July 2016, all of our potash is produced from our three solution mining facilities.

We have additional opportunities to develop mineralized deposits of potash in New Mexico, as well as to continue the optimization of our processing plants. These opportunities potentially include additional solution mining activities, additional recoveries of langbeinite, development of by-product markets and acceleration of production from our reserves.

Until the second quarter of 2016, we had one reportable segment; the extraction, production, and sale of potassium-related products. As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio^®-only and the idling of our West facility, we reevaluated our reportable segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio^®.

We routinely post important information about us and our business, including information about upcoming investor presentations, on our website under the Investor Relations tab. We encourage investors and other interested parties to enroll on our website to receive automatic email alerts or Really Simple Syndication (RSS) feeds regarding new postings. Our website is www.intrepidpotash.com.

Significant Business Trends and Activities

Our financial results have been impacted by several significant trends and activities, which are described below. We expect that these trends will continue to drive our results of operations, cash flows, and financial position.

• Idling of our West facility. Due to the current potash pricing environment, in May 2016, we initiated a plan to idle mining operations at our West facility. Consistent with this plan, in July 2016, we idled the facility and transitioned it to a care-and-maintenance mode. In connection with this transition, we reduced our workforce by approximately 275 employees. We incurred restructuring charges of approximately $1.9 million in the second quarter 2016, primarily related to estimated severance payments in connection with this decision, the majority of which will be paid in the third quarter.

• Conversion of our East facility to Trio^®-only. In early April 2016, we transitioned our East facility from a mixed-ore processing facility to a Trio^®-only facility. We expect commissioning activities related to this transition to continue into the second half of 2016. As a result of this transition, our Trio^® production increased 65% in the second quarter of 2016 over the same period in 2015. We expect our Trio^® production to increase in the second half of 2016 as compared to the same period in 2015 as we complete our commissioning efforts.

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• Potash prices and demand. Potash prices continued to decline significantly through the second half of 2015 and the first half of 2016 as global oversupply, combined with the impact the strong U.S. dollar, has had on global producers aggressively pricing tonnage imported into the North American market. Potash prices are a significant driver of profitability for our business. Domestic pricing of our potash is influenced principally by the price established by our competitors. The interaction of global potash supply and demand, ocean, land, and barge freight rates, and currency fluctuations also influence pricing. Recent announcements from other producers about selling potash to India and China, and curtailed production, support our belief that we continue to see some signs of firmness in potash pricing, although global potash supply continues to exceed demand.

We sold 168,000 tons of potash in the second quarter of 2016, an increase of 21,000 tons compared to the second quarter of 2015. The timing of our shipments to customers for the winter fill program was earlier in 2015 as compared to 2016, despite an early start to the 2016 spring application season, resulting in more tons sold in the 2016 period. This increase was partially offset by selling fewer potash tons from our East facility, as beginning in April 2016, we no longer produced potash at our East facility. Further, our sales volumes into the industrial market in the first half of 2016 were below those in the same period in 2015, as oil and gas drilling activity decreased in the second half of 2015.

The specific timing of when farmers apply potash remains highly weather dependent and varies across the numerous growing regions within the U.S. The timing of potash sales is significantly influenced by the marketing programs of potash producers, as well as storage volumes closer to the farm gate. The combination of these items results in variability in potash sales and shipments, thereby increasing volatility of sales volumes from quarter to quarter and season to season. Our sales volumes into the industrial market are correlated to drilling activity in the oil and gas market.

Our potash production in the second half of 2016 will be less than the second half of 2015 due to the transition of our East facility and the idling of our West facility. We expect to realize our current potash inventory through normal sales channels in the second half of 2016. Beginning in 2017, as we have fewer tons of potash to sell as compared to prior periods, we plan to be more selective in our sales strategy in order to maximize our sales price for each ton of potash that we sell.

• Trio^® prices and demand. Sales volumes for Trio^® decreased for the three months ended June 30, 2016, as compared to the same period in 2015 due to the overall softness in the fertilizer market. Trio^® pricing increased slightly in the second quarter of 2016 as compared to the second quarter of 2015 due to slight differences in the mix of products sold. While Trio^® pricing has historically demonstrated more resiliency than potash pricing due to Trio's^® unique nutrient make up and application to high-value crops, we expect to see continued pressure on the overall specialty fertilizer markets in 2016. We are focusing our efforts on maximizing our returns in the granular- and premium-sized markets. As we commission our East facility and increase Trio^® production, we plan to not only expand our domestic marketing efforts, but also increase our export marketing efforts as they relate to Trio^®. As a result, we expect our Trio^® prices to decrease in the second half of 2016.

• Costs associated with abnormal production. We routinely evaluate our production levels and costs to determine if any costs are associated with abnormal production, as described under generally accepted accounting principles. The assessment of normal production levels is judgmental and unique to each quarter. During the second quarter of 2016, as we transitioned the East facility to a Trio^®-only facility, we had no production of potash or Trio^® over which costs could be allocated. As such, these costs were directly expensed as abnormal production costs.

• Weather impact. Our solar facilities experienced below average evaporation rates in 2015. As a result, fewer potash crystals formed in our evaporation ponds for harvesting during the harvest season that began in the second half of 2015, and was completed in April 2016. Therefore, we expect lower production from these facilities in 2016 as compared to 2015.

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Results of Operations

(in thousands)	Three Months Ended June 30,					Six Months Ended June 30,
	2016			2015		2016			2015
Sales	$	51,840		$	73,651	$	125,117		$	190,672
Cost of goods sold	41,850			55,435		101,627			138,717
Gross (Deficit) Margin	(5,466		)	2,605		(14,619		)	21,325

Net (Loss) Income $ (13,398 ) $ (4,937 ) $ (31,825 ) $ 1,592

Production volume (in thousands of tons):
Potash	116	152	331	389
Langbeinite	71	43	115	80
Sales volume (in thousands of tons):
Potash	168	147	386	377
Trio®	33	37	83	98

Average Net Realized Sales Price per Ton1
Potash	$	193	$	358	$	206	$	361
Trio®	$	320	$	383	$	318	$	373

¹Average net realized sales price is a non-GAAP measure that we calculate as sales less freight costs then divided by production tons. More information about this non-GAAP measure is below under the heading "Non-GAAP Financial Measures."

Consolidated Results for the Three- and Six-month Periods Ended June 30, 2016

Total sales in the second quarter 2016 decreased as compared to 2015 as the lower average net realized sales price was only partially offset by increased sales volumes for potash and due to lower sales volumes and lower average net realized sales prices for Trio^®. Our total cost of goods sold decreased in the second quarter of 2016 as compared to the same period in 2015 primarily due to increased lower-of-cost-or-market adjustments in 2016, caused by the decrease in potash pricing. Our cost of goods sold also decreased as we recorded less depreciation in 2016 due to the impairment of long-lived assets in December 2015. As a result of the decrease in sales volumes and average net realized sales prices, we incurred a gross deficit and an increased net loss for the second quarter 2016 as compared to the second quarter of 2015.

Total sales for the six months ended June 30, 2016 decreased as compared to 2015 due to lower average net realized sales prices for both potash and Trio^®. Total cost of goods sold also decreased resulting from fewer tons sold from our East facility, as well as less depreciation expense in 2016 due to the impairment of long lived assets recorded in December 2015.

Based on our expectations for potash and Trio^® pricing for the remainder of the year, we anticipate that we will incur a net loss for the year ending December 31, 2016.

Selling and administrative expenses decreased $3.9 million, or 46%, to $4.5 million for the three months ended June 30, 2016, from $8.4 million for the three months ended June 30, 2015. The decrease is primarily due to decreased administrative headcount, and aircraft-related costs in 2016 as compared to 2015. As part of our on-going efforts to reduce our cost structure, we exercised our option to terminate our corporate office lease in May 2015 in accordance with its terms, resulting in a $1.1 million charge in the second quarter of 2015. While part of this lease termination penalty was paid in December 2015 when we reduced our office space, the remaining $0.6 million is expected to be payable in the first quarter of 2017. Selling and administrative expenses in 2015 were also higher due to an increase in legal and professional fees related primarily to one issue that concluded in 2015.

Selling and administrative expenses decreased $4.8 million, or 30%, to $11.1 million for the six months ended June 30, 2016 from $15.9 million for the six months ended June 30, 2015, due to decreased administrative headcount and related expenses.

In January 2016, in response to declining potash prices, we undertook several cost saving actions that were intended to better align our cost structure with the business environment. These initiatives included the elimination of approximately 5% of our workforce, suspension of our cash bonus programs for most employees, and salary decreases for most employees.

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Additionally, in connection with the transition of the East facility in April 2016, and the idling of the West facility, we reduced our overall headcount by approximately 275 employees. As the transition of the East facility occurred in the second quarter of 2016, and we initiated our plan to idle the West facility in the second quarter of 2016, we recorded restructuring expense of approximately $1.9 million during the three months ended June 30, 2016, the majority of which will be paid in the third quarter 2016. For the six months ended June 30, 2016, we recorded restructuring expense of $2.3 million.

In late 2014, we initiated legal action to protest property tax valuations in New Mexico. In the second quarter of 2015, we reached an agreement with the State of New Mexico that resulted in a net $2.0 million reduction in previously paid property taxes. Accordingly, as the inventory produced during 2014 has since been sold, we recorded the settlement in "Other operating income" during the second quarter of 2015.

Interest expense increased $1.4 million to $3.0 million or 88% for the three months ended June 30, 2016, from $1.6 million for the three months ended June 30, 2015. The increase is due to the expensing of deferred financing costs of $0.7 million associated with the decrease in the maximum amount available to us under our unsecured credit facility, as well as amending the termination date of the unsecured credit facility as discussed in more detail in the "Liquidity and Capital Resources" section below. Further, beginning April 1, 2016, the interest rates on our unsecured senior notes increased by 2%.

Interest expense for the six months ended June 30, 2016 increased to $5.2 million as compared to $3.2 million in the same period in 2015. This increase was the result of the expensing of deferred financing costs of $1.5 million referred to above, as well as higher interest rates on our senior notes beginning April 1, 2016.

Potash Segment

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2016			2015			2016			2015
Sales	$	39,196		$	57,093		$	92,891		$	147,822
Less: Freight costs	6,882			4,478			13,433			11,684
Warehouse & handling costs	2,132			2,771			4,286			5,779
Cost of goods sold	32,502			45,867			79,790			113,320
Lower-of-cost-or-market           inventory adjustments	2,930			5,276			11,937			5,636
Costs associated with           abnormal production and other	—			—			650			—
Gross (Deficit) Margin	$	(5,250	)	$	(1,299	)	$	(17,205	)	$	11,403
Depreciation, depletion and amortization incurred2	$	8,647		$	15,890		$	20,880		$	33,633
Sales Volumes (tons in thousands)	168			147			386			377
Production Volumes (tons in thousands)	116			152			331			389

Average Net Realized Sales Price per Ton¹ $ 193 $ 358 $ 206 $ 361

¹Average net realized sales price is a non-GAAP measure that we calculate as sales less freight costs then divided by production tons. More information about this non-GAAP measure is below under the heading "Non-GAAP Financial Measures."

²Depreciation, depletion and amortization incurred excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory.

Three Months Ended June 30, 2016, and 2015

Our sales volumes in the second quarter of 2016 were greater those in 2015, driven by the timing of the start of the spring application season as described above, offset by decreased sales volumes into the industrial market due to decreased oil and gas drilling in the U.S.

Despite the increase in potash sales volumes, our potash sales during the three months ended June 30, 2016 decreased over the same period in 2015 due to a 46% decline in our average net realized sales price for potash due to higher levels of supply in the North American market, and aggressive pricing of imported potash by our competitors.

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Our freight costs related to potash sales in the three months ended June 30, 2016 increased over the same period in 2015 primarily due to higher sales volumes. Our freight costs are impacted by the proportion of customers paying for their own freight, the geographic distribution of our products and the freight rates of our carriers.

Our total potash cost of goods sold in the three months ended June 30, 2016 decreased over the same period due to an overall decrease in our production costs primarily resulting from our decision to no longer produce potash at our East facility as noted above. Depreciation and depletion expense for potash decreased in 2016 due to the impairment of long-lived assets recorded in the fourth quarter of 2015.

Further, as we no longer produce potash at our East facility beginning in April 2016, our lower-of-cost-or-market adjustment for potash also decreased over the same period.

Our production volume of potash in the second quarter of 2016 decreased compared to the second quarter of 2015. In 2015, we produced potash at our East plant for all of 2015, whereas in 2016, we only produced langbeinite at our East plant during the majority of the second quarter. Further, we produced more potash at our HB facility in the second quarter as we continued harvesting potash later in the second quarter of 2016 as compared to 2015. This increase in potash produced from the HB mine was more than offset by lower production at our Wendover facility due to the weather issues noted above.

During the three months ended June 30, 2016, and 2015, we recorded lower-of-cost-or-market charges as our weighted average finished goods product inventory cost exceeded the estimated net realizable value of our finished goods product inventory. The lower-of-cost-or-market adjustment recorded during the three months ended June 30, 2016, resulted from lower potash prices. We expect our lower-of-cost-or-market adjustments will decrease in the second half of 2016, as beginning in July 2016, we are no longer producing potash conventionally.

As a result of the items mentioned above, our gross deficit increased in the three months ended June 30, 2016 compared to the three months ended June 30, 2015.

Six Months Ended June 30, 2016, and 2015

We sold 2% more potash in the first six months of 2016 as compared to the first half of 2015 primarily due to the timing of the spring application season in 2016 as compared to 2015, offset by a reduction in sales volumes from our East facility, as we stopped producing potash at that facility beginning in April 2016.

Our sales from potash during the first six months of 2016 decreased due primarily to a 43% decrease in our average net realized sales price. The decrease in our average net realized sales price was impacted by the oversupply of potash as noted above and the aggressive pricing of product imported into North America by our competitors.

Freight costs related to potash sales in the six months ended June 30, 2016 increased slightly over the same period in 2015 primarily due to higher sales volumes. Our freight costs are impacted by the proportion of customers paying for their own freight, the geographic distribution of our products and the freight rates of our carriers.

Our cost of goods sold for potash decreased in the six months ended June 30, 2016 as compared to the same period in 2015. Total cost of goods sold of potash decreased in 2016 as we sold fewer tons of potash from our East facility, which was our highest cost facility for potash. Due to the impairment of our West and East facilities that was recorded in the fourth quarter of 2015, depreciation and depletion expense for potash decreased in the first six months of 2016, which also reduced our cost of goods sold in 2016 as compared to 2015. Our cost of goods sold for potash also benefited from the direct expensing of abnormal production costs related to reduced production levels at East as noted below.

Our production volume of potash in the first half of 2016 decreased compared with the second quarter of 2015. In 2015, we produced potash and langbeinite at our East plant for all of 2015, whereas in 2016, we only produced langbeinite at our East facility during the majority of the second quarter.

During the six months ended June 30, 2016 and 2015, we recorded lower-of-cost-or-market charges as a result of routine assessments of the lower of weighted average cost or estimated net realizable value on our finished goods product inventory. The lower-of-cost-or-market adjustment recorded during the six months ended June 30, 2016, related to our potash inventories from our conventional facilities, and resulted from our higher production costs per ton and overall lower potash pricing.

As discussed above, because of the suspensions of production during the first half of 2016 related to langbeinite-only testing and conversion of our East facility to a Trio^®-only facility, we determined that approximately $0.7 million of production costs at our East facility would have been allocated to additional tons produced, assuming we had been operating at normal production rates. Accordingly, these costs were excluded from our inventory values and instead expensed in the first half of 2016 as period production costs. We compare actual production relative to

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what we estimated could have been produced if we had not incurred the production suspensions and lower operating rates in order to determine the abnormal cost adjustment.

As a result of the items mentioned above, we incurred a gross deficit in the six months ended June 30, 2016 compared to a gross margin in the six months ended June 30, 2015.

Additional Information Relating to Potash

The table below shows our potash sales mix for the three months ended June 30, 2016, and 2015:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Agricultural	91%	74%	91%	78%
Industrial	4%	18%	4%	16%
Feed	5%	8%	5%	6%

Domestically, the potash market is influenced by global supply and demand, and is impacted by the pricing of imports from our competitors. The strength of the U.S. dollar has resulted in further pressure on potash pricing.

Average Net Realized Sales Price

The table below demonstrates our average net realized sales price for potashfor the quarters ended on the dates set forth below:

	Average Net Realized Sales Price1 of
	Potash
	(Per ton)
June 30, 2016	$193
March 31, 2016	$216
December 31, 2015	$277
September 30, 2015	$319
June 30, 2015	$358
March 31, 2015	$362

¹Average net realized sales price is a non-GAAP measure that we calculate as sales less freight costs then divided by production tons. More information about this non-GAAP measure is below under the heading "Non-GAAP Financial Measures."

Trio^® Segment

	Three Months Ended June 30,					Six Months Ended June 30,
(in thousands)	2016			2015		2016		2015
Sales	$	12,644		$	16,558	$	32,226	$	42,850
Less: Freight costs	2,049			2,420		5,830		6,126
Warehouse & handling costs	406			666		916		1,405
Cost of goods sold	9,348			9,568		21,837		25,397
Costs associated with abnormal           production and other	1,057			—		1,057		—
Gross (Deficit) Margin	$	(216	)	$	3,904	$	2,586	$	9,922
Depreciation, depletion and amortization incurred2	$	879		$	3,063	$	2,554	$	6,294
Sales Volumes (tons in thousands)	33			37		83		98
Production Volumes (tons in thousands)	71			43		115		80

Average Net Realized Sales Price per Ton¹ $ 320 $ 383 $ 318 $ 373

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¹Average net realized sales price is a non-GAAP measure that we calculate as sales less freight costs then divided by production tons. More information about this non-GAAP measure is below under the heading "Non-GAAP Financial Measures."

²Depreciation, depletion and amortization incurred excludes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory.

Three Months Ended June 30, 2016, and 2015

Total sales from Trio^® decreased in the three months ended June 30, 2016 due to a decrease in sales volumes of Trio^® as our customers delayed purchases due to uncertainties in commodities pricing, reflecting the overall softness in the fertilizer market. Further, our sales were impacted by a 16% decrease in average net realized sales price due to decreases in other nutrients, which also pressured specialty fertilizer products.

Our freight costs related to Trio^® sales in the six months ended June 30, 2016 decreased over the same period in 2015 as the volume of product sold decreased.

Total cost of goods sold for Trio^® decreased during the three months ended June 30, 2016 and 2015, respectively, as a result of fewer tons of Trio^® sold during the period, offset by higher production costs attributable to the transition of the East facility to a langbeinite only facility in April 2016. Further, our total cost of goods sold for Trio^® decreased in the second quarter of 2016 as compared to the same period in 2015 as depreciation and depletion expense for Trio^® decreased in the second quarter of 2016 resulting from the impairment of long-lived assets at East in the fourth quarter of 2015.

As a result of our transition of the East facility to a Trio^® only facility, our Trio^® production increased 65% in the second quarter of 2016, from 43,000 tons in the second quarter of 2015 to 71,000 tons in the second quarter of 2016.

This increase in production, as well as overall pressure in the specialty fertilizer market, is expected to put downward pressure on our average net realized sales price of Trio^® for the remainder of 2016. We believe the incremental production will provide us the opportunity to pursue markets that have been under-served in previous years. As we demonstrate our ability to provide a consistent supply of Trio^® to our customers, we expect our customers will begin managing their inventory levels with just-in-time purchasing, similar to potash customer purchasing trends. As a result, we expect to build Trio^® inventory in the second half of 2016.

In the second quarter of 2016, during the period when we transitioned our East facility to a Trio^® only facility, we incurred $1.1 million of production costs. These costs were excluded from our inventory values and instead expensed as abnormal production costs as we no production over that time frame over which those costs could be allocated.

Six Months Ended June 30, 2016, and 2015

Total sales from Trio^® decreased as a result of selling 83,000 tons in the first six months of 2016 as compared to 98,000 tons in the first six months of 2015. Trio^® sales were further impacted by a 15% decrease in average net realized sales price in the same periods.

Our freight costs related to Trio^® sales in the six months ended June 30, 2016 decreased over the same period in 2015 as the volume of product sold decreased.

Our Trio^® cost of goods sold decreased from $25.4 million in the first half of 2015 to $21.8 million in the first half of 2016, primarily attributable to selling fewer tons in 2016 as noted above. Further, depreciation and depletion expense for Trio^® decreased in the first six months of 2016 resulting from the impairment of long-lived assets at East in the fourth quarter of 2015.

During the first six months of 2016, we produced 115,000 tons of Trio^®, an increase of 44% compared to the same period in 2015. This increase results from our transition of our East facility to a langbeinite-only facility in April 2016. We continue our commissioning efforts related to this transition, and expect our Trio^® production in the second half of 2016 to exceed production volumes from 2015.

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Additional Information Relating to Trio^® 

Our export sales of Trio^® tend to have more variability as to the timing of those sales. As a result, the percentage of sales into the export market as compared to the domestic market can fluctuate significantly from period to period, as shown in the table below.

	United States	Export
2016
For the three months ended June 30, 2016	88%	12%
For the six months ended June 30, 2016	94%	6%
2015
For the three months ended June 30, 2015	91%	9%
For the six months ended June 30, 2015	93%	7%

Average Net Realized Sales Price

The table below demonstrates our average net realized sales price for Trio^® for the quarters ended on the dates set forth below:

	Average Net Realized Sales Price1 of
	Trio®
	(Per ton)
June 30, 2016	$320
March 31, 2016	$316
December 31, 2015	$330
September 30, 2015	$379
June 30, 2015	$383
March 31, 2015	$367

¹Average net realized sales price is a non-GAAP measure that we calculate as sales less freight costs then divided by production tons. More information about this non-GAAP measure is below under the heading "Non-GAAP Financial Measures."

Specific Factors Affecting Our Results

Sales

Our total sales are derived from the sales of potash and Trio^® and are determined by the quantities of product we sell and the sales prices we realize. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. Freight costs are incurred on only a portion of our sales as many of our customers arrange and pay for their own freight directly. When we arrange and pay for freight, our quotes and billings are based on expected freight costs to the points of delivery. Although our gross sales include the freight that we bill, we do not believe that gross sales provide a representative measure of our performance in the market due to variations caused by ongoing changes in the proportion of customers paying for their own freight, the geographic distribution of our products, and freight rates. Rail freight rates have been steadily increasing, thereby negatively influencing our average net realized sales prices. We manage our sales and marketing operations centrally, and we work to achieve the highest average net realized sales price we can by evaluating the product needs of our customers and associated logistics and then determining which of our production facilities can best satisfy these needs.

The volume of product we sell is determined by demand for our products and by our production capabilities. We generally intend to operate our facilities at full production levels, which provide the greatest operating efficiencies; however, at times we have temporarily curtailed production to manage inventory levels. By having adequate warehouse capacity, we can maintain production levels during periods of fluctuating product demand and have product inventory positioned closer to the fields in order to meet peak periods of fertilizer demand.

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Cost of Goods Sold

Our cost of goods sold reflects the costs to produce our potash and Trio^® products, less credits generated from the sale of our by-products. Many of our production costs are largely fixed, and, consequently, our costs of sales per ton on a facility-by-facility basis tend to move inversely with the number of tons we produce, within the context of normal production levels. We expect to experience variability in our potash cost of goods sold due to fluctuations in the relative mix of product that we produce through conventional and solar solution mining. Our cost of goods sold for our solar solution facilities is less than our cost of goods sold for our conventional facilities. As such, as we sell down potash inventory produced conventionally, and only produce potash via solar solution mining beginning in July 2016, we expect our potash cost of goods sold to decrease. Our solar solution production is impacted by weather variability. Our principal production costs include labor and employee benefits, maintenance materials, contract labor, materials for operating or maintenance projects, natural gas, electricity, operating supplies, chemicals, depreciation and depletion, royalties, and leasing costs. A smaller component of our cost base includes variable costs associated with contract labor, consumable operating supplies, reagents, and royalties. Our periodic production costs and costs of goods sold will not necessarily match one another from period-to-period based on the fluctuation of inventory, sales, and production levels at our facilities.

Our production costs are also impacted when our production levels change, due to factors such as changes in the grade of ore mined, levels of mine development, plant operating performance, downtime, and annual maintenance turnarounds. We expect that our labor and contract labor costs in Carlsbad, New Mexico, will continue to be influenced most directly by the demand for labor in the local Carlsbad, New Mexico, region where we compete for labor with the mining, oil and gas, and nuclear waste storage industries. Additionally, the East mine has a complex mineralogy. Historically, and through the first quarter of 2016, we produced both potash and Trio^® at our East facility using a mixed-ore body and processing the ore through a singular product flow at the surface facility. The specific grade, volume, and characterization of the ore that was mined at any particular time was subject to fluctuations due to the nature of the mineral deposits and influenced the tons of potash and langbeinite ultimately produced from the facility, which affected our production costs per ton for both products and affected our quarter-to-quarter results. With the conversion of our East facility to a Trio^®-only facility in April 2016, we believe we have simplified our process flow, which we expect will ultimately lead to a lower cost structure for our Trio^® operations once the plant is fully commissioned in the second half of 2016.

We pay royalties to federal, state, and private lessors under our mineral leases. These payments typically equal a percentage of sales, after subtracting freight costs, of minerals extracted and sold under the applicable lease. In some cases, federal royalties for potash are paid on a sliding scale that varies with the grade of ore extracted. For the three and six months ended June 30, 2016, our average royalty rate was 2.8% and 4.1%, respectively. For the three and six months ended June 30, 2015, our average royalty rate was 4.0% and 3.8%, respectively.

Other Operating Income

In the three and six months ended June 30, 2016, we recorded operating income of $1.8 million and $1.9 million, respectively, primarily related to insurance proceeds resulting from a December 2015 snowstorm that damaged a portion of one of our warehouses in New Mexico. In addition, in we received a refund in 2013 from the State of New Mexico. This refund related to the overpayment of compensating taxes on capital projects in prior periods. As we are no longer receiving inquiries from vendors who performed work on those capital projects to which the overpayment related, we recognized the remaining $1.1 million as other operating income in the second quarter of 2016.

Income Taxes

We are subject to federal and state income taxes on our taxable income. Our effective tax rate for both the three and six months ended June 30, 2016, was zero. Our effective tax rate for the three and six months ended June 30, 2015, was 6.6% and 63.1%, respectively. Our effective income tax rates are impacted primarily by changes in the underlying tax rates in jurisdictions in which we are subject to income tax and permanent differences between book and tax income for the period, including the benefit associated with the estimated effect of depletion, research and development credits, and any changes in valuation allowances. During the three and six months ended June 30, 2016, our effective tax rate was impacted primarily by a valuation allowance placed on the additional deferred tax assets recorded during the period. During the three and six months ended June 30, 2015, our effective tax rate was impacted primarily by the benefit from estimated depletion deductions.

Our federal and state income tax returns are subject to examination by federal and state tax authorities.

For the three and six months ended June 30, 2016, we recognized an immaterial amount of income tax expense. For the three and six months ended June 30, 2015, we recognized income tax benefit of $0.4 million and income tax expense of $2.7 million, respectively. Total tax expense for the six months ended June 30, 2015, was comprised of $0.1 million of current income tax benefit and $2.8 million of deferred income tax expense.

We evaluate our deferred tax assets and liabilities each reporting period using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. The estimated

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statutory income tax rates that are applied to our current and deferred income tax calculations are impacted most significantly by the states in which we do business. Changing business conditions for normal business transactions and operations, as well as changes to state tax rate and apportionment laws, potentially alter our apportionment of income among the states for income tax purposes. These changes in apportionment laws result in changes in the calculation of our current and deferred income taxes, including the valuation of our deferred tax assets and liabilities. The effects of any such changes are recorded in the period of the adjustment. These adjustments can increase or decrease the net deferred tax asset on the balance sheet and impact the corresponding deferred tax benefit or deferred tax expense on the income statement.

Capital Investments

During the first six months of 2016, cash paid for property, plant and equipment was $11.8 million. We expect capital investment for 2016 to be approximately $20 million to $25 million. The majority of our remaining capital investment in 2016 is expected to be sustaining capital. We anticipate our 2016 operating plans and capital programs will be funded out of operating cash flows and existing cash and cash equivalents.

The above expected capital investment includes amounts to convert our East facility to a Trio^®-only facility, which occurred in April 2016, and our subsequent activities to optimize our langbeinite recovery techniques and maximize the amount of granular- and premium-sized Trio^® that we produce.    

We hold permits, governmental approvals, and leases necessary for the continued operations at each of our facilities. A decision by a governmental agency or lessee to deny or delay a new or renewed permit, approval, or lease, or to revoke or substantially modify an existing permit, approval, or lease, could prevent or limit us from continuing our operations at the affected facility. In addition, we could be required to expend significant amounts to obtain these permits, approvals, or leases, or we could be required to make significant capital investments to modify or suspend our operations at one or more of our facilities.

Liquidity and Capital Resources

As of June 30, 2016, we had cash, cash equivalents, and investments of $47.6 million. This amount was made up of the following:

• $8.7 million in cash;

• $22.3 million in cash equivalent investments, consisting of money market accounts with banking institutions that we believe are financially sound; and

• $16.6 million invested in short-term investments.

Our operations have primarily been funded from cash on hand and cash generated by operations. We will continue to monitor our future sources and uses of cash, and anticipate that we will make adjustments to our capital allocation strategies when, and if determined by our Board of Directors. We expect to continue to look for opportunities to improve our capital structure by reducing debt and its related interest expense. We may, at any time we may deem conditions favorable, also attempt to improve our liquidity position by accessing debt or equity markets. We cannot provide any assurance that we will pursue any of these transactions or that we will be successful in completing them on acceptable terms or at all.

The following summarizes our cash flow activity for the six months ended June 30, 2016, and 2015 (in thousands):

	Six Months Ended June 30,
	2016			2015
Cash flows provided by operating activities	$	403		$	55,194
Cash flows provided by (used in) investing activities	$	24,100		$	(81,468	)
Cash flows used in financing activities	$	(2,826	)	$	(1,030	)

Operating Activities

Total cash provided by operating activities through June 30, 2016, was $0.4 million, a decrease of $54.8 million compared with the first six months of 2015. The decrease was driven by lower net realized sales price per ton in the first six months of 2016 as compared to the same period in 2015.

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Investing Activities

Total cash provided by investing activities increased by $105.6 million in the first six months of 2016 compared with the same six month period in 2015 as a result of increased investment sales and lower capital investment activity.

Financing Activities

Total cash used in financing activities of $2.8 million was due to an increase in debt issuance costs related to the on-going negotiations with our lenders.

Unsecured Credit Facility

We have an unsecured credit facility, led by U.S. Bank, as administrative agent, and Wells Fargo Bank, as syndication agent. Throughout the first seven months of 2016, we entered into a series of amendments that ultimately reduced the amount available to us under the credit facility to a maximum of $1 million, which amount may be used only for letters of credit. Any availability of the credit facility is subject to our compliance with financial covenants that provide that our leverage ratio may not exceed 3.5 to 1 and our fixed charge coverage ratio may not be below 1.3 to 1. We were not in compliance with these covenants as of March 31, 2016, and June 30, 2016; however, the lenders under the credit facility have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016 and June 30, 2016. Further, the lenders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the credit facility until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after the waiver expires, or our failure to comply with similar covenants under the terms of our senior notes after September 30, 2016, will result in an event of default that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility. In addition, the amount available under the credit facility would be reduced to zero. The maturity date for the credit facility is the earliest of (1) September 30, 2016, (2) any date on which the aggregate commitment under the credit facility is reduced to zero, and (3) the effective date for a new credit facility.

The credit facility also has a covenant that requires us to provide to the lenders audited annual financial statements within 90 days of the end of each year. The audit report must not contain any going concern modification. The audit report accompanying our financial statements for the year ended December 31, 2015, contains a going concern modification, and therefore does not satisfy the credit facility covenant. The lenders under the facility agreed to waive until September 30, 2016, the requirement that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. Further, the lenders agreed that the existence of audited annual financial statements for the year ended December 31, 2015, with a going concern modification will not constitute a default or event of default under the facility until September 30, 2016. Our continued failure to comply with this covenant after September 30, 2016, will result in an event of default that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility.

The financial covenants under the credit facility are calculated as follows:

• Our maximum leverage ratio (calculated as the ratio of funded indebtedness to adjusted EBITDA for the prior four fiscal quarters) is 3.5 to 1, where funded indebtedness is calculated as total funded indebtedness minus cash and cash equivalent investments on hand up to a maximum of $75 million. Our leverage ratio at June 30, 2016, was 10.3 to 1.

• Our minimum fixed charge coverage ratio (calculated as the ratio of adjusted EBITDA for the prior four fiscal quarters, minus maintenance capital expenditures and cash paid for income taxes, to interest expense plus scheduled principal amortization of long-term funded indebtedness) is 1.3 to 1, where annual maintenance capital expenditures is set at $20 million. Our fixed charge coverage ratio at June 30, 2016, was (1.4) to 1.

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These ratios and other restrictive covenants under the credit facility could limit our ability to engage in activities that we believe are in our long-term best interests.

The facility is unsecured and is guaranteed by our material subsidiaries. We occasionally borrow and repay amounts under the facility for near-term working capital needs and may do so in the future. As of June 30, 2016, we had a $0.5 million letter of credit outstanding under the facility.

Unsecured Senior Notes

In April 2013, we issued $150 million aggregate principal amount of unsecured senior notes (the "Notes") pursuant to a note purchase agreement entered into in August 2012. The Notes consist of the following series:

• $60 million of 3.23% Senior Notes, Series A, due April 16, 2020

• $45 million of 4.13% Senior Notes, Series B, due April 14, 2023

• $45 million of 4.28% Senior Notes, Series C, due April 16, 2025

The Notes are senior unsecured obligations and rank equally in right of payment with any other unsubordinated unsecured indebtedness of ours. The Notes are subject to the same leverage ratio and fixed charge coverage ratio as apply under the credit facility, as described above. In January 2016, we amended the note purchase agreement to provide that the interest rate for the senior notes will be increased by 0.25% during any time that our leverage ratio exceeds 2.25 to 1. As we did not meet our leverage ratio and fixed charge ratio as of March 31, 2016, in accordance with the terms of the note purchase agreement, the above interest rates increased by 2% from April 1, 2016 through July 28, 2016. As part of an amendment and waiver extension in July 2016, the above interest rates increased 3.5% above the rates indicated above beginning July 29, 2016 and will remain at that level as long as we are not meeting these ratios. As described above, these ratios and other restrictive covenants under the Notes could limit our ability to engage in activities that we believe are in our long-term best interests.

    We were not in compliance with the financial covenants under the Notes as of March 31, 2016, and June 30, 2016; however, the noteholders have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016 and June 30, 2016. Further, the noteholders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the Notes until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA will not be sufficient for us to return to compliance with these covenants through 2016. We are working with the noteholders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of our credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the Notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of the Notes and any amounts outstanding under the credit facility.

The obligations under the Notes are unconditionally guaranteed by our material subsidiaries.    

Interest is paid semiannually on April 16 and October 16 of each year. Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $3.1 million and $1.7 million for the three months ended June 30, 2016 and 2015, respectively. Included in the gross interest expense for the three months ended June 30, 2016, is the write-off of deferred financing costs of $0.8 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.1 million and an immaterial amount of interest during the three months ended June 30, 2016, and 2015. For the six months ended June 30, 2016, and 2015, we incurred gross interest expense of $5.4 million and $3.3 million, respectively. Included in the gross interest expense for the six months ended June 30, 2016 is the write-off of deferred financing costs of $1.5 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.2 million and an immaterial amount during the six months ended June 30, 2016, and 2015, respectively.

Off-Balance Sheet Arrangements

As of June 30, 2016, we had no off-balance sheet arrangements aside from the operating leases and bonding obligations described in the accompanying notes to the condensed consolidated financial statements.

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Critical Accounting Policies and Estimates

Our Annual Report on Form 10-K for the year ended December 31, 2015,describes the critical accounting policies that affect our more significant judgments and estimates used in the preparation of our consolidated financial statements. There have been no significant changes to our critical accounting policies since December 31, 2015.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, from time to time we may use non-GAAP financial measures to monitor and evaluate our performance. These non-GAAP financial measures should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

We believe these non-GAAP financial measures provide useful information to investors for analysis of our business. We use these non-GAAP financial measures as one of our tools in comparing performance period over period on a consistent basis and when planning, forecasting, and analyzing future periods. We believe these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions.

Below is additional information about the non-GAAP financial measure used in this filing, including a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure, for the three and six months ended June 30, 2016, and 2015.

Average Net Realized Sales Price per Ton

Average net realized sales price per ton is calculated as sales, less freight costs, divided by the number of tons sold in the period. We consider average net realized sales price per ton to be useful because it shows average per-ton pricing without the effect of certain transportation and delivery costs. When we arrange transportation and delivery for a customer, we include in revenue and in freight costs the costs associated with transportation and delivery. However, many of our customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in our revenue and freight costs. We use average net realized sales price per ton as a key performance indicator to analyze sales and price trends.

	Three Months Ended June 30,
	2016						2015
(in thousands except per ton amounts)	Potash		Trio®		Total		Potash		Trio®		Total
Sales	$	39,196	$	12,644	$	51,840	$	57,093	$	16,558	$	73,651
Freight costs	6,882		2,049		8,931		4,478		2,420		6,898
Subtotal	$	32,314	$	10,595	$	42,909	$	52,615	$	14,138	$	66,753
Divided by:
Tons sold	168		33				147		37
Average net realized sales price per ton	$	193	$	320			$	358	$	383

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	Six Months Ended June 30,
	2016						2015
(in thousands except per ton amounts)	Potash		Trio®		Total		Potash		Trio®		Total
Sales	$	92,891	$	32,226	$	125,117	$	147,822	$	42,850	$	190,672
Freight costs	13,433		5,830		19,263		11,684		6,126		17,810
Net sales	$	79,458	$	26,396	$	105,854	$	136,138	$	36,724	$	172,862
Divided by:
Tons sold	386		83				377		98
Average net realized sales price per ton	$	206	$	318			$	361	$	373

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Part II, Item 7A., "Quantitative and Qualitative Disclosure About Market Risk," of our Annual Report on Form 10-K for the year ended December 31, 2015, describes our exposure to market risk. There have been no significant changes to our market risk exposure since December 31, 2015.

ITEM 4.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain "disclosure controls and procedures," as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act. Our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms. Our disclosure controls and procedures are also designed to ensure that this information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our management, including our principal executive offer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures as of June 30, 2016. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2016, at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended June 30, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our principal executive officer and principal financial officer, do not expect that our disclosure controls or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Intrepid have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In February 2015, Mosaic Potash Carlsbad Inc. ("Mosaic") filed a complaint and application for preliminary injunction and permanent injunction against Steve Gamble and us in the Fifth Judicial District Court for County of Eddy in the State of New Mexico. Mr. Gamble is a current Intrepid employee and former Mosaic employee. The complaint alleges against us violations of the Uniform Trade Secrets Act and tortious interference with contract relating to alleged misappropriation of Mosaic's trade secrets. Mosaic seeks monetary relief of an unspecified amount, including damages for actual loss and unjust enrichment, exemplary damages, attorneys' fees, and injunctive relief and has alleged that it has spent hundreds of millions of dollars to research and develop its alleged trade secrets. In August 2015, the court denied Mosaic's application for preliminary injunction. The lawsuit is currently progressing through discovery. We are vigorously defending against the lawsuit.

In July 2016, Mosaic filed a complaint against Steve Gamble and us in US District Court for the District of New Mexico.  The complaint alleges violations of the Computer Fraud and Abuse Act, conversion, and civil conspiracy relating to alleged misappropriation of Mosaic's confidential information.  Mosaic seeks injunctive relief and compensatory and punitive damages of an unspecified amount. We are vigorously defending against the lawsuit.

We are subject to other claims and legal actions in the ordinary course of business. While there are uncertainties in predicting the outcome of any claim or legal action, we believe that the ultimate resolution of these other claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows. We maintain liability insurance that will apply to some claims and actions and believe that our coverage is reasonable in view of the insurable legal risks to which our business ordinarily is subject.

ITEM 1A. RISK FACTORS

Our future performance is subject to a variety of risks and uncertainties that could materially and adversely affect our business, financial condition, results of operations, and the trading price of our common stock. These risks and uncertainties are described in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015. There have been no material changes to these risks and uncertainties.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

We are committed to providing a safe and healthy work environment. The objectives of our safety programs are to eliminate workplace accidents and incidents, to preserve employee health, and to comply with safety- and health-based regulations. We seek to achieve these objectives by training employees in safe work practices; establishing, following, and improving safety standards; involving employees in safety processes; openly communicating with employees about safety matters; and recording, reporting, and investigating accidents, incidents, and losses to avoid recurrence. As part of our ongoing safety programs, we collaborate with regulators to identify and implement new accident prevention techniques and practices.

Our East, West and North facilities in New Mexico are subject to regulation by MSHA under the Federal Mine Safety and Health Act of 1977 (the "Mine Act") and the New Mexico Bureau of Mine Safety. MSHA inspects these facilities on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Exhibit 95.1 to this Quarterly Report on Form 10-Q provides the information concerning mine safety violations and other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K. Our Utah facilities and our HB solar solution mine are subject to regulation by the

38

Occupational Health and Safety Administration and, therefore, are not required to be included in the information provided in Exhibit 95.1.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The list of exhibits in the Exhibit Index to this Quarterly Report on Form 10-Q is incorporated herein by reference.

39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	INTREPID POTASH, INC. (Registrant)
Dated: August 3, 2016	/s/ Robert P. Jornayvaz III
	Robert P. Jornayvaz III - Executive Chairman of the Board, President, and Chief Executive Officer (Principal Executive Officer and Duly Authorized Officer)
Dated: August 3, 2016	/s/ Brian D. Frantz
	Brian D. Frantz - Senior Vice President and Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer)

40

EXHIBIT INDEX

Exhibit No.	Description
3.1	Certificate of Amendment to Restated Certificate of Incorporation of Intrepid Potash, Inc. (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on May 26. 2016).
10.1	Waiver and Amendment No. 6 to Credit Agreement, dated as of May 6, 2016, by and among Intrepid Potash, Inc., each of the lenders named therein, and U.S. Bank National Association, as Administrative Agent (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on May 9, 2016).
10.2	Waiver and Amendment No. 7 to Credit Agreement, dated as of July 29, 2016, by and among Intrepid Potash, Inc., each of the lenders named therein, and U.S. Bank National Association, as Administrative Agent (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on July 29, 2016).
10.3	Second Waiver to Note Purchase Agreement, dated as of May 6, 2016, by and among Intrepid Potash, Inc. and each of the purchasers named therein (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on May 9, 2016).
10.4	Third Waiver to Note Purchase Agreement, dated as of June 30, 2016, by and among Intrepid Potash, Inc. and each of the purchasers named therein (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on June 30, 2016).
10.5	Fourth Waiver to Note Purchase Agreement, dated as of July 15, 2016, by and among Intrepid Potash, Inc. and each of the purchasers named therein (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on July 15, 2016).
10.6	Fifth Waiver to Note Purchase Agreement, dated as of July 29, 2016, by and among Intrepid Potash, Inc. and each of the purchasers named therein (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on July 29, 2016).
10.7	Intrepid Potash, Inc. Amended and Restated Short-Term Incentive Plan (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on May 26, 2016).†
10.8	Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (incorporated by reference to Intrepid Potash, Inc.'s Current Report on Form 8-K (File No. 001-34025) filed on May 26, 2016).†
10.9	Form of Restricted Stock Agreement under Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan.†*
10.10	Form of Stock Option Agreement under Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan.†*
10.11	Separation Agreement and General Release, dated as of May 6, 2016, by and between Intrepid Potash, Inc. and Kelvin G. Feist.†*
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a), as amended.*
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a), as amended.*
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
95.1	Mine Safety Disclosure Exhibit.*
101.INS	XBRL Instance Document.*
101.SCH	XBRL Taxonomy Extension Schema.*
101.CAL	XBRL Extension Calculation Linkbase.*
101.LAB	XBRL Extension Label Linkbase.*
101.PRE	XBRL Extension Presentation Linkbase.*
101.DEF	XBRL Extension Definition Linkbase.*

* Filed herewith.

** Furnished herewith.

† Management contract or compensatory plan or arrangement.

41

42

EX-10.09

INTREPID POTASH, INC.
AMENDED AND RESTATED EQUITY INCENTIVE PLAN
RESTRICTED STOCK AGREEMENT

Intrepid Potash, Inc., a Delaware corporation (“Intrepid”), has granted you an award of shares of Restricted Stock under the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the “Plan”), subject to the terms and conditions of the Plan and this Restricted Stock Agreement (this “Agreement”).

I. GRANT NOTICE

Grantee:	__________________
Number of Shares of Restricted Stock Granted:	__________________
Grant Date:	__________________
Vesting Schedule:	The shares of Restricted Stock will vest _________________, provided that you remain in continuous Service with Intrepid or an Affiliate from the Grant Date through the applicable installment date (each date, a “Vesting Date”).

II. TERMS AND CONDITIONS

1.
Defined Terms; Conflicts. Except as defined in this Agreement, capitalized terms in this Agreement have the meanings assigned to them in the Plan. In the event of a conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan will govern.

2.
Restrictions. During the Restriction Period (defined below), the shares of Restricted Stock are subject to forfeiture and you may not sell, transfer, assign, pledge, or otherwise encumber or dispose of the shares. The “Restriction Period” begins on the Grant Date and ends on the applicable Vesting Dates. To enforce these restrictions, Intrepid may elect to have the shares of Restricted Stock held in electronic or other book form in an account with Intrepid, its transfer agent, or other designee until the restrictions have lapsed or until this Agreement is no longer in effect. If Intrepid instead issues the shares in certificate form, the certificates will include appropriate restrictive legends regarding restrictions on transfer and compliance with securities law requirements, as determined by Intrepid, and will be held in Intrepid’s custody until the restrictions have lapsed or this Agreement is no longer in effect.

3.
Vesting; Lapse of Restrictions. Except as provided otherwise in this Agreement, the shares of Restricted Stock will vest and the restrictions set forth in Section 2 will lapse in accordance with the Vesting Schedule set forth above. After vesting, you may transfer the shares of Stock, subject to applicable securities law requirements and Intrepid’s policies and procedures.

4.
Termination of Service; Forfeiture.

(a)
General. Except as provided otherwise in this Agreement, the Plan, or an Applicable Severance Agreement (as defined in Section 14), upon the termination of your Service prior to a Vesting Date for any reason other than your death or Disability, all shares of Restricted Stock that are not vested will immediately be forfeited.

(b)
Death or Disability. If your Service terminates prior to a Vesting Date on account of your death or Disability, all shares of Restricted Stock that are not vested will vest in full immediately prior to the termination of your Service.

(c)
Forfeiture. Upon forfeiture of shares of Restricted Stock, the shares will be returned to Intrepid and you will have no further rights with respect to those shares, including any rights to vote the shares or receive dividends.

5.
Leave of Absence. For purposes of this Agreement, your Service does not terminate when you go on a bona fide employee leave of absence that is approved in writing by Intrepid or an Affiliate if the terms of your leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, your Service will be treated as terminating 90 days after you went on the approved leave, unless your right to return to active work is guaranteed by law or by a contract. Your Service terminates in any event when your approved leave ends unless you immediately return to active Service. The Committee determines, in its sole discretion, which leaves of absence count for this purpose, and when Service terminates for all purposes under the Plan.

6.
Change of Control. Except to the extent provided in an Applicable Severance Agreement, the shares of Restricted Stock are subject to the provisions of the Plan pertaining to a Change of Control of Intrepid.

7.
Stockholder Rights; Dividends. During the Restriction Period, you will have the same voting rights with respect to the shares of Restricted Stock as holders of Intrepid’s Common Stock have with respect to their shares. During the Restriction Period, any regular cash dividends declared and paid on shares of Restricted Stock will be withheld by Intrepid and paid to you at the same time, if and when, the related shares of Restricted Stock vest. If the shares of Restricted Stock are forfeited, the related dividends will be forfeited at the same time. You are not entitled to receive any special or extraordinary cash dividends or distributions made during the Restriction Period unless the Committee expressly authorizes the receipt of such dividend or distribution. All distributions to you, if any, as a result of any split, stock dividend, combination of shares of stock, or other similar transaction with respect to shares of Restricted Stock will be subject to the same restrictions during the Restriction Period as the related shares of Restricted Stock.

8.
Tax Withholding. Intrepid has the right to deduct from any payments otherwise due to you any federal, state, or local taxes, domestic or foreign, of any kind required by law upon the issuance, vesting, or payment of any shares of Restricted Stock, Stock, or dividends. At the time of issuance, vesting, or payment, you will pay to Intrepid the amount that Intrepid determines is necessary to satisfy applicable withholding obligations at rates determined by Intrepid, which will not exceed the minimum statutory rate or any other rate that will not cause an adverse accounting consequence or cost. You may elect to pay this amount, in whole or in part, (a) in cash, (b) by causing Intrepid to withhold shares of Stock otherwise issuable to you, or (c) by delivering to Intrepid unrestricted shares of Stock you already own. Your election will be irrevocable and must be made in advance and in accordance with Intrepid’s Insider Trading Policy, Stock Ownership Guidelines, and any other applicable policies or procedures. If you do not make a proper election in accordance with this Section, Intrepid will automatically withhold shares of Stock otherwise issuable to you to satisfy the applicable withholding obligations at rates not to exceed the minimum statutory rate or any other rate that will not cause an adverse accounting consequence or cost.

The number of shares of Stock delivered or withheld under this Section will be determined by Intrepid and will not exceed the number of shares of Stock with an aggregate Fair Market Value that exceeds the applicable withholding obligations. The Fair Market Value of the shares delivered or withheld will be determined by Intrepid as of the date that the amount of tax to be withheld is to be determined.

9.
Committee Discretion.The Committee has complete and full discretionary authority to make all decisions and determinations under this Agreement, and all decisions and determinations by the Committee will be final and binding upon all persons, including, but not limited to, you and your personal representatives, heirs and assigns.

10.
Not Transferable. You may not sell, transfer, assign, pledge, or otherwise encumber or dispose of the shares of Restricted Stock. If you transfer or attempt to transfer shares contrary to the terms of this Agreement, Intrepid will have the right to acquire the shares for its own account, without any payment to you or the transferee. In addition to any other legal or equitable remedies it may have, Intrepid may enforce its rights to specific performance to the extent permitted by law and may exercise any other equitable remedies then available. Intrepid may refuse to recognize any transferee who receives shares contrary to the provisions of this Agreement as a stockholder of Intrepid, and Intrepid may retain and recover all dividends on the shares that were paid or payable after the date on which the prohibited transfer was made or attempted.

11.
Investment Representations. The Committee may require you (or your estate or heirs) to represent and warrant in writing that the shares of Stock are being acquired for investment and without any present intention to sell or distribute the shares and to make any other representations that Intrepid or its counsel deems necessary or appropriate.

12.
No Right to Continued Service. Neither the grant of shares of Restricted Stock nor this Agreement gives you the right to continue Service with Intrepid or its Affiliates in any capacity. Intrepid and its Affiliates reserve the right to terminate your Service at any time and for any reason not prohibited by law.

13.
Covenants. You expressly covenant and agree (a) not to divulge to others or use for your own benefit any confidential information relating to the business and operations of Intrepid or any of its Affiliates obtained during your Service and (b) during and for 12 months after your Service ends, not to solicit or otherwise induce, directly or indirectly, any current employee of Intrepid or its Affiliates to leave employment in order to work for any other person or entity.

14.
Entire Agreement. This Agreement constitutes the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and negotiations between the parties except to the extent that a matter is specifically addressed by any employment, severance, or change-in-control agreement between Intrepid and Grantee (an “Applicable Severance Agreement”), in which instance the relevant terms of the Applicable Severance Agreement will govern.

15.
Governing Law. The validity and construction of this Agreement and the Plan will be construed in accordance with and governed by the laws of the State of Delaware other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan and this Agreement to the substantive laws of any other jurisdiction.

16.
Binding Effect. This Agreement will be binding upon and inure to the benefit of Intrepid and you and Intrepid’s and your respective heirs, executors, administrators, legal representatives, successors, and assigns.

17.
Consent to Electronic Communications. You agree that Intrepid may provide you with any communications associated with this Award in electronic format. Your consent to receive electronic communications includes, but is not limited to, all legal and regulatory disclosures and communications associated with this Award or notices or disclosures about a change in the terms and conditions of this Award.

18.
Tax Treatment; Section 83(b); Section 409A. You may incur tax liability as a result of the vesting of shares of Restricted Stock, the payment of dividends, or the disposition of shares of Stock. You should consult your own tax adviser for tax advice.

You acknowledge that you may file with the Internal Revenue Service, within 30 days of the Grant Date, an irrevocable election pursuant to Section 83(b) of the Code to be taxed as of the Grant Date on the amount by which the Fair Market Value of the Restricted Stock on the Grant Date exceeds the amount paid for the Stock, if any. If you choose to file an election under Section 83(b) of the Code, you agree to promptly deliver a copy of your election to Intrepid.

Restricted Stock is not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (“Section 409A”) and any dividend payments are intended to be exempt from Section 409A as a short-term deferral and, accordingly, the terms of this Agreement will be construed to preserve such exemption. However, under certain circumstances, payments or benefits under the Award may be subject to Section 409A. To the extent that Grantee and this Agreement are subject to Section 409A, this Agreement will be interpreted and administered in accordance with the intent that Grantee not be subject to tax under Section 409A. In the event that Grantee is determined to be a “specified employee” within the meaning of Section 409A, any payments on account of termination of Service will be accumulated and paid without interest on the first business day following the date that is six months after the date of Grantee’s termination of Service to the extent required to avoid any adverse tax consequences under Section 409A. For purposes of this Agreement, “separation from service” and “disability” will have the meanings as defined under Section 409A and references to termination of Service will mean a “separation from service” to the extent required for compliance with Section 409A. Each amount to be paid under this Agreement will be construed as a separate identified payment for purposes of Section 409A.

The Committee, in its sole discretion and without Grantee’s consent, may amend or modify this Agreement in any manner and delay payment of any amounts payable to satisfy the requirements of Section 409A. Notwithstanding any provision of this Agreement, the Plan, or any Applicable Severance Agreement to the contrary, in no event will Intrepid or any of its Affiliates be liable to Grantee or any other person on account of an Award’s failure to (a) qualify for favorable U.S. tax treatment or (b) avoid adverse tax treatment under U.S. law, including, without limitation, Section 409A.

19.
Recoupment of Award. This Award is subject to the provisions of the Plan pertaining to recoupment of Awards.

20.
Modification of Agreement. This Agreement may be modified or amended only by the written consent of Intrepid and you, except to the extent permitted by Section 18 (regarding Section 409A) or the Plan.

[Intrepid Signature Page Follows]

This Restricted Stock Agreement is executed on behalf of Intrepid by its authorized officer on the date set forth below.

INTREPID POTASH, INC.            

By:    

Date:    

[Grantee Signature Page Follows]

For your grant of Restricted Stock to be valid, you must sign and date this Acknowledgment and Agreement and return it to Intrepid no later than 30 days after the Grant Date.

ACKNOWLEDGMENT AND AGREEMENT

I acknowledge that I have received, and have had an opportunity to review, this Agreement, the Plan, and the related Plan Prospectus. I agree to all of the terms and conditions described in this Agreement and the Plan.

GRANTEE

Signature

Print Name:    

Date:    

Attachments:

Equity Incentive Plan     Equity Incentive Plan Prospectus

INTREPID POTASH, INC. RESTRICTED STOCK AGREEMENT

HRODEN\1769832.2

EX-10.10

INTREPID POTASH, INC.
AMENDED AND RESTATED EQUITY INCENTIVE PLAN
STOCK OPTION AGREEMENT

Intrepid Potash, Inc., a Delaware corporation (“Intrepid”), has granted you an option (the “Option”) to purchase shares of Intrepid’s Common Stock under the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the “Plan”), subject to the terms and conditions of the Plan and this Stock Option Agreement (this “Agreement”).

I. GRANT NOTICE

Optionee:
Number of Shares of Common Stock Covered by the Option:
Exercise Price Per Share:
Grant Date:
Expiration Date:
Type of Option:	Non-Qualified Stock Option
Vesting Schedule:	The Option will vest and become exercisable _______________________________, provided that you remain in continuous Service with Intrepid or an Affiliate from the Grant Date through the applicable installment date (each date, a “Vesting Date”).

II. TERMS AND CONDITIONS

1.
Defined Terms; Conflicts. Except as defined in this Agreement, capitalized terms in this Agreement have the meanings assigned to them in the Plan. In the event of a conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan will govern.

2.
Vesting. Except as provided otherwise in this Agreement or in the Plan, the Option will vest and become exercisable in accordance with the Vesting Schedule set forth above. As the Option vests and becomes exercisable in one or more installments, the installments will accumulate and the Option will remain exercisable for the accumulated installments until the Option expires or terminates in accordance with the terms of this Agreement or the Plan.

3.
Option Term; Expiration Date. The Option will expire at 5:00 P.M. Mountain Time on the Expiration Date set forth above, unless sooner terminated in accordance with Section 4 of this Agreement or the terms of the Plan.

4.
Termination of Service; Accelerated Vesting; Expiration of Option.

(a)
General. Except as provided otherwise in this Agreement, the Plan, or an Applicable Severance Agreement (as defined in Section 15), upon the termination of your Service prior to the Expiration Date for any reason other than your death or Disability, then the vested portion of the Option will remain outstanding until 5:00 P.M. Mountain Time on the soonest to occur of (i) the date that is 12 months after the date on which your Service terminates, or (ii) the Expiration Date. The unvested portion of the Option will automatically expire on the date of termination of Service.

(b)
Death or Disability. If your Service terminates on account of your death of Disability, any unvested portion of the Option will automatically vest and become exercisable on the date of termination of Service. The vested and outstanding portion of the Option will remain outstanding and may be exercised by you or your guardian or legal representative until 5:00 P.M. Mountain Time on the soonest to occur of (i) the date that is 12 months after the date on which your Service terminates, or (ii) the Expiration Date.

5.
Leave of Absence. For purposes of this Agreement, your Service does not terminate when you go on a bona fide employee leave of absence that is approved in writing by Intrepid or an Affiliate if the terms of your leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, your Service will be treated as terminating 90 days after you went on the approved leave, unless your right to return to active work is guaranteed by law or by a contract. Your Service terminates in any event when your approved leave ends unless you immediately return to active Service. The Committee determines, in its sole discretion, which leaves of absence count for this purpose, and when Service terminates for all purposes under the Plan.

6.
Change of Control. Except to the extent provided in an Applicable Severance Agreement, the Option is subject to the provisions of the Plan pertaining to a Change of Control of Intrepid.

7.
Option Exercise.

(a)
Notice of Exercise. The Option must be exercised on a business day on which Intrepid is generally open for business by delivery of written or electronic notice to an officer, employee, or agent of Intrepid designated by the Committee, on a written or electronic form specified by the Committee or its designated agent. The written or electronic notice must specify the number of shares of Stock to be purchased, and must be accompanied by full payment of the Exercise Price for the shares being purchased. The notice must also specify the manner in which the shares should be registered and the manner in which you are satisfying applicable tax withholding requirements. The notice of exercise will be effective when it is received. Anyone exercising the Option after your death must provide appropriate documentation to the satisfaction of Intrepid that the individual is entitled to exercise the Option.

(b)
Payment of Exercise Price. Payment of the Exercise Price for the number of shares of Stock being purchased may be made in one, or a combination, of the following forms:

(i)
Cash or cash equivalents acceptable to Intrepid.

(ii)
Tendering to Intrepid (either by actual delivery of by attestation) unrestricted shares of Stock owned by you that were purchased on the open market or owned for at least six months or such other period designated by Intrepid in order to comply with applicable law and to avoid adverse accounting consequences. The Fair Market Value of the Stock, determined as of the effective date of the Option exercise, will be applied to the payment of the Exercise Price.

(iii)
To the extent a public market for the shares of Stock exists as determined by Intrepid, delivery to Intrepid of irrevocable instructions issued to a licensed securities broker acceptable to Intrepid to sell shares of Stock and to deliver all or part of the sale proceeds to Intrepid in payment of the aggregate Exercise Price and any withholding taxes.

8.
Tax Withholding. Intrepid has the right to deduct from any payments otherwise due to you any federal, state, or local taxes, domestic or foreign, of any kind required by law upon the issuance of any shares of Stock or payment of any kind upon the exercise of the Option. At the time of issuance, vesting, or payment, you will pay to Intrepid the amount that Intrepid determines is necessary to satisfy applicable withholding obligations at rates determined by Intrepid, which will not exceed the minimum statutory rate or any other rate that will not cause an adverse accounting consequence or cost. You may elect to pay this amount, in whole or in part, (a) in cash or (b) by delivering to Intrepid unrestricted shares of Stock you already own. Your election will be irrevocable and must be made in advance and in accordance with Intrepid’s Insider Trading Policy, Stock Ownership Guidelines, and any other applicable policies or procedures. If you do not make a proper election in accordance with this Section, Intrepid will automatically deduct cash otherwise issuable to you to satisfy the applicable withholding obligations at rates not to exceed the minimum statutory rate or any other rate that will not cause an adverse accounting consequence or cost.

9.
Transfer of Option.

(a)
General Rule. During your lifetime, you may not transfer or assign the Option and the Option may be exercised solely by you (or, in the event of your legal incapacity or incompetency, your guardian or legal representative). Upon death, the Option may be transferred in accordance with your will or under the applicable laws of descent and distribution and may be exercised in accordance with Section 4.

(b)
Domestic Relations Order. Notwithstanding subsection (a), to the extent this Option is a Non-Qualified Stock Option, the Option, in whole or in part, may be transferred to a Family Member pursuant to a domestic relations order in settlement of marital property rights. Following the transfer, the Option will continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer, and will be exercisable by the transferee only to the extent, and for the periods specified in, this Agreement.

10.
Investment Representations. The Committee may require you (or your estate or heirs) to represent and warrant in writing that the shares of Stock are being acquired for investment and without any present intention to sell or distribute the shares and to make any other representations that Intrepid or its counsel deems necessary or appropriate.

11.
No Right to Continued Service. Neither the grant of the Option nor this Agreement gives you the right to continue Service with Intrepid or its Affiliates in any capacity. Intrepid and its Affiliates reserve the rightto terminate your Service at any time and for any reason not prohibited by law.

12.
Covenants. You expressly covenant and agree (a) not to divulge to others or use for your own benefit any confidential information relating to the business and operations of Intrepid or any of its Affiliates obtained during your Service and (b) during and for 12 months after your Service ends, not to solicit or otherwise induce, directly or indirectly, any current employee of Intrepid or its Affiliates to leave employment in order to work for any other person or entity.

13.
Stockholder Rights. You and your estate or heirs will not have any rights as a stockholder of Intrepid until you become the holder of record of the shares of Stock, and no adjustments will be made for dividends or other distributions or other rights as to which there is a record date prior to the date on which you become the holder of record of the shares, except as provided in Section 14 of the Plan.

14.
Additional Requirements. You acknowledge that shares of Stock acquired upon exercise of the Option may bear any legends that Intrepid deems appropriate to comply with applicable federal, state, or foreign securities laws. In connection therewith and prior to the issuance of the shares, you may be required to deliver to Intrepid any other documents as may be reasonably necessary to ensure compliance with applicable laws.

15.
Entire Agreement. This Agreement constitutes the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and negotiations between the parties except to the extent that a matter is specifically addressed by any employment, severance, or change-in-control agreement between Intrepid and you (an “Applicable Severance Agreement”), in which instance the relevant terms of the Applicable Severance Agreement will govern.

16.
Governing Law. The validity and construction of this Agreement and the Plan will be construed in accordance with and governed by the laws of the State of Delaware other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan and this Agreement to the substantive laws of any other jurisdiction.

17.
Binding Effect. This Agreement will be binding upon and inure to the benefit of Intrepid and you and Intrepid’s and your respective heirs, executors, administrators, legal representatives, successors, and assigns.

18.
Special Rules for Incentive Stock Options. If the Option is designated as an Incentive Stock Option in the Grant Notice set forth above, the Option will be treated as an Incentive Stock Option to the maximum extent permissible under applicable law. If the Option or any portion of the Option cannot be treated as an Incentive Stock Option under applicable law, whether because the value of the Common Stock covered under the Option exceeds the limits of Code Section 422(d), the Option remains outstanding following termination of employment beyond the holding periods of Code Section 422(a)(2), or otherwise, then the Option, or the relevant portion of the Option, will be classified as a Non-Qualified Stock Option.

19.
Tax Treatment; Section 409A. You may incur tax liability as a result of the exercise of the Option or the disposition of shares of Stock. You should consult your own tax adviser for tax advice.

The Option is not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (“Section 409A”) and the terms of this Agreement will be construed accordingly. However, under certain circumstances, payments or benefits under the Award may be subject to Section 409A. To the extent that you and this Agreement are subject to Section 409A, this Agreement will be interpreted and administered in accordance with the intent that you not be subject to tax under Section 409A. In the event that you are determined to be a “specified employee” within the meaning of Section 409A, any payments on account of termination of Service will be accumulated and paid without interest on the first business day following the date that is six months after the date of your termination of Service to the extent required to avoid any adverse tax consequences under Section 409A. For purposes of this Agreement, “separation from service” and “disability” will have the meanings as defined under Section 409A and references to termination of Service will mean a “separation from service” to the extent required for compliance with Section 409A. Each amount to be paid under this Agreement will be construed as a separate identified payment for purposes of Section 409A.

The Committee, in its sole discretion and without your consent, may amend or modify the Option and this Agreement in any manner and delay payment of any amounts payable to satisfy the requirements of Section 409A. Notwithstanding any provision of this Agreement, the Plan, or any Applicable Severance Agreement to the contrary, in no event will Intrepid or any of its Affiliates be liable to Grantee or any other person on account of an Award’s failure to (a) qualify for favorable U.S. tax treatment or (b) avoid adverse tax treatment under U.S. law, including, without limitation, Section 409A.

20.
Recoupment of Award. The Option is subject to the provisions of the Plan pertaining to recoupment of Awards.

21.
Modification of Agreement. This Agreement may be modified or amended only by the written consent of Intrepid and you, except to the extent permitted by Section 19 (regarding Section 409A) or the Plan.

[Intrepid Signature Page Follows]

This Stock Option Agreement is executed on behalf of Intrepid by its authorized officer on the date set forth below.

INTREPID POTASH, INC.

By:    _______________________________________

Date:    ________________________________________

[Optionee Signature Page Follows]

ACKNOWLEDGMENT AND AGREEMENT

I acknowledge that I have received, and have had an opportunity to review, this Agreement, the Plan, and the related Plan Prospectus. I agree to all of the terms and conditions described in this Agreement and the Plan.

OPTIONEE

Signature

Print Name:    

Date:    

Attachments:

Equity Incentive Plan

Equity Incentive Plan Prospectus

1773355.2

EX-10.11

10

SEPARATION AGREEMENT AND GENERAL RELEASE

THIS SEPARATION AGREEMENT AND GENERAL RELEASE (this “Agreement”), dated as of May 6, 2016, is made by and between Intrepid Potash, Inc., a Delaware corporation (the “Corporation”), and Kelvin G. Feist (“Executive”).

WHEREAS, Executive is leaving the Corporation, effective May 6, 2016 (the “Termination Date”), to pursue other interests, and the position of Senior Vice President of Sales and Marketing of the Corporation is being eliminated; and

WHEREAS, the Corporation and Executive (collectively the “Parties”) desire to enter into this Agreement, which sets forth certain terms relating to the termination of Executive’s employment and provides for certain payments and benefits that will be made to Executive as a result of his termination of employment.

NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, together with other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.Termination of Employment

.

(a)The Parties acknowledge and agree that (i) Executive’s service as the Senior Vice President of Sales and Marketing of the Corporation will terminate effective as of the Termination Date.

(b)On the Termination Date, the Corporation will pay Executive a lump sum cash payment in respect of Executive’s (i) accrued but unpaid base salary earned through the Termination Date, and (ii) accrued but unused vacation time earned through the Termination Date. In addition, the Corporation will reimburse Executive for all business expenses incurred on behalf of the Corporation through the Termination Date, in accordance with the Corporation’s policies with respect to the reimbursement of expenses.

2.Severance Payments and Benefits

. If Executive timely executes and does not revoke this Agreement and continues to comply with his fiduciary and other obligations to the Corporation and the terms of this Agreement, then Executive will be entitled to the following payments and benefits (the “Severance Benefits”):

(a)Upon Executive’s timely COBRA election, premium contributions he would otherwise be required to make to continue the medical, dental and vision benefits he and his family were receiving as of the Termination Date will be waived through November 30, 2016.

(b) A lump sum payment in an amount equal to six months’ current base salary, less applicable withholdings and deductions, payable within 15 days after expiration of the revocation period set forth in Section 8.

(c)A lump sum payment in the amount of $25,000.00 payable within 15 days after expiration of the revocation period set forth in Section 8.

(d)Reimbursement to Executive for up to $5,000 in individual outplacement services actually used and paid for by him during the twelve (12)-month period following the Termination Date.  The scope and providers of any reimbursable outplacement services will be selected by Executive, who

will be reimbursed within forty-five (45) days after submitting to the Corporation the third-party receipts showing the amounts paid by him for the services.

(e)Executive to keep cell phone number, Samsung cell phone and Surface tablet which will be cleared of any files related to the Corporation.

3.Executive Acknowledgement

s and Covenants. Executive acknowledges that the Corporation has provided him with all monies and benefits to which he is owed and that the Corporation’s agreement to provide the Severance Benefits is solely in exchange for the promises, releases and agreements of Executive set forth in this Agreement. Executive further acknowledges that such Severance Benefits do not constitute an admission by the “Releasees” (as defined below) of liability or of violation of any applicable law or regulation. The Releasees expressly deny any liability or alleged violation and state this arrangement has been made in recognition of Executive’s service to the Corporation and for the purpose of compromising any and all claims of Executive without the cost and burden of litigation. Executive acknowledges and agrees that the confidentiality, non-solicitation, and non-disparagement provisions in Section 6 of this Agreement will continue to apply after the Termination Date. Executive acknowledges and agrees that he is required to execute this Agreement and continue to comply with the terms of this Agreement as a condition to receiving the Severance Benefits, and would not be entitled to the Severance Benefits if he did not do so.

4.General Release of Claims

.

(a)Executive and his heirs, personal representatives, successors and assigns, hereby forever release, remise and discharge the Corporation and its subsidiaries, and each of their past, present, and future officers, directors, shareholders, members, employees, trustees, agents, representatives, affiliates, successors and assigns (collectively referenced herein as “Releasees”) from any and all claims, claims for relief, demands, actions and causes of action of any kind or description whatsoever, known or unknown, whether arising out of contract, tort, statute, treaty or otherwise, in law or in equity, which Executive now has, has had, or may hereafter have against any of the Releasees (i) from the beginning of time through the date upon which Executive signs this Agreement, and/or (ii) arising from, connected with, or in any way growing out of, or related to, directly or indirectly, (A) Executive’s service as an officer, director or employee, as the case may be, of the Corporation and its subsidiaries and affiliates, (B) any transaction prior to the date upon which Executive signs this Agreement and all effects, consequences, losses and damages relating thereto, (C) all cash incentive awards, and all equity or equity-based awards granted, or promised to be granted, by the Corporation to Executive and (D) Executive’s termination of employment with the Corporation under the common law or any federal or state statute, including, but not limited to, all claims arising under Title VII of the Civil Rights Act of 1964, as amended; The Civil Rights Act of 1991, as amended; The Equal Pay Act; the False Claims Act, 31 U.S.C.A. § 3730, as amended, including, but not limited to, any right to personal gain with respect to any claim asserted under its “qui tam” provisions; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; The Employee Retirement Income Security Act of 1974, as amended; The Immigration Reform and Control Act, as amended; The Americans with Disabilities Act of 1990, as amended; The Age Discrimination in Employment Act of 1967, as amended (“ADEA”); The Older Workers’ Benefit Protection Act of 1990, as amended; The Workers Adjustment and Retraining Notification Act, as amended; The Occupational Safety and Health Act, as amended; The Fair Labor Standards Act of 1938; Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”); any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance; any public policy, contract, tort, or

common law; or any allegation for costs, fees, or other expenses including attorneys’ fees incurred in these matters.

(b)Notwithstanding the foregoing, nothing in this Agreement will release or waive any rights or claims Executive may have: (i) under this Agreement or to the Severance Benefits; (ii) for indemnification under any written indemnification agreement by and between Executive and the Corporation and/or under applicable law or the Corporation’s charter or bylaws; (iii) under any applicable insurance coverage(s) (including, without limitation, COBRA rights); (iv) with respect to any accrued and vested benefits under any tax-qualified retirement plans of the Corporation; (v) with respect to any claims that cannot be waived by operation of law; (vi) with respect to any claims which may arise after Executive signs this Agreement; or (vii) with respect to Executive’s right to challenge the validity of the release under the ADEA.

(c)Additionally, while Executive acknowledges and understands that by this Agreement he foregoes, among other things, any and all past and present rights to recover money damages or personal relief arising out of Executive’s employment with the Corporation, the Parties agree that this Agreement shall not preclude Executive from filing any charge with the Equal Employment Opportunity Commission, the National Labor Relations Board, or any other governmental agency or from any way participating in any investigation, hearing, or proceeding of any government agency.

5.Affirmations

. Executive affirms that he has not filed or caused to be filed, and is not a party to any claim, complaint, or action against the Corporation or any of its subsidiaries or affiliates in any forum or form. Executive also affirms that he has no known workplace injuries or occupational diseases, and has been provided and has not been denied any leave requested under the Family and Medical Leave Act. Executive disclaims and waives any right of reinstatement with the Corporation or any subsidiary or affiliate thereof.

6.Restrictive Covenants. Executive acknowledges and agrees that he remains subject to (i) a March 8, 2011 Indemnification Agreement (the “Indemnification Agreement”), (ii) a February 23, 2011 Stock Option Agreement (the “Option Agreement”), (iii) a Change in Control Severance Agreement dated February 1, 2011 (the “CIC Agreement”) and (iv) various Restricted Stock Agreements (the “Restricted Stock Agreements”) among other documents, which will continue to apply after the Termination Date, except that the Corporation agrees that it will not enforce any non-solicitation covenants contained in those Agreements which apply to customers or other business relations who are not employees of the Corporation or any non-compete covenants contained in those Agreements which prohibit Executive from accepting employment with a competitor, provided Executive can do so without divulging Confidential Information as defined below. Executive further agrees that as a condition of receiving the Severance Benefits, he is subject to the following restrictive covenants which will continue to apply after the Termination Date:

(a)Confidential Information. Except as expressly authorized by the Corporation, Executive shall not divulge, furnish, make accessible to anyone, lay claim to, attempt to lay claim to or use, or attempt to use, in any way any confidential or secret knowledge or information of the Corporation or its subsidiaries (collectively the “Intrepid Parties”) that Executive has acquired or become acquainted with or will acquire or become acquainted with during the period of Executive’s employment with the Corporation, whether developed by himself or by others, concerning any pricing information, trade secrets, confidential or business plans or material (whether or not patented or patentable) directly or indirectly useful in any aspect of the business of the Intrepid Parties, any customer or dealer lists of the Intrepid Parties, any confidential or secret development of the Intrepid Parties, or any other confidential information or secret aspects of the business of the Intrepid Parties, including but not limited to information regarding net backs, strategies and practices, loan agreements, rail rates, sales prices, contacts, international strategies,

staffing, wages, management styles, customer information, customer lists, marketing plans, intellectual property, internal analyses, analyses of competitive products, corporate financial information, information related to negotiations with third parties, information protected by the Intrepid Parties’ privileges (such as the attorney-client privilege), internal audit reports, contracts and sales proposals, training materials, employment and personnel records, performance evaluations, and other sensitive information (collectively, “Confidential Information”). Executive acknowledges that the Confidential Information constitutes a unique and valuable asset of the Intrepid Parties and represents a substantial investment of time and expense by the Intrepid Parties, and that any disclosure or other use of the Confidential Information other than for the sole benefit of the Intrepid Parties would be wrongful and would cause irreparable harm to the Intrepid Parties. Both during and after Executive’s employment with the Corporation, Executive shall refrain from any acts or omissions that would reduce the value of the Confidential Information. The foregoing obligations of confidentiality shall not apply to any knowledge or information (i) that is now published or that subsequently becomes generally publicly known in the form in which it was obtained from the Intrepid Parties, other than as a direct or indirect result of the breach of this Agreement by Executive; or (ii) is lawfully obtained by Executive from a third party, provided that Executive did not have actual knowledge that such third party was restricted or prohibited from disclosing such information to Executive. As of the Termination Date, or at such other time as the Corporation may request, Executive shall return all memoranda, notes, plans, records, computer tapes and software and other documents and data (and copies thereof) relating to Confidential Information that Executive may then possess or have under his control.

(b)Non-Solicitation. In his capacity as an employee, Executive has met with and will continue to meet with the Corporation’s current or prospective customers, suppliers, partners, licensees or other business relations, and, as a consequence of using or associating himself with the Corporation’s name, goodwill, and professional reputation, he has been placed in a position where he developed personal and professional relationships with the Corporation’s current and prospective customers. In addition, during the course and as a result of his employment, he has been or may be provided certain specialized training or know-how and Confidential Information. Executive acknowledges that this goodwill and reputation, as well as his knowledge of Confidential Information and specialized training and know-how, could be used unfairly in competition against the Corporation. Accordingly, in consideration of this Agreement he agrees that during the time period commencing on the date hereof and terminating on the date that is six months after the Effective Date, he shall not directly or indirectly through another entity or person induce or attempt to induce any employee of the Corporation to leave the employ of the Corporation. If a court determines this provision is too broad, Executive and the Corporation agree that the court should modify the provision to the extent (but not more than is) necessary to make the provision enforceable. Executive further agrees that he during the period in which the covenants in this Agreement are in effect, he will notify any prospective employer or other entity with which he enters into a business relationship of the covenants and obligations contained in this Agreement and shall give the employer or entity a copy of this section 6.

(c)Nondisclosure. Executive expressly covenants to treat all Confidential Information in a confidential manner, and never to disclose or use any Confidential Information unless expressly requested to do so by the Corporation’s General Counsel or Executive Vice President of Human Resources. This covenant includes within its scope, among other things, the substance of any and all communications covered by the attorney-client privilege and/or work-product protection, which privilege and/or protection belong to the Corporation, and not to Executive in his individual capacity; provided, however, that Confidential Information shall not be deemed to include information generally available to the public, or information provided or disseminated by the Corporation to or for the use of its stockholders. If Executive is required by law to disclose

any Confidential Information in a judicial, administrative or governmental proceeding pursuant to a valid subpoena or other applicable order, any such disclosure shall not be deemed to violate this covenant, provided that he (i) gives the Corporation at least ten days’ prior notice (unless less time is permitted by the applicable proceeding, in which case Executive shall notify the Corporation immediately) before making any disclosure(s), (ii) takes reasonable steps to preserve the confidentiality of Confidential Information, through a protective order or otherwise, and (iii) supports any effort by the Corporation to assert its position(s) in the proceeding. Executive further contained in this Agreement and shall give the employer or entity a copy of this section 6. Nothing in this Agreement prohibits Executive from reporting, in good faith, possible violations of law or regulation to any governmental agency or entity.

(d)Non-Disparagement. Each party will refrain from making statements that criticize, disparage or ridicule the other party (which, for purposes of this subparagraph, shall include their directors, agents, officers, employees, members, or assigns) or that are detrimental to the reputation or image of either party. Nothing in this subsection will prevent either party from responding fully and accurately to any question, inquiry or request for information when required by applicable law or legal process. This Section shall not apply to and shall not be deemed violated by (i) disclosures or statements required by law, including without limitation any information required to be reported in filings with the Securities and Exchange Commission; (ii) disclosures or statements by any Party to his or its legal advisor, accountant, tax advisor or spouse.

(e)Enforcement. In the event of any violation(s) by Executive of any of the covenants or other obligations referred to in this Section 6, the Corporation shall be entitled to recover any available legal remedies including but not limited to actual and punitive damages, attorneys’ and expert witness fees, costs, interest and expenses. Executive acknowledges that a violation of this Section 6 would constitute irreparable injury to Intrepid and that it would be difficult to measure damages resulting from a violation and agrees that notwithstanding Section 9(e), below, the Intrepid Parties may also seek to enjoin any such actual or threatened violation(s) by applying for a judicial injunction whenever and in whichever jurisdiction the Corporation has reason to believe such violation is occurring in addition to any remedies it might have without showing or proving any actual damages to Intrepid.

(f) Withholding and Repayment of Payments and Benefits Upon Breach. If Executive accepts the terms of this Agreement and receives benefits as provided herein, and within six months following the Effective Date, the Corporation determines that he engaged in conduct that violated any of the covenants contained in this Agreement, then the Corporation will provide written notice to Executive which expressly sets forth the basis for the Corporation’s determination in reasonable detail. After the Corporation provides this written notification to Executive, it may stop or withhold any payments which have not been made under this Agreement and Executive will repay any benefits or payments that have already been paid.

7.Consultation with Attorney; Voluntary Agreement

. Executive acknowledges that (a) the Corporation has advised him of his right to consult with an attorney of his own choosing prior to executing this Agreement, (b) Executive has carefully read and fully understands all of the provisions of this Agreement, and (c) Executive is entering into this Agreement, including the release provisions set forth in Section 4 hereof, which include but are not limited to a release of claims under the Americans With Disabilities Act, knowingly, freely and voluntarily in exchange for good and valuable consideration.

8.Revocation

. Executive acknowledges that he has been given twenty-one (21) calendar days to consider the terms of this Agreement, although he may sign it sooner. Executive agrees that any modifications, material or otherwise, made to this Agreement do not restart or affect in any manner the original twenty-one (21) calendar day consideration period. Executive will have seven (7) calendar days from the dates on which he signs this Agreement to revoke his consent to the terms of this Agreement. Such revocation must be in writing and sent via hand delivery or facsimile to the attention of the Corporation’s Executive Vice President of Human Resources and Risk Management, fax no: (303) 298-7502. Notice of such revocation must be received within the seven (7) calendar days referenced above. In the event of such revocation by Executive, this Agreement will not become effective and Executive will not have any rights to the Severance Benefits. Provided that Executive does not revoke this Agreement within such seven-day period, this Agreement will become effective on the eighth calendar day after the date on which Executive signs it.

9.Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be properly given if personally delivered, delivered by overnight courier of national reputation (e.g., FedEx or UPS) or sent by registered mail, return receipt requested, as follows:

To the Corporation: Intrepid Potash, Inc.

707 17^th Street, Suite 4200

Denver, CO 80202

Attention: Executive Vice President of Human Resources and Risk Management

To Executive: At the address currently on the Corporation’s records

10.Governing Law

. This Agreement will be governed by and construed and enforced according to the laws of the State of Colorado, without regard to conflicts of laws principles thereof. Except as to claims which must be arbitrated pursuant to Section 21 or pursuant to Section 6(e), herein, the Parties irrevocably submit to the exclusive jurisdiction of the state and federal courts sitting in the City and County of Denver and/or the United States District Court for the District of Colorado for the purposes of any suit, action or other proceeding arising out of or relating to this Agreement.

11.Taxes

. The Corporation may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Corporation is required to withhold pursuant to any applicable law, regulation or ruling. Notwithstanding any other provision of this Agreement, the Corporation shall not be obligated to guarantee any particular tax result for Executive with respect to any payment provided hereunder, and Executive shall be responsible for any taxes imposed on him with respect to any such payment.

12.Section 409A

. The intent of the Parties is that payments and benefits under this Agreement comply with Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code. The Corporation makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment.

13.Modifications

. This Agreement may not be changed, amended, or modified unless done so in a writing signed by the Corporation and Executive.

14.Successors and Assigns. This Agreement shall be binding in all respects upon, and shall inure to the benefit of, the heirs, successors and assigns of the Parties; provided, however, that Executive may not assign this Agreement or any of the rights or obligations referred to herein except by or with the prior written consent of the General Counsel or Executive Vice President of Human Resources.

15.Entire Agreement. This Agreement constitutes the entire agreement of the Parties regarding the subject matter hereof, and any and all prior discussions, negotiations, proposals, agreements and/or understandings, whether written or oral, are superseded and merged herein; provided, however, that the Indemnification Agreement, the Restricted Stock Agreements, the CIC Agreement (with the exception of 7b.ii and 7b.iii), and the Option Agreement shall remain in full force and effect, according to their terms and/or as preserved herein, subject to Section 6.

16.Amendment and Waiver. No provision of this Agreement may be amended or waived except by a writing signed by the Party against whom enforcement of the amendment or waiver is sought.

17.Severability. In the event that a court of competent jurisdiction holds invalid and/or unenforceable any material provision of this Agreement, such provision shall be deemed modified to the minimum extent necessary to render it valid and enforceable, and the remaining provisions of this Agreement shall be fully severable and given full force and effect.

18. Headings. The headings of sections and subsections herein are intended solely for the convenience of reference and shall not control the meaning or interpretation of any of the terms or provisions of this Agreement.

19.Execution. This Agreement may be executed in counterparts and/or by facsimile.

20.Subsequent Agreements. Each of the Parties agrees that, upon reasonable request, he or it shall execute, acknowledge and deliver any additional instruments or documents that may reasonably be required to carry out the intentions of this Agreement.

21.Dispute Resolution; Arbitration. Executive and the Corporation agree that in the event a dispute arises concerning or relating to Executive’s employment with the Corporation or regarding the terms of this Agreement, the parties first shall attempt in good faith to resolve such dispute through mediation. If a resolution through mediation is not reached, then such dispute shall be submitted to binding arbitration in accordance with the employment arbitration rules of Judicial Arbitration and Mediation Services (“JAMS”) by a single impartial arbitrator experienced in employment law selected as follows: Corporation and Executive will attempt in good faith to agree upon impartial arbitrator within thirty days of a request for arbitration. If the parties cannot agree, they shall request a panel of ten arbitrators from JAMS and select an arbitrator pursuant to the JAMS rules. The arbitration shall take place in Denver, Colorado, and both Executive and the Corporation agree to submit to the jurisdiction of the arbitrator selected in accordance with JAMS’ rules and procedures. The Federal Arbitration Act, as amended, 9 U.S.C. § 1 et seq., (“FAA”) and not state law, shall govern the arbitration of all claims, provided they are enforceable under the FAA. Other than as set forth herein, the arbitrator shall have no authority to add to, detract from, change, amend, or modify existing law. The arbitrator shall have the authority to order such discovery as is necessary for a fair resolution of the dispute. The arbitrator shall also have the authority to award any and all relief or remedies provided under the statute or other law pursuant to which an asserted prevailing claim or defense is raised, as if the matter were being decided in court. The arbitrator may award punitive damages, if and only to the extent allowed by Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991, as amended; the Age Discrimination in Employment Act of 1967, as amended; and the Americans with Disabilities Act of 1990, as amended; and the arbitrator shall be bound by any limitations on the amount of punitive or other damages imposed

by said statutes. The arbitrator has no other authority to award punitive damages. The arbitrator will apply applicable statutes of limitation, including contractual statutes of limitations, will honor claims of privilege recognized by law, and will take reasonable steps to protect confidential or proprietary information, including the use of protective orders. The prevailing party in any arbitration shall be entitled to receive reasonable attorneys’ fees, only to the extent such fees are provided by the statute or other law pursuant to which an asserted claim or defense is raised, as if the matter were being decided in court. The arbitrator’s decision and award shall be final and binding, as to all claims that were or could have been raised in the arbitration, and judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction thereof. Executive will pay the arbitrator’s fees and expenses up to $150 and the Corporation will pay any arbitrator fees and expenses in excess of such amount. The Corporation will pay all of the arbitrator’s fees and expenses if it commences the arbitration. The existence and subject matter of all arbitration proceedings, including without limitation, any settlements or awards there under, shall remain confidential and be subject to the Confidentiality provision of this Agreement. Executive and the Corporation agree that if any term or portion of this Arbitration provision is, for any reason, held to be invalid or unenforceable or to be contrary to public policy or any law, then the invalid or unenforceable term or portion shall be severed in its entirety from this Agreement and the remainder of this Arbitration provision shall not be affected by any such invalidity or unenforceability but shall remain in full force and effect, as if the invalid or unenforceable term or portion thereof had not existed within the Arbitration provision. Executive understands that the Corporation would suffer irreparable harm in the event of breached confidentiality, and such harm would not be fully compensable in monetary damages. If any party hereto files a judicial action asserting Claims subject to this Arbitration provision, and another party successfully stays such action and/or compels arbitration of such Claims, the party filing the initial judicial action shall pay the other party’s costs and expenses incurred in seeking such stay and/or compelling arbitration, including reasonable attorneys’ fees. THE CORPORATION AND EMPLOYEE FURTHER AGREE THAT THE DISPUTE RESOLUTION PROCEDURE AS PROVIDED IN THIS SECTION 21 SHALL BE THE EXCLUSIVE AND BINDING METHOD FOR RESOLVING ANY DISPUTES BETWEEN THE PARTIES, AND WILL BE USED INSTEAD OF ANY COURT ACTION, WHICH IS HEREBY EXPRESSLY WAIVED, EXCEPT FOR ANY REQUEST FOR TEMPORARY OR PRELIMINARY INJUNCTIVE RELIEF FOR A BREACH OF ANY OF THE COVENANTS CONTAINED IN SECTION 6.

This is a legal waiver and release of claims. By signing, you are acknowledging that you have read, understand, and agree to the terms stated above and that you have been given a reasonable period of time to consider this Agreement. Before signing, you should read carefully and consult with an attorney.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

	Intrepid Potash, Inc.
Dated: May 6, 2016	By: _/s/ James N. Whyte__________________
	Name: James N. Whyte
	Title: Executive Vice President of Human               Resources and Risk Management
	Kelvin G. Feist
Dated: May 6, 2016	/s/ Kelvin G. Feist

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 15 U.S.C. SECTION 7241, AS

ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert P. Jornayvaz III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Intrepid Potash, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: August 3, 2016	/s/ ROBERT P. JORNAYVAZ III
	Robert P. Jornayvaz III Executive Chairman of the Board, President, and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 15 U.S.C. SECTION 7241, AS

ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian D. Frantz, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Intrepid Potash, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: August 3, 2016	/s/ BRIAN D. FRANTZ
	Brian D. Frantz Senior Vice President and Chief Accounting Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF

PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the filing of the Quarterly Report on Form 10-Q for the three months ended June 30, 2016 (the "Report"), of Intrepid Potash, Inc. (the "Registrant") with the Securities and Exchange Commission and pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Robert P. Jornayvaz III, Executive Chairman of the Board, President, and Chief Executive Officer of the Registrant, certify that to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: August 3, 2016	/s/ ROBERT P. JORNAYVAZ III
	Robert P. Jornayvaz III Executive Chairman of the Board, President, and Chief Executive Officer

        This certification is furnished with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and will not, except to the extent required by such Act, be deemed filed by the Registrant for purposes of Section 18 of the Exchange Act. This certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.

EX-32.2

Exhibit 32.2

CERTIFICATION OF

PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the three months ended June 30, 2016 (the "Report"), of Intrepid Potash, Inc. (the "Registrant") with the Securities and Exchange Commission and pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Brian D. Frantz, Senior Vice President and Chief Accounting Officer of the Registrant, certify that to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: August 3, 2016	/s/ BRIAN D. FRANTZ
	Brian D. Frantz Senior Vice President and Chief Accounting Officer

        This certification is furnished with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and will not, except to the extent required by such Act, be deemed filed by the Registrant for purposes of Section 18 of the Exchange Act. This certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.

`

EX-95.1

Exhibit 95.1

The table below provides information for the quarter ended June 30, 2016, about certain mine safety and health citations issued to Intrepid or its subsidiaries by the Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) and about certain other regulatory matters.

Mine Name and MSHA Identification Number	Section 104 S&S Citations	Section 104(b) Orders	Section 104(d) Citations and Orders	Section 110(b)(2) Violations	Section 107(a) Orders	Total Dollar Value of MSHA Assessments Proposed		Total Number of Mining-Related Fatalities	Received Notice of Pattern of Violations Under Section 104(e)	Received Notice of Potential to Have Pattern under Section 104(e)	Legal Actions Pending as of the End of the Period	Legal Actions Initiated During the Period	Legal Actions Resolved During the Period
Intrepid Potash East (29-00170)	1	—	—	—	—		$527	—	—	—	1	1	2
Intrepid Potash West (29-00175)	1	—	—	—	—		$508	—	—	—	3	—	—
Intrepid Potash North (29-02028)	—	—	—	—	—		$427	—	—	—	1	—	1

Below are additional details about the information provided in the table above:

• General - In general, the number of citations and orders will vary depending on the size of the mine, the individual inspector assigned to the mine, and the specific mine characteristics. Citations and orders can be contested and appealed and, in that process, are often reduced in severity and amount and are sometimes vacated.

• MSHA Identification Numbers - MSHA assigns an identification number to each mine and may or may not assign separate identification numbers to related facilities. We provide the information in the table by MSHA identification number.

• Section 104 Significant and Substantial (“S&S”) Citations - These citations are issued for alleged violations of a mining safety standard or regulation where there exists a reasonable likelihood that the hazard contributed to or will result in an injury or illness of a reasonably serious nature.

• Section 104(b) Orders - These orders are issued for alleged failure to totally abate the subject matter of a Section 104(a) citation within the period specified in the citation.

• Section 104(d) Citations and Orders - These citations and orders are issued for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with a mining safety standard or regulation.

• Section 110(b)(2) Violations - These violations are issued, and penalties are assessed, for flagrant violations (i.e., a reckless or repeated failure to make reasonable efforts to eliminate a known violation that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury).

• Section 107(a) Orders - These orders are issued for an imminent danger to immediately remove miners.

• Total Dollar Value of MSHA Assessments Proposed - Proposed assessments issued during the period do not necessarily relate to the citations or orders issued by MSHA during that period or to the pending legal actions reported in the table.

• Notice of Pattern of Violations Under Section 104(e); Notice of Potential to Have Pattern under Section 104(e) - These notices are issued for a pattern of violation of mandatory health or safety standards or for the potential to have such a pattern.

• Legal Actions Pending, Initiated, and Resolved - The Federal Mine Safety and Health Review Commission (the “Commission”) is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. Each legal action is assigned a docket number by the Commission and may have as its subject matter one or more citations, orders, penalties, or complaints.

The table below summarizes the types of legal actions that were pending as of June 30, 2016:

Mine Name and MSHA Identification Number	Contests of Citations and Orders	Contests of Proposed Penalties	Complaints for Compensation	Complaints of Discharge, Discrimination or Interference	Applications for Temporary Relief	Appeals of Judges’ Decisions or Orders	Total
Intrepid Potash East (29-00170)	1	—	—	—	—	—	1
Intrepid Potash West (29-00175)	3	—	—	—	—	—	3
Intrepid Potash North (29-02028)	1	—	—	—	—	—	1

• Contests of Citations and Orders relate to challenges by operators, miners or miners' representatives to the issuance of a citation or order issued by MSHA.

• Contests of Proposed Penalties (Petitions for Assessment of Penalties) are administrative proceedings challenging a civil penalty that MSHA has proposed for the violation contained in a citation or order.

• Complaints for Compensation are filed by miners entitled to compensation when a mine is closed by certain withdrawal orders issued by MSHA for the purpose of determining the amount of compensation, if any, due miners idled by the orders.

• Complaints of Discharge, Discrimination or Interference involve a miner's allegation that he or she has suffered a wrong by the operator because he or she engaged in some type of activity protected under the Mine Act, such as making a safety complaint, or that he or she has suffered discrimination and lost his or her position.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 27, 2016	Feb. 22, 2016	Dec. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Intrepid Potash, Inc.
Entity Central Index Key	0001421461
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		76,597,669
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Restricted Stock
Document and Entity Information [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	760,303			459,663

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 30,984	$ 9,307
Short-term investments	16,599	50,523
Accounts receivable:
Trade, net	8,986	9,743
Other receivables, net	2,352	1,470
Inventory, net	109,570	106,531
Prepaid expenses and other current assets	3,070	18,141
Total current assets	171,561	195,715
Property, plant, equipment, and mineral properties, net	404,690	419,476
Long-term parts inventory, net	18,389	17,344
Long-term investments	0	3,799
Other assets, net	4,558	3,635
Total Assets	599,198	639,969
Accounts payable:
Trade	11,835	15,709
Related parties	82	45
Accrued liabilities	10,115	15,429
Accrued employee compensation and benefits	7,895	7,409
Other current liabilities	1,321	547
Total current liabilities	31,248	39,139
Long-term debt, net	147,840	149,485
Asset retirement obligation	23,832	22,951
Other non-current liabilities	0	1,868
Total Liabilities	202,920	213,443
Common stock, $0.001 par value; 400,000,000 shares authorized; 75,838,782 and 75,702,700 shares outstanding at June 30,2016, and December 31, 2015, respectively	76	76
Additional paid-in capital	581,755	580,227
Accumulated other comprehensive loss	(3)	(52)
Retained earnings	(185,550)	(153,725)
Total Stockholders' Equity	396,278	426,526
Total Liabilities and Stockholders' Equity	$ 599,198	$ 639,969

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	100,000,000
Common stock, shares outstanding	75,838,782	75,536,741

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Sales	$ 51,840	$ 73,651	$ 125,117	$ 190,672
Less:
Freight costs	8,931	6,898	19,263	17,810
Warehousing and handling costs	2,538	3,437	5,202	7,184
Cost of goods sold	41,850	55,435	101,627	138,717
Lower-of-cost-or-market inventory adjustments	2,930	5,276	11,937	5,636
Costs associated with abnormal production and other	1,057	0	1,707	0
Gross (Deficit) Margin	(5,466)	2,605	(14,619)	21,325
Selling and administrative	4,536	8,424	11,106	15,892
Accretion of asset retirement obligation	442	424	884	848
Restructuring expense	1,914		2,314	0
Other operating income	(1,801)	(2,312)	(1,905)	(2,246)
Operating (Loss) Income	(10,557)	(3,931)	(27,018)	6,831
Other Income (Expense)
Interest expense, net	(3,000)	(1,602)	(5,229)	(3,246)
Interest income	101	200	224	355
Other income	59	46	201	373
(Loss) Income Before Income Taxes	(13,397)	(5,287)	(31,822)	4,313
Income Tax (Expense) Benefit	(1)	350	(3)	(2,721)
Net (Loss) Income	$ (13,398)	$ (4,937)	$ (31,825)	$ 1,592
Weighted Average Shares Outstanding:
Basic (in shares)	75,838,782		75,797,658	75,636,343
Diluted (in shares)	75,838,782	75,683,075	75,797,658	75,731,910
(Loss) Earnings Per Share:
Basic (in dollars per share)	$ (0.18)		$ (0.42)	$ 0.02
Diluted (in dollars per share)	$ (0.18)		$ (0.42)	$ 0.02

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ 13,398	$ 4,937	$ 31,825	$ (1,592)
Unrealized gain on investments available for sale, net of tax	19	(35)	49	(25)
Other Comprehensive Income (Loss)	19	(35)	49	(25)
Comprehensive (Loss) Income	$ (13,379)	$ (4,972)	$ (31,776)	$ 1,567

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Retained Earnings
Balance (in shares) at Dec. 31, 2015		75,702,700
Balance at Dec. 31, 2015	$ 426,526	$ 76	$ 580,227	$ (52)	$ (153,725)
Increase (Decrease) in Stockholders' Equity
Unrealized gain on investments available for sale, net of tax	49			49
Net (Loss) Income	(31,825)				(31,825)
Stock-based compensation	1,700		1,700
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting (in shares)		136,082
Vesting of restricted common stock, net of restricted common stock used to fund employee income tax withholding due upon vesting	(172)	$ 0	(172)
Balance (in shares) at Jun. 30, 2016		75,838,782
Balance at Jun. 30, 2016	$ 396,278	$ 76	$ 581,755	$ (3)	$ (185,550)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of net income to net cash provided by operating activities:
Net (Loss) income	$ (31,825)	$ 1,592
Items not affecting cash:
Deferred income taxes	0	2,754
Depreciation, depletion and accretion	24,209	40,673
Amortization of deferred financing costs	1,666	186
Stock-based compensation	1,700	2,595
Lower-of-cost-or-market inventory adjustments	11,937	5,636
Allowance for parts inventory obsolescence	618	0
Other	435	862
Changes in operating assets and liabilities:
Trade accounts receivable, net	757	12,919
Other receivables, net	(726)	(3,671)
Refundable income taxes	91	(174)
Inventory, net	(16,638)	(10,903)
Prepaid expenses and other current assets	14,677	1,063
Accounts payable, accrued liabilities, and accrued employee compensation and benefits	(5,401)	244
Other liabilities	(1,097)	1,418
Net cash (used in) provided by operating activities	403	55,194
Cash Flows from Investing Activities:
Additions to property, plant, equipment, and mineral properties	(11,775)	(18,989)
Purchases of investments	(1,500)	(72,227)
Proceeds from sale of investments	37,375	9,748
Net cash provided by (used in) investing activities	24,100	(81,468)
Cash Flows from Financing Activities:
Debt issuance costs	(2,654)	0
Employee tax withholding paid for restricted stock upon vesting	(172)	(1,030)
Net cash used in financing activities	(2,826)	(1,030)
Net Change in Cash and Cash Equivalents	21,677	(27,304)
Cash and Cash Equivalents, beginning of period	9,307	67,589
Cash and Cash Equivalents, end of period	30,984	40,285
Net cash paid (refunded) during the period for:
Interest	3,221	3,124
Income taxes	(88)	41
Accrued purchases for property, plant, equipment, and mineral properties	$ 544	$ 5,557

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Statement of Cash Flows [Abstract]
Interest Paid, Capitalized	$ 0.1	$ 0.0

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COMPANY BACKGROUND

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

COMPANY BACKGROUND

COMPANY BACKGROUND

We are the only producer of muriate of potash ("potassium chloride" or "potash") in the United States and one of two producers of langbeinite ("sulfate of potash magnesia"), which we market and sell as Trio^®. We sell potash and Trio^® primarily into the agricultural market as a fertilizer. We also sell these products into the animal feed market as a nutritional supplement and sell potash into the industrial market as a component in drilling and fracturing fluids for oil and gas wells and other industrial inputs. Our revenues are generated exclusively from the sale of potash and Trio^®. We also produce salt and magnesium chloride from our potash mining processes, the sales of which are accounted for as by-product credits to our cost of sales. These by-product credits represented approximately 2% to 3% of total cost of goods sold in each of the last three years.

During the first half of 2016, we produced potash from three solution mining facilities and two conventional underground mining facilities. Our solution mining production comes from our HB solar solution mine near Carlsbad, New Mexico, a solar solution mine near Moab, Utah, and a solar brine recovery mine in Wendover, Utah. Our conventional production of potash came from our underground West and East mines near Carlsbad, New Mexico. We also operate the North compaction facility near Carlsbad, New Mexico, which services the West and HB mines. We produce Trio^® from our underground conventional East mine.

In April 2016, we converted our East facility from a mixed-ore facility that produced both potash and Trio^® to a Trio^®-only facility. We expect our commissioning activities related to that transition to continue into the second half of 2016. Subsequent to the transition, we no longer produce potash at our East facility.

In May 2016, we initiated a plan to idle mining operations at our West facility and transition it into a care-and- maintenance mode due to the decline in potash prices. As we completed the transition in July 2016, all of our potash is now produced from our three solution mining facilities.

Until the second quarter of 2016, we had one reporting segment; the extraction, production, and sale of potassium-related products. As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio^®-only and the idling of our West facility, the chief operating decision maker separately evaluates our potash and Trio^® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio^®.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation—Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included.

The lenders under our credit facility have agreed to waive until no later than September 30, 2016, the requirements under our credit facility that we comply with certain financial covenants and that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. In addition, the holders of our senior notes have agreed to waive until September 30, 2016, the requirement under the terms of the senior notes that we comply with certain financial covenants for the first and second quarters of 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes and any amounts outstanding under the credit facility. If the lenders were to make such a demand for repayment, we would be unable to pay the obligations as we do not have existing facilities or sufficient cash on hand to satisfy these obligations. With this material uncertainty surrounding compliance with our debt covenants, declining revenues, lower-of-cost-or-market inventory adjustments, and negative cash flows from operations, there is substantial doubt about our ability to continue as a going concern. While we will continue to work with our lenders, there can be no assurance that we will be successful. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Recently Adopted Accounting Standard—Certain prior period amounts have been reclassified in order to conform to the current period presentation. In accordance with the adoption of a new accounting standard, we have reclassified $515,000 of deferred financing costs associated with our outstanding debt from "Other current assets" and "Other assets" to "Long-term debt, net" as of December 31, 2015 to conform to the June 30, 2016 presentation.

Use of Estimates—The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions.

Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, valuation of investments, the valuation of receivables, valuation of our deferred tax assets, and estimated blended income tax rates utilized in the current and deferred income tax calculations. There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures. Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs. The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items, including depletion; the net carrying value of our mineral properties; the useful lives of related property, plant, and equipment; depreciation expense; and estimates associated with recoverability of long-lived assets and asset retirement obligations. Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing state income tax rates and the blend of state tax rates.

Revenue Recognition—Revenue is recognized when evidence of an arrangement exists; risks and rewards of ownership have been transferred to customers, which is generally when title passes; the selling price is fixed and determinable; and collection is reasonably assured. Title passes at the designated shipping point for the majority of sales, but, in a few cases, title passes at the delivery destination. The shipping point may be the plant, a distribution warehouse, a customer warehouse, or a port. Title passes for some international shipments upon payment by the purchaser; however, revenue is not recognized for these transactions until shipment because the risks and rewards of ownership have not transferred pursuant to a contractual arrangement. Prices are generally set at the time of, or prior to, shipment. In cases where the final price is determined after shipment and agreed to with our customer, revenue is recognized when the final sales price is fixed and determinable and the other revenue recognition criteria have been met.

Sales are reported on a gross basis. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. When a sale occurs on a delivered basis, we incur and, in turn, bill the customer and record as gross revenue the product sales value, freight, packaging, and certain other distribution costs. Many customers, however, arrange and pay for these costs directly and, in these situations, only the product sales are included in gross revenues.

Inventory—Inventory consists of product and by-product stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and by-product inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits.

We evaluate our production levels and costs to determine if any should be deemed abnormal and therefore excluded from inventory costs and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal.

Property, Plant, Equipment, Mineral Properties, and Development Costs—Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress.

Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio^®, as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position.

(Loss) Earnings per Share—Basic net income or loss per common share of stock is calculated by dividing net income or loss available to common stockholders by the weighted average basic common shares outstanding for the respective period.

Diluted net income or loss per common share of stock is calculated by dividing net income or loss by the weighted average diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings or loss per share calculation consist of awards of non-vested restricted shares of common stock, non-vested performance units, and non-qualified stock options. The dilutive effect of stock based compensation arrangements are computed using the treasury stock method. Following the lapse of the vesting period of restricted shares of common stock, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Potentially dilutive securities, including non-vested restricted common stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury stock method is used to measure the dilutive impact of non-vested restricted common stock, stock options outstanding, and performance units. The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted average shares outstanding computations:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Anti-dilutive shares of non-vested restricted common stock	447,661	474,481	407,186	161,675
Anti-dilutive shares of stock options outstanding	218,886	319,563	227,370	320,241
Anti-dilutive shares of non-vested performance units	126,050	194,374	127,651	131,621

The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net (loss) income	$	(13,398	)	$	(4,937	)	$	(31,825	)	$	1,592
Basic weighted average common shares outstanding	75,839			75,683			75,798			75,636
Add: Dilutive effect of non-vested restricted common stock	—			—			—			90
Add: Dilutive effect of performance units	—			—			—			6
Diluted weighted average common shares outstanding	75,839			75,683			75,798			75,732
(Loss) earnings per share:
Basic	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02
Diluted	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02

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CASH, CASH EQUIVALENTS, AND INVESTMENTS

6 Months Ended

Jun. 30, 2016

Cash, Cash Equivalents, and Investments Disclosure [Abstract]

CASH, CASH EQUIVALENTS, AND INVESTMENTS

CASH, CASH EQUIVALENTS, AND INVESTMENTS

The following table summarizes the fair value of our cash and investments held in our portfolio, recorded as cash and cash equivalents or short-term or long-term investments as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016		December 31, 2015
Cash	$	8,691	$	9,056
Commercial paper and money market accounts	22,293		251
Total cash and cash equivalents	$	30,984	$	9,307
Corporate bonds	$	15,592	$	49,518
Certificates of deposit and time deposits	1,007		1,005
Total short-term investments	$	16,599	$	50,523
Corporate bonds	$	—	$	3,799
Total long-term investments	$	—	$	3,799
Total cash, cash equivalents, and investments	$	47,583	$	63,629

The following tables summarize the cost basis, unrealized gains and losses, and fair value of our available-for-sale investments held in our portfolio as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Corporate bonds	$	15,596	$	2	$	(5	)	$	15,593
Certificates of deposit and time deposits	1,007		—		—			1,007
Total available-for-sale investments	$	16,603	$	2	$	(5	)	$	16,600

	December 31, 2015
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Corporate bonds	$	53,403	$	6	$	(92	)	$	53,317
Certificates of deposit and time deposits	1,005		—		—			1,005
Total available-for-sale investments	$	54,408	$	6	$	(92	)	$	54,322

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INVENTORY AND LONG-TERM PARTS INVENTORY

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

INVENTORY AND LONG-TERM PARTS INVENTORY

INVENTORY AND LONG-TERM PARTS INVENTORY

The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value, as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016		December 31, 2015
Finished goods product inventory	$	64,195	$	65,200
In-process mineral inventory	24,085		19,769
Total product inventory	88,280		84,969
Current parts inventory, net	21,290		21,562
Total current inventory, net	109,570		106,531
Long-term parts inventory, net	18,389		17,344
Total inventory, net	$	127,959	$	123,875

Parts inventories are shown net of any required allowances. At June 30, 2016, and 2015, allowances for parts inventory obsolescence were $3.3 million and $0.5 million, respectively.

During the six months ended June 30, 2016, and 2015, we recorded charges of approximately $11.9 million and $5.6 million, respectively, as a result of routine assessments of the lower of weighted average cost or estimated net realizable value of our finished goods product inventory.

During the first half of 2016, we suspended potash production at our East facility for a total of seven days as we performed a langbeinite-only testing run and converted the East facility to a Trio^®-only facility. As a result of the suspension of production, we determined that approximately $1.1 million and $1.7 million of production costs at our East facility would have been allocated to additional tons produced, assuming we had been operating at normal production rates for the three- and six-month periods ending June 30, 2016, respectively. Accordingly, these costs were excluded from our inventory values and instead expensed in the three- and six-month periods in 2016 as period production costs. We compare actual production relative to what we estimated could have been produced if we had not incurred the production suspensions and lower operating rates in order to determine the abnormal cost adjustment.

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PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant, Equipment, and Mineral Properties

"Property, plant, equipment, and mineral properties, net" were comprised of the following (in thousands):

	June 30, 2016			December 31, 2015
Buildings and plant	$	83,488		$	81,208
Machinery and equipment	221,430			209,920
Vehicles	4,875			4,747
Office equipment and improvements	12,177			12,001
Ponds and land improvements	57,731			55,951
Total depreciable assets	379,701			363,827
Accumulated depreciation	(101,754		)	(80,707		)
Total depreciable assets, net	$	277,947		$	283,120
Mineral properties and development costs	$	140,250		$	139,751
Accumulated depletion	(19,235		)	(17,254		)
Total depletable assets, net	$	121,015		$	122,497
Land	$	719		$	719
Construction in progress	$	5,009		$	13,140
Total property, plant, equipment, and mineral properties, net	$	404,690		$	419,476

Depreciation, Depletion, and Amortization [Policy Text Block]

We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Depreciation	$	8,862	$	18,485	$	21,344	$	37,364
Depletion	537		488		1,981		2,461
Accretion	442		424		884		848
Total incurred	$	9,841	$	19,397	$	24,209	$	40,673

PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES

PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES

"Property, plant, equipment, and mineral properties, net" were comprised of the following (in thousands):

	June 30, 2016			December 31, 2015
Buildings and plant	$	83,488		$	81,208
Machinery and equipment	221,430			209,920
Vehicles	4,875			4,747
Office equipment and improvements	12,177			12,001
Ponds and land improvements	57,731			55,951
Total depreciable assets	379,701			363,827
Accumulated depreciation	(101,754		)	(80,707		)
Total depreciable assets, net	$	277,947		$	283,120
Mineral properties and development costs	$	140,250		$	139,751
Accumulated depletion	(19,235		)	(17,254		)
Total depletable assets, net	$	121,015		$	122,497
Land	$	719		$	719
Construction in progress	$	5,009		$	13,140
Total property, plant, equipment, and mineral properties, net	$	404,690		$	419,476

We incurred the following expenses for depreciation, depletion, and accretion, including expenses capitalized into inventory, for the following periods (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Depreciation	$	8,862	$	18,485	$	21,344	$	37,364
Depletion	537		488		1,981		2,461
Accretion	442		424		884		848
Total incurred	$	9,841	$	19,397	$	24,209	$	40,673

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DEBT

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

DEBT

DEBT

Unsecured Credit Facility—We have an unsecured credit facility, led by U.S. Bank, as administrative agent, and Wells Fargo Bank, as syndication agent. Throughout the first seven months of 2016, we entered into a series of amendments that ultimately reduced the amount available to us under the credit facility to a maximum of $1 million, which amount may be used only for letters of credit. Any availability of the credit facility is subject to our compliance with financial covenants that provide that our leverage ratio may not exceed 3.5 to 1, and our fixed charge coverage ratio may not be below 1.3 to 1. We were not in compliance with these covenants as of March 31, 2016, and June 30, 2016; however, the lenders under the credit facility have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016, and June 30, 2016. Further, the lenders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the credit facility until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after the waiver expires, or our failure to comply with similar covenants under the terms of our senior notes after September 30, 2016, will result in an event of default that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility. In addition, the amount available under the credit facility would be reduced to zero. The maturity date for the credit facility is the earliest of (1) September 30, 2016, (2) any date on which the aggregate commitment under the credit facility is reduced to zero, and (3) the effective date for a new credit facility.

The credit facility also has a covenant that requires us to provide to the lenders audited annual financial statements within 90 days of the end of each year. The audit report must not contain any going concern modification. The audit report accompanying our financial statements for the year ended December 31, 2015, contains a going concern modification, and therefore does not satisfy the credit facility covenant. The lenders under the facility agreed to waive until September 30, 2016, the requirement that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. Further, the lenders agreed that the existence of audited annual financial statements for the year ended December 31, 2015, with a going concern modification will not constitute a default or event of default under the facility until September 30, 2016. Our continued failure to comply with this covenant after September 30, 2016, will result in an event of default that, if not cured or waived could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes discussed below and any amounts outstanding under the credit facility.

    The financial covenants under the credit facility are calculated as follows:

• Our maximum leverage ratio (calculated as the ratio of funded indebtedness to adjusted EBITDA for the prior four fiscal quarters) is 3.5 to 1, where funded indebtedness is calculated as total funded indebtedness minus cash and cash equivalent investments on hand up to a maximum of $75 million. Our leverage ratio at June 30, 2016, was 10.3 to 1.

• Our minimum fixed charge coverage ratio (calculated as the ratio of adjusted EBITDA for the prior four fiscal quarters, minus maintenance capital expenditures and cash paid for income taxes, to interest expense plus scheduled principal amortization of long-term funded indebtedness) is 1.3 to 1, where annual maintenance capital expenditures is set at $20 million. Our fixed charge coverage ratio at June 30, 2016, was (1.4) to 1.

These ratios and other restrictive covenants under the credit facility could limit our ability to engage in activities that we believe are in our long-term best interests.

The facility is unsecured and is guaranteed by our material subsidiaries. As of June 30, 2016, we had a $0.5 million letter of credit outstanding under the facility.

Unsecured Senior Notes—In April 2013, we issued $150 million aggregate principal amount of unsecured senior notes (the "Notes") pursuant to a note purchase agreement entered into in August 2012. The Notes consist of the following series:

• $60 million of 3.23% Senior Notes, Series A, due April 16, 2020

• $45 million of 4.13% Senior Notes, Series B, due April 14, 2023

• $45 million of 4.28% Senior Notes, Series C, due April 16, 2025

The Notes are senior unsecured obligations and rank equally in right of payment with any other unsubordinated unsecured indebtedness of ours. The Notes are subject to the same leverage ratio and fixed charge coverage ratio as apply under the credit facility, as described above. In January 2016, we amended the note purchase agreement to provide that the interest rate for the senior notes will be increased by 0.25% during any time that our leverage ratio exceeds 2.25 to 1. As we did not meet our leverage ratio and fixed charge ratio beginning as of March 31, 2016, in accordance with the terms of the note purchase agreement, the above interest rates increased by 2% beginning April 1, 2016 through July 28, 2016. As part of an amendment and waiver extension in July 2016, the above interest rates increased 3.5% above the rates indicated above beginning July 29, 2016, and will remain at that level as long as we are not meeting these ratios. As described above, these ratios and other restrictive covenants under the Notes could limit our ability to engage in activities that we believe are in our long-term best interests.

Our outstanding long-term debt, net, is as follows as of June 30, 2016 and December 31, 2015 (in thousands):

	June 30, 2016			December 31, 2015
Unsecured Senior Notes	$	150,000		$	150,000
Less deferred financing costs	(2,160		)	(515		)
Long-term debt, net	$	147,840		$	149,485

We were not in compliance with the financial covenants under the Notes as of March 31, 2016, and June 30, 2016; however, the noteholders have agreed to waive until September 30, 2016, the requirement that we comply with these covenants for the quarters ended March 31, 2016, and June 30, 2016. Further, the noteholders agreed that noncompliance with these covenants for the quarters ended March 31, 2016, and June 30, 2016, will not constitute a default or event of default under the Notes until September 30, 2016. If current market conditions continue, we anticipate that our adjusted EBITDA will not be sufficient for us to return to compliance with these covenants through 2016. We are working with the noteholders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of our credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of the Notes and any amounts outstanding under the credit facility.

The obligations under the Notes are unconditionally guaranteed by our material subsidiaries.

Interest is paid semiannually on April 16 and October 16 of each year. Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $3.1 million and $1.7 million for the three months ended June 30, 2016, and 2015, respectively. Included in the gross interest expense for the three months ended June 30, 2016, is the expensing of deferred financing costs of $0.8 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.1 million and an immaterial amount of interest during the three months ended June 30, 2016, and 2015, respectively. For the six months ended June 30, 2016, and 2015, we incurred gross interest expense of $5.4 million and $3.3 million, respectively. Included in the gross interest expense for the six months ended June 30, 2016, is the expensing of deferred financing costs of $1.5 million related to the decrease in our unsecured credit facility as described above. We capitalized $0.2 million and an immaterial amount of interest during the six months ended June 30, 2016, and 2015, respectively.

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ASSET RETIREMENT OBLIGATION

6 Months Ended

Jun. 30, 2016

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION

We recognize an estimated liability for future costs associated with the abandonment and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired.

Our asset retirement obligation is based on the estimated cost to abandon and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are revisions to estimated costs. The credit adjusted risk-free rates used to discount our abandonment liabilities range from 6.9% to 8.5%. Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated abandonment costs or economic lives, or if federal or state regulators enact new requirements regarding the abandonment or reclamation of mines.

Following is a table of the changes to our asset retirement obligation for the following periods (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Asset retirement obligation, at beginning of period	$	23,393		$	22,461		$	22,951		$	22,037
Liabilities settled	(3		)	(16		)	(3		)	(16		)
Liabilities incurred	—			—			—			—
Changes in estimated obligations	—			—			—			—
Accretion of discount	442			424			884			848
Total asset retirement obligation, at end of period	$	23,832		$	22,869		$	23,832		$	22,869

The undiscounted amount of asset retirement obligation was $58.4 million as of June 30, 2016.

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COMPENSATION PLANS

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

COMPENSATION PLANS

COMPENSATION PLANS

Cash Bonus Plans—During 2015, we had cash bonus plans that allow participants to receive varying percentages of their aggregate base salary. Any awards under the cash bonus plans are based on a variety of elements related to our performance in certain production, operational, financial, and other areas, as well as the participants' individual performance. We accrue cash bonus expense related to the current year's performance. In December 2015, we suspended our cash bonus programs for most employees for 2015 and have not implemented a cash bonus plan for 2016 as part of our cost savings initiatives.

Equity Incentive Compensation Plan—Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Equity Incentive Plan, as Amended and Restated (the "Plan"). We have issued common stock, restricted shares of common stock, performance units, and non-qualified stock option awards under the Plan. As of June 30, 2016, the following awards were outstanding under the Plan: 760,303 shares of non-vested restricted shares of common stock; non-vested performance units representing 252,100 shares of common stock; and options to purchase 218,857 shares of common stock. As of June 30, 2016, approximately 6.4 million shares of common stock remained available for issuance under the Plan.

Common Stock—In the second quarter of 2015, the Compensation Committee of the Board of Directors (the "Compensation Committee") granted shares of common stock under the Plan to our non-employee directors as compensation for service for the period ending on the date of our annual stockholders' meeting for the following year. These shares of common stock were granted without restrictions and vested immediately.

Non-vested Restricted Shares of Common Stock—The Compensation Committee has granted restricted shares of common stock under the Plan to executive officers, other key employees, non-employee directors and consultants. The awards contain service conditions associated with continued employment or service and provide voting and regular dividend rights. Upon vesting, the restrictions on the restricted shares of common stock lapse and the shares are considered issued and outstanding.

In the first quarter of 2015, the Compensation Committee granted restricted shares of common stock under the Plan to our executive management team and other selected employees as part of an annual equity award program. These awards vest ratably over three years. From time to time, the Compensation Committee grants restricted shares of common stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives. These restricted shares of common stock generally vest over one- to four-year periods. In the second quarter of 2016, the Compensation Committee granted 562,010 restricted shares of common stock under the Plan to members of our Board of Directors, including one employee director. These restricted shares of common stock vest one year after grant.

In measuring compensation expense associated with the grant of non-vested restricted shares of common stock, we use the fair value of the award, determined as the closing stock price for our common stock on the grant date. Compensation expense is recorded monthly over the vesting period of the award. Total compensation expense related to the non-vested restricted shares of common stock awards was $0.5 million and $0.8 million for the three months ended June 30, 2016, and 2015, respectively. Total compensation expense was $1.2 million and $1.7 million for the six months ended June 30, 2016 and 2015, respectively. These amounts are net of estimated forfeiture adjustments. As of June 30, 2016, there was $2.2 million of total remaining unrecognized compensation expense related to non-vested restricted shares of common stock that will be expensed through 2018.

A summary of activity relating to our non-vested restricted shares of common stock for the six months ended June 30, 2016, is presented below.

			Weighted Average Grant-Date Fair Value
	Shares
Non-vested restricted shares of common stock, beginning of period	459,663		$	14.93
Granted	562,010		$	1.28
Vested	(211,861	)	$	15.53
Forfeited	(49,509	)	$	14.46
Non-vested restricted shares of common stock, end of period	760,303		$	11.09

Performance Units—In 2015, the Compensation Committee granted at-risk performance units under the Plan to a member of our executive team as part of their annual compensation package. The performance units vest in February 2018, and payout, if any, is based on market-based conditions relating to one-, two- and three-year performance periods beginning on the grant date. No shares were earned under the first one-year performance period. A total of 252,100 shares of common stock are available for future payout under these performance units, subject to continued employment through the vesting date.

Non-qualified Stock Options—From 2009 to 2011, the Compensation Committee issued non-qualified stock options under the Plan in the first quarter of each year to our executive management and other selected employees as part of our annual award program. All outstanding stock options are fully vested.

Realized tax benefits from tax deductions for exercised options in excess of the deferred tax asset attributable to stock compensation for these options are recorded as "excess tax benefits" when the tax deductions occur.

A summary of our stock option activity for the six months ended June 30, 2016, is as follows:

	Shares	Weighted Average Exercise Price	Aggregate Intrinsic Value1	Weighted Average Remaining Contractual Life (in years)
Outstanding non-qualified stock
options, end of period	218,857	$25.74	$—	3.1
Vested or expected to vest, end
of period	218,857	$25.74	$—	3.1
Exercisable non-qualified
stock options, end of period	218,857	$25.74	$—	3.1

¹  The intrinsic value of a stock option is the amount by which the market value exceeds the exercise price as of the end of the period presented.

Summary of Non-Vested Restricted Common Stock Activity

A summary of activity relating to our non-vested restricted shares of common stock for the six months ended June 30, 2016, is presented below.

			Weighted Average Grant-Date Fair Value
	Shares
Non-vested restricted shares of common stock, beginning of period	459,663		$	14.93
Granted	562,010		$	1.28
Vested	(211,861	)	$	15.53
Forfeited	(49,509	)	$	14.46
Non-vested restricted shares of common stock, end of period	760,303		$	11.09

Summary of Stock Option Activity

A summary of our stock option activity for the six months ended June 30, 2016, is as follows:

	Shares	Weighted Average Exercise Price	Aggregate Intrinsic Value1	Weighted Average Remaining Contractual Life (in years)
Outstanding non-qualified stock
options, end of period	218,857	$25.74	$—	3.1
Vested or expected to vest, end
of period	218,857	$25.74	$—	3.1
Exercisable non-qualified
stock options, end of period	218,857	$25.74	$—	3.1

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INCOME TAXES

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Our effective tax rate is impacted primarily by the amount of taxable income associated with each jurisdiction in which our income is subject to income tax, permanent differences between the financial statement carrying amounts and tax bases of assets and liabilities.

A summary of the provision for income taxes is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Current portion of income tax expense (benefit)	$	1		$	(148	)	$	3		$	(34	)
Deferred portion of income tax (benefit) expense	—			(202		)	—			2,755
Total income tax expense (benefit)	$	1		$	(350	)	$	3		$	2,721
Effective tax rate	—		%	6.6		%	—		%	63.1		%

During the three- and six-month periods ended June 30, 2016, our effective tax rate differed from the statutory rate primarily as a result of the impact of recording a valuation allowance to offset the amount of additional deferred tax asset generated during the period. For the three- and six-month periods ended June 30, 2015, our effective tax rate differed from the statutory rate primarily as a result of the benefit from estimated depletion deductions that exceed the tax basis in the mineral reserves.

The blended state tax rate applied to the deferred tax calculation is subject to change due to changes in state laws and changes in the mix of our business and the states in which we have a taxable relationship. This creates fluctuations in the value of our net deferred tax asset.

As of June 30, 2016, we do not believe it is more likely than not that we will fully realize the benefit of the deferred tax assets. As such, we increased the valuation allowance related to our deferred tax assets by $13.8 million for the six months ended June 30, 2016. Our deferred tax asset, net of the valuation allowance, at June 30, 2016, and December 31, 2015, is zero.

A summary of our valuation allowance activity is as follows (in thousands):

	Six Months Ended June 30,
	2016		2015
Valuation allowance, beginning of period	$	300,601	$	268
Additions	13,847		—
Reversals	—		—
Valuation allowance, end of period	$	314,448	$	268

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Reclamation Deposits and Surety Bonds—As of June 30, 2016, we had $19.5 million of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of our various facilities. Of this total requirement, as of June 30, 2016, $2.0 million consisted of long-term restricted cash deposits reflected in "Other assets, net" on the condensed consolidated balance sheets, and $17.5 million was secured by surety bonds issued by an insurer. The surety bonds are held in place by an annual fee paid to the issuer.

We may be required to post additional security to fund future reclamation obligations as reclamation plans are updated or as governmental entities change requirements.

Legal—In February 2015, Mosaic Potash Carlsbad Inc. ("Mosaic") filed a complaint and application for preliminary injunction and permanent injunction against Steve Gamble and us in the Fifth Judicial District Court for County of Eddy in the State of New Mexico. Mr. Gamble is a current Intrepid employee and former Mosaic employee. The complaint alleges against us violations of the Uniform Trade Secrets Act and tortious interference with contract relating to alleged misappropriation of Mosaic’s trade secrets. Mosaic seeks monetary relief of an unspecified amount, including damages for actual loss and unjust enrichment, exemplary damages, attorneys' fees, and injunctive relief and has alleged that it has spent hundreds of millions of dollars to research and develop its alleged trade secrets. In August 2015, the court denied Mosaic's application for preliminary injunction. The lawsuit is currently progressing through discovery. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any.

In July 2016, Mosaic filed a complaint against Steve Gamble and us in US District Court for the District of New Mexico.  The complaint alleges violations of the Computer Fraud and Abuse Act, conversion, and civil conspiracy relating to alleged misappropriation of Mosaic's confidential information.  Mosaic seeks injunctive relief and compensatory and punitive damages of an unspecified amount. We are vigorously defending against the lawsuit. Because this matter is at an early stage, we are unable to reasonably estimate the potential amount of loss, if any.

We are subject to other claims and legal actions in the ordinary course of business. While there are uncertainties in predicting the outcome of any claim or legal action, we believe that the ultimate resolution of these other claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows.

Future Operating Lease Commitments—We have operating leases for land, mining and other operating equipment, offices, and railcars, with original terms ranging up to 20 years. In May 2015, we exercised an option to terminate our existing corporate office lease prior to its original expiration date. Under the provisions of the lease agreement, we incurred a termination penalty of $1.1 million, which was included in selling and administrative expense in the second quarter of 2015. In December 2015, we paid $0.5 million of this termination penalty in connection with an amendment reducing the leased square footage and extending the expiration date to May 2017. We expect to pay the remaining $0.6 million in March 2017. Our monthly lease commitment was $83,331 from January 2016 through May 2016, and increased to $85,626 for the period June 2016 through May 2017.

Rental and lease expenses are shown below for the indicated periods (in thousands):

2016
For the three months ended June 30, 2016	$	1,530
For the six months ended June 30, 2016	$	3,078
2015
For the three months ended June 30, 2015	$	1,977
For the six months ended June 30, 2015	$	3,721

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FAIR VALUE

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE MEASUREMENTS

We applied the provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification™ ("ASC") Topic 820, Fair Value Measurements and Disclosures, for all financial assets and liabilities measured at fair value on a recurring basis. The topic establishes a framework for measuring fair value and requires disclosures about fair value measurements. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The topic establishes market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The topic also establishes a hierarchy for grouping these assets and liabilities based on the significance level of the following inputs, as follows:

• Level 1—Quoted prices in active markets for identical assets and liabilities.

• Level 2—Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model‑derived valuations whose inputs are observable or whose significant value drivers are observable.

• Level 3—Significant inputs to the valuation model are unobservable.

The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2016, and December 31, 2015 (in thousands):

			Fair Value at Reporting Date Using
	June 30, 2016		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments
Corporate bonds	$	15,593	$	—	$	15,593	$	—

			Fair Value at Reporting Date Using
	December 31, 2015		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments
Corporate bonds	$	53,317	$	—	$	53,317	$	—

Financial assets or liabilities are categorized within the hierarchy based upon the lowest level of input that is significant to the fair value measurement. Below is a general description of our valuation methodologies for financial assets and liabilities, which are measured at fair value and are included on the condensed consolidated balance sheets.

Our available-for-sale investments consist of corporate bonds that are valued using Level 2 inputs. Market pricing for these investments is obtained from an established financial markets data provider.

The methods described above may result in a fair value estimate that may not be indicative of net realizable value or may not be reflective of future fair values and cash flows. While we believe that the valuation methods used are appropriate and consistent with the requirements of ASC Topic 820 and the methods used by other marketplace participants, we recognize that third parties may use different methodologies or assumptions to determine the fair value of certain financial instruments that could result in a different estimate of fair value at the reporting date.

Financial Instruments—The carrying values and estimated fair values of our financial instruments as of June 30, 2016, and December 31, 2015, were as follows (in thousands):

	June 30, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	$	150,000	$	137,000	$	150,000	$	138,000

For cash and cash equivalents, certificates of deposit and time deposit investments, accounts receivable, refundable income taxes, and accounts payable, the carrying amount approximates fair value because of the short-term maturity of these instruments. The estimated fair value of the senior notes is estimated using a discounted cash flow analysis based on current borrowing rates for debt with similar remaining maturities and ratings (a Level 2 input) and is designed to approximate the amount at which the instruments could be exchanged in an arm's length transaction between knowledgeable willing parties.

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RESTRUCTURING CHARGE

6 Months Ended

Jun. 30, 2016

Restructuring Charge [Abstract]

RESTRUCTURING CHARGE

RESTRUCTURING CHARGE

In January 2016, in response to declining potash prices, we undertook a number of cost saving actions that were intended to better align our cost structure with the business environment. These initiatives included the elimination of approximately 5% of the workforce, elimination of the bonus programs for most employees, as well as reductions in compensation.

In April we converted our East facility from a mixed-ore facility to a Trio^®-only facility. In May 2016, we initiated a plan to idle mining operations at our West facility and transition it into a care-and-maintenance mode due to the decline in potash prices.

For the three months ended June 30, 2016, we recognized restructuring expense of $1.9 million for severance-related payments related to the idling of the West facility, as well as the conversion of our East facility. The majority of the $1.9 million severance-related charge will be paid in the third quarter 2016.

For the six months ended June 30, 2016, we recognized restructuring expense of $2.3 million related to these events.

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BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

As a result of pricing pressure and the resulting economic factors giving rise to the conversion of our East facility to Trio^®-only and the idling of our West facility, the chief operating decision maker separately evaluates our potash and Trio^® operations. Accordingly, we reevaluated our segments and determined that, beginning in the second quarter of 2016, we have two segments: potash and Trio^®. The reportable segments are determined by management based on a number of factors including the types of potassium based fertilizer produced, production processes, markets served and the financial information available for our chief operating decision maker. We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments. Information for each segment is provided in the tables below:

Three Months Ended June 30, 2016	Potash			Trio			Corporate		Consolidated
Sales	$	39,196		$	12,644		$	—	$	51,840
Less: Freight costs	6,882			2,049			—		8,931
Warehousing and handling costs	2,132			406			—		2,538
Cost of goods sold	32,502			9,348			—		41,850
Lower-of-cost-or-market inventory adjustments	2,930			—			—		2,930
Costs associated with abnormal production and other	—			1,057			—		1,057
Gross (Deficit) Margin	$	(5,250	)	$	(216	)	$	—	$	(5,466	)
Depreciation, depletion and amortization incurred1	$	8,647		$	879		$	315	$	9,841
Six Months Ended June 30, 2016	Potash			Trio			Corporate		Consolidated
Sales	$	92,891		$	32,226		$	—	$	125,117
Less: Freight costs	13,433			5,830			—		19,263
Warehousing and handling costs	4,286			916			—		5,202
Cost of goods sold	79,790			21,837			—		101,627
Lower-of-cost-or-market inventory adjustments	11,937			—			—		11,937
Costs associated with abnormal production and other	650			1,057			—		1,707
Gross (Deficit) Margin	$	(17,205	)	$	2,586		$	—	$	(14,619	)
Depreciation, depletion and amortization incurred1	$	20,880		$	2,554		$	775	$	24,209
Three Months Ended June 30, 2015	Potash			Trio			Corporate		Consolidated
Sales	$	57,093		$	16,558		$	—	$	73,651
Less: Freight costs	4,478			2,420			—		6,898
Warehousing and handling costs	2,771			666			—		3,437
Cost of goods sold	45,867			9,568			—		55,435
Lower-of-cost-or-market inventory adjustments	5,276			—			—		5,276
Costs associated with abnormal production and other	—			—			—		—
Gross (Deficit) Margin	$	(1,299	)	$	3,904		$	—	$	2,605
Depreciation, depletion and amortization incurred1	$	15,890		$	3,063		$	444	$	19,397
Six Months Ended June 30, 2015	Potash			Trio			Corporate		Consolidated
Sales	$	147,822		$	42,850		$	—	$	190,672
Less: Freight costs	11,684			6,126			—		17,810
Warehousing and handling costs	5,779			1,405			—		7,184
Cost of goods sold	113,320			25,397			—		138,717
Lower-of-cost-or-market inventory adjustments	5,636			—			—		5,636
Costs associated with abnormal production and other	—			—			—		—
Gross Margin	$	11,403		$	9,922		$	—	$	21,325
Depreciation, depletion and amortization incurred1	$	33,633		$	6,294		$	746	$	40,673

¹Depreciation, depletion and amortization incurred for potash and Trio^® includes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory.

Total assets are not presented for each reportable segment as they are not reviewed by, nor otherwise regularly provided to, the chief operating decision maker. All sales of both segments are to external customers.

During the three months ended June 30, 2016, we recorded restructuring charges of $1.9 million, all of which was attributable to the potash segment.

During the six months ended June 30, 2016, we recorded restructuring charges of $2.3 million, of which $2.1 million was attributable to the potash segment and $0.2 million was attributable to corporate.

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RECENT ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

Pronouncements Issued But Not Yet Adopted—In August 2013, the FASB issued Accounting Standards Update No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," which describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in the financial statements. The new standard applies to all entities for the first annual period in fiscal years ending after December 15, 2016, and interim periods thereafter. We are currently evaluating the requirements of this standard, and have not yet determined the impact on our consolidated financial statements and disclosures.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, as amended by Accounting Standards Update No. 2016-12, "Revenue from Contracts with Customers (Topic 606)," which requires revenue to be recognized based on the amount an entity is expected to be entitled to for promised goods or services provided to customers. The standard also requires expanded disclosures regarding contracts with customers. The guidance in this standard supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition," and most industry-specific guidance. This guidance is effective for us beginning January 1, 2018, with retrospective application required, subject to certain practical expedients. We are currently evaluating the requirements of this standard, and have not yet determined the impact on our results of operations or financial position.

In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." An entity using an inventory method other than last-in, first-out or the retail inventory method should measure inventory at the lower of cost and net realizable value. The new guidance clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation and is effective for us beginning January 1, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02 , "Leases (Topic 842)," which requires, among other things, lessees to recognize lease assets and liabilities on their balance sheets for those leases classified as operating leases under previous generally accepted accounting principles. These assets and liabilities must be recorded generally at the present value of the contracted lease payments, and the cost of the lease must be allocated over the lease term on a straight-line basis. This guidance is effective for us for annual and interim periods in fiscal years beginning after December 15, 2018, with a modified retrospective transition method mandated. We are currently evaluating the requirements of this standard and have not yet determined the impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." This standard changes several aspects of how we account for share-based payment award transactions, including income tax consequences, classification of awards as either equity or liabilities, classification of excess tax benefits on the statement of cash flows, forfeitures, minimum statutory tax withholding payments, and classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. This standard is effective for us for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption, as specified in the guidance, is permitted in any interim or annual period provided that the entire standard is adopted. We are currently evaluating the requirements of this standard and have not yet determined the impact on our consolidated financial statements.

Recently Adopted Accounting Standard—In April 2015, the FASB issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which became effective for us beginning January 1, 2016, and requires retrospective adoption. In accordance with this standard, our deferred financing costs associated with outstanding debt balances have been reclassified from "Prepaid expenses and other current assets" and "Other assets, net" to "Long-term debt, net." Amortization of such costs continues to be reported as "Interest expense, net."

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FINANCIAL INFROMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT (Notes)

6 Months Ended

Jun. 30, 2016

Guarantees [Abstract]

Schedule of Guarantor Obligations [Table Text Block]

FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS OF POSSIBLE FUTURE PUBLIC DEBT

Intrepid Potash, Inc., as the parent company, has no independent assets or operations, and operations are conducted solely through its subsidiaries. Cash generated from operations is held at the parent company level as cash on hand and short- and long-term investments. Cash on hand and short- and long-term investments totaled $47.6 million and $63.6 million at June 30, 2016, and December 31, 2015, respectively. In the event that one or more of our wholly-owned operating subsidiaries guarantee public debt securities in the future, those guarantees will be full and unconditional and will constitute the joint and several obligations of the subsidiary guarantors. Our other subsidiaries are minor. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the subsidiary guarantors, except those imposed by applicable law.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Principles of Consolidation

Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of interim financial information, have been included.

The lenders under our credit facility have agreed to waive until no later than September 30, 2016, the requirements under our credit facility that we comply with certain financial covenants and that we deliver audited annual financial statements for the year ended December 31, 2015, without any going concern modification. In addition, the holders of our senior notes have agreed to waive until September 30, 2016, the requirement under the terms of the senior notes that we comply with certain financial covenants for the first and second quarters of 2016. If current market conditions continue, we anticipate that our adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, and certain other expenses, as defined in the credit facility) will not be sufficient for us to return to compliance with these covenants through 2016. As a result, we are working with our lenders and evaluating our options, which could include additional covenant amendments, waivers, or forbearances, alternative financing arrangements, a possible further reduction in the amount of the credit facility, and a possible reduction of our outstanding debt, which may include the payment of prepayment penalties. We have reached an agreement in principle regarding revised terms of our senior notes and have received a commitment letter from a third-party lender for a new credit facility to replace our existing credit facility, subject to various conditions, including that the revised terms of the agreement between us and the holders of our senior notes be satisfactory to the third-party lender. We are working toward completing documentation to close these transactions by September 30, 2016. However, if we are unable to reach definitive agreements, our continued failure to comply with these covenants after September 30, 2016, will result in an event of default under the terms of the senior notes and the credit facility that, if not cured or waived, could result in the acceleration of all outstanding indebtedness, including the acceleration of our senior notes and any amounts outstanding under the credit facility. If the lenders were to make such a demand for repayment, we would be unable to pay the obligations as we do not have existing facilities or sufficient cash on hand to satisfy these obligations. With this material uncertainty surrounding compliance with our debt covenants, declining revenues, lower-of-cost-or-market inventory adjustments, and negative cash flows from operations, there is substantial doubt about our ability to continue as a going concern. While we will continue to work with our lenders, there can be no assurance that we will be successful. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

Reclassifications [Text Block]

Certain prior period amounts have been reclassified in order to conform to the current period presentation. In accordance with the adoption of a new accounting standard, we have reclassified $515,000 of deferred financing costs associated with our outstanding debt from "Other current assets" and "Other assets" to "Long-term debt, net"

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions.

Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, valuation of investments, the valuation of receivables, valuation of our deferred tax assets, and estimated blended income tax rates utilized in the current and deferred income tax calculations. There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures. Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs. The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items, including depletion; the net carrying value of our mineral properties; the useful lives of related property, plant, and equipment; depreciation expense; and estimates associated with recoverability of long-lived assets and asset retirement obligations. Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing state income tax rates and the blend of state tax rates.

Revenue Recognition

Revenue is recognized when evidence of an arrangement exists; risks and rewards of ownership have been transferred to customers, which is generally when title passes; the selling price is fixed and determinable; and collection is reasonably assured. Title passes at the designated shipping point for the majority of sales, but, in a few cases, title passes at the delivery destination. The shipping point may be the plant, a distribution warehouse, a customer warehouse, or a port. Title passes for some international shipments upon payment by the purchaser; however, revenue is not recognized for these transactions until shipment because the risks and rewards of ownership have not transferred pursuant to a contractual arrangement. Prices are generally set at the time of, or prior to, shipment. In cases where the final price is determined after shipment and agreed to with our customer, revenue is recognized when the final sales price is fixed and determinable and the other revenue recognition criteria have been met.

Sales are reported on a gross basis. We quote prices to customers both on a delivered basis and on the basis of pick-up at our plants and warehouses. When a sale occurs on a delivered basis, we incur and, in turn, bill the customer and record as gross revenue the product sales value, freight, packaging, and certain other distribution costs. Many customers, however, arrange and pay for these costs directly and, in these situations, only the product sales are included in gross revenues.

Inventory, Policy

Inventory consists of product and by-product stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and by-product inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits.

We evaluate our production levels and costs to determine if any should be deemed abnormal and therefore excluded from inventory costs and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal.

Property, Plant, Equipment, Mineral Properties and Development Costs

Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur. No depreciation is taken on assets classified as construction in progress until the asset is placed into service. Gains and losses are recorded upon retirement, sale, or disposal of assets. Maintenance and repair costs are recognized as period costs when incurred. Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress.

Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized. Depletion of mineral properties is calculated using the units-of-production method over the estimated life of the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio^®, as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position.

(Loss) Earnings per Share

Basic net income or loss per common share of stock is calculated by dividing net income or loss available to common stockholders by the weighted average basic common shares outstanding for the respective period.

Diluted net income or loss per common share of stock is calculated by dividing net income or loss by the weighted average diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings or loss per share calculation consist of awards of non-vested restricted shares of common stock, non-vested performance units, and non-qualified stock options. The dilutive effect of stock based compensation arrangements are computed using the treasury stock method. Following the lapse of the vesting period of restricted shares of common stock, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations.

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Potentially dilutive securities, including non-vested restricted common stock, stock options, and performance units, are excluded from the diluted weighted average shares outstanding computation in periods in which they have an anti-dilutive effect, such as when there is a net loss. The treasury stock method is used to measure the dilutive impact of non-vested restricted common stock, stock options outstanding, and performance units. The following table shows the shares that have an anti-dilutive effect and are excluded from the diluted weighted average shares outstanding computations:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Anti-dilutive shares of non-vested restricted common stock	447,661	474,481	407,186	161,675
Anti-dilutive shares of stock options outstanding	218,886	319,563	227,370	320,241
Anti-dilutive shares of non-vested performance units	126,050	194,374	127,651	131,621

Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share

The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net (loss) income	$	(13,398	)	$	(4,937	)	$	(31,825	)	$	1,592
Basic weighted average common shares outstanding	75,839			75,683			75,798			75,636
Add: Dilutive effect of non-vested restricted common stock	—			—			—			90
Add: Dilutive effect of performance units	—			—			—			6
Diluted weighted average common shares outstanding	75,839			75,683			75,798			75,732
(Loss) earnings per share:
Basic	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02
Diluted	$	(0.18	)	$	(0.07	)	$	(0.42	)	$	0.02

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CASH, CASH EQUIVALENTS, AND INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Cash, Cash Equivalents, and Investments Disclosure [Abstract]

Summary of Cash, Cash Equivalents, and Investments

The following table summarizes the fair value of our cash and investments held in our portfolio, recorded as cash and cash equivalents or short-term or long-term investments as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016		December 31, 2015
Cash	$	8,691	$	9,056
Commercial paper and money market accounts	22,293		251
Total cash and cash equivalents	$	30,984	$	9,307
Corporate bonds	$	15,592	$	49,518
Certificates of deposit and time deposits	1,007		1,005
Total short-term investments	$	16,599	$	50,523
Corporate bonds	$	—	$	3,799
Total long-term investments	$	—	$	3,799
Total cash, cash equivalents, and investments	$	47,583	$	63,629

Schedule of Available-for-Sale Investments

The following tables summarize the cost basis, unrealized gains and losses, and fair value of our available-for-sale investments held in our portfolio as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Corporate bonds	$	15,596	$	2	$	(5	)	$	15,593
Certificates of deposit and time deposits	1,007		—		—			1,007
Total available-for-sale investments	$	16,603	$	2	$	(5	)	$	16,600

	December 31, 2015
			Unrealized
	Cost Basis		Gain		Loss			Fair Value
Corporate bonds	$	53,403	$	6	$	(92	)	$	53,317
Certificates of deposit and time deposits	1,005		—		—			1,005
Total available-for-sale investments	$	54,408	$	6	$	(92	)	$	54,322

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INVENTORY AND LONG-TERM PARTS INVENTORY (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Summary of Inventory

The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value, as of June 30, 2016, and December 31, 2015 (in thousands):

	June 30, 2016		December 31, 2015
Finished goods product inventory	$	64,195	$	65,200
In-process mineral inventory	24,085		19,769
Total product inventory	88,280		84,969
Current parts inventory, net	21,290		21,562
Total current inventory, net	109,570		106,531
Long-term parts inventory, net	18,389		17,344
Total inventory, net	$	127,959	$	123,875

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ASSET RETIREMENT OBLIGATION (Tables)

6 Months Ended

Jun. 30, 2016

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Changes to Asset Retirement Obligation

Following is a table of the changes to our asset retirement obligation for the following periods (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Asset retirement obligation, at beginning of period	$	23,393		$	22,461		$	22,951		$	22,037
Liabilities settled	(3		)	(16		)	(3		)	(16		)
Liabilities incurred	—			—			—			—
Changes in estimated obligations	—			—			—			—
Accretion of discount	442			424			884			848
Total asset retirement obligation, at end of period	$	23,832		$	22,869		$	23,832		$	22,869

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INCOME TAXES (Tables) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2016

Jun. 30, 2015

Mar. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

A summary of our valuation allowance activity is as follows (in thousands):

	Six Months Ended June 30,
	2016		2015
Valuation allowance, beginning of period	$	300,601	$	268
Additions	13,847		—
Reversals	—		—
Valuation allowance, end of period	$	314,448	$	268

Valuation and Qualifying Accounts Disclosure [Line Items]

Valuation Allowances and Reserves, Balance

$ 314,448

$ 268

$ 300,601

$ 268

Valuation Allowances and Reserves, Charged to Other Accounts

13,847

$ 0

Valuation Allowances and Reserves, Recoveries

$ 0

$ 0

Schedule of Components of Income Tax (Benefit) Expense

A summary of the provision for income taxes is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Current portion of income tax expense (benefit)	$	1		$	(148	)	$	3		$	(34	)
Deferred portion of income tax (benefit) expense	—			(202		)	—			2,755
Total income tax expense (benefit)	$	1		$	(350	)	$	3		$	2,721
Effective tax rate	—		%	6.6		%	—		%	63.1		%

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Rental and Lease Expense

Rental and lease expenses are shown below for the indicated periods (in thousands):

2016
For the three months ended June 30, 2016	$	1,530
For the six months ended June 30, 2016	$	3,078
2015
For the three months ended June 30, 2015	$	1,977
For the six months ended June 30, 2015	$	3,721

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FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2016, and December 31, 2015 (in thousands):

			Fair Value at Reporting Date Using
	June 30, 2016		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments
Corporate bonds	$	15,593	$	—	$	15,593	$	—

			Fair Value at Reporting Date Using
	December 31, 2015		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments
Corporate bonds	$	53,317	$	—	$	53,317	$	—

Fair Value, by Balance Sheet Grouping

The carrying values and estimated fair values of our financial instruments as of June 30, 2016, and December 31, 2015, were as follows (in thousands):

	June 30, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Senior notes	$	150,000	$	137,000	$	150,000	$	138,000

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BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Information for each segment is provided in the tables below:

Three Months Ended June 30, 2016	Potash			Trio			Corporate		Consolidated
Sales	$	39,196		$	12,644		$	—	$	51,840
Less: Freight costs	6,882			2,049			—		8,931
Warehousing and handling costs	2,132			406			—		2,538
Cost of goods sold	32,502			9,348			—		41,850
Lower-of-cost-or-market inventory adjustments	2,930			—			—		2,930
Costs associated with abnormal production and other	—			1,057			—		1,057
Gross (Deficit) Margin	$	(5,250	)	$	(216	)	$	—	$	(5,466	)
Depreciation, depletion and amortization incurred1	$	8,647		$	879		$	315	$	9,841
Six Months Ended June 30, 2016	Potash			Trio			Corporate		Consolidated
Sales	$	92,891		$	32,226		$	—	$	125,117
Less: Freight costs	13,433			5,830			—		19,263
Warehousing and handling costs	4,286			916			—		5,202
Cost of goods sold	79,790			21,837			—		101,627
Lower-of-cost-or-market inventory adjustments	11,937			—			—		11,937
Costs associated with abnormal production and other	650			1,057			—		1,707
Gross (Deficit) Margin	$	(17,205	)	$	2,586		$	—	$	(14,619	)
Depreciation, depletion and amortization incurred1	$	20,880		$	2,554		$	775	$	24,209
Three Months Ended June 30, 2015	Potash			Trio			Corporate		Consolidated
Sales	$	57,093		$	16,558		$	—	$	73,651
Less: Freight costs	4,478			2,420			—		6,898
Warehousing and handling costs	2,771			666			—		3,437
Cost of goods sold	45,867			9,568			—		55,435
Lower-of-cost-or-market inventory adjustments	5,276			—			—		5,276
Costs associated with abnormal production and other	—			—			—		—
Gross (Deficit) Margin	$	(1,299	)	$	3,904		$	—	$	2,605
Depreciation, depletion and amortization incurred1	$	15,890		$	3,063		$	444	$	19,397
Six Months Ended June 30, 2015	Potash			Trio			Corporate		Consolidated
Sales	$	147,822		$	42,850		$	—	$	190,672
Less: Freight costs	11,684			6,126			—		17,810
Warehousing and handling costs	5,779			1,405			—		7,184
Cost of goods sold	113,320			25,397			—		138,717
Lower-of-cost-or-market inventory adjustments	5,636			—			—		5,636
Costs associated with abnormal production and other	—			—			—		—
Gross Margin	$	11,403		$	9,922		$	—	$	21,325
Depreciation, depletion and amortization incurred1	$	33,633		$	6,294		$	746	$	40,673

¹Depreciation, depletion and amortization incurred for potash and Trio^® includes depreciation, depletion and amortization amounts absorbed in or (relieved from) inventory.

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EARNINGS PER SHARE (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Restricted Stock
Anti-dilutive weighted average non-vested shares
Anti-dilutive weighted average non-vested shares (in shares)	447,661	474,481	407,186	161,675
Stock Options
Anti-dilutive weighted average non-vested shares
Anti-dilutive weighted average non-vested shares (in shares)	218,886	319,563	227,370	320,241
Performance Units
Anti-dilutive weighted average non-vested shares
Anti-dilutive weighted average non-vested shares (in shares)	126,050	194,374	127,651	131,621

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EARNINGS PER SHARE (Schedule of Calculation of Basic and Diluted Loss or Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net (Loss) Income	$ (13,398)	$ (4,937)	$ (4,937)	$ (31,825)	$ 1,592
Basic weighted average common shares outstanding (in shares)	75,838,782	75,683,075		75,797,658	75,636,343
Add: Dilutive effect of non-vested restricted common stock (in shares)	0	0		0	89,840
Add: Dilutive effect of performance units (in shares)	0	0		0	5,727
Diluted weighted average common shares outstanding (in shares)	75,838,782	75,683,000	75,683,075	75,797,658	75,731,910
(Loss) Earnings per share:
Basic (in dollars per share)	$ (0.18)	$ (0.07)		$ (0.42)	$ 0.02
Diluted (in dollars per share)	$ (0.18)	$ (0.07)		$ (0.42)	$ 0.02

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CASH, CASH EQUIVALENTS, AND INVESTMENTS (Summary of Cash, Cash Equivalents, and Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Investment [Line Items]
Cash and cash equivalents	$ 30,984	$ 9,307	$ 40,285	$ 67,589
Short-term investments	16,599	50,523
Long-term investments	0	3,799
Cash, cash equivalents, and investments	47,583	63,629
Cash
Investment [Line Items]
Cash and cash equivalents	8,691	9,056
Commercial paper and money market accounts
Investment [Line Items]
Cash and cash equivalents	22,293	251
Corporate bonds
Investment [Line Items]
Short-term investments	15,592	49,518
Long-term investments	0	3,799
Certificates of deposit and time deposits
Investment [Line Items]
Short-term investments	$ 1,007	$ 1,005

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CASH, CASH EQUIVALENTS, AND INVESTMENTS (Schedule of Available-for-Sale Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair value of cash, cash equivalents, and investments
Available-for-sale Securities, Amortized Cost Basis	$ 16,603	$ 54,408
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2	6
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	5	92
Available-for-sale Securities, Fair Value Disclosure	16,600	54,322
Corporate bonds
Fair value of cash, cash equivalents, and investments
Available-for-sale Securities, Amortized Cost Basis	15,596	53,403
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2	6
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	5	92
Available-for-sale Securities, Fair Value Disclosure	15,593	53,317
Certificates of deposit and time deposits
Fair value of cash, cash equivalents, and investments
Available-for-sale Securities, Amortized Cost Basis	1,007	1,005
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	0	0
Available-for-sale Securities, Fair Value Disclosure	$ 1,007	$ 1,005

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CASH, CASH EQUIVALENTS, AND INVESTMENTS (Narrative) (Details)	3 Months Ended
	Mar. 31, 2015 USD ($)
Cash and Cash Equivalents [Abstract]
Available-for-sale Securities, Gross Realized Losses	$ 1,000

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INVENTORY AND LONG-TERM PARTS INVENTORY (Summary of Inventory) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Finished goods product inventory, net	$ 64,195	$ 65,200
In-process mineral inventory	24,085	19,769
Total product inventory, net	88,280	84,969
Current parts inventory	21,290	21,562
Total current inventory, net	109,570	106,531
Long-term parts inventory	18,389	17,344
Total inventory, net	$ 127,959	$ 123,875

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INVENTORY AND LONG-TERM PARTS INVENTORY (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Inventory [Line Items]
Inventory Valuation Reserves	$ 3,300	$ 500		$ 3,300	$ 500
Lower-of-cost-or-market inventory adjustments	2,930	5,276	$ 5,276	11,937	5,636
Production Related Impairments or Charges	$ 1,057	$ 0	$ 0	$ 1,707	$ 0

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PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Property, Plant, Equipment, and Mineral Properties) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, plant, equipment, and mineral properties
Property, Plant and Equipment, Gross	$ 379,701	$ 363,827
Accumulated depreciation	(101,754)	(80,707)
Depreciable assets, net	277,947	283,120
Mineral properties and development costs	140,250	139,751
Accumulated depletion	(19,235)	(17,254)
Total depletable assets, net	121,015	122,497
Land	719	719
Construction in Progress, Gross	5,009	13,140
Property, Plant, Equipment and Mineral Properties, Net	404,690	419,476
Buildings Plant [Member]
Property, plant, equipment, and mineral properties
Property, Plant and Equipment, Gross	83,488	81,208
Machinery and Equipment [Member]
Property, plant, equipment, and mineral properties
Property, Plant and Equipment, Gross	221,430	209,920
Vehicles [Member]
Property, plant, equipment, and mineral properties
Property, Plant and Equipment, Gross	4,875	4,747
Office Equipment and Improvements [Member]
Property, plant, equipment, and mineral properties
Property, Plant and Equipment, Gross	12,177	12,001
Ponds and Land Improvements [Member]
Property, plant, equipment, and mineral properties
Property, Plant and Equipment, Gross	$ 57,731	$ 55,951

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PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES (Schedule of Depreciation, Depletion, and Accretion) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation	$ 8,862		$ 18,485	$ 21,344	$ 37,364
Depletion	537		488	1,981	2,461
Accretion	442		424	884	848
Total incurred	$ 9,841	$ 19,397	$ 19,397	$ 24,209	$ 40,673

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DEBT (Narrative) (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2016 USD ($) LeverageRatio FixedCharge	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Jun. 30, 2016 USD ($) LeverageRatio FixedCharge	Jun. 30, 2015 USD ($)	Mar. 31, 2016	Dec. 31, 2015 USD ($)	Sep. 30, 2014 USD ($)
Debt
Long-term Line of Credit	$ 0			$ 0				$ 0
Maximum allowable leverage ratio				3.5
minimum fixed charge ratio | FixedCharge	1.3			1.3
Minimum Annual Maintenance Capital Expenditures	$ 20,000,000			$ 20,000,000
Actual Fixed Charge Ratio	(1.4)			(1.4)
Cash And Investments Maximum Subtracted From Funded Indebtedness	$ 75,000,000			$ 75,000,000
Actual Leverage ratio	10.3			10.3
Letters of Credit Outstanding, Amount	$ 500,000			$ 500,000
Unsecured Senior Notes	150,000,000			150,000,000			$ 150,000,000	150,000,000
Deferred Finance Costs, Net	$ (2,160,000)			$ (2,160,000)			(515,000)
Debt Instrument, Interest Rate, Increase (Decrease)				0.25%
Leverage Ratio Exceeding 2.25 To 1 Results in An Increased Interest Rate | LeverageRatio	2.25			2.25
Increase In Interest Rate	0.00%			0.00%		0.00%
Interest Costs Incurred	$ 3,100,000	$ 1,700,000		$ 5,400,000	$ 3,300,000
Deferred Finance Costs, Write-offs	0.8			1.5
Capitalized Interest	$ 100,000	$ 0
Long-term debt, net	147,840,000			$ 147,840,000			$ 149,485,000
Series A Senior Notes
Debt
Unsecured Senior Notes	$ 60,000,000			$ 60,000,000				$ 60,000,000
Debt Instrument, Interest Rate, Stated Percentage	3.23%			3.23%				3.23%
Series B Senior Notes
Debt
Unsecured Senior Notes	$ 45,000,000			$ 45,000,000				$ 45,000,000
Debt Instrument, Interest Rate, Stated Percentage	4.13%			4.13%				4.13%
Series C Senior Notes
Debt
Unsecured Senior Notes	$ 45,000,000			$ 45,000,000				$ 45,000,000
Debt Instrument, Interest Rate, Stated Percentage	4.28%			4.28%				4.28%
Unsecured credit facility
Debt
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000			$ 1,000,000				$ 250,000,000
Line of Credit Facility, Borrowings	0		$ 0	0	0
Line of Credit Facility, Repayments	$ 0		$ 0	$ 0	$ 0

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ASSET RETIREMENT OBLIGATION (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Credit adjusted risk-free rates to discount abandonment liabilities, low end of range (as a percent)	6.90%
Credit adjusted risk-free rates to discount abandonment liabilities, high end of range (as a percent)	8.50%
Asset retirement obligation, current		$ 0.0
Undiscounted amount of asset retirement obligation	$ 58.4

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ASSET RETIREMENT OBLIGATION (Schedule of Changes to Asset Retirement Obligation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation, at beginning of period	$ 23,393	$ 22,037	$ 22,951	$ 22,037
Liabilities settled	(3)	(16)	(3)	(16)
Liabilities incurred	0	0	0	0
Asset Retirement Obligation, Revision of Estimate	0	0	0	0
Accretion of discount	442	424	884	848
Total asset retirement obligation, at end of period	$ 23,832	$ 22,461	$ 23,832	$ 22,869

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COMPENSATION PLANS (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Feb. 22, 2016	Dec. 31, 2015
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding non-vested equity-based awards, end of period (in shares)	760,303		760,303			459,663
Period over which grants vest (in years)			3 years
Allocated Share-based Compensation Expense	$ 474,236	$ 816,117	$ 1,191,727	$ 1,717,658
Total unrecognized compensation expense	$ 2,200,000		$ 2,200,000
Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding non-vested equity-based awards, end of period (in shares)	252,100		252,100
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding non-qualified stock options, end of period (in shares)	218,857		218,857
Common Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for issuance under the Plan (in shares)	6,400,000		6,400,000
Restricted Stock Awards, Granted To Newly Hired Employees | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period over which grants vest (in years)			1 year
Restricted Stock Awards, Granted To Newly Hired Employees | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period over which grants vest (in years)			4 years
2015 Performance Units [Member] | Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding non-vested equity-based awards, end of period (in shares)	252,100		252,100

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COMPENSATION PLANS (Summary of Non-Vested Restricted Common Stock Activity) (Details) - Restricted Stock - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 474,236	$ 816,117	$ 1,191,727	$ 1,717,658
Shares
Non-vested restricted shares of common stock, beginning of period (in shares)			459,663
Granted (in shares)			562,010
Vested (in shares)			(211,861)
Forfeited (in shares)			(49,509)
Non-vested restricted shares of common stock, end of period (in shares)	760,303		760,303
Weighted Average Grant-Date Fair Value
Non-vested restricted shares of common stock, beginning of period (in dollars per share)			$ 14.93
Granted (in dollars per share)			1.28
Vested (in dollars per share)			15.53
Forfeited (in dollars per share)			14.46
Non-vested restricted shares of common stock, end of period (in dollars per share)	$ 11.09		$ 11.09

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COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - Stock Options	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares
Stock Option Activity, Number of Shares
Outstanding non-qualified stock options, end of period (in shares) | shares	218,857
Vested or expected to vest, end of period (in shares) | shares	218,857
Exercisable non-qualified stock options, end of period (in shares) | shares	218,857
Stock Options, Weighted Average Exercise Price
Outstanding non-qualified stock options, end of period (in dollars per share) | $ / shares	$ 25.74
Vested or expected to vest, end of period (in dollars per share) | $ / shares	25.74
Exercisable non-qualified stock options, end of period (in dollars per share) | $ / shares	$ 25.74
Stock Options, Aggregate Intrinsic Value
Outstanding non-qualified stock options, end of period (in shares) | $	$ 0
Vested or expected to vest, end of period (in shares) | $	0
Exercisable non-qualified stock options, end of period (in shares) | $	$ 0
Outstanding non-qualified stock options, end of period (in years)	3 years 1 month 6 days
Vested or expected to vest, end of period (in years)	3 years 1 month 6 days
Exercisable non-qualified stock options, end of period (in years)	3 years 1 month 6 days

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INCOME TAXES (Schedule of Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Net	$ 0		$ 0		$ 0
Current portion of income tax (benefit) expense	1	$ (148)	3	$ (34)
Deferred portion of income tax (benefit) expense	0	202	0	(2,755)
Total income tax (benefit) expense	$ 1	$ (350)	$ 3	$ 2,721
Effective tax rate	0.00%	6.60%	0.00%	63.10%

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COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Jun. 30, 2015	Jun. 30, 2016	Mar. 31, 2016
Reclamation Deposits and Surety Bonds
Security placed with the State of Utah and BLM			$ 19,500,000
Long-term restricted cash deposits			2,000,000
Surety bonds issued by an insurer			$ 17,500,000
Future Operating Lease Commitments
Operating Lease, Contract Term, Maximum (in years)			20 years
Lease Termination Penalty		$ 1,100,000
Early Lease Termination Penalty Paid	$ 500,000
Accrued Early Termination Penalty	$ 600,000
Current Monthly Office Rent			$ 85,626	$ 83,331

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COMMITMENTS AND CONTINGENCIES (Schedule of Rental and Lease Expense) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Current Monthly Office Rent	$ 85,626		$ 85,626		$ 83,331
Rental and lease expenses	$ 1,530,000	$ 1,977,000	$ 3,078,000	$ 3,721,000

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FAIR VALUE (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investments
Corporate bonds	$ 15,593	$ 53,317
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
Investments
Corporate bonds	0	0
Significant Observable Inputs (Level 2)
Investments
Corporate bonds	15,593	53,317
Significant Unobservable Inputs (Level 3)
Investments
Corporate bonds	$ 0	$ 0

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FAIR VALUE (Fair Value, by Balance Sheet Groupings) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term Debt, Face Amount	$ 150,000	$ 150,000
Long-term debt, fair value	$ 137,000	$ 138,000

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RESTRUCTURING CHARGE (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Restructuring Charge [Abstract]
Restructuring charge, percentage of eliminated positions		5.00%
Restructuring charge	$ 1,914		$ 0	$ 2,314	$ 0

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BUSINESS SEGMENTS (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($) segment	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	2
Segment Reporting Information [Line Items]
Restructuring charges	$ 1,914	$ 0	$ 2,314	$ 0
Operating Segments [Member] | Potash [Member]
Segment Reporting Information [Line Items]
Restructuring charges	$ 1,900		2,100
Corporate [Member]
Segment Reporting Information [Line Items]
Restructuring charges			$ 200

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BUSINESS SEGMENTS (Information by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Sales	$ 51,840	$ 73,651	$ 73,651	$ 125,117	$ 190,672
Less: Freight costs	8,931	6,898	6,898	19,263	17,810
Warehousing and handling costs	2,538	3,437	3,437	5,202	7,184
Cost of goods sold	41,850	55,435	55,435	101,627	138,717
Lower-of-cost-or-market inventory adjustments	2,930	5,276	5,276	11,937	5,636
Costs associated with abnormal production and other	1,057	0	0	1,707	0
Gross (Deficit) Margin	(5,466)	2,605	2,605	(14,619)	21,325
Depreciation, depletion and amortization expense	9,841	19,397	$ 19,397	24,209	40,673
Operating Segments [Member] | Potash [Member]
Segment Reporting Information [Line Items]
Sales	39,196	57,093		92,891	147,822
Less: Freight costs	6,882	4,478		13,433	11,684
Warehousing and handling costs	2,132	2,771		4,286	5,779
Cost of goods sold	32,502	45,867		79,790	113,320
Lower-of-cost-or-market inventory adjustments	2,930	5,276		11,937	5,636
Costs associated with abnormal production and other	0	0		650	0
Gross (Deficit) Margin	(5,250)	(1,299)		(17,205)	11,403
Depreciation, depletion and amortization expense	8,647	15,890		20,880	33,633
Operating Segments [Member] | Trio [Member]
Segment Reporting Information [Line Items]
Sales	12,644	16,558		32,226	42,850
Less: Freight costs	2,049	2,420		5,830	6,126
Warehousing and handling costs	406	666		916	1,405
Cost of goods sold	9,348	9,568		21,837	25,397
Lower-of-cost-or-market inventory adjustments	0	0		0	0
Costs associated with abnormal production and other	1,057	0		1,057	0
Gross (Deficit) Margin	(216)	3,904		2,586	9,922
Depreciation, depletion and amortization expense	879	3,063		2,554	6,294
Corporate/Other [Member]
Segment Reporting Information [Line Items]
Sales	0	0		0	0
Less: Freight costs	0	0		0	0
Warehousing and handling costs	0	0		0	0
Cost of goods sold	0	0		0	0
Lower-of-cost-or-market inventory adjustments	0	0		0	0
Costs associated with abnormal production and other	0	0		0	0
Gross (Deficit) Margin	0	0		0	0
Depreciation, depletion and amortization expense	$ 315	$ 444		$ 775	$ 746