Document ELgqj4E1Y8doDeo0518nwB6n

Case 5:07-cv-0Q 83-WRF w Document 25 /ljlc Filed ll/2fi/07 Page 1 of 44 FILED UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS UNITED STATES OF AMERICA, NOV 2 0 2007 CLERK, WESTER VKicr COURT it OF TEXAS and THE STATE OF OHIO PlaintifSs, and theM>^mphis Shelby County Health Department, Plainltiff--tervener, The Premcor Refining Group Inc,, and The Lima Refining Company, Defendants, ) ) ) ) ) ) ) ) ) ) ) ) ) CIVIL ACTION NO. RF ) ) ) SA07CA0683 ) J CONSENT DECREE ADDENDUM WHEREAS, Plaintiff, the United States o f America ( "Plaintiff" or "the United States"), on behalf o f the United States Environm ental Protection Agency ( "EPA"), has sim ultaneously filed a Comptaint against and lodged this Consent Decree Addendum ("Addendum") w ith The Premcor Refin ung Group Inc. and the Lima Refining Company (collectively, "Premcor") for alleged envinonmental violations at petroleum refineries owned and operated by Premcor; WHEREAS, the United States has initiated a nationwide, broad-based compliance and enfon;ement initiative involving the petroleum refining industry (the "United States' Refinery Initia five"); . WHEREAS, Valero Energy Corporation acquired Premcor Inc. and its subsidiaries via the September 1, 2005, m erger o f Premcor Inc. w ith and into Valero Energy Corporation, with Valero Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00001 Case 5:07~cv~QQ83~WRF Document 25 Filed 11/2C/07 Page 2 of 44 1 Energy Corporation being the surviving corporation o f the m erger, and w ith Valero Energy Corporation becoming the ultim ate parent o f Premcor; "WHEREAS, on N ovem ber 23, 2005, this C ourt entered at D ocket N o. SA-05-CA-0569-RF a separate Consent D ecree ("C onsent D ecree") between the United States, certain plaintiff-interveners, and certain corporate subsidiaries o f V alero Energy Corporation (collectively "V alero"), pursuant to the U nited States' Refinery Initiative, governing petroleum refineries owned b y V alero and not subject to this Addendum; ^^HEREAS, the U nited States' C om plaint alleges that Prem cor has been and is in violation o f certain pD ivisions o f the C lean A ir A ct, 42 U .S.C. 7401 et seg^, its im plem enting regulations, the relevant provisions o f applicable State Im plem entation Plans ("SIPs"), and federally-enforceable perm its; W HEREAS, the U nited States has identified violations o f certain provisions o f the Clean A ir Act, 42 U.S.C. 7401 et sen., its implementing regulations, the relevant provisions o f the Ohio SIP, and federally-enforceable perm its related to leak detection and repair ("LD A R") services provided by a third party contractor at the Lim a R efinery; W HEREAS, the U nited States conducted a lengthy and detailed investigation o f em ission events at Prem cor's refinery in P ort A rthur, Texas, including, but not lim ited to, the em ission events listed in Appendix T; W HEREAS, Prem cor has not answ ered or otherwise responded, and need not answer or otherw ise respond, to the Com plaint in light o f the settlement memorialized in this Addendum ; W HEREAS, Prem cor has w aived any applicable federal or state requirem ents o f statutory notice o f the alleged violations; W HEREAS, Prem cor has denied and continues to deny the violations alleged in the Com plaints and m aintains its defenses to the alleged violations; Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00002 /^c Case 5:07-cv-0Q&83-WRF Document 25 Filed 1.1/20/07 Page 3 of 44 w W HEREAS, by entering into this Addendum , Prem cor has indicated that it is committed to pro actively resolving the allegations o f environm ental concerns related to its operations raised in the C om plaints; WitHEREAS, Prem cor has, in the interest o f settlem ent, agreed to undertake installation o f significant air pollution control equipm ent and enhancements to air pollution m anagem ent practices at its refinerie' s to reduce air em issions; w hi:EREAS, the parties agree that the installation o f equipm ent and im plem entation o f controls pursuant to this Addendum w ill achieve m ajor improvements in air quality control, and also that certain ac:tions that Prem cor has agreed to take are expected to achieve advances in technology and other mliethods o f air pollution control; WHE'RI EAS, projects undertaken pursuant to this Addendum are for the purposes o f abating or controllitt;ig atmospheric pollution or contam ination by rem oving, reducing, or preventing the creation o f mis:sion o f pollutants ("pollution control facilities"), and as such, may be considered for certificati'on as pollution control facilities by federal, state or local authorities; VWHEREAS, in anticipation o f entry o f this Addendum, Premcor has commenced or completed installati'on, operation and/or im plem entation o f certain em ission control technologies or work practices at various refineries governed by this Addendum; WHEREAS, the State o f Ohio is co-plaintiff in this action, and the M em phis Shelby County Health pepartaent (collectively referred to herein as "Plaintiff-Interveners") has filed a Com plaint in Intervent:ion, alleging that Prem cor w as and is in violation o f the applicable Clean A ir A ct State Implemesi tatio n Plan ("SIP") and other state environm ental statutory and regulatory requirements; WHEREAS, Premcor has not answered or otherw ise responded, and need not answer or otherwiS'e respond, to the Complaints in Intervention in light o f the settlem ent m em orialized in this Addendturn; Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00003 Case 5:07-cv-0||p3-W RF Document 25 Filed U /aft/07 Page 4 of 44 WHEREAS, the U nited States, Plaintiff-Interveners, and Prem cor have consented to entry o f this Addendum w ithout trial o f any issues; WHEREAS, the U nited States, Plaintiff-Interveners, and Prem cor have agreed that settlem ent o f this action is in the best interest o f the parties and in the public interest, and that entry o f this Addendum w ithout further litigation is the m ost appropriate m eans o f resolving this matter; WHERI EAS, the objective o f this A ddendum is substantially to apply, in accordance w ith the specific provisions contained herein, the requirem ents o f the Consent Decree to Prem cor, and WHEREAS, for ease o f reference, each paragraph, part, or section in this Addendum correspc nds w ith the related paragraph, part, or section in the Consent Decree, if any; NOW, THEREFORE, w ithout any adm ission o f fact or law , and w ithout any adm ission o f the violations alleged in the C om plaints, it is hereby ORDERED AND DECREED as follow s: I. JURISDICTION AND VENUE The Com plaints state a claim upon w hich relief can be granted against Prem cor under Sections 113,167 and 211 o f the C lean A ir A ct, 42 U .S.C. 7413,7477 and 7545, Section 103(c) o f the Co]riprehensive Response, Compensation, and Liability A ct ("CERCLA")S42 U .S.C. 9603(c), Section 325(b) o f the Em ergency Planning and Community Right-to-K now A ct ("EPCRA"), 42 U.S.C. 1104: (b), and 28 U .S.C. 1355. This C ourt has jurisdiction o f the subject m atter herein and over the parties consenting hereto pursuant to 28 U .S.C . 1345 and pursuant to Sections 113,167, and 211 o f the CAiA., 42 U .S.C. 7413,7545 and 7477, Section 103 o f CERCLA, 42 U .S.C. 9603, and Section 304 o f PCRA, 42 U .S.C . 11004. ' L Vemie is proper under Section 113(b) o f the Clean A ir A ct, 42 U .S.C. 7413(b), and under 28 U .S.C. 1391(b) and (c). 3. Notice o f the com m encem ent o f this action has been given to th e States o f O hio and Texas and theM<emphis Shelby C ounty H ealth D epartm ent in accordance w ith Section 113(a)(1) o f the Clean A ir Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00004 /^c Case 5:07-cv-0Q|83-WRF Document 25 Filed 11/JM07 Page 5 of 44 w A ct, 42 U.S.C. 7413(a)(1), and as required by Section 113,(b) o f the C lean A ir A ct, 42 U.S.C. 7413(b). IL APPLICABILITY 4 The provisions o f th is Addendum shall apply to and be binding upon the United States, the Ohic Environmental Protection A gency ("Ohio EPA"), and the M em phis Shelby County H ealth D eparta ent, and upon Premcor, as w ell as Premcor's respective successors and assigns, and shall apply to each o f the refineries identified herein until the Addendum is term inated w ith respect to such refinery pursuant to Part XXV (Term ination); provided, how ever, that w ith respect to any obligation applicablee to an individual Premcor Refinery pursuant to Parts IV through XXIV, inclusive, such obligatii.on shall apply only to the specific Premcor corporate entity that ow ns such R efinery. In the event that Prem cor proposes to sell or transfer any o f its refineries subject to this Addendijm , then Prem cor shall advise in w riting to such proposed purchaser or successor-in-interest o f the exis ence o f this Addendum and provide a copy o f the Addendum, and shall send a copy o f such written notification by certified m ail, return receipt requested, to EPA before such sale or transfer, if possible , but no later than the closing date o f such sale o r transfer. This provision does not relieve Premcor from having to comply w ith any applicable state or local regulatory requirem ent regarding notice and transfer o f facility permits. DDL FA C TU A L BA CK GRO UN D Among other facilities, Premcor operates four petroleum refineries in the United States for the manufacture o f various petroleum -based products, including gasoline, diesel, and je t fuels, and otherm arketable petroleum by-products. Three ofP rem cor's refineries are subject to this Addendum , and the fourth is subject to a separate consent decree in U nited States v. M otiva Enterprises, et al.. No. 01-cv- 00978 (S.D. Tex.). Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00005 /^C Case 5:07-cv-03Q^83-WRF Document 25 Filed ll/2 fl/0 7 Page 6 of 44 7, As m ore specifically described in Appendix A, Prem cor's petroleum refineries subject to this Addendum are located at: Lima, Ohio; M emphis, Tennessee; and Port A rthur, Texas (herdnafti:er collectively, the "Prem cor Refineries"). 8 Reserved. 9 Petroleum refining involves the physical, therm al and chem ical separation o f crude oil into maxketable petroleum products. 10 The petroleum refining process at the Premcor Refineries results in em issions o f criteria air pollutiants, including nitrogen, oxides (4fNOx"), carbon m onoxide ("CO"), particulate matter ("PM"), sulfur dioxide ("S 0 2"), as well as volatile organic compounds ("VOCs") and hazardous air pollutant ("HAPs"), including benzene. The prim ary sources o f these emissions are the fluid catalytic craddni units ("FCCUs"), process heaters and boilers, the sulfur recovery plants, wastewater treatmentit systems, fugitive em issions, and flares. 1, Reserved. IV . n o t Em issions R eductions from H eaters and B oilers P rogram S um m ary: Premcor will implement a program to reduce NOx emissions from refinery heaters and boilers greater than 40 M M Btu/hr (HHV) by committing to an interim system-wide w eighted average concentration em ission lim it for NOx o f 0.060 IbsTMMBtu, to be achieved by December 31, 2011, and a final system-wide weighted average concentration emission limit for NOx of 0.044 lbs./M M Btu, to be achieved by Decem ber 31,2013. 12. Prem cor shall im plem ent at the Prem cor Refineries various NOx em ission reduction measures and techniques to achieve system-wide NOx emission levels fox certain identified heaters and boilers at the Prem cor Refineries. For purposes o f this Addendum, "heaters and boilers" shall be defined to include any stationary com bustion unit used for the purpose o f burning fossil fuel for the purpose o f (i) producing pow er, steam or heat by heat transfer, or (ii) heating a m aterial for initiating or prom oting a process o r chemical reaction in w hich the m aterial participates as a reactant or catalyst, but expressly excluding any turbine, internal combustion engine, duct burner, CO boiler, incinerator or incinerator w aste heat boiler. 6 - - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00006 Case 5:0 7-cv-0|jj|p-W R F Document 25 Filed 1 1 ^ 0 7 Page 7 of 44 Initial faym torv. Animal Update, and Com pliance Plan for Prem cor Refineries 13. Appendix B to this Addendum (the "Initial Inventory") provides an initial list o f all heaters and boilers at the Prem cor Refineries for which heat input capacity is greater than 40 MMBtu/far (HHV). For purposes o f this Addendum, "Covered Heaters and B oilers" shall include all heaters and boilers with heat input capacity greater than 40 M M Btu/hr (HHV) regardless o f any applicable firing rate perm it lim itations. However, the FCCU startup heaters at the Port Arthur Refinery designated as B-103A and B-103B w ill not be considered Covered Heaters provided that each heater is fired no more than 500 hours in any calendar year. Premcor w ill include this limitation in an operating permit pursuant to Paragraph 291. 14. The Initial Inventory identifies previously constructed heaters and boilers at the Prem cor Refineries that com prise the initial list o f Covered Heaters and B oilers. The Initial Inventory also provides the follow ing inform ation concerning the Covered H eaters and Boilers: a. Prem cor's designations for each o f the Covered H eaters and Boilers; b. Identification o f heat input capacity, and the source o f such identification, for each o f the Covered Heaters and Boilers. For purposes o f this subparagraph, heat input capacity for each Covered Heater o r Boiler shall equal the lesser o f any applicable perm it lim it or Prem cor's best then-current estim ate o f its m aximum heat input capacity (hereinafter, "Heat Input Capacity"); c. Identification o f all applicable NOx em ission lim itations, in pounds per million Btu, for each o f the Covered Heaters and Boilers; and d. Statem ent o f whether a continuous em ission m onitoring system ("CEMS") for NOx has been installed on the respective Covered Heater or Boiler. 15. Prem cor shall subm it to EPA an annual update to the Initial Inventory on or before M arch 31 o f each calendar year from 2008 through 2013, inclusive (the "A nnual Update Report"), proviided, however, that Prem cor shall not be obligated to subm it any A nnual Update Report after satisfying the provisions o f Paragraphs 21 and 27. Prem cor shall designate the final Annual Update -7 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00007 Case 5:07-cv-0flfi83-WRF Document 25 Filed 1 1 ^ /0 7 Page 8 of 44 Report. The Annual Update Report shall revise any inform ation included in the Initial Inventory or most recent Annual U pdate Report to the extent appropriate based upon the construction o f a Covered Heater or Boiler or any change during the prior year to any o f the previously existing Covered Heaters and Boileis , including the date o f installation o f any CEMS installed during the prior year. The Annual Update Report ball also include for each Covered H eater and Boiler the estimated actual em ission rate in pounds: ofN O x pea- M M Btu heat input (HHV) and tons per year, and the type o f data used to derive the emisision estim ate (i.e., emission factor, stack test, or CEMS data). B. in te rim Em ission R eductions an d Tim efram es fo r P rem co r R efineries 16 On or before December 31, 2008, Premcor shall subm it to EPA a com pliance plan for attainm eait, by Decem ber 31, 2011, o f a system -wide weighted average, as determ ined in accordance w ith PP; aragraph 28, for Covered H eaters and Boilers o f 0.060 lbs.-NOx/MMBtu (the "Interim Compliaace Plan"). The Interim Com pliance Plan is intended to reflect Prem cor's then-current strategy for satisfying the requirem ents o f Paragraph 17. Prem cor shall not be bound by the terms o f the Interim C' ompliance Plan. 17 B y no later than D ecem ber 31,2011, Prem cor shall install NOx control technologies on, or otherWiise lim it NOx emissions from , certain Covered H eaters and B oilers such that the system -wide weighted average, as determ ined in accordance with Paragraph 28, for NO* em issions from the Covered Heaters and B oilers is no greater than 0.060 lbs.-NOx/M M Btu. 7A. In the context o f satisfying the requirem ents o f Paragraph 17, Prem cor shall install controls a t a m inimum o f three Covered H eaters and Boilers at each o f the Prem cor Refineries to achieve a NOx em ission rate o f no greater than 0.044 lbs-NOx/M M Btu at each selected heater and boiler by December 31,2011. A t least one o f the three controlled Covered H eaters and Boilers at the Lima>anid Port A rthur Refineries w ill have a heat input capacity in excess o f 150 MMBtu/hr. Sierra Club v. EPA 18cv3472 NDCA 8- Tiers 8&9 ED 002061 00164347-00008 Case 5:07-cv-03Q^fig3-WRF Document 25 Filed 1 1 /|J |0 7 Page 9 of 44 1$. Prem cor shall select from among the Covered H eaters and Boilers those units for which NOx enu ssions shall be controlled or otherwise reduced so as to satisfy the requirem ents o f Paragraphs 17 and 17A. 13, For the purposes o f Paragraphs 17 and 17A and in the event that Premcor permanently ceases O0ieration o f any Covered Heaters or Boilers on or before D ecem ber 31, 2011, then Premcor may include each such shutdow n unit in its dem onstration o f compliance w ith Paragraphs 17 and 17A if Prone or notifies the appropriate permitting authority that such unit is no longer operational and requests the withdrawal or invalidation o f any perm it or perm it provisions authorizing operation o f such uni For purposes o f Premcor's dem onstration under Paragraph 28 o f com pliance w ith Paragraph 17, the em issions o f any such shutdown unit shall be equal to 0.000 lbs/M M Btu NOx, and the heat input aiittributed to any shutdow n Covered Heater or Boiler shall be its H eat Input Capacity prior to shutdowm. Ft! F,m ission R eductions and D eadlines fo r Prem cor R efineries 0. On or before D ecem ber 31, 2010, Prem cor shall subm it to EPA a com pliance plan for attainm ent by Decem ber 31,2013, o f a system -w ide weighted average for Covered H eaters and Boilers o f 0.044 lbs.-NOx/M M Btu (the "Compliance Plan"), as determined in accordance with Paragraph 28. The Compliance Plan is intended to reflect Prem cor's then-current strategy for satisfying the requirements o f Paragraph 21. Prem cor shall not be bound by the term s o f the Com pliance Plan. 21. By no later than D ecem ber 31, 2013, Prem cor shall install NOx control technology on, o ro tbicrwise limit NOx em issions from , certain Covered Heaters and Boilers such that the system -wide w eight:qd average, as determined in accordance with Paragraph 28, for NOx emission from the Covere i Heaters and Boilers is no greater than 0.044 lbs.-NOx/MMBtu. 22. Prem cor shall select from among the Covered H eaters and B oilers those units for which NOx em issions shall be controlled or otherw ise reduced so as to satisfy the requirements o f Paragraph 21. ,9 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00009 )(|p 'jj|C Case 5:07-cv-0QfiS3-WRF Document 25 Filed ll/Sfl/O? Page 10 of 44 2; For the purposes o f Paragraph. 21 in the event that, on or before Decem ber 31, 2013, Premcor permanently ceases operation o f any Covered Heaters or Boilers, then Prem cor m ay include each such shutdown unit in its dem onstration o f compliance with Paragraph 21 i f Prem cor notifies the appropriaate perm itting authority that such unit is no longer operational and requests the withdrawal or invalidati on o f any perm it o r perm it provisions authorizing operation o f such unit. For purposes o f Premcor' s dem onstration under Paragraph 28 o f com pliance w ith Paragraph 21, the emissions o f any such shutdown unit shall be equal to 0.000 lbs/M M Btu NOx, and the heat input attributed to any shutdown Covered H eater or B oiler shall be its H eat Input Capacity prior to shutdown. R eserv ed 4 .-2 6 . R eserv ed . C om pliance D em onstration 7, B y no later than M arch 31, 2012, Prem cor shall subm it to EPA a report dem onstrating compliantice w ith Paragraph 17. B y no later than March 31, 2014, Prem cor shall subm it to EPA a report dfesmonstrating compliance w ith Paragraph 21. The com pliance reports subm itted pursuant to this parft].graph shall include the follow ing information for the relevant refineries, as applicable to Premcor 's interim or final com pliance dem onstration: a. The NOx emission lim it for each Covered H eater or Boiler at the Premcor Refmerie::g which is the least o f the following: (i) the NOx emission lim it, in pounds per MMBtu at HHV (as a 365-day rolling average if based on CEM S, or as a 3-hour average if based on stack tests) based u pon any existing federally enforceable, non-Title Y (perm anent) perm it condition, including such a condition as m ay be reflected in a consolidated perm it (where applicable), o f the Covered Heater or Boiler, or (ii) the NOx em ission lim it, in pounds per M M Btu at HHV, reflected in any perm it applicaiion for a federally enforceable, non-Title V (perm anent) permit, including a consolidated perm it vhere such lim it w ould also be perm anent, subm itted by Prem cor for such Covered H eater or Boiler prior to the date o f subm ittal o f the Com pliance Report. In the event that Prem cor identifies a 10- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00010 |j|0 Case 5:07-cv-0Q|83-WRF Document 25 Filed ll/afl/O 7 Page 11 of 44 '1 NOx emission lim it, in pounds p er M M Btu at HHV, for a Covered H eater or Boiler pursuant to this paragrapJ>hbased on a N O x em ission lim it then reflected in a pending perm it application, Prem cor shall not with<draw such application nor m ay Premcor seek to m odify that application to increase the NOx emission lim it reflected in such application w ithout prior EPA approval. b. H eat Input Capacity, in M M Btu/hr at HHV, for each Covered H eater and Boiler at the Pr<emcor Refineries, including an explanation o f any change relative to that reported in the most recent Annlual Update. c. A dem onstration o f com pliance with Paragraph 17 or 21, as applicable, performied in accordance with Paragraph 28. 28. Premcor shall demonstrate compliance with the provisions o f Paragraph 17 by the followin inequality: 0.060 > (E L ix HIRj)) + I V N l / [ (H IR d + IVD] Premcoi hall dem onstrate com pliance w ith the provisions o f Paragraph 21 by the following inequali 0.044 > [ ( (E L ixH IR i)) + F V N ] /[ (H IR j) + FVD] For the purposes o f Paragraph 28: Lj = The relevant N O x Em ission Lim it for the Prem cor Covered H eater or Boiler "i", m pouni s per million Btu (HHV), as reported pursuant to Paragraph 27(a); HIRi = Heat Input Capacity o f the Prem cor Covered Heater or B oiler "i", in million Btu (HHV) per hour, as reported pursuant to Paragraph 27(b); n The total num ber o f Covered H eaters and B oilers at the Premcor Refineries. IVN = The summation, in pounds per hour, o f the products o f the relevant NOx Emission Limit [in lbs per m illion B tu (HHV)] and the H eat Input Capacity (in m illion Btu per hour) for each o f the 11 - - Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00011 Case 5:07-cv-0Q83-WRF Document 25 Filed ll/J fi/0 7 Page 12 of 44 w Covered Heaters and Boilers as reported in the num erator in the interim compliance report (to be subm itted by Valero to EPA by M arch 31,2010) pursuant to Paragraph 27 o f the Consent D ecree. IV D = The summation o f the H eat Input Capacities in m illion B tu (HHV) p er hour for all o f the Covered H eaters and B oilers as reported in th e denom inator in the interim com pliance report (to be subm itted b y V alero to EPA by M arch 31,2010) pursuant to Paragraph 27 o f the Consent Decree. FVN = The sum m ation, in pounds per hour, o f the products o f the relevant NOx Em ission Lim it [in lbs per m illion B tu (HHV)] and the H eat Input Capacity (in m illion B tu per hour) for each o f the Covered H eaters and Boilers as reported in the num erator in the final com pliance report (to be submitted by Valero to EPA b y M arch 31,2012) pursuant to Paragraph 27 o f the Consent Decree. FVD = The summation o f the Heat Input Capacities in m illion B tu (HHV) per hour for all o f the Covered H eaters and B oilers as reported in the denom inator in the final com pliance report (to be subm itted by Valero to EPA by M arch 3 1,2012) pursuant to Paragraph 27 o f the Consent Decree. F. M onitoring Requirements 29. B y no later than D ecem ber 31,2013, for Covered H eaters and Boilers existing on the Date o f Lodging for which Prem cor takes an emission lim it o f <0.060 lbs NOx/MMBtu w ithout adding additional controls to m eet the requirem ent o f Paragraphs 17 and 21; and beginning no later than 180 days after installing controls on a Covered H eater and Boiler for purposes o f com pliance w ith the requirement o f Paragraphs 17 and 21, Prem cor shall m onitor each such Covered H eater o r B oiler at the Premcor Refineries as follows: a. For a Covered H eater or B oiler at the Prem cor R efineries w ith a H eat Input Capacity o f 150 M M Btu/hr (HHV) or greater, Premcor shall install or continue to operate a continuous emission monitoring system ("CEM S") fo r NOx; b. For a Covered Heater or B oiler at the Premcor R efineries with a H eat Input Capacity greater than 100 M M Btu/hr (HHV) but less than or equal to 150 M M Btu/hr (HHV), Prem cor shall install o r continue to operate a CEM S for NOx, or m onitor NOx emissions w ith a predictive em issions m onitoring system ("PEM S") developed and operated pursuant to the requirem ents o f Appendix S o f this Addendum ; - 12- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00012 Case 5:07-cv-0Q83-WRF Document 25 Filed 11/2/07 Page 13 of 44 1 c. For a Covered H eater or Boiler at the Premcor R efineries w ith a Heat Input Capacity o f less than or equal to 100 M M Btu/hr(HHV), Premcor shall conduct an initial performance test and any periodic tests that m ay be required by EPA or by the applicable State or local permitting authority under applicable regulatory authority. Prem cor shall report the results o f the initial perform;aimce testing to EPA and the appropriate Plaintiff-Intervener. Prem cor shall use Method 7E or an EPA' approved alternative test m ethod to conduct initial perform ance testing for NOx emissions required b;y this subparagraph (c). 1Nothing in this Addendum shall preclude a facility from converting a 3-hour rolling average limit to the same lim it expressed as a 365-day rolling average lim it if such demonstration o f compliantice is based upon CEMS or PEM S. 30, Premcor shall install, certify, calibrate, m aintain and operate all NOx CEMS required by Paraj.graph 29 in accordance w ith the provisions o f 40 C.F.R. Section 60.13 that are applicable to CEMS (excluding those provisions applicable only to continuous opacity m onitoring system s) and Part 60, Ap;ipendices A and F, and the applicable perform ance specification o f 40 C.F.R. Part 60, Appendix B. W ith respect to 40 C.F.R. Part 60, Appendix F, in lieu o f the requirements o f 40 C.F.R. Part 60, Append!x F 5.1.1, 5.1.3 and 5.1.4., Premcor m ust conduct either a Relative Accuracy Audit ("RAA ) or a Relative Accuracy Test Audit ("RATA") on each CEMS required by Paragraph 29 at least once every three (3) years. Prem cor m ust also conduct Cylinder Gas A udits ("CGA") each calendar quarter during w hich a RAA or a RATA is not performed. G. Reserved 3 1 .-3 3 . Reserved. H . A dditional Provisions 34. Nothing in this Addendum is intended to lim it Prem cor from satisfying any provisions o f this Part IV earlier than the applicable com pliance date specified in this part. 13 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00013 ^j|C Case 5:07-cv-0Qfi83-WRF Document 25 Filed 11/2/07 Page 14 of 44 1 V. NOy EMISSION REDUCTIONS FR O M FCCUs rnoram S um m ary: Premcor w ill implement a program to lim it NOx em issions from its CCU regenerators b y achieving a system-wide average o f unit-specific NOx concentration amission lim its for each o f the FCCUs subject to this Part V. F. Reserved 35 -44. R eserv ed . a FCCU NOx Emission Redactions 45 Prem cor shall attain a system -wide, coke bum -w eighted average o f NOx concentration emission lim its for each FCCU at the Premcor Refineries (hereinafter collectively referred to as "Covered FCCUs") in accordance w ith the provisions o f this Section G. 45A. On or before Decem ber 31,2011, Premcor shall complete an optim ization study o f the oxygen control system (0 2 CS) on the FCCUs at the Lima and M emphis Refineries in an effort to achieve NOx concentration em issions o f 20 ppmvd (at 0% 0 2) as a 365-day rolling average and 40 ppmvd (at 0% 0 2) as a 7-day rolling average. W ithin sixty days after the conclusion o f each optimiziation study, Premcor shall submit to EPA and the appropriate Plaintiff-Intervener reports detailing the NOx concentration em issions for the FCCUs through the optim ization o f the 0 2CS. 46 Appendix C to this Addendum (the "Initial FCCU A nnual Coke Bum Rates") provides a list o f all Covered FCCUs, as o f the Date o f Lodging. Appendix C also identifies Prem cor's best estimate o f maximum coke bum rate and any perm it lim its applicable to maximum coke bum rate for each su<eh FCCU, as o f the Date o f Lodging. 47. Prem cor hall subm it to EPA an annual update to Appendix C on or before March 31 o f eachcalendar year from 2009 through 2014, inclusive (the "Annual FCCU Update Report"), provided, howevier., that Premcor shall not be obligated to submit any Annual Update Report after satisfying the provisio:ns of Paragraphs 55 and 56. The Annual FCCU Update Report shall identify Prem cor's best estimaie o f maximum coke bum rate and any permit limits relating to maximum coke bum rate for Sierra Club v. EPA 18cv3472 NDCA 14 Tiers 8&9 ED 002061 00164347-00014 )(|p |j|C Case 5:07-cv-0Q83-WRF Document 25 Filed ll/afl/O? Page 15 of 44 each Co\ ered FCCU as o f the date o f the report. Premcor shall identify and explain any such difference) from the previous report under Paragraph 46 and this Paragraph 47. 41 Premcor shall attain the following system-wide, coke bum-weighted average o f NOx concentraiition emission limits for Covered FCCUs by the following dates: (a) an interim NOx concentriation em ission lim it average o f 69.2 ppm vd (at 0% 0 2), as a 365-day rolling average, by December 31, 2010 (the "Interim NOx System -W ide Average"), as determined in accordance w ith Paragrap h 54 and (b) a final NOx concentration em ission lim it average o f 33.4 ppm vd (at 0% Qz), as a 365-day oiling average, by Decem ber 31,2013 (the "NOx System-W ide Average"), as determ ined in accordanee with Paragraph 56. 49 Prem cor shall select from among the Covered FCCUs those units for which NOx emission s shall be controlled or otherwise reduced so that Prem cor satisfies the Interim N O x System Wide Ar erage and the NOx System-W ide Average. Provided however, no Covered FCCU w ill have a perm it lim it higher than 80 ppm vd at 0% O2 on a 365-day rolling average at the tim e it demonstrates complianice w ith Paragraph 48(b). &0. For the purposes o f Prem cor's satisfaction o f Paragraph 48(a) and in the event that, subsequ mt to the D ate o f Entry o f this Addendum and before December 31, 2010, Premcor permaniently ceases operation o f any Covered FCCU at the Prem cor R efineries, then Prem cor m ay include each such shutdown unit in its dem onstration o f com pliance w ith the Interim NOx SystemWide Av' erage, if Prem cor notifies the appropriate permitting authority that such unit is no longer operatic nal and requests the w ithdraw al o r invalidation o f any perm it o r perm it provisions authorizing operatic n o f such unit. For purposes o f Prem cor's demonstration under Paragraphs 53 and 54 o f complnance with the Interim NOx System-W ide Average, the em issions rate o f any such shutdown unit shall be equal to 20 ppm vd NOx at 0% 0 2, and the maximum coke bum rate attributed to any such shutdowto FCCU shall equal the lesser o f Premcor's best estimate o f m axim um coke bum rate or the FCCU perm it lim it relating to m axim um coke bum rate prior to the FCCU shutdown, provided, -15- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00015 i(|p: Case 5:07-cv-0Q|S3-WRF Document 25 Filed 11/2^0/07 Page 16 of 44 however that if a new FCCU is also constructed and operated at such refinery, then the maximum coke bin rate and the NOx em ission lim it o f such new FCCU shall be used in lieu o f the original Covered FCCU. 51 For purposes o f this Section V.G, "m aximum coke bum rate" shall m ean the lesser o f the perm itted coke bum rate, i f any, o r Prem cor's best current estim ate on an average annual basis. 52. For the purposes o f Prem cor's satisfaction o f Paragraph 48(b) and in the event that Premcor perm anently ceases operation o f any Covered FCCU subsequent to the D ate o f Entry o f this Addend)urn and before Decem ber 31, 2013, then Premcor may include each such shutdown unit in its demons{ration o f com pliance w ith the NOx System-Wide Average, if Prem cor notifies the appropriate pennitti;g authority that such unit is no longer operational and requests the withdraw al or invalidation o f any perm it or permit provisions authorizing operation o f such unit. For purposes o f Prem cor's demonsKxation und ' Paragraphs 55 and 56 o f com pliance w ith the NOx System -W ide Average, the concentration emission lim it o f any such shutdow n unit shall be equal to 20 ppm vd NOx at 0% O2, and the mas im um coke bum rate attributed to any such Covered FCCU that is shutdown shall equal the lesser of Premcor's best estimate o f maximum coke bum rate or the FCCU's permit limit relating to maximiUmcoke bum rate prior to the FCCU shutdow n, provided, however, that if a new FCCU is also constru ted and operated at such refinery, then the maximum coke bum rate and the NOx emission lim it o: such new FCCU shall be used in lieu o f the original Covered FCCU. 53. Compliance Demonstration: By M arch 31,2011, Premcor shall submit to EPA a report demons!to tin g compliance w ith the Interim NOx System-Wide Average. The compliance report subm iWed pursuant to this paragraph shall include the following inform ation for the relevant refineries, asappl cable to Premcor's compliance demonstration: a The NOx concentration em ission lim it for each Covered FCCU at the Premcor Refineries w hich is the least o f the following: (i) the allowable NOx concentration emission lim it (as a 365-d y average), based upon any existing, federally enforceable non-Title V perm it condition, -16- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00016 )(|p Case 5:Q7~cv~QQftB3~WRF Document 25 Filed 1 1 /^ 0 7 Page 17 of 44 including such a condition as may be reflected in a consolidated permit (where applicable), or (ii) the NOx con sentration emission lim it reflected in any application for a federally enforceable non-Title V permit, including a consolidated perm it, where such lim it would also be perm anent, submitted by Premcor or such Covered FCCU prior to the date of subm ittal o f the compliance report. In the event that Prem<cor identifies a NOx concentration em ission lim it for a Covered FCCU pursuant to this paragraph based on a NOx concentration em ission lim it then reflected in a pending perm it application, Premcor shall not withdraw such application nor may Premcor seek to modify that application, nor request an increase in the NOx concentration amission lim it reflected in such application, without prior EPAapproval. b. c. Reserved. A demonstration o f compliance with the Interim NOx System-Wide Average performed in accordance with Paragraph 54. 4 Premcor shall demonstrate compliance w ith the Interim NOx System-Wide Average by meeting the following inequality: 69.2 > [ ( (ELjXHIRj)) + IV N ]/[(] M RO + IVD] i i Where: ,Lj = The relevant NOx concentration emission limit for the Covered FCCU "i" at the Franco Refineries, in parts per million, as reported pursuant to Paragraph 53(a); HR, = M aximum coke bum rate o f the Covered FCCU "i" at the Premcor Refineries, as reported pursuant to Paragraph 47; n = The total num ber o f Covered FCCUs at the Premcor Refineries IVN = The summation o f the products o f the relevant NOx concentration em ission lim it (in parts p sr million) and the Maximum coke bum rate for each Covered FCCU and the Golden Eagle FCCU as reported in the num erator pursuant to Paragraph 53 o f the Consent Decree. 17 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00017 Case 5:07-cv-0083-WRF Document 25 Filed 11/'2^C/07 Page 18 of 44 IVD = The summation o f the Maximum coke bum rates for all Covered FCCUs and the Golden Eagle FCCU as reported in the denom inator pursuant to Paragraph 53 o f the Consent Decree. 55. Compliance Demonstration: By M arch 31,2014, Prem cor shall subm it to EPA a report demonstrating compliance w ith the NOx System-Wide Average. The compliance report submitted pursuant to this paragraph shall include the M ow ing inform ation for the relevant refineries, as applicable to Prem cor's com pliance demonstration: a. The NOx em ission lim it for each Covered FCCU at the Prem cor Refineries which is the least o f the following: (i) the allowable NOx concentration emission lim it (as a 365-day average), based upon any existing, federally enforceable non-Title V perm it condition, including such a condition as m aybe reflected in a consolidated perm it (where applicable), or (ii) the NOx concentration emission lim it reflected in any application for a federally enforceable non-Title V perm it, including a consolidated perm it, where such lim it would also be perm anent, subm itted by Premcor for such Covered FCCU prior to the date o f subm ittal o f the com pliance report. In the event that Pretocor identifies a N O x concentration em ission lim it for a Covered FCCU pursuant to this paragraph based on a NOx concentration em ission lim it then reflected in a pending perm it application, Prem cor shall not w ithdraw such application nor may Prem cor seek to m odify that application, nor request an increase in the NOx concentration em ission lim it reflected in such application w ithout prior EPA approval. b. c. R eserv ed . A dem onstration o f com pliance w ith the NOx System -W ide Average performed rnaccGrdance with Paragraph 56. 56. Premcor shall demonstrate compliance with the NOx System-Wide Average by meeting the fol owing inequality: 33.4 > [ ( J ELjxHIRi) + F V N ]/[(2 fflR*) + FVD] i ` -18- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00018 Case 5:07-cv-0 (|p 3 -W R F Document 25 Filed 11/ Page 19 of 44 W here: ' EL* = The relevant N O x concentration emission lim it for th e C overed FCCU "i", in parts per m illion, as reported pursuant to Paragraph 55(a); ]URj = M axim um coke bum rate o f the Covered FCCU "i" at the Prem cor R efineries, as reported pursuant to Paragraph 47; n = The total number o f Covered FCCUs at the Prem cor R efineries. jTVN = The sum m ation o f the products o f the relevant NOx concentration em ission lim it (in parts per m illion) and the M axim um coke bum rate for each Covered FCCU and the Golden Eagle FCCU as reported in the num erator pursuant to Paragraph 55 o f the Consent D ecree.. FVD = The sum m ation o f the M axim um coke bum rates for all Covered FCCU's and the Golden Eagle FCCU as reported in the denominator pursuant to Paragraph 55 o f the C onsent Decree. 57. - 58. R eserv ed . H. Additional Provisions 59. Notwithstanding any provision o f this Addendum to the contrary and in lieu o f com plying w ith any NO x em ission control requirem ents established pursuant to this Part V, Prem cor m ay elect to achieve N O x concentration em ission lim its o f 20 ppm vd (at 0% O2) o r less as a 365-day rolling average and 40 ppmvd .(at 0% O2) or less as a 7-day rolling average b y permanently shutting down such FCCU or FCCU-regenerator, or b y application o f any em ission reduction m ethod or technology, including any technology not specified in this A ddendum , by the refinery-specific com pliance date specified in this P art V. Prem cor's election to satisfy its obligations under this Part V through com pliance w ith this paragraph shall not lim it the applicability or extent o f Part XXIV (Effect o f Sett] ement) w ith respect to such Covered FCCU. 60. Prem cor shall take such action as m ay be necessary to ensure that each 365-day rolling average NOx em ission lim it used to dem onstrate com pliance under Paragraphs 55 and 56 is less than or equal to 80 ppm . In addition and as part o f each perm it or perm it application under Paragraphs 55 and 56, Prem cor shall also have o r have applied for a 7-day rolling average NOx concentration em ission lim it that shall be num erically tw ice the 365-day rolling average N O x concentration em ission lim it used for that FCCU to dem onstrate com pliance under Paragraphs 55 and 56. -19- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00019 )(|p Case 5:07-cv-0Q83-WRF Document 25 Filed 11/'^22j|C/07 Page 20 of 44 CEMS 61 Beginning no later than the Date o f Entry for each Covered FCCU, Premcor shall use NOx and 0 2CEMS to m onitor perform ance o f the FCCU and to report compliance with the terms and conditionis o f tins Addendum. 62 The CEMS w ill be used to demonstrate com pliance w ith the respective NOx concentratieon emission lim its established pursuant to this Part V. Premcor shall make CEMS data available to EPA and any appropriate Plaintiff-Intervener upon demand as soon as practicable, Premcoi shall install, certify, calibrate, m aintain and operate all CEMS required by this paragraph in accordajice w ith the provisions o f 40 C.F.R. 60.13 that are applicable to CEMS (excluding those provisio ns applicable only to continuous opacity m onitoring systems) and Part 60, Appendices A and F, and the applicable perform ance specification test o f 40 C.F.R. Part 60, A ppendix B. W ith respect to 40 C.F R. Part 60 Appendix F, in lieu o f the requirem ents o f 40 C.F.R. P art 60, Appendix F 5.1.1, 5.1.3 mid 5.1.4, Prem cor m ust conduct either a RAA or a RATA on each CEMS at least once every three (. ) years. Premcor must also conduct CGA each calendar quarter during which a RAA or a RATA s not performed. 63. Reserved. V I. SOi Emission Reductions from FCCUs P riw ram Sum m ary: Premcor shall implement a program to reduce SO2 emissions from their FCCUs, w hich shall include the commitment to lim it SO2 em issions from the M emphis m d Port Arthur FCCUs to specific concentrations and otherwise lim it S 0 2 emissions from the Lima FCCU through the use o f S 0 2-reducing catalyst additives. A . - L . Reserved 64. - 82. R eserv ed . M, Additional Provisions 83. Provisions for reduction o f S 0 2 em issions from Prem cor refineries. a. Memphis. U pon D ate o f Entry o f this Addendum, Prem cor shall comply with S 0 2 concentration em ission lim its at the point o f em ission from the M em phis Refinery FCCU to the - 20- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00020 )j|p Case 5:07-cv-0Q|83-WRF Document 25 Filed ll/2 fl/0 7 Page 21 of 44 w atmosphere of no greater than 25 ppm vd measured as a 365-day rolling average and 50 ppmvd measured as a 7-day rolling average, both at 0% O2, and w ill continue to operate a w et gas scrubber at theM em iphis Refinery FCCU. b. Port Arthur U pon D ate o f Entry o f this Addendum , Premcor shall comply w ith S 0 2 comicentration em ission lim its at the point o f em ission from the Port A rthur R efinery FCCU to the atmosphere o f no greater than 25 ppm vd m easured as a 365-day rolling average and 50 ppmvd measured as a 7-day rolling average, both at 0% O2, and w ill continue to operate a w et gas scrubber at the Port Arthur Refinery FCCU. c. T.jma Premcor shall commence implementation o f the SO2 adsorbing catalyst additive protocol described in Appendix E. , i4. Reserved. 85 Prem cor m ay elect to subm it for approval by EPA, after an opportunity for consultation w ith the Ohio EPA, a plan for the operation o f the Lim a FCCU (including associated air pollution control equipment) during hydrotreater outages. Any such plan shall provide for the m inim ization o f emissio:ins during hydrotreater outages to the extent practicable. The plan shall consider, at a minimiurn the use o f low sulfur feed, storage o f hydrotreated feed and an increase in additive addition rate, Aary short term emission lim its established for the Lima FCCU pursuant to this Addendum shall not ap]ply during periods o f hydrotreater outage provided that Premcor is in compliance w ith any plan subm itted by Prem cor under this paragraph for die Lim a FCCU, and is m aintaining and operating the FCCTJ m a manner consistent w ith good air pollution control practices. In order for the relief for short term eimussion lim its afforded by this paragraph to apply to a period o f hydrotreater outage, Prem cor shall C01mply with the plan approved by EPA under this paragraph at all times, including periods of startup, shutdown or malfunction o f the hydrotreater. In addition, in the event that Premcor asserts that the basils for a specific hydrotreater outage for w hich Prem cor seeks to secure the relief from short term emissiOn lim its provided under this paragraph is a shutdown (where no catalyst change out occurs) 21 - - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00021 )(jp Case 5:07-cv-0QfiS3-WRF Document 25 Filed 11/20/07 Page 22 of 44 required by ASME pressure vessel requirem ents or applicable state boiler requirem ents, Prem cor shall submit to EPA a report that identifies the relevant requirem ents and justifies Prem cor's decision to implement the shutdown during the selected tim e period. For the purposes o f this Paragraph 85, "hydrotreaiiter" shall include any units that hydrotreat or otherwise desulfurize FCCU feedstocks. 86 Notwithstanding any provision o f this Addendum to the contrary, Premcor may elect to limit emi ssions from the Lima FCCU to S 0 2 concentrations o f 25 ppmvd or less, measured as a 365day rollinig average, and 50 ppm vd or less, measured as a 7-day rolling average, each at 0% 0 2, includin; without lim itation by perm anently shutting down such FCCU o r by application o f any emission reduction m ethod o r technology, including any technology not specified in this Addendum. NotwithiStanding any provision o f this Addendum to the contrary and in lieu o f complying with any specific SO2 emission control requirements established pursuant to this Part VI for a WGS, Premcor may eleci;t to shut down such Refinery's FCCU. In the event that Premcor elects to demonstrate compliantce w ith this Part V I for the Lim a FCCU by com plying w ith this paragraph, then Premcor must ad;Meve compliance w ith this paragraph for the Lim a FCCU by no later than the refinery-specific compliantice date for com pletion o f the demonstration period identified in Appendix E or as otherwise specified in this Part VI. Prem cor's election to satisfy its obligations under this Part VI for any Premcor Refinery subject to this Addendum through compliance w ith this paragraph shall not lim it the applicab:ility or extent o f Part XXIV (Effect o f Settlement) w ith respect to such FCCU. 87 88. R eserv ed , K Monitoring Emissions and D em onstrating Com pliance 89. Beginning no later than the Date o f Entry for each covered FCCU, Prem cor shall use SO2 and Oj CEMS to monitor performance o f the FCCU and to report compliance w ith the terms and conditio:ns o f this Addendum. 90. CEMS w ill be used to demonstrate com pliance w ith the respective SO2 concentration emissionm lim its established pursuant to this Part VI. Prem cor shall m ake CEMS data available to EPA - 22- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00022 Case 5:07-cv-00Sfi3-WRF Document 25 Filed 11/2M^ jT37i Page 23 of 44 and any appropriate Plaintiff-Intervener upon demand as soon as practicable. Prem cor shall install, certify, calibrate, maintain and operate all CEMS required by this paragraph in accordance with the provisions o f 40 C.F.R. 60.13 that are applicable to CEMS (excluding those provisions applicable only to continuous opacity monitoring systems) and Part 60, Appendices A and F, and the applicable performance specification test o f 40 C.F.R. Part 60, Appendix B. W ith respect to 40 C.F.R. Part 60 Appendi x F, in lieu o f the requirem ents o f 40 C.F.R. Part 60, Appendix F 5.1.1, 5.1.3 and 5.1.4, Premcor m ust conduct either a RAA or a RATA on each CEMS at least once every three (3) years. Premcor must also conduct a CGA each calendar quarter during which a RAA or a RATA is not perform ed. 91. Reserved. 92. All CEMS data collected by Prem cor during the effective life o f the Addendum shall be made available by Prem cor to EPA upon demand as soon as practicable. 93. Reserved. m CO . O PA C ITY AND PA R TIC U LA TE EM ISSIONS FROM FCCU s P rogram Sum ma ry - Prem cor shall im plem ent a program to lim it CO and particulate em issions from its FCCUs and shall implem ent m onitoring at each FCCU sufficient to dem onstrate com pliance w ith em ission standards specified in this Part. 94. m Em ission Standard. Prem cor shall lim it CO emissions from the Covered FCCUs at the Premcor Refineries to 500 ppm vd (at 0% 0 2), measured as a one-hour block average, in accordance with the schedule identified herein. 95. Particulate Emission Standard. Premcor shall lim it particulate em issions from the Coverted FCCUs at the Prem cor R efineries to one (1) pound per 1,000 pounds o f coke burned (front h a lf oitly according to Method 5B or 5F, as appropriate), measured as a one-hour average over three perform;ance test runs, in accordance w ith the schedule identified herein. 96. Except as specified in Paragraph 104 and by no later than ninety (90) days from the Date cf Entry o f this Addendum , Premcor shall ensure that the FCCUs located at the M emphis and -23- Sierra Clubv. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00023 '|j|C Case 5:07-cv-0Q83-WRF Document 25 Filed 11/2D/07 Page 24 of 44 1 Port Aititiiur Refineries shall com ply w ith the CO, opacity and particulate emission standards specified in Paragflaphs 94 and 95, respectively, and all applicable requirem ents o f 40 C.F.R. Part 60, Subparts A and J, as such requirem ents relate to CO, opacity and particulate em issions from FCCU regenerators. 97 By no later than ninety (90) days from the D ate o f Entry o f this Addendum , Premcor shall engure that the FCCU located at the Lim a Refinery shall comply w ith the CO em ission standard specified in Paragraph 94, and all applicable requirem ents o f 40 C.F.R. Part 60, Subparts A and J, as such reqiuirements relate to CO em issions from FCCU regenerators. 98. B y no later than D ecem ber 31,2013, Premcor shall ensure that the FCCU located at the Lima Re;finery com plies with the opacity and particulate em ission standards specified in Paragraph 95 and all applicable requirem ents o f 40 C.F.R. Part 60, Subparts A and J, as such requirem ents relate to opacity and particulate em issions from FCCU regenerators. )9. Reserved. 100. Lodging o f this Addendum shall satisfy any obligation otherw ise applicable to Prem cor to provride notification in accordance w ith 40 C.F.R. Part 60, Subparts A and J, including without limitatioi 40 C.F.R. 60.7, w ith respect to the provisions o f 40 C.F.R. Part 60, Subparts A and J, as such nequirements relate to CO, opacity and particulate emissions from FCCU regenerators. 101. CEMS or an EPA approved alternative monitoring plan or monitoring waiver will be used to dem onstrate com pliance w ith the respective CO em ission lim its established pursuant to this Part V II. Premcor shall m ake CEMS data available to EPA and any appropriate Plaintiff-Intervener upon d anand as soon as practicable. Prem cor shall install, certify, calibrate, m aintain and operate all CEMS required by this paragraph in accordance with the provisions o f 40 C.F.R. 60.13 that are appliciable to CEMS (excluding those provisions applicable only to continuous opacity monitoring systems) and Part 60, Appendices A and F, and the applicable perform ance specification test o f 40 C.F.R. Part 60, Appendix B. W ith respect to 40 C.F.R. Part 60 Appendix F, in lieu o f the requirements o f 40 1F.R. Part 60, Appendix F 5.1.1, 5.1.3 and 5.1.4, Prem cor must conduct either a RAA or a -24- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00024 Case 5:07-cv-0Q83-WRF Document 25 Filed 11/'^22C/07 Page 25 of 44 1 RATA on each CEMS at least once every three (3) years. Prem cor m ust also conduct a CGA each calendar quarter during which a RAA or a RATA is not perform ed. To the extent that Prem cor has conducted any performance testing o f the relevant unit for PM em issions, and such performance testing was conducted in accordance w ith the procedures specified in EPA Method 5B or 5F, as appropriate, or 40 C.F.R. Part 63, Subpart UUU, and dem onstrated com pliance w ith the emission limits established under this part, then such performance testing shall satisfy any obligation otherwise applicable under this Part to conduct performance testing under 40 C.F.R. Part 60, Subparts A and J. Any future perform ance testing perform ed by Prem cor to dem onstrate com pliance w ith the particulate emission limitations established by this Part shall be conducted in accordance w ith EPA M ethod 5B or 5F, as appropriate, set forth at 40 C.F.R. Part 60, Appendix A. 102. The CO, opacity, and particulate lim its established pursuant to this Part V II shall not apply d innsg periods o f startup, shutdow n or m alfunction o f the FCCUs or m alfunction o f the applicable CO or particulate control equipm ent, if any, provided that during startup, shutdown or m alfunction, Prem cor shall, to the extent practicable, m aintain and operate the relevant affected facility, including associated air pollution control equipm ent, in a m anner consistent w ith good air pollution control practices for m inim izing emissions. 03. Continuous O pacity M onitoring System (COMS) or an approved AMP w ill be used to demonstrate compliance w ith the respective opacity lim its established pursuant to this Part W Premcor shall make any COMS data available to EPA and any appropriate Plaintiff-Intervener upon as soon as practicable. Premcor shall install, certify, calibrate, m aintain and operate all COMS required by this paragraph in accordance w ith the provisions o f 40 C.F.R. 60.11, 60.13, and Part 60 Appendix A, and the applicable perform ance specification test in 40 C.F.R. Part 60 Appendix B. 104. W ithin 180 days o f the D ate o f Entry o f the Addendum, Prem cor w ill have subm itted or shall submit to EPA complete opacity alternative m onitoring plan ("AMP") applications for the FCCUS located at M emphis and Port A rthur. If such AM Ps are not approved, Prem cor shall w ithin -25- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00025 'ij|C Case 5:07-cv-0Qfi3-WRF Document 25 Filed ll/2 fl/0 7 Page 26 of 44 1 ninety (90) days o f receiving notice o f such disapproval either invoke the dispute resolution provisions o f Part X X m or subm it to EPA for approval, w ith a copy to the appropriate Plaintiff-Intervener, a plan and schedule that provides for com pliance w ith the applicable m onitoring requirem ents under NSPS Subpart J as soon as practicable. Such plan m ay include a revised AM P application, physical or operational changes to the equipm ent, o r additional o r different m onitoring. These FCCU s shall not be subject to the applicable requirements o f 40 C.F.R. Part 60, Subparts A and J, as such requirements relate to opacity from FCCU regenerators until EPA approves AM Ps for opacity or Prem cor com plies w ith the above-identified requirem ents o f this paragraph. 105. Reserved. 106. N othing in this Addendum shall be interpreted to lim it Prem cor's opportunity to propose to EPA an alternative com pliance m onitoring plan (AM P) under 40 C.F.R. Part 60, Subpart A, for CO, opacity or particulate em issions from FCCUs under NSPS Subpart J. V m . NSPS APPLICABILITY T O SO , EM ISSIO N S FR O M FCCU REGENERATORS P ro g ram Sum m ary; Prem cor shall comply w ith all requirem ents o f 40 C .F .R Part 60, Subparts A and J, as such provisions relate to SO2 emissions from FCCU Regenerators, by the deadlines specified in this Part. 107. Prem cor's FCCU R egenerators at the follow ing refineries shall be "affected facilities" pursuant to 40 C.F.R. Part 60, Subpart J, and shall com ply w ith all requirem ents o f 40 CJF.R, P art 60, Subparts A and J, as such provisions relate to SO2 em issions from FCCU Regenerators, on the following dates: a. Tima R egenerator - D ecem ber 31,2010, or as specified in Paragraph 111 b. M em phis Regenerator - U pon Date o f Entry c. * Port A rthur R egenerator - U pon D ate o fE n try 108. Lodging o f this A ddendum shall satisfy any obligation otherw ise applicable to Prem cor to provide notification in accordance w ith 40 C.F.R. Part 60, Subparts A and J, including without Sierra Club v. EPA 18cv3472 NDCA 26' Tiers 8&9 ED 002061 00164347-00026 'Upc Case 5:07-cv-0Qj|83-WRF Document 25 Filed 11/2/07 Page 27 of 44 Of limitation 40 C.F.R. 60.7, w ith respect to the provisions o f 40 C.F.R. P art 60, Subparts A and J, as such provisions relate to SO2em issions from FCCU Regenerators. ! )9. OEMS w ill be used to demonstrate com pliance w ith the respective SO2 em ission lim its established pursuant to this P art VIH. Prem cor shall m ake CEMS data available to EPA and any appropriate Plaintiff-Intervener upon demand as soon as practicable. Premcor shall install, certify, calibrate maintain and operate all CEMS required by this paragraph in accordance w ith the provisions o f 40 CF.R. 60.13 th at are applicable to CEMS (excluding those provisions applicable only to continuous opacity m onitoring system s) and Part 60, A ppendices A and F, and the applicable perform ance specification test o f 40 C.F.R. Part 60, A ppendix B. W ith respect to 40 C.F.R. Part 60 A ppendix F, in lieu o f the requirem ents o f 40 C.F.R. Part 60, A ppendix F 5.1.1, 5.1.3 and 5.1.4, Premcor must conduct either a RAA or a RATA on each CEMS at least once every three (3) years. Prem cor m ust also conduct a CG A each calendar quarter during w hich a R A A o r a RATA is not perform ed. 10. The SO2lim its established pursuant to this Part shall not apply during periods o f startup, shutdow a or m alfunction o f th e FCCUs and hydrotreaters, o r the m alfunction o f SO2 control equipmient, if any, provided that during startup, shutdow n o r m alfunction, Prem cor shall, to the extent practical*le, m aintain and operate the relevant affected facility, including associated air pollution control squipment, in a m anner consistent w ith good air pollution control practices for m inim izing em issions, 11. B y D ecem ber 3 1 ,2008, Premcor shall submit to EPA a com plete alternative m onitoring plan ("AM P") application for N SPS Subpart J m onitoring for SO2 at the Lim a FCCU. If such AM P is not approved, Prem cor shall w ithin ninety (90) days o f receiving notice o f such disapproval either invoke the dispute resolution provisions o f Part XXIII or submit to EPA for approval, w ith a copy to the appropriate Plaintiff-Intervener, a plan and schedule that provides for com pliance w ith the applicable m onitoring requirem ents under NSPS Subpart J as soon as practicable. Such plan m ay 27 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00027 Case 5:07-cv-00|p-W R F Document 25 Filed 1 1 /2^^77 Page 28 of 44 include a revised AM P application, physical o r operational changes to the equipm ent, or additional or different m onitoring. 112. N othing in this Addendum shall be interpreted to lim it Prem cor's opportunity to propose to EPA an alternative com pliance m onitoring plan under 40 C.F.R. P art 60, Subpart A , for SO2em issions from FCCU regenerators. IX. SO? AND NSPS REQUIREM ENTS FOR HEATERS AND BOILERS Program Sum m ary! Prem cor shall undertake the follow ing m easures at the Prem cor Refineries to reduce S 0 2 em issions from heaters and boilers by elim inating o r m inim izing the burning o f fuel oil, and satisfying the provisions o f 40 C.F.R. P art 60, Subparts A and J, as such provisions apply to fuel gas com bustion devices. 113. B y no later than the D ate o fE n try , Prem cor shall discontinue the burning or com bustion o f Fuel Oil in any o f the heaters and boilers at the Premcor Refineries, except as provided in Paragraph 114. For purposes o f this A ddendum , "Fuel Oil" shall m ean fuel that is predom inantly in the liquid phase ait the point o f com bustion w ith a sulfur content o f greater than 0.05% by w eight. 114. N otw ithstanding any provision o f this Addendum to the contrary, Fuel O il m ay be combusited or burned during periods o f natural gas curtailm ent by suppliers or during periods approved by EPA for purposes o f test runs and operator training at any refinery subject to this Addendum, During any such period o f natural gas curtailm ent, test runs or operator training, only low sulfur (0.2% sulfur unitil D ecem ber 31, 2009, 0.05 w t % sulfur thereafter) Fuel O il shall be com busted or burned, P rior to conducting test runs o r operator training at a refinery during w hich Fuel O il w ill be burned pursuant to this paragraph, Prem cor shall subm it proposed schedules for such test runs or training periods to EPA for review and approval. In the event that EPA does not respond to such proposed schedule!s w ithin thirty (30) days o f submission pursuant to th is paragraph, then such proposed schedule:s hall be deem ed approved in accordance w ith the proposals subm itted. 115. Except as provided in Paragraph 118, by no later than sixty (60) days after the D ate o f Entry, Prem cor shall ensure that all heaters and boilers located at the Prem cor R efineries are "affected facilities" as fuel gas com bustion devices, for purposes o f 40 C.F.R. Part 60, Subpart J, and shall -28- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00028 Case 5:07-cv-00|J|-W RF Document 25 Filed 11/2^Q^77 Page 29 of 44 comply 'jvith all requirem ents o f 40 C.F.R. Part 60, Subparts A and J, as such requirem ents apply to fuel gas combustion devices. 116, 117. Reserved. 118I. By no later than the date specified in Paragraph 115, all heaters and boilers at such refineries ghall com ply w ith the applicable requirem ents o f NSPS Subpart A and J for fuel gas combust*ion devices, except for those heaters or boilers listed in Appendix 0 , w hich shall be affected facilities and shall be subject to and com ply w ith the requirements o f NSPS Subparts A and J for fuel gas comtlbustion devices by the dates listed in Appendix 0 . A ll OEMS installed pursuant to this paragraph ghall be installed, certified, calibrated, m aintained and operated in accordance with the applicable!e requirem ents o f 40 C.F.R. 60.11 and 60.13 and 40 C.F.R. Part 60, Appendix F as provided in Paragraph 121 below. 119. W ithin two (2) years o f Entry o f the Addendum, Premcor m ay subm it to EPA and the approp: ate Plaintiff-Intervener com plete alternative monitoring plan ("AMP") applications for NSPS Subpart j m onitoring o f fuel gas com bustion devices. If such AM P is not approved, then within, ninety (90) day!rg o f receiving notice o f such disapproval, Prem cor shall subm it to EPA for approval, w ith a copy to the appropriate Plaintiff-Intervener, a plan and schedule that provides for com pliance w ith the applicabde m onitoring requirem ents under NSPS Subpart J as soon as practicable. Such plan m ay include a revised AMP application, physical or operational changes to the equipm ent, or additional or differenitt monitoring. For some heaters and boilers that combust low-flow VOC streams from vents, pumpsi Ms and other sources, it is anticipated that some AMP applications w ill rely in part on calculi :ing a weighted average H2S concentration o f all VOC and fuel gas streams that are burned in a single heater or boiler and dem onstrating w ith alternative m onitoring that either the S 0 2 em issions from th<ie heater or boiler w ill not exceed 20 ppm or that the weighted average H2S concentration is not likely to exceed 162 ppm H2S. EPA shall not reject an AMP solely due to the AMP's use o f one of these approaches to demonstrate com pliance w ith NSPS Subpart J. -29- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00029 Case 5:07-cv-00jg|-W R F Document 25 Filed 11/2Q7 Page 30 of 44 7 120. Lodging o f this A ddendum shall satisfy any obligation otherwise applicable to Prem cor to provide notification in accordance w ith 40 C.F.R. Part 60, Subparts A and J, including without lim itation 40 C.F.R. 60.7, w ith respect to the provisions o f 40 C.F.R. Part 60, Subparts A and J, as such requirem ents apply to fuel gas com bustion devices. 121. The CEM S or approved AM Ps w ill be used to demonstrate com pliance w ith the respective H2S/SO2 concentration em ission lim its established pursuant to this Part DC. Prem cor shall make CEMS data available to EPA and any appropriate Plaintiff-Intervener upon dem and as soon as practicable. Premcor shall install, certify, calibrate, maintain and operate all CEMS required by tins paragraph in accordance w ith the provisions o f 40 C.F.R. 60.13 that are applicable to CEMS (excluding those provisions applicable only to continuous opacity m onitoring systems) and P art 60, Appendices A and F , and the applicable perform ance specification test o f 40 C.F.R. Part 60, Appendix B. W ith respect to 40 C.F.R. P art 60 A ppendix F, in lieu o f the requirem ents o f 40 C.F.R. Part 60, Appendix F 5 .1 .1 ,5.1.3 and 5.1,4, Prem cor m ust conduct either a RAA o r a RA TA on each CEMS at least once every three (3) years. Prem cor m ust also conduct a CGA each calendar quarter during w hich a RAA or a RATA is not perform ed. 122. The S 0 2lim its established pursuant to this Part shall not apply during periods o f startup, shutdown or m alfunction o f the heaters and boilers or the m alfunction o f S 0 2 control equipment, if any, provided that during startup, shutdow n or m alfunction, Prem cor shall, to the extent practicable, m aintain and operate the relevant affected facility including associated air pollution control equipm ent in a maimer consistent w ith good air pollution control practices for m inim izing emissions. X. WT.W7.ff.NF. W ASTE NESHAP PR O G R A M ENHANCEM ENTS P ro g ram Sum m ary: Prem cor shall undertake the follow ing m easures to m inim ize fugitive benzene waste em issions at each o f the R efineries that are covered b y this Addendum . 123. Premcor agrees to undertake the m easures set forth in this Part X , w hich establish enhancem ents to applicable requirem ents o f 40 C.F.R. P art 61, Subpart FF ("Benzene Waste 30- Sierra Club v. EP.A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00030 Case 5:07-cv-0(^p3-W RF Document 25 Filed 1 1 /^ 0 7 Page 31 of 44 i NESHAP" or "Subpart FF"), and which w ill m inim ize or eliminate fugitive benzene waste emissions at the Premcor Refineries. Crunnliance Status and Schedule 124. Prem cor shall com ply w ith the com pliance options specified below : a. Premcor's Lima and Memphis Refineries shall comply with the compliance option set forth at 40 C.F.R. 61.342(e) (herein referred to as the "6 BQ Com pliance O ption"), to the extent that either refinery continues to have total annual benzene ("TAB") quantity >10 m egagram s per year ("Mg/yr"). U pon com pletion o f all corrective action identified in th e plan subm itted pursuant to Paragraph 134, the Lim a and M emphis R efineries shall com ply w ith the 6 BQ Com pliance Option. Prior to com pletion o f all corrective action identified in the plan subm itted pursuant to Paragraph 134, the Tima and M em phis R efineries shall continue to operate current controls for purposes o f com plying w ith the 6 BQ Com pliance O ption. b. Prem cor's P ort Arthur R efinery shall continue to com ply w ith the com pliance option set forth at 40 CFR 61.342(c), utilizing the exemptions set forth in 40 CFR 61.342(c)(2) and (c)(3)(ii) and the aggregation provisions set forth in 40 CFR 61.348(b) (hereinafter referred to as the "2 Mg A ggregate-and-Treat Com pliance Option"), to the extent that it continues to have total annual benzene ("TAB") quantity > 10 megagrams per year ("M g/yr"). U pon com pletion o f all corrective action identified in the plan subm itted pursuant to Paragraph 134, the P ort A rthur R efinery shall com ply w ith the 2 M g Aggregate-and-Treat Com pliance O ption. P rior to com pletion o f all corrective action identified in the plan subm itted pursuant to Paragraph 134, the Port A rthur Refinery shall continue to operate current controls for purposes o f com plying w ith th e 2 M g Aggregate-and-Treat Com pliance Option. Sierra Club v. EP,A 18cv3472 NDCA 31 Tiers 8&9 ED 002061 00164347-00031 Case 5:07-cv-00|p-W R F Document 25 Filed ll/2Qfl?7 Page 32 of 44 w 124A. Prem cor, in its sole discretion, may transition the Port A rthur R efinery from a 2M g com pliance option to the 6BQ Compliance O ption in accordance w ith the provisions o f this paragraph and Paragraph 125. 125 O n or before the D ate o f Entry, if Premcor chooses to transition the Port A rthur Refinery then Prem cor shall provide w ritten notice to EPA o f Premcor's determination to transition the Port A rthur R efinery to the 6 BQ Com pliance O ption. U pon completion o f all corrective action identified in the plan pursuant to Paragraph 134 for the Port A rthur R efinery, Prem cor shall com ply w ith all standards o f Subpart FF th at are applicable to facilities utilizing the 6 B Q Com pliance Option, includmj the monitoring, recordkeeping and reporting requirem ents o f 40 C.F.R. 61.354, 61.356 and 61 357, respectively, as applicable to facilities utilizing the 6 BQ C om pliance O ption. Once convert!ted, subparagraph 124(b) shall no longer apply. B. Refinery Compliance S tatus Changes 126. Com m encing on the D ate o f Entry o f the Addendum and continuing through terminailtjon, Prem cor shall not change the com pliance status o f the Lim a or M em phis R efineries from the 6 BQ Com pliance O ption to a 2 M g com pliance option. Subsequent to achieving com pliance w ith Paragra]iph 125, if applicable, Prem cor shall n ot change th e com pliance status o f the P ort A rthur R efinery from the 6 B Q Compliance O ption to a 2 M g com pliance option. Prem cor shall consult w ith EPA anid the appropriate Plaintiff-Intervener before m aking any change in com pliance status not express] y prohibited b y this Paragraph 126. A ny such change must be undertaken in accordance w ith the r e p latory provisions o f the Benzene W aste NESHAP. O ne-Tim e Review and Verification of Each Refinery's TAB and, as Applicable, Each Refinery's C om pliance w ith the Appropriate Compliance O ptions 127. On or before June 30, 2008, if Prem cor chooses to transition the Port A rthur Refinery, then P:temcor shall complete a review and verification o f the R efinery's TAB as specified in subparaigraphs 128(a) - (d) for the P ort A rthur R efinery to determ ine com pliance w ith the 6 BQ Com piilance Option. Prem cor shall im plem ent all actions necessary to ensure com pliance w ith the 6 -32- . Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00032 Case 5:07-cv-00^p-W RF Document 25 Filed 11/2Q^7 Page 33 of 44 w BQ Coiopliance Option at the Port Arthur Refinery in accordance with Paragraph 125. Nofwiths tending any other provisions o f this Addendum, if the Port A rthur Refinery is transitioned to the 6BQ Com pliance O ption, then it shall not be subject to the term s o f this Part X applicable to refinerie subject to the 6 BQ Com pliance Option, nor shall it be subject to the term s o f this Part X applicab e to refineries subject to a 2 M g com pliance option, prior to Premcor's com pliance with this paragraph., Except as set forth in this paragraph, the provisions o f Paragraph 128 shall not apply to the Port A rthiur Refinery. 128. Phase One o f the Review and V erification Process. By no later than six m onths from the Date o f Lodging, Prem cor shall com plete a review and verification o f each R efinery's TAB to determir ,e compliance with the applicable 2 M g com pliance option for the Port A rthur Refinery, to the extent tha t it is not transitioned to the 6 BQ Compliance Option, and to determine com pliance w ith the 6BQ Cc m pliance Option for the Lim a and M emphis Refineries. For each such Refinery, the review and veri fication process shall include: a. an identification o f each waste stream that is required to be included in the R efiner 's TAB (ogi, slop oil, tank w ater draws, spent caustic, desalter rag layer dum ps, desalter vessel process sam pling points, other sam ple w astes, m aintenance w astes, and turnaround w astes); b. a review and identification o f the calculations and/or m easurem ents used to detenni ie the flows o f each w aste stream for the purpose o f ensuring the accuracy o f the annual waste quantitj for each w aste stream; c. an analysis o f the benzene concentration in each w aste stream, using previous analytic al data, docum ented know ledge o f the waste streams or new analytical testing data in accordance with 40 C.F.R. 61.355(c)(2); and d. an identification o f w hether or not the stream is controlled consistent w ith the requirem ents o f Subpart FF. 33- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00033 Case 5:07-cv-00|ag-WRF Document 25 Filed 1 1 /2 |^ 7 Page 34 of 44 129. By no later than thirty (30) days following the com pletion o f the review and verification process ip Paragraphs 127 and 128, Prem cor shall subm it a Benzene W aste NESHAP Com pliance Review and V erification Report ("BW N Compliance Review and V erification Report") that sets forth the results as identified in (a) through (d) o f Paragraph 128. A t its option, Prem cor m ay subm it one BWN Compliance Review and V erification Report that includes the results o f all non-converted Refineries or may subm it separate BW N Compliance Review and V erification Reports for each Refinery. 130. Phase Two o f the Review and V erification Process. Based on EPA's review o f the BW N Compliance Review and Verification R ep o rts), EPA may select up to twenty (20) waste streams at each Refinery for sam pling for benzene concentration. Prem cor w ill conduct the required sampling and subm it the results to EPA w ithin ninety (90) days o f receipt o f EPA 's request In the event that a stream for w hich EPA has required sam pling is not available for sam pling under norm al operating conditions w ithin a tim efram e that would allow Premcor to satisfy such schedule, then Premcor shall submit sampling results for the subject refinery without the result for the unavailable stream ih accordance w ith the foregoing schedule, and shall supplem ent the sam pling report as soon as practicable after such sam pling result becom es available under representative operating conditions. '.31. Prem cor w ill use the results o f this sam pling under Paragraph 130 to recalculate the TAB and the uncontrolled benzene quantity and to amend the relevant BW N Com pliance Review and V erification Report, as needed. To the extent that EPA requires Prem cor to sam ple a w aste stream previously sampled, Prem cor m ay average the results o f all sam pling events occurring after January 1, 2001. Ifremcor shall subm it an amended BW N Compliance Review and V erification Report for the relevant Refinery, if necessary, w ithin ninety (90) days follow ing the date o f the com pletion o f the required Phase Two sam pling, if Phase Two sam pling is required by EPA. Implementation of Corrective Actions -34- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00034 Case 5:07-cv-0^p3-W RF Document 25 Filed llim iO l Page 35 of 44 w 132. Amended TAB R eports. If the results o f any BW N Com pliance Review and V erification Report(s), indicate that a Refinery's m ost recently-filed TAB report does not accurately reflect the TAB calculation for the Refinery, Premcor shall subm it, by no later than sixty (60) days after completion o f the BW N Com pliance Review and Verification R ep o rts), an am ended TAB report to the appropriate regulatory authority. The BW N Compliance Review and V erification R eports) shall be deemed an amended TAB report for purposes o f Subpart FF reporting to EPA. 133. Reserved. ] 34. Corrective A ction. I f the results o f any BWN Com pliance Review and Verification R eports) indicate that Premcor is not in com pliance w ith the applicable 2 M g compliance option at the Port Arthur Refinery, to the extent that it is not converted to the 6 BQ Com pliance O ption, or the 6BQ Compliance Option at the Lim a or M emphis Refineries or at the Port A rthur Refinery, to the extent converted to the 6 BQ Com pliance Option, then Prem cor shall submit to E P A to the appropriate EPA Region, and to the appropriate Plaintiff-Intervener, by no later than sixty (60) days after com pletion o f the BWN Compliance Review and V erification Report(s), a plan that identifies w ith specificity the compliance strategy and schedule that Prem cor w ill im plem ent to ensure that the subject Refinery complies w ith its applicable com pliance option, or an alternative com pliance option authorized under Subpart FF and Paragraph 126 as soon as practicable. , 135. Review and Approval o f Plans Any plans subm itted pursuant to Paragraph 134 shall be subject to the approval of, disapproval of, or a request for modification by EPA, which shall act, after an opportunity for consultation w ith the appropriate Plaintiff-Intervener, consistent w ith the Benzene Waste NESHAP. W ithin sixty (60) days after receiving any notification o f disapproval or request for modification from EPA, Prem cor shall subm it to EPA a revised plan that responds to all identified deficiencies. Upon receipt o f approval from EPA, Prem cor shall comm ence im plem entation o f the plan according to the schedule approved in the plan. Disputes arising under this Paragraph 135 shall be resolved in accordance w ith the dispute resolution provisions o f this Addendum. W ithin sixty (60) -35- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00035 Case 5:07-cv-03Q|jp83-WRF Document 25 Filed 11/2/07 Page 36 of 44 days o f com pletion o f all requirem ents above, Premcor shall certify to EPA and the appropriate Plaintiff-Intervener that each Refinery is in compliance with the Benzene W aste NESHAP. E. C arbon Canisters 136. For each, o f the Prem cor Refineries that is subject to the 6 BQ o r 2 M g com pliance options control requirements o f the Benzene NESHAP, Premcor shall comply w ith the requirements o f this Sectiilon X .E at all locations at such R efineries w here a carbon c a n isters) is utilized as a control device u:Older the Benzene W aste NESHAP. 137. From the D ate o f Entry o f the Addendum through term ination o f this Part, Prem cor shall not use a single carbon canister for any new units or installations that require control pursuant to the Benzene Waste NESHAP at any Refineries subject to the 6 BQ or 2 M g compliance options, unless it is technically infeasible or unsafe to use a dual carbon canister system o r except as provided for in Paragraphs 138 and 139 for short term installations. 138 For existing carbon canister systems used to control emissions from installations that require control, Premcor shall complete installation o f prim ary and secondary carbon canisters and operate them in series, by no later than 270 days after the Date o f E ntry o f the Addendum. Notwiithstamiding any other provision o f this Part X , Premcor m ay operate single canisters for shortterm operations such as w ith tem porary storage tanks. For all canisters operated for short-term operations as part o f a single canister system, "breakthrough" is defined fo r the purposes o f this Decree as any reading o f V O Cs above background. Beginning no later than the D ate o f Entry o f this A ddendium, Prem cor shall m onitor for breakthrough from a single carbon canister installation no less frequentLily than on a daily basis. 39. For locations where single canisters are utilized for short term operations, canisters w ill be replaiced when breakthrough is determined w ithin eight (8) hours for canisters w ith historical replaceraent intervals o f tw o w eeks o r less or w ithin tw enty-four (24) hours for canisters w ith a historic;al replacement interval o f more than two weeks. Single carbon canisters can be replaced with a -36- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00036 ,|p/' Case 5:Q7~cv~0QS83~WRF Document 25 Filed 1100/07 Page 37 of 44 dual syst]an (in series) at any tim e, provided single canister m onitoring is continued until the second canister ISinstalled. 140. By no later than ninety (90) days follow ing the D ate o f Entry, Prem cor shall subm it to EPA a rieport concerning carbon canisters installed pursuant to Subpart FF at the Premcor Refineries, The repoirt shall include the follow ing inform ation for each Refinery: a. a list o f all perm anent locations w ithin each R efinery w here carbon canisters are installed; ' b. the installation date o f each secondary canister installed in accordance with Paragraph 138; c. the date that each secondary canister installed in accordance w ith Paragraph 138 was put into operation; d. the identity and location o f each engineered carbon canister system , as hereinafter defined; e. the capacity in pounds o f carbon o f each engineered carbon canister system; and a list o f and supporting justification for each instance in w hich a dual carbon canister system is not installed because o f technical infeasibility or the creation o f an unsafe condition at a location otherwise requiring a dual tcarbon canister system under Paragraph 137. 14!. From the D ate o f Entry and through termination o f the Addendum, `'breakthrough" between the primary and secondary canister is defined as any reading equal to or greater than 100 ppm VOCs or 5 ppm benzene. In the event that Premcor elects to monitor for both VOCs and benzene pursuant to this provision, then "breakthrough" betw een the prim ary and secondary canister shall be defined only as a reading greater than 5 ppm benzene, provided that Premcor satisfies the following conditions: -37. Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00037 ,|p/i Case 5:07-cv-0|Qp 83-WRF Document 25 Filed 11/2/07 Page 38 of 44 a. Prem cor shall collect and analyze the sample for benzene as soon as practical, and in no event later than 24 hours after obtaining the relevant VOC reading; and b. Premcor shall conduct monitoring for benzene breakthrough between the primary and secondary carbon canisters for the subject dual carbon canister system until such time as it replaces the relevant prim ary carbon canister w ith the secondary carbon canister pursuant to Paragraph 143 acciojrding to the following schedule: (i) where th e design carbon replacem ent interval for the unit is less thtan or equal to 30 days, Prem cor shall m onitor every operating w eekday; (ii) w here the design carbon replacem ent interval for the unit is 31 to 60 days, Premcor shall m onitor at least tw ice a week; (in) w biere the design carbon replacem ent interval for the unit is greater than sixty (60) days, Premcor shall moi>nitor at least w eekly. 142. B y no later than seven (7) days after the Date o f Entry o f th e A ddendum (for existing dual caniister system s), and b y no later than seven (7) days after the installation o f each new dual canister system , Premcor shall start to monitor for breakthrough between the prim ary and secondary carbon canisters at tim es w hen the source is connected to the carbon canister, and during periods o f normal operation in accordance w ith the frequency specified in 40 C.F.R. 61.354(d) (but in no event less freqiuently than once per m onth), o r alternatively at least once on each operating weekday. 43. Premcor shall replace the original secondary carbon canister w ith a fresh carbon canister im m ediately when breakthrough betw een the prim ary and secondary canister is detected. The original secondary carbon canister w ill become the new prim ary carbon canister and the fresh carbon canister w ill becom e the secondary canister. a. For carbon canisters not qualifying as engineered carbon canister systems pursuant to this paragraph, "im m ediately" shall mean within twenty-four (24) hours; provided, however,, that if breakthrough is determ ined on a Saturday, Sunday, or holiday, then Prem cor shall replace the original prim ary carbon canister by the end o f the next regular w ork day if Premcor begins monitorii:ng the secondary canister at least once per operating day until the prim ary canister is replaced. -38- Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00038 Case 5:07-cv-00|Qp83-WRF Document 25 Filed llf lf l/0 7 Page 39 of 44 b. For engineered carbon canister system s, "im m ediately" shall m ean not m ore than fourteen (14) days if Premcor m onitors the secondary canister at least once p er operating day until the carbon in the prim ary canister is replaced and such monitoring o f the secondary canister does not reveal "breakthrough", as defined in Paragraph 141. If breakthrough from the secondary canister is revealed, Premcor shall replace the secondary carbon canister w ithin twenty-four hours o f securing such monitoring results. For purposes o f this Paragraph 143, "engineered carbon canister system s" shall m ean carbon system s w ith fixed vessels for w hich each vessel has a capacity o f carbon in excess o f 5000 pounds. c. In lieu o f replacing a prim ary or secondary carbon canister pursuant to the term s o f this paragraph, Prem cor m ay elect to discontinue flow o f benzene containing streams to the relevant carbon canister system until such canister is replaced. 144. Premcor shall maintain o r otherwise provide for a reasonable supply o f fresh carbon and carbon canisters at each o f the Premcor Refineries. 145. Records to dem onstrate com pliance w ith the requirem ents o f this Section X.E shall be m aintained in accordance w ith 40 C.F.R. 61.3560(10). Annual Program ,46. Premcor shall establish an annual program o f reviewing process inform ation for each o f the Prem cor R efineries, including bu t not lim ited to construction projects, to ensure that all new benzene waste streams are included in each Refinery's waste stream inventory. Premcor may fulfill this requirement by incorporating new benzene waste stream review into its existing "management o f change" program. Laboratory A udits 147. Prem cor shall conduct audits, o r secure results o f audits conducted b y parties other than the laboratories, o f all laboratories th at perform analyses o f benzene w aste NESHAP sam ples collected Sierra Club v. EPA 18cv3472 NDCA 39 Tiers 8&9 ED 002061 00164347-00039 )(jp Case 5:07-cv-0Q83-WRF Document 25 Filed 11/I2QI /07 Page 40 of 44 at the P remcor R efineries to ensure that proper analytical and quality assurance/quality control procedur es are followed. 148 B y no later than one (1) year after the Date o f Entry o f the Addendum, Prem cor shall conduct audits, or secure results o f audits conducted by parties other than the laboratories, o f the laboratoriies used by the Prem cor R efineries. In addition, Premcor shall audit any new laboratory, or secure r suits o f audits conducted by parties other than the new laboratory, used for analyses o f benzene waste NESHAP sam ples prior to use o f the new laboratory by a R efinery subject to this Addendilum. 49. if Prem cor has com pleted audits o f any laboratory in the one year period prior to the Date o f Entry o f the Addendum , additional audits o f those laboratories pursuant to Paragraph 148 shall no t be required. 50. During the life o f this Addendum , Prem cor shall conduct subsequent laboratory audits, or secure results o f audits conducted by parties other than the laboratories, as provided above, such that each laboratory serving each Prem cor R efinery is audited every two (2) years. 151. As stated above, Prem cor m ay retain third parties to conduct these audits or use audits conducted by others as its own, but the responsibility and obligation to ensure com pliance w ith this Addendum and Subpart FF w ould rem ain w ith Premcor. B. Benzene Spills 152. Premcor hall review all spills reportable under applicable federal and state standards that occur after the Date o f Entry o f this Addendum within each o f the Prem cor Refineries to determ' ne if aqueous benzene waste was generated. To the extent required by the Benzene Waste N ESftAP regulations and not already in the TAB, Prem cor shall include benzene generated by such spills m the TAB. To the extent required by the Benzene Waste NESHAP regulations, Premcor shall include benzene generated by such spills in the uncontrolled benzene quantity calculations for each R efin eay- 40- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00040 |p .|p/i Case 5:07-cv-0Q83-WRF Document 25 Filed llZgjfi/07 Page 41 of 44 L Training 153. B y no later than one hundred tw enty (120) days from the Date o f E ntry o f the Addendipm , Prem cor shall develop an annual ( y ^ once each calendar year) framing program for employeies asked to draw benzene waste samples at the Premcor Refineries. 54. For the Prem cor R efineries com plying w ith a 2 M g com pliance option o r the 6 BQ Compii;ance O ption, b y no later than one hundred eighty (180) days from the D ate o f E ntry o f the Addendum, Premcor shall complete die development o f standard operating procedures for all control equipient used to comply w ith the Benzene W aste NESHAP. By no later than two hundred seventy (270) da,'ys thereafter, Prem cor shall com plete an initial training program regarding these procedures for all operators assigned to this equipment. Comparable training shall also be provided to any persons who sui1bsequently becom e operators, prior to their assum ption o f this duty. U ntil term ination o f this Decree. refresher" training in these procedures shall be perform ed on at least a three year cycle. 155. Reserved. 156. I f Premcor converts the Port A rthur R efinery to the 6BQ Compliance O ption, then the Port Arthur R efinery shall com ply w ith the provisions ofP aragraph 154 by June 30,2008. 157. As part o f Premcor's training programs, Premcor m ust require any contractor hired to perform all or part o f the requirements o f this Part X to properly train its employees to implement the relevant provisions o f this Part X. J. W aste/Slop/Off-Spec O il M anagem ent 158. For each o f the Prem cor R efineries subject to this A ddendum , Prem cor shall develop, sim ilar to those in A ppendix G in the Consent D ecree, a schematic reflecting the m ovem ents o f waste/: lop/off-spec oil stream s w ithin each R efinery and shall provide this schem atic to EPA on or before the June 30, 2007. Prem cor w ill then certify to the best o f its know ledge follow ing reasonable inquii3 that these schematics accurately: depict the w aste m anagem ent units (including sewers) located at the Prem cor R efineries upon the date o f submittal under this paragraph that handle, store and -41- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00041 1 Case 5:07-cv-0U683-WRF Document 25 Filed 11Z2Q/07 Page 42 of 44 transfer waste/slop/off-spec oil streams; identify the control status o f each waste management unit; and show how such oil is transferred within each Refinery. To the extent that Prem cor and EPA determine that any change to a Refinery subject to this Addendum necessitates a revision to a schem atic, then Prem cor shall update such schem atic. 159. Organic Benzene Waste Streams. Upon com pletion o f all corrective action identified in the plan submitted pursuant to Paragraph 134, or in accordance with any compliance strategy approved by EPA pursuant to Paragraph 135, Premcor shall ensure that all waste management units handling 'organic" benzene wastes, as defined in Subpart FF, shall meet any control standards applicable to such units under Subpart FF. 60. Aqueous Benzene W aste Streams. Except as otherwise provided by Subpart FF, for purposes o f calculating the TAB at each o f the Premcor Refineries pursuant to the requirements o f 40 C .F .R 61.342(a), Prem cor shall include all waste/slop/off-spec oil streams that become "aqueous" until such streams are recycled to a process or put into a process feed tank (unless the tank is used pnm an y for the storage o f w astes). For purposes o f com plying w ith a 2 Mg or 6 BQ com pliance option, to the extent required by Subpart FF, all waste m anagem ent units handling aqueous benzene waste Streams shall either m eet the applicable control standards o f Subpart FF or shall have their uncontrolled benzene quantity count toward the applicable 2 or 6 megagram lim it 161. Recordkeeping. For each o f the Premcor Refineries, Premcor shall maintain records quantifying waste/slop/off-spec oil movements for all benzene waste streams. 162. Disputes under this Section X .J shall be resolved in accordance w ith the dispute resolut on provisions o f this Addendum. K. E nd of L ine Sam pling 163. The provisions o f this Section X.K shall apply to the Prem cor Refineries from the Date o fE n b y through term ination o f this Part. 42- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00042 Case 5:07-cv-C|j|83-WRF Document 25 Filed l l | p / 0 7 Page 43 of 44 164. Valero developed and EPA approved representative end-of-line sampling ("EOL") plans, within Appendix G o f the Consent Decree, designed to determine the benzene quantity in uncontrolled waste streams, including sampling locations and methods for flow calculations to be used in quarterly EOL benzene determinations. By June 30, 2007, Premcor stall develop and submit to EPA EOL Plans sim ilar to the EOL plans submitted pursuant to the Consent Decree. EPA shall approve the EOL Plan for each Premcor Refinery provided such plans are consistent with the representative EOL Plans in Appendix G to the Consent Decree. 165. Commencing with the third calendar quarter 2007, Premcor shall conduct quarterly EOL sampling for benzene quantities in uncontrolled waste streams at the Premcor Refineries according to each proposed and/or approved EOL Plan. 66. Once an EOL Plan is approved by EPA, if changes in processes, operations, or other factors cause the approved sam pling locations and approved methods for determ ining flow calculations to no longer provide an accurate measure o f a Refinery's EOL benzene quantity, Premcor shall submit a revised EOL Plan to EPA for approval. Any changes to a EOL Plan m ade by Premcor prior to EPA approval o f the original Plan shall be submitted as a revised proposed Plan and may be implemented thereafter, 167. Premcor shall use all sampling results and approved flow calculation methods under the approved sampling plans referenced in Paragraph 164 to calculate a quarterly and estimate a calendar year value for each o f the Premcor Refineries. If the quarterly calculation for a refinery made pursuant to this paragraph exceeds (a) 2.5 M g for a refinery with TAB historically less than 10 Mg/yr, (b) 0.5 Mg for a refinery complying with a 2 M g compliance option, or (c) 1.5 Mg for a refinery complying with the 6 BQ Compliance Option, but Premcor estimates that the annual benzene quantity for such refinery w ill rem ain below the referenced annual quantity, then Premcor shall include w ithin its next report under Paragraphs 176 or 178 comments justifying why, notwithstanding the quarterly -43- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00043 1 Case 5:07-cv-0Q83-WRF Document 25 Filed 11/2C/07 Page 44 of 44 calculation, Prem cor estimates that the annual benzene quantity will not exceed the applicable level listed above. 168. If any estimated annual benzene calculation for any facility made pursuant to the proceeding paragraph exceeds (a) 2 M g for a refinery com plying w ith a 2 M g com pliance option, or (b) 6 Mg for a refinery com plying w ith the 6 BQ Compliance Option, then Prem cor shall prepare for each such refinery a written summary and schedule o f the activities planned to minimize benzene waste at such refinery to ensure that it complies with the Benzene Waste Operations NESHAP. (The estim ated annual values in and o f them selves, are not the basis for penalties and are not deemed to be instance s o f non-com pliance for purpose o f this Addendum.) The sum m ary and schedule are due no later than sixty (60) days after the close o f the quarter in which the estim ated annual value exceeds the applicable quantity (the "TAB Study and Com pliance Review"). 169. Reserved. 170. Prem cor shall m aintain records supporting its quarterly calculations o f EOL quantities, including the methodology and data used to identify and calculate flow until term ination o f the obligations o f this Part. L. Miscellaneous M easures 171. For the Prem cor R efineries that have a TAB greater than 10 M g/yr, Prem cor shall manage all groundwater remediation conveyance systems in accordance with, and to the extent required by, the Benzene W aste NESHAP, 40 C.F.R. 61.342. In accordance w ith 40 C.F.R. 61.342, Premcor m ay exclude from the calculation o f a Refinery's TAB the benzene concentration in any waste generated by rem ediation activities conducted at such Refinery. 172. From the first calendar quarter commencing after the Date o f Entry through term ination of the Addendum, each Prem cor R efinery subject to this Addendum shall: a. Conduct monthly visual inspections o f all water traps within the Refinery's individ ual drain system s that are controlled under the Benzene W aste NESHAP; -44- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00044 1 Case 5:07-cv-083-WRF Document 25-1 Filed W 2 0 /0 7 Page 1 of 7 b. Identify and mark all area drains that are segregated stormwater drains; c. Where installed pursuant to Subpart FF, visually monitor all conservation vents or indicators on process sewers for detectable leaks on a weekly basis and reset any vents where leaks are detected. After two (2) years o f w eekly inspections, and based upon an evaluation o f the recorded results, Prem cor m ay subm it a request to the appropriate EPA Region to m odify the frequency o f the inspections. EPA shall not unreasonably withhold its consent. N othing in this subparagraph shall require Premcor to m onitor conservation vents on fixed ro o f tanks; and d. Conduct quarterly monitoring, in accordance with the "no detectable em issions" provision in 40 C.P.R. 61.347, o f oil-w ater separators controlled in accordance w ith 40 C.F.R. 61.347. [73. Reserved. 174. Notwithstanding any other provision in this Addendum or its required sampling, Premcor shall account for and include in the TAB all slop oil recovered from its oil/w ater separators or sewer systems until recycled or put into a feed tank in accordance w ith, and only to the extent required by 40 C.F.R. 61.342(a). In no event shall the benzene content in slop oil be counted m ore than once towards a facility's TAB calculation. M,, Recordkeeping and Reporting Requirements for this Part 175. In addition to the Reports Required under 40 C.F.R, 61.357. A t the tim es specified in the applicable provisions o f this part, Premcor shall subm it for the Prem cor R efineries the following reports to EPA, to the applicable EPA Region, and to the applicable Plaintiff-Intervener: a. BWN Com pliance Review and Verification R eport (fl2 9 ), as amended, if necessary (1131); b. Amended TAB R eport, if necessary ( |1 32); c. Plan(s) to com ply w ith Subpart FF, if any BW N Compliance Review and Verification Reports, indicate non-com pliance (f 134); 45 Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00045  f Case 5:07-cv-QQ83-WRF Document 25-1 Filed W 2 0 /0 7 Page 2 of 7 d. Report concerning carbon canister system s fl[140); and e. TAB Study and Com pliance Review, if necessary ( f 168). 176. In Conjunction w ith the Reports Required under 40 C-F.R, 61,357 For each Refinery for which Premcor is required, pursuant to 40 C.F.R. 61.357(d)(6) and (7), to subm it quarterly reports ("Section 61.357 Reports"), Prem cor shall include the follow ing additional inform ation in the subject Section 61.357 Reports for such Refinery: i. Laboratory Audits. Once laboratory audits are required to have been conducted pursuant to the provisions o f Section X.G., Prem cor shall identify, in each Section 61.357 Report subm itted thereafter until termination o f this Addendum, all laboratory audits com pleted for such Refinery pursuant to the provisions o f Section X .G during the calendar quarter for w hich the quarterly report is due. Prem cor shall include the identification o f each laboratory audited, a description o f the m ethods used in the audit, and a summ ary o f the results o f the audit. ii. Training. Once Premcor is required to have conducted training at its Refinery pursuant to Section X X , Prem cor shall describe, in each Section 61.357 Report subm itted thereafter until term ination o f this Addendum, the m easures that it took to com ply w ith the training provisions o f Section X .I for such Refinery, starting from the Date o f Entry o f the Addendum; iii. F.OT. Sam pling R esults. Once EOL sam pling is required under Section X.K, Prem cor hall report the results o f the quarterly EOL sam pling undertaken at such Refinery pursuant to Section X.K for the calendar quarter. The report shall include a list o f all w aste streams sampled at such Refinery, the results o f the benzene analysis for each sample, the com putation o f the EOL benzene quantity for the quarter and any other related inform ation required by any plan approved for such R efinery pursuant to Paragraph 164: -46- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00046  f Case 5:07-cv-qfl83-WRF Document 25-1 Filed ^W22 0 /0 7 Page 3 of 7 177. Reserved. 178. For each R efinery for w hich Premcor determ ines a TAB level o f less than 10 mg/yr (and for which Premcor is not required to subm it a Section 61.357 Report), Premcor shall subm it a progress report as part o f the report required by Part XVI. For each sem i-annual period, Prem cor shall submit for such Refinery the inform ation described in Paragraphs 176(i)-(ii), and the following information: i. The results o f the quarterly EOL sampling undertaken pursuant to Paragraphs 164-167. - ii. A list o f all waste stream s sampled, the results o f the benzene analysis for each sam ple, and the com putation o f the EOL benzene quantity for the respective quarters. iii. A n identification, for each Refinery, o f whether the quarterly benzene quantity equals or exceeds 2.5 M g/yr and w hether the projected calendar year benzene quantity equals or exceeds 10 M g/yr. If either condition is m et, Prem cor shall include in the Progress Report a plan or determination, if required pursuant to Paragraphs 167 and 168. 179. -1 8 0 . Reserved. N. Agencies tn Receive Reports. Plans and Certifications Required in the paragraph; N um ber o f Copies 181. Unless otherw ise specified in this Part, Prem cor shall subm it all reports, plans and certifications required to be subm itted under this Part X to EPA, the appropriate EPA Region and the applicable Plaintiff-Intervener. For each subm ission, Premcor shall subm it two copies to EPA, two copies to the appropriate EPA Region and two copies to the appropriate Plaintiff-Intervener. By agreerr ent betw een Prem cor and each o f the offices that are to receive the materials in this Part X, Premcor may submit the materials electronically. -47- Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00047 w L^C Case 5:07-cv-0QfiS3-WRF Document 25-1 Filed lj^ Q /0 7 Page 4 of 7 XJ[. I.F.AK DETECTION AND REPA IR ("LDAR") p r o g r a m e n h a n c e m e n t s P rogram Sum m ary: Premcor shall undertake at each Premcor Refinery the following measures to enhance each Refinery's LDAR program and minimize or eliminate fugitive missions from valves and pumps in light liquid and/or in gas/vapor service. L Introduction 82. In order to minimize or eliminate fugitive emissions o f volatile organic compounds ("VOC "), benzene, volatile hazardous air pollutants ("VHAPs"), and organic hazardous air pollutants ("HAPs") from valves and pum ps in light liquid and/or in gas/vapor service, Premcor shall undertake at each of the Premcor Refineries the enhancements o f this Part XI to each Refinery's LDAR program under Title 40 o f the Code o f Federal Regulations, Part 60, Subparts VV and GGG; Part 61, Subparts J and V; Part 63, Subparts F, H, and CC; and applicable state and local LDAR requirements that are federal y enforceable or implemented by participating Plaintiff-Interveners (collectively, the "LDAR Regulations"). The term s "in light liquid service" and "in gas/vapor service" shall have the definitions set forth in the applicable provisions o f the LDAR Regulations. 183. Reserved. 184. For purposes o f this Part XI, "Equipment" shall mean pumps and valves in light liquid or gaseous service at the refineries subject to this Addendum, except for those pumps and valves exempt from standard monitoring frequencies under applicable LDAR Regulations. B. W ritten R efinerv-W ide LDAR Program 185. By no later than June 30,2007, Premcor shall develop and m aintain, for each Premcor Refinery, a written, Refinery-wide program for compliance by such Refinery w ith applicable LDAR Regulations. Until termination o f this Decree, Premcor shall implement these programs at each Premcor Refinery on a Refinery-wide basis, and shall update each refinery's program as necessary to ensure continuing compliance. Each Refinery-wide program shall include: 1. An overall, Refinery-wide leak rate goal that will be a target for achievement on a process-unit-by-process-unit basis. For purposes o f this provision, the overall -48- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00048 3jjp Case 5:07-cv-0Qfi83-WRF Document 25-1 Filed 1 ^ 0 /0 7 Page 5 of 7 Refinery-wide leak rate goal shall constitute a tool for implementation o f the Refinery-w ide program , but shall not be enforceable or subject to stipulated penalties under Part XX; 2. Identification o f all Equipm ent that has the potential to leak VOCs, HAPs, VHAPs, and benzene within process units that are owned and maintained by each Refinery; 3. Procedures for identifying leaking Equipm ent w ithin process units that are owned and maintained by each Refinery; . 4. Procedures for repairing and keeping track o f leaking Equipment; 5. Procedures for identifying and including in the LDAR program new Equipment; and 6. A process for evaluating new and replacem ent Equipm ent to promote consideration and installation o f equipm ent that w ill m inim ize leaks and/or elim inate chronic leakers. C. T raining 186. By no later than June 30, 2007, Premcor shall im plem ent the following training program s at each o f the Refineries: 1. For personnel new ly-assigned to LDAR responsibilities, require LDAR training prior to each employee beginning such work; 2. For all personnel w ith assigned LDAR responsibilities, provide and require com pletion o f annual LDAR training; and 3. For all other R efinery operations and m aintenance personnel (including contract personnel), provide and commence im plem entation o f an initial training program , w ith com pletion w ithin six (6) m onths thereafter, that includes Sierra Club v. EPA 18cv3472 NDCA -49Tiers 8&9 ED 002061 00164347-00049 |p Case 5:07-cv-0flg3-WRF Document 25-1 Filed 1^20/07 Page 6 of 7 instruction on aspects o f LDAR if and to the extent that aspects o f LDAR are relevant to the person's duties. 4. U ntil term ination o f this Decree, perform "refresher" training in LDAR on a three year cycle. 15. LDAR A udits 187. Prem cor shall undertake at each o f the Prem cor Refineries the Refinery-w ide audits set forthin Paragraphs 188 and 189, to help ensure each Refinery's com pliance w ith all applicable LDAR requineontents. Prem cor's LDAR audits shall include com parative m onitoring o f valves and pum ps, records review to ensure monitoring and repairs for valves and pumps were completed as required, tagging review, data management review, and observation o f the LDAR technicians' calibration and monitor' ing techniques. 1 88. Third-Partv Audits. Prem cor shall conduct a third-party audit o f each R efinery's LDAR pro;gram at least once every four years. For purposes o f this requirem ent, "third party" m ay include a qualifiied contractor, consultant, industry group, o r trade association. The first third-party audit shall be compkited no later than one year from the Date o f Entry o f the Addendum. D uring the period between the Dati;e o f Entry and the date o f the first audit for each refinery under this Section, Premcor shall make reasonable efforts to ensure compliance with the requirements o f this Addendum and all applioable LDAR regulations. 189. Internal Audits Prem cor shall conduct internal audits o f each o f the Premcor Refine ries' LDAR programs by sending Prem cor or Valero personnel familiar w ith the LDAR progratm and its requirements to audit a Prem cor Refinery. Prem cor shall com plete the first round o f these ntemal LDAR audits by no later than two years from the date o f completion o f the first round o f third party audits required in Paragraph 188. Internal audits o f each R efinery shall be held every four years hereafter for the life o f this Addendum. -50- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00050 .^C Case 5:07-cv-0Q83-WRF Document 25-1 Filed 11120/07 Page 7 of 7 190. Frequency. To ensure that an audit at each R efinery subject to this Addendum occurs every two years, third-party and internal audits shall be separated by approximately tw o years after the initial Third Party Audit. 191. A lternative. A s an alternative to the internal audits required by Paragraph 189, Premcor may elect to retain third-parties to undertake one or m ore o f these audits, provided that an audit o f each Refinery occurs every two (2) years. Sierra Club v. EPA 18cv3472 NDCA -51Tiers 8&9 ED 002061 00164347-00051 Case 5:07-cv-0Q|83-WRF Document 25-2 Filed 1. ^2C0/07 Page 1 of 47 . Implementation of Actions Necessary to C o rrect Non-Compliance 92. I f the results o f any o f the audits conducted pursuant to Section X ID at any o f the Premcot Refineries identify any areas o f non-compliance with the LDAR Regulations Premcor shall implement, as soon as practicable, all appropriate steps necessary to correct the area(s) o f non compliance, and to prevent, to the extent practicable, a recurrence o f the cause(s) o f the non compliance. In the Sem iannual LDAR Report subm itted pursuant to the provisions o f Section XLR coverm l the period w hen an audit w as conducted, Premcor shall certify to EPA that the audit has been compiei ed and that the refinery is in com pliance or on a com pliance schedule. F. Retention of A udit Reports 193. Until termination o f the Addendum, Prem cor shall retain the audit reports generated pursuant to Section X ID and shall m aintain a written record o f the corrective actions taken at each o f its Refineries in response to any deficiencies identified in any audits. In the Sem iannual LDAR Report submitt ed pursuant to the provisions o f Section XLR covering the period when an audit was conducted pursuaani to Section XI.D, Prem cor shall submit the audit reports and corrective action records for audits perform ed and actions taken during the previous sem iannual period. G. Internal Leak Definition for Valves and Fames 194. Prem cor shall utilize the follow ing internal leak definitions for Equipm ent covered by an applicable LDAR program at the Prem cor Refineries, unless a low er leak definition is established for the relevant Refinery under applicable pen n ies) or applicable state LDAR Regulations. 195. t -ftak Dftfimtion for Valves. Two years from the D ate o f Entry, Prem cor shall utilize an internal leak definition o f 500 ppm VOCs for refinery valves quahfying as Equipm ent at the Lima and M emphis Refineries. A t the Date o f Entry o f the Addendum , the Port A rthur Refinery shall utilize an internal leak definition o f 500 ppm VOCs for refinery valves qualifying as Equipment. 196. r *ak D efinition for Pum ps, Two years from the Date o f Entry, Prem cor shall utilize an internal leak definition o f 2000 ppm for refinery pumps qualifying as Equipment at the Memphis and -52- Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00052 1 Case 5:07-cv-0Q|83-WRF Document 25-2 Filed 1.1^^|C20/07 Page 2 of 47 Lima Refineries. At the Date o f Entry, the Port Arthur Refinery shall utilize an internal leak definition o f 2000 ppm for refinery pumps qualifying as Equipment. H. .Rppnrth^ Recording. Tracking. Repairing and Remonitoring Leaks of Valves and Pum ps Based on the Internal L eak Definitions 197. Reporting. For regulatory reporting purposes, Prem cor m ay continue to report leak rates in valves and pum ps against the applicable regulatory leak definition, o r m ay use the lower, internal eak definitions specified in Paragraphs 195 and/or 196. 198. Recording. Tracking. Repairing and Remonitoring Leaks. Prem cor shall record, track, repair and rem onitor all leaks in excess o f the internal leak definitions o f Paragraphs 195 and 196 (at such tim e as those definitions become applicable) in accordance w ith applicable provisions o f the LDAR Regulations, except that Prem cor shall have five (5) days to m ake an initial attem pt at repair and thirty (30) days either to make final repairs and remonitor leaks that are greater than the internal leak definitions but less than the applicable regulatory leak definitions or to place the valve on the delay o f repair list according to Section XI.Q. jh Initial A ttem pt at Repair on Valves 199. Beginning no later than ninety (90) days after the Date o f Entry o f this Addendum, Premcor shall make an "initial attempt" at repair on any valve qualifying as Equipm ent under Paragraph 184 that has a reading greater than 200 ppm o f VOCs, for the life o f the Addendum, excluding control valves, orbit valves and other valves that LDAR personnel are not authorized to repair. Premcor or its designated contractor, as applicable, shall m ake this "initial attem pt" and remoni tor such valves w ithin five (5) calendar days o f identification. U nless the rem onitored leak rate is greater than the applicable leak definition, no further action w ill be necessary. J. LDAR M onitoring Frequency 200. Pum ps. W hen the low er leak definition for pum ps becom es applicable pursuant to Paragraph 196, Prem cor shall m onitor pumps qualifying as Equipm ent at the lower leak definition on a m onthly basis. - 53 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00053 Case 5:07-cv-0)Q<fi^S3-WRF Document 25-2 Filed im o iO l Page 3 of 47 01. Valves. W hen the low er leak definition for valves becomes applicable pursuant to Paragraph 195, Prem cor shall m onitor valves qualifying as Equipment in accordance w ith one o f the following options on a process unit-by-process unit basis: a. Quarterly m onitoring with no ability to skip periods. This option cannot be chosen for process units subject to the HON or the modified-HON option in the Refinery MACT; or b. Sustainable skip period program (see attached Appendix I). Previous process unit monitoring results m ay be used to determine the initial skip period interval provided that each valve has been m onitored using the 500 ppm leak definition. Process units monitored in the skip period alternative method m ay not revert to quarterly m onitoring if the m ost recent m onitoring period demonstrates that m ore than two percent o f the valves were found leaking under the internal leak definition. 202. Reserved. 203. For process units com plying w ith the sustainable skip period program set forth in Paragraph 201(b), EPA or the relevant state Intervener agency m ay require Prem cor to implement more frequent m onitoring o f valves qualifying as Equipment, in accordance with the monitoring frequencies specified in the skip period provisions identified in Appendix I, if the leak rate determined during an EPA or relevant Plaintiff-Intervener inspection demonstrates that m ore frequent monitoring is appropriate. In evaluating whether the leak rate demonstrates that m ore frequent m onitoring o f valves is appropriate, EPA or the relevant Plaintiff-Intervener, as applicable, w ill determine the leak rate utilizing data generated in accordance with 40 C.F.R. Part 60, EPA Reference Test M ethod 21, and based on the total num ber o f valves in the process unit, rather than the total number o f valves monitored during the inspection. 204. Premcor shall have the option o f m onitoring affected valves and pumps within process units after completing a documented maintenance, startup or shutdown activity w ithout having the 54- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00054 )Cj| Case 5:07-cv-0QfiS3-WRF Document 25-2 Filed 1.1^1C20/07 Page 4 of 47 results o f the m onitoring count as a scheduled m onitoring activity, provided that Prem cor monitors according to the follow ing schedule: a. Event involving 1,000 or few er affected valves and pum ps - m onitor within one (1) week o f the docum ented maintenance, startup o r shutdown activity, b. Event involving greater than 1,000 but fewer than 5,000 affected valves and pumps - monitor within two (2) weeks o f the documented maintenance, startup or shutdown activity; and c. Event involving greater than 5,000 affected valves and pumps - monitor within four (4) weeks o f the documented maintenance, startup or shutdown activity. E lectronic M onitoring. Storing, and Reporting o f LDAR Data 205. Electronic Storing and Reporting ofL D A R D ata. For each o f the Prem cor Refineries, Premco has and w ill continue to m aintain an electronic database for storing and reporting LDAR data. 206, Electronic D ata Collection Purine LDAR M onitoring. B y no later than June 30,2007, Franco r shall use dataloggers and/or electronic data collection devices during all LDAR monitoring required by this decree. Premcor, or its third party contractors), shall use its best efforts to transfer, on a daily basis, electronic data from electronic datalogging devices to the electronic database required pursuant to Paragraph 205. For all m onitoring events in which an electronic data collection device is used, the collected m onitoring data shall include a tim e and date stamp, operator identification, and instrument identification. Premcor m ay use paper logs where necessary o r m ore feasible (e.g., small rounds remonitoring, o r w hen dataloggers are not available or broken), and shall record the identification o f the technician undertaking the m onitoring, the date, tim e, and the identification o f the monitoring equipment, Premcor shall transfer any manually recorded monitoring data to the electronic database w ithin seven (7) days o f m onitoring. Sierra Club v. EPA 18cv3472 NDCA 55 Tiers 8&9 ED 002061 00164347-00055 )(|p; Case 5:07-cv-0Q|83-WRF Document 25-2 Filed 11120/07 Page 5 of 47 OA/OC of LDAR Data 07. By no later than ninety (90) days after the D ate o f Entry o f this Addendum, Prem cor or its third party contractors) shall develop and implement a procedure to ensure a quality assurance/quality control ("QA/QC") review o f all data generated by LDAR monitoring technicians. This QA/QC procedure shall include procedures for: 1, M onitoring technicians) review ing the m onitoring data daily, 2. Quarterly performing a QA/QC review o f Prem cor's and any third party contractor's monitoring data which shall include, but not be limited to: num ber o f components monitored per technician, time between monitoring events, and abnormal data patterns. M. LDAR Personnel 208. B y no later than the D ate o f Entry o f the Addendum, Prem cor shall establish a program for the Premcor Refineries that w ill hold LDAR personnel accountable for LDAR performance at each Refinery. Prem cor shall maintain a position w ithin each Refinery w ith responsibility for LDAR management and with the authority to implement improvements. N. A dding New Valves an d Pum ps 209. By no later than one (1) year from the D ate o f Entry, Prem cor shall establish a tracking program for maintenance records (e.g., a Management o f Change program) to ensure that valves and pumps qualifying as Equipment added to each Refinery during maintenance and construction are integra ted into the LDAR program . O. ralihration/C alihration D rift Assessment 210. Calibration. Premcor shall conduct all calibrations o f LDAR m onitoring equipment losing methane as the calibration gas, in accordance w ith 40 C.F.R. Part 60, EPA Reference Test M ethod 21. 56- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00056 )(|p: Case 5:07-cv-0Qfig3-WRF Document 25-2 Filed 1i f f 0/07 Page 6 of 47 1 1 . Calibration Drift Assessment. Beginning no later than sixty (60) days from the Date o f Entry o f this Addendum, Premcor shall conduct calibration drift assessments o f LDAR monitoring equipment at the end o f each monitoring shift, at a minimum. Premcor shall conduct the calibration drift assessment using, at a minimum, a 500 ppm calibration gas. If any calibration drift assessment after the initial calibration shows a negative drift o f more than 10% from the previous calibration, prem cor shall remonitor all valves at such Refinery qualifying as Equipment that were monitored since the last calibration and that had a reading greater than 100 ppm and all pum ps at such Refinery qualifying as Equipment that were monitored since the last calibration and that had a reading greater than 500 ppm. P. Chronic Leakers 212. Premcor shall replace, repack, or perform sim ilarly effective repairs on chronically leaking, non-control valves during the next process unit turnaround after identification. A component shall b j classified as a "chronic leaker" undo: this paragraph if it leaks above 10,000 ppm twice in any consec alive four quarters, unless the component had not leaked in the twelve (12) consecutive quarters immed]iately prior to the relevant process unit turnaround. Q. Delay of Repair 213. Beginning no later than sixty (60) days from the Date o f Entry o f the Addendum, for any v.ves or pumps qualifying as Equipment for which Prem cor is allowed under the applicable LDAE Regulations to place on the "delay o f repair" list, Premcor shall satisfy the following requir aments. Nothing in this provision is intended to lim it Premcor's ability to isolate a valve or pump rather than placing it on the "delay o f repair" list, to the extent authorized under applicable LDAR Regulations. a. . For all valves or pum ps: 1. Require sign-off by the unit supervisor that the valve or pump is technically infeasible to repair without a process unit shutdown, to the -57- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00057 '1 Case 5:07-cv-0Q|83-WRF Document 25-2 Filed 1.J^UC20/07 Page 7 of 47 extent that the valve or pump is being placed on the "delay o f repair" list for that reason; and 2. Include valves and pum ps that are placed on the "delay o f repair" list in regular LDAR monitoring. b. For valves: For valves, other than control valves, qualifying as Equipment leaking at a rate o f 10,000 ppm or greater, require use o f a "drill and tap" or equivalent m ethod for fixing such leaking valves, rather than placing the valve on the "delay o f repair" list, unless Prem cor can demonstrate that there is a safety, mechanical, or adverse environmental concern posed by attempting to repair the leak in this manner. Premcor shall perform the first "drill and tap" (or equivalent repair method) w ithin fifteen (15) days, and a second attem pt (if necessary) within thirty (30) days after the leak is detected. After two unsuccessful attempts to repair a leaking valve through the drill and tap method, Prem cor m ay place the leaking valve on its "delay o f repair" list. If a new m ethod develops for repairing such valves, Prem cor w ill advise EPA prior to im plem enting the use o f such new m ethod in place o f drill and tap for repairs required under this Addendum, R. R ecordkeeping and R eporting R equirem ents for this P art 214. In addition to the Reports Required under 40 C.F.R. 60.487 and 63.654. a. W ritten Refinery-W ide LDAR Program. No later than July 31, 2007, Premcor shall submit a copy o f each o f the Premcor Refineries' W ritten Refinery-W ide LDAR Program s developed pursuant to Paragraph 185 to EPA, the appropriate EPA Region, and the appropriate Plaintiff-Intervener agency. b. C ertification o f U se o f Electronic D ata C ollection during LDAR M onitoring. No later than July 31, 2007, Premcor shall certify that it utilizes at all o f the Prem cor Refineries -58- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00058 Case 5:07-cv-0Q|83-WRF Document 25-2 Filed lii2 0 /0 7 Page 8 of 47 elecroni data collection devices during LDAR monitoring, pursuant to the requirements o f Paragraph 206. 215. As part o f the Reports Required under 40 C.F.R. 60.487 and 63.654 (Sena-Aimpal LDAR Report) Premcor shall submit, for the Premeor Refineries, the following information, at the following times: a. First Semiannual LDAR Report Due under the Addendum . Premcor shall include the following as part o f its rep o rts), as applicable: i. A certification o f the implementation o f the "initial attem pt at repair" program o f Paragraph 199; u. A certification o f the implementation o f QA/QC procedures for review o f data generated by LDAR technicians as required by Paragraph 207; in. An identification o f the individual, by nam e o r title, at each Refinery responsible for LDAR performance as required by Paragraph 208; IV. A certification o f the development o f a tracking program for new valves and pumps added during maintenance and construction (Management of Change Program) as required by Paragraph 209; A certification o f the implementation o f the calibration and calibration drift assessment procedures o f Paragraphs 210 and 211; vi. A certification o f fire im plem entation o f the "chronic leaker" and "delay o f repair" procedures o f Paragraphs 212 and 213; and vii. A copy o f each refinery's written refinery-wide LDAR program under Paragraph 185. b. U ntil term ination o f this P art XI o f the Addendum , Premcor shall include the following information in the Semiannual LDAR Reports: 59- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00059 Case 5:07-cv-0 ( ^ 3 -W R F Document 25-2 Filed 1^jp3/07 Page 9 of 47 . An identification o f each audit, if any, that was conducted pursuant to the requirem ents o f Section XLD. in the previous semiannual period at each o f the Premcor Refineries. For each audit identified, the report shall include an identification o f the auditors, a summary o f the audit results, and a summary o f the actions that Premcor took or intends to take to correct all deficiencies identified in the audits. ii. Training. Information identifying the m easures taken to comply with the provisions o f Paragraph 186; and iii. M onitoring. The following information on LDAR monitoring: (a) a list o f the process units m onitored during the reporting period; (b) the number o f valves and pumps present in each monitored process unit; (c) the num ber o f valves and pumps m onitored in each process unit; (d) the number o f valves and pumps found leaking; (e) the number o f "difficult to m onitor" pieces o f equipment monitored; (f) the projected m onth o f the next m onitoring event for that unit; (g) 3 fist o f all pumps and valves currently on the "delay of repair" list, the date each component was placed on the list, the date each such component was determined to be leaking at a rate greater than 10,000 ppm, the date each drill and tap or equivalent method o f repair, its associated m onitoring results and whether such activities were completed in a tim ely manner under Paragraph 213; -60. Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00060 3|p f ' Case 5:07-cv-0063-WRF Document 25-2 Filed 11120/07 Page 10 of 47 (h) a list o f all initial attempts/remonitoring that did not occur in a timely manner under Paragraph 199; (i) the num ber o f missed or untimely repairs under Paragraph 198; and (j) the number o f missed or untimely repairs under Paragraphs 212 and 213. Agencies to Receive R eports. Plans and Certification R epaired in this P a rt X I: N um ber of Conies 216. Reserved. 217. Unless otherwise specified in this Part XI, Prem cor shall subm it all reports, plans and certificaions required to be subm itted under this Part XI to EPA and to the appropriate EPA Region and PI;aintiff-Intervener. For each submission, Premcor shall submit one copy to EPA, two copies to the app:iropriate EPA Region and two copies to the appropriate Plaintiff-Intervener. By agreement between Premcor and each o f the offices that are to receive the m aterials in this Part XI, Premcor may submit the materials electronically. T. Excluded E quipm ent. 218. Notwithstanding anything to the contrary in this Part XI, the LDAR program shall not apply to valves and pumps exempt under the LDAR Regulations, including but not lim ited to: pressure relief d<evices, valves on closed vent systems, valves in vacuum service, leakless valves, and pumps with n< mechanism to leak (e.g. canned and m ag pumps). In addition, nothing in this Addendum is intendied to require Premcor to m onitor difficult-to-monitor valves or unsafe-to-monitor valves more frequiently than is otherwise required under the LDAR Regulations. U. New Monitoring Technologies. 219. In the event that EPA adopts new m onitoring technologies (such as infrared imaging) into ii LDAR regulations in the future, Premcor may request a modification to this Part XI to take advantage o f such new regulations. EPA, after an opportunity for consultation w ith appropriate -61- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00061 Case 5:07-cv-006&3-WRF Document 25-2 Filed 11/20/07 Page 11 of 47 w Plaintiff- Interveners, m ay approve a change to part or all o f this Part X I to take advantage o f the new leak detaction technology. Such a revised protocol must be developed and m utually agreed upon m writing by EPA and Premcor in accordance w ith Paragraph 381 [M odification]. X II. PROGRAM ENHANCEMENTS RE; NSPS SUBPARTS A AND J SO2EM ISSIONS FROM CLAUS SULFUR RECOVERY PLANTS ("SRP") AND FLARING pro g ram Sum m ary: Beginning im m ediately upon the lodging o f this Addendum, Premcor agrees to take the follow ing m easures at all o f its SRPs and certain flaring devices at the Premcor Refineries. Prem cor will install additional equipm ent at certain refineries to achieve additional S 0 2 em ission reductions and further reduce flaring incidents. Premcor will implement procedures for root cause analysis o f acid gas and hydrocarbon flaring incidents and tail gas incidents at all refineries. . D EFIN ITIO N S 220. Unless otherw ise expressly provided herein, term s used in this Part shall be interpreted as defined in the Clean A ir A ct, 42 U.S.C. 7401 et seq., and the applicable regulations prom ulgated thereunder. In addition, the follow ing definitions shall apply, for purposes o f this Addendum, to the terms contained within this Part o f this Addendum: (1) "A cid Gas" (AG) shall m ean any gas that contains hydrogen sulfide and is generated at a refinery b y the regeneration o f an amine scrubber solution; (2) "AG Flaring" shall mean, for purposes o f this Addendum, the com bustion o f Acid Gas and/or Sour W ater Stripper Gas in an AG Flaring Device. N othing in this definition shall be construed to m odify, lim it, or affect EPA's authority to regulate the flaring o f gases that do not fall w ithin the definitions contained in this Addendum o f Acid Gas or Sour W ater Stripper Gas. (3) "AG Flaring Device" shall m ean any device at a refinery that is used for the purpose o f com busting A cid Gas and/or Sour W ater Stripper Gas, except facilities in which gases are combusted to produce elemental sulfur, sulfuric acid or ammonium thiosulfate. The combustion o f Acid Gas and/or Sour Water Stripper Gas occurs in AG Flaring Devices identified in A ppendix K. To the extent that the refinery utilizes AG Flaring Devices -62- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00062 w ^jj)/ Case 5:07-cv-006ft3-WRF Document 25-2 Filed 11220/07 Page 12 of 47 other than those identified in Appendix K for purposes o f combusting Acid Gas and/or Sour W ater Stripper Gas, those Flaring Devices shall be considered A G Flaring Devices under this Addendum. (4) "AG Flaring Incident" shall mean the continuous or intermittent flaring/combustion of Acid Gas and/or Sour W ater Stripper Gas in an AG Flaring D evice that results in the emission o f sulfur dioxide equal to, or greater than five hundred ($00) pounds in a twenty-four (24) hour period; provided, however, that if five hundred (500) pounds or m ore o f sulfur dioxide have been em itted in a twenty-four (24) hour period and flaring continues into subsequent, contiguous, non-overlapping twenty-four (24) hour period(s), each period o f which results in em issions equal to, or in excess o f five hundred (500) pounds o f sulfur dioxide, then only one AG Flaring Incident shall have occurred. Subsequent, contiguous, non-overlapping periods are m easured from the initial comm encem ent o f flaring w ithin the AG Flaring Incident. (5) "Day" shall m ean a calendar day. (6) "Hydrocarbon Flaring" shall mean, for purposes o f this Addendum , the flaring o f refinery hydrocarbon process gases, except for Acid Gas and/or Sour W ater Stripper Gas and/or Tail Gas, in a Hydrocarbon Flaring Device. N othing in this definition shall be construed to m odify, limit, or affect EPA's authority to regulate the flaring o f gases that do not fall within the definitions contained in this Addendum. (7) "Hydrocarbon Flaring Device" shall mean a flare device listed in Appendix N. Premcor shall provide notice to EPA, w ithin the next report to be subm itted pursuant to Part XVI, o f any new Hydrocarbon Flaring Device which is installed at a Premcor Refinery subsequent to the Date o f Entry o f this Addendum. To the extent that a Premcor Refinery utilizes a Hydrocarbon Flaring D evice other than those specified in Appendix N for the purposes o f combusting any excess o f a refinery-generated gas other than -63- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00063 Case 5:07-cv-00|p-W R F Document 25-2 Filed 1 1 ^ /0 7 Page 13 of 47 A cid Gas and/or Sour W ater Stripper Gas, such H ydrocarbon Flaring Device shall be covered under this Addendum. (8) "Hydrocarbon Flaring Incident" or HC Flaring Incident, shall m ean continuous or interm ittent H ydrocarbon Flaring, at a Hydrocarbon Flaring D evice that results in the em ission o f sulfur dioxide equal to, or greater than five hundred (500) pounds in a 24- hour period; provided, however, that if five hundred (500) pounds or m ore o f sulfur dioxide have been em itted in a tw enty-four (24) hour period and flaring continues into subsequent, contiguous, non-overlapping tw enty-four (24) hour period(s), each period o f which results in emissions equal to, or in excess o f five-hundred (500) pounds o f sulfur dioxide, then only one HC Flaring Incident shall have occurred. Subsequent, contiguous, non-overlapping periods are m easured from the initial commencement o f Flaring within the HC Flaring Incident. . (9) "M alfunction" shall m ean any sudden, infrequent, and not reasonably preventable failure o f air pollution control equipm ent, process equipment, or a process to operate in a norm al or usual m anner. Failures that are caused in part by poor m aintenance or careless operation are not m alfunctions. (10) "Root Cause" shall m ean the primary cause or causes o f a AG or HC Flaring Incident or o f a Tail Gas Incident as determ ined through a process o f investigation. (11) "Scheduled M aintenance" o f an SRP shall m ean any shutdow n o f an SRP that Prem cor schedules at least fourteen (14) days in advance o f the shutdow n for the purpose o f undertaking m aintenance o f that SRP. ` (12) "Shutdown" shall mean the cessation o f operation o f an affected facility for any purpose. (13) "Sour W ater Stripper Gas" or "SWS Gas" shall m ean the gas produced by the process o f stripping or scrubbing refinery sour water. -64- Sierra .Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00064 Case 5:07-cv-00||p>-WRF Document 25-2 Filed U1fl^P1/0 7 Page 14 of 47 (14) "Startup" shall m ean the setting in operation o f an affected facility for any purpose. (15) "Sulfur Recovery Plant" or "SRP" shall mean a process unit that recovers sulfur from hydrogen sulfide by a vapor phase catalytic reaction o f sulfur dioxide and hydrogen sulfide. (16) "Tail Gas" shall mean exhaust gas from the Claus trains and the tail gas treating unit ("TGTU") section o f the SRP. (17) "Tail Gas Incident" shall m ean the com bustion o f Tail Gas that: a, is com busted in a flare that results in five hundred (500) pounds o f sulfur dioxide em issions in a tw enty-four (24) hour period; or b. is com busted in a therm al incinerator and results in excess em issions o f 500 pounds or more o f SO2 in any 24-hour period. O nly those tim e periods which are in excess o f a SO2 concentration o f 250 ppm (rolling 12-hour average) shall be used to determ ine the amount o f excess SO2 em issions from the incinerator, provided, how ever, that during periods o f m aintenance o f a m onitored incinerator, a Tail Gas Incident shall m ean the com bustion o f Tail Gas in a com bustion device other than a m onitored incinerator w here the am ount o f sulfur dioxide em issions in excess o f 250 ppm on a tw enty-four (24) hour period exceeds five hundred (500) pounds, calculated based upon best engineering judgm ent. c. Reserved (18) "Upstream Process U nits" shall m ean all amine contactors, am ine scrubbers, and sour water strippers at the refinery, as w ell as all process units at the refinery that produce gaseous or aqueous waste stream s that are processed at am ine contactors, amine scrubbers, or sour w ater strippers. -65- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00065 Case 5:07-cv-00^p-W R F Document 25-2 Filed ll^ jg /0 7 Page 15 of 47 w (19) "Flaring D evice" shall mean an A cid Gas Flaring D evice and/or Hydrocarbon Flaring D evice. SKP NSPS Snbparts A And J Applicability 221. Upon the Date o f Entry, the SRPs at the Prem cor Refineries shall be "affected facilities" pursuant to 40 C.F.R. Part 60, Subpart J, and shall comply w ith the applicable provisions o f 40 C.F.R. Part 60, Subparts A and J, as such requirem ents apply to SRPs. For em ission unit P025 at the Lima Refinery, Premcor shall certify com pliance w ith the applicable provisions o f 40 C .F .R Part 60, Subpart J, to EPA and the applicable P laintiff Intervener by no later than A pril 1,2008. 222. The SRPs at the Prem cor Refineries are as follows: Memphis Memphis SRP Lima Lima SRP Claus #1 Claus #2 Claus #1 Claus #2 Date of Entry Date of Entry____________ Date of Entry Date of Entry___________ Port Arthur 543 300 Train 544 500 Train 544 400 Train 545 100 Train 545 200 Train 546 600 Train 546 700 Train Date of Entry Date of Entry Date of Entry Date of Entry Date of Entry Date of Entry Date of Entry 223. Reserved. 224. Upon the D ate o f Entry, all emission points (stacks) to the atmosphere for tail gas emissions from each o fits SRPs w ill be m onitored and reported upon in accordance w ith 40 C .F .R 60.7(c), 60.13, and 60.105. This requirem ent is not applicable to the A G Flaring Devices identified in Appendix K. - 66- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00066 Case 5:07~cv~00) f6|jP|3~WRF Document 25-2 Filed 11Z2D/07 Page 16 of 47 225. Nothing in this Addendum shall be interpreted to lim it Prem cor's opportunity to subm it for EPA approval alternative m onitoring procedures or requirements pursuant to 40 C.F.R., Part 60, Subpart A, for em issions from SRPs. 226. By no later than one (1) year after the D ate o f Entry, Prem cor shall re-route any SRP sulfur pit em issions from the refineries subject to this Addendum such that all sulfur pit em issions to the atmosphere are either elim inated o r included as part o f the applicable SR P s em issions subject to NSPS Subpart J lim it for SO2, as a 12-hour rolling average, o f 250 ppm vd SCh, o r 300 ppm reduced sulfur, each at 0% oxygen, as required by 40 C.F.R. 60.104(a)(2). 227. During the life o f this Addendum and for the purpose o f determ ining compliance with the SRP em ission lim its, Prem cor shall apply the "startup" and "shutdown" provisions set forth in NSPS Subpart A to the SRP but not to the independent startup or shutdow n o f its corresponding control device(s) (e.g., TGTU). However, the m alfunction exem ption set forth in NSPS Subpart A shall apply to both the SRP and its control device(s) (e.g., TGTU). 228. W ith respect to the Port A rthur Refinery, in order to further enhance operations o f its SRPs, further reduce em issions o f SO2, further reduce AG Flaring Incidents and ensure com pliance with 40 C.F.R. Part 60, Subparts A and J, Prem cor shall im plem ent the follow ing actions at that refinery by the dates listed below: a. Construct A dditional Claus Trains - 546-600 and 546-700 by Date o f Entry. b. Revam p the GFU 241 and 242 R ich Amine Flash drum to include oil skimming facilities and skim oil pum ps by Decem ber 31,2009. c. Install a rich am ine flash drum at GFU 243 by D ecem ber 31,2009. d . -g . Reserved. 229. Good Operation and Maintenance. Within one year o f the Date o f Lodging, Premcor shall submit to EPA and the appropriate Plaintiff-Intervener, a sum m ary o f plans for the Premcor Refineries to implement enhanced m aintenance and operation o f their SRPs, any supplem ental control ' ' -67- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00067 )f|p Case 5:07-cv-006||3-WRF Document 25-2 Filed 11/20/07 Page 17 of 47 devices, and the appropriate U pstream Process U nits that have been or w ill be implem ented. These plans sha].11be termed Preventive Maintenance and Operation Plans ("PMO Plans"). Each PMO Plan shall be a com pilation o f Prem cor approaches for exercising good air pollution control practices and for miraumzmeg S 0 2 em issions at its Refinery(ies). The PMO Plan shall provide for continuous operation o f its SRPs between scheduled maintenance turnarounds with minimization o f emissions, includin. the continued use o f supplemental control devices (e.g., am inc/caustic scrubbers). The PMO Plan shall1include, but not be lim ited to, sulfur shedding procedures, startup and shutdown procedures, hot standby procedures, em ergency procedures and schedules to coordinate m aintenance turnarounds o f the SRP Claus trains and any supplem ental control devices w ith scheduled turnarounds o f m ajor Upstreiam Process U nits. The PM O Plan shall have as a goal the elim ination o f Acid Gas Flaring, Premcor shall comply w ith the PM O Plan at all times, including periods o f Startup, Shutdown and M alfim e;tion o f its SRPs. I f Prem cor m akes changes to a PMO Plan related to m inim izing Acid Gas Flaring and/or SO2 em issions, such changes shall be summ arized and reported to EPA and the appropmate Plaintiff-Intervener on an annual basis. 229A. In addition, Premcor shall, along w ith each PM O described above, provide a b rief descriptii'on o f the causes o f A cid Gas Flaring at each refinery for each A cid Gas Flaring Incident that occurried from January 1,2002 through Decem ber 31 ,2006: The date and tim e that the AG Flaring Incident started and ended (if available or reasonably determ inable); . H. A n estim ate o f the quantity o f sulfur dioxide em itted and the calculations used to determ ine that quantity (if available or reasonably determ inable); and iii. A description o f the Root Cause and corrective actions, if any, that were taken and/or should be incorporated into the PMO to reduce the likelihood o f a recurrence o f such AG Flaring Incident (if reasonably available but only to the extent such Refinery was then owned by Premcor). - 68- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00068 Case 5:07~cv~00Gj|3~WRF Document 25-2 Filed 11Z20/07 Page 18 of 47 230. EPA and the appropriate Plaintiff-Intervener do not, by their review o f a PMO Plan and/or by their failure to comment on a PMO Plan, warrant or aver in any maimer that any o f the actions that Prem cor m ay take pursuant to such PMO Plan w ill result in com pliance w ith the provisions o f the Clean A ir Act o r any other applicable federal, state, or local law or regulation. N otw ithstanding EPA's o r appropriate Plaintiff-Intervener's review o f a PM O Plan, Premcor shall remam s >lely responsible for com pliance with the Clean A ir A ct and such other laws and regulations. . Flaring Devices - NSPS A pplicability 231. In accordance w ith the schedule in this Section XILC, Prem cor accepts NSPS Subpart J applicability for each Flaring Device at the Premcor R efineries, as currently identified in Appendix N. 3 2 .-2 3 3 . Reserved. 234. Good A ir P ollution Control Practices. On and after the D ate o f Entry, Prem cor shall at all tim es and to the extent practicable, including during periods o f Startup, Shutdown, and/or M alfunction, implem ent good air pollution control practices for m inim izing em issions consistent with 40 C.F.R. 60.11(d). 235. For each Flaring D evice, Prem cor w ill elect to use one or any com bination o f the following NSPS Subpart J com pliance m ethods: a. Operate and maintain a flare gas recovery system to control continuous or routine combustion in the Flaring Device. Use o f a flare gas recovery system on a flare obviates the need to continuously monitor and maintain records of hydrogen sulfide in the gas as otherwise required by 40 C.F.R. 60.105(a)(4) and 60.7; b. Operate the Flaring Device as a fuel gas combustion device and comply with NSPS monitoring requirements by use o f a GEMS pursuant to 40 C.F.R. 60.105(a)(4) o r w ith a predictive m onitoring system approved by EPA as an alternative m onitoring system pursuant to 40 C.F.R. 60.13(1); -69- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00069 )t|p Case 5:07-cv-006&3-WRF Document 25-2 Filed 11Z2D/07 Page 19 of 47 c. Elim inate the routes o f continuous o r interm ittent, routinely-generated fuel gases to a Flaring D evice and operate the Flaring D evice such that it receives only process upset gases, fuel gas released as a result o f relief valve leakage or gases released due to other emergency m alfunctions; or Eliminate to the extent practicable routes o f continuous or interm ittent, routinely-generated fuel gases to a Flaring D evice and m onitor the Flaring D evice by use o f a CEMS and a flow m eter; provided how ever, that this com pliance method m ay not be used unless Premcor : (i) dem onstrates to EPA that the Flaring D evice in question em its less than 500 pounds per day o f SO2 under norm al conditions; (ii) secures EPA approval for use o f this m ethod as the selected com pliance method; and (iii) uses this com pliance m ethod for five or fewer o f the F laring D evices listed in Appendix N. 236. For the com pliance m ethod described in Paragraph 235(b), to the extent that Prem cor seeks to use an alternative m onitoring m ethod at a particular Flaring Device to dem onstrate com pliance with the lim its at 40 C.F.R. 60.104(a)(1), Prem cor m ay begin to use the m ethod im m ediately upon subm itti ng the application for approval to use the m ethod, provided that the alternative m ethod for which approval is being sought is the sam e as or is substantially sim ilar to the m ethod identified as the "Altemalrive M onitoring Plan for N SPS Subpart J R efinery Fuel Gas" attached hereto as A ppendix D. 237. flnmpliflncfl Plan for F laring Devices. For each Covered R efinery, Premcor w ill subm it a Comi]pliance Plan for Flaring D evices to EPA and the applicable Plaintiff-Intervener by no later than December 31,2009. 238. In each R efinery's C om pliance Plan for Flaring Devices, Prem cor will: a. C ertify compliance w ith one or more o f the four com pliance m ethods set forth in Paragraph 235 and accept NSPS applicability for at least (i) 50% o f the system w ide Flaring D evices identified in A ppendix N , (ii) one Flaring D evice per -70- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00070 Case 5:07~cv~00^p~WRF Document 25-2 Filed 11f00/0c7 Page 20 of 47 R efinery w here such R efinery has three or m ore Flaring D evices, and (iii) at the Lim a R efinery the FCC (N orth) flare w hich serves the coker unit, provided, how ever, that if the selected com pliance method is a flare gas recovery system , as identified in Paragraph 235(a), then Prem cor m ay certify that com pliance w ill be achieved by no later than December 31,2010; b. Identify the Paragraph 235 compliance meihod(s) used for each Flaring D evice that Prem cor identifies under Paragraph 237; Describe the activities that Prem cor has taken or anticipates taking, together w ith a schedule, to m eet the objectives o f Paragraph 237 at each R efinery; and D escribe the anticipated compliance m ethod(s) and schedule that Premcor w ill undertake for the rem aining Flaring D evices identified in Appendix N. 239. B y no later than D ecem ber 3 1 ,2 0 1 3 , Prem cor w ill certify com pliance to EPA and the applicaiible Plaintiff-Intervener w ith one o r m ore o f the four com pliance methods in Paragraph 235 and w ill acci ept NSPS applicability for all o fth e Flaring D evices in A ppendix N. 240. Performance T ests. B y no later than ninety (90) days after bringing a Flaring Device into co m pliance b y using th e m ethods in Paragraph 235(b) o r (d), Prem cor w ill conduct a flare perfoD:rniiance test pursuant to 40 C.F.R. 60.8 and 60.18, or an EPA -approved equivalent method unless such perform ance test has previously been performed. In lieu o f conducting the velocity test required m 40 C.F.R. 60.18, Prem cor may subm it velocity calculations that dem onstrate that the Flarini Device meets the perform ance specification required by 40 C.F.R. 60.18. 241. The com bustion in a Flaring Device o f process upset gases or fuel gas that is released to the Flaring Device as a result o f relief valve leakage or other em ergency m alfunctions is exem pt from the requirement to com ply w ith 40 C.F.R. 60.104(a)(1). Sierra Club v. EPA 18cv3472 NDCA 71 Tiers 8&9 ED 002061 00164347-00071 I f Case 5:07-cv-00M fi-W RF Document 25-2 Filed 11/20/07 Page 21 of 47 D. Investigation and R eporting Z41A. Premcor shall conduct a review o f each o f the three Prem cor Refineries for the five (5) years prior to the D ate o f Lodging in an effort to identify any releases that may have been reportable under Section 103(a) o f CERCLA, 42 U .S.C. 9603(a), and Section 304 o f EPCRA, 42 U.S.C. 11004 or similar or corresponding state reporting regulations. U pon com pletion o f this review , Prem cor shall resolve its liability for violations o f Section 103(a) o f CERLA and Section 304 o f EPCRA or similar o r corresponding state reporting regulations w ith respect to the events identified in its com pliance review by com pleting the follow ing activities no later than December 31,2007: a. subm it a CERCLA/EPCRA Com pliance R eview R eport to EPA and PlaintiffInterveners that identifies potential violations o f Section 103(a) o f CERCLA and Section 304 o f EPCRA or sim ilar or corresponding state reporting regulations for w hich Prem cor seeks a resolution o f liability; and b. correct and/or update procedures to ensure com pliance in future; and c. conduct CERCLA/EPCRA training for the environmental com pliance staff at each o f the three Prem cor R efineries. 242. Beginning no later than ninety (90) days after the D ate o f Lodging, Prem cor shall subm it a report to EPA and the applicable EPA Regional Office w ithin sixty (60) days follow ing the end o f each AG Flaring Incident, H ydrocarbon Flaring Incident or T ail Gas Incident at a Prem cor Refinery. Such reports shall set forth the follow ing inform ation concerning the Incident (a "Root Cause Failure Analysis" o r "RCFA"): 1. The date and tim e that the Incident started and ended. To the extent that the Incident involved m ultiple releases either w ithin a tw enty-four (24) hour period o r w ithin subsequent, contiguous, non-overlapping tw enty-four (24) hour periods, Prem cor shall set forth the starting and ending dates and tim es o f each release; - 72 - Sierra Club'v. 'EP,A 18cV3472 NDCA Tiers 8&9 ED 002061 00164347-00072 ll/aIa/0e7 Case 5:07-cv-006jikWRF Document 25-2 Filed Page 22 of 47 2. An estim ate o f the quantity o f SO2 that w as em itted and the calculations that w ere used to determ ine that quantity; 3. The steps, i f any, that Prem cor took to lim it the duration and/or quantity o f SO2 em issions associated w ith the Incident; 4. A detailed analysis that sets forth the R oot Cause o f that Incident, to the extent determ inable; 5. A n analysis o f the m easures, if any, that are reasonably available to reduce the likelihood o f a recurrence o f the Incident resulting at the sam e refinery from the sam e R oot Cause(s) in the future. The analysis shall discuss the alternatives, if any, that are reasonably available, the probable effectiveness and cost o f the alternatives, and w hether or not an outside consultant should be retained to assist in the analysis. Possible design, operational, and m aintenance changes shall be evaluated. 6. E ither a description o f corrective action(s) under Paragraph 245 and, if not already completed, a schedule for its (their) im plem entation, including proposed com m encem ent and com pletion dates, o r an explanation that corrective action(s) is (are) not required; 7. For A G Flaring and Tail Gas Incidents at any Prem cor refinery and for HC Flaring Incidents at the Port A rthur Refinery, a statem ent that: a. Specifically identifies each o f the grounds for stipulated penalties in Section XILF o f this D ecree and describes w hether or not such incident falls under any o f those grounds; b. D escribes w hether Paragraph 250 or 251 applies and w hy, or if such incident falls under Paragraph 252 o f this D ecree, describes whether subparagraph 252(a), (b), o r (c) applies and w hy; and -73- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00073 Case 5:07-cv-006|||rW RF Document 25-2 Filed 11/2|j1|1C/07 Page 23 of 47 c. States w hether or not Prem cor asserts a defense to such incident, and if so, a description o f such defense. 8. To the extent that investigations o f the causes and/or possible corrective actions still are underw ay on the due date o f the report, a statem ent o f the anticipated date b y w hich a follow -up report fully conforming to the requirem ents o f this Paragraph 242 w ill be subm itted; provided, how ever, that if Prem cor, has not submitted a report or a series o f reports containing the inform ation required to be subm itted under this paragraph w ithin sixty (60) days (or such additional tim e as EPA m ay allow ) after the due date for the initial report for any incident, the stipulated penalty provisions o f Paragraph 260(d) shall apply for failure to tim ely subm it the report. N othing in this paragraph shall be deemed to excuse Prem cor from its investigation, reporting, and corrective action obligations under this Part XH for any incident w hich occurs after another incident for which Prem cor has requested an extension o f tim e under this paragraph; and 9. To the extent th at com pletion o f the im plem entation o f corrective action(s), if any, is not finalized at the tim e o f the subm ission o f the report required under this Paragraph 242, then, by no later than thirty (30) days after com pletion o f the im plem entation o f corrective action(s), Premcor shall subm it a report identifying the corrective action(s) taken and the dates o f com m encem ent and com pletion o f im plem entation. 243. W ith respect to H C Flaring Incidents and in lieu o f analyzing possible corrective actions under Section X3LE and taking interim and/or long-term corrective action under that section for a HydriOcarbon Flaring Incident attributable to the startup or shutdow n o f a unit that Prem cor previously analyzed this Section XDLD, Prem cor m ay identify such prior analysis w hen subm itting the report required under Paragraph 242. P rior to the installation o f a flare gas recovery system identified -74- Sierra 'Club'v:' EPA t8Cv3472 NDCA Tiers 8&9 ED 002061 00164347-00074 Case 5 :0 7 -c v -0 0 ^ -W R F Document 25-2 Filed 1 1 ^ / 0 7 Page 24 of 47 under Paragraph 235(a) but only after notice to EPA under Paragraph 237, Prem cor shall not be required to identify o r implement corrective action(s) under Paragraphs 242 and 245, for HC Flaring Incidents unless more than 500 lbs. o f SO2 w ould have been released if such equipm ent had been installed and in use. If Prem cor determ ines that the Hydrocarbon Flaring Incident is attributable solely to the com bustion o f refinery fuel gas that contains less than 162 ppm o f H2S, it shall so demonstrate in its repiart under Paragraph 242, and no further action shall be required for that Incident under this Section XHJD. In addition, or in the alternative, if Prem cor determ ines that the H ydrocarbon Flaring Incident is attributable to the com bustion o f a stream or stream s o f Continuous o r Interm ittent Routinely-G enerated Fuel G ases prior to Premcor's im plem enting actions to address such stream(s) when and as required by Paragraphs 235 and 238 but only after notice to EPA under Paragraph 237, it shall so dem onstrate in its report under Paragraph 242 and no further action shall be required for that Incident under this Section XII.D, N otw ithstanding Paragraph 242, Prem cor m ay subm it reports for Hydrocarbon Flaring Incidents at the Lim a and M em phis R efineries as part o f the Semi-annual Progress Reports required pursuant to Part XVI, but Premcor m ay not subm it reports for Hydrocarbon Flarin l Incidents at the Port A rthur R efinery as part o f the Sem i-annual Progress Reports. 244. W ith respect to H ydrocarbon Flaring Incidents occurring prio r to certifying compliance under Paragraph 238 or 239, Prem cor m ay prepare and subm it a single RCFA for one or m ore Root Causes found by that analysis to routinely reoccur. Prem cor shall inform EPA and the relevant Plaintiff-Intervener in that RCFA th at it is electing to report only once on that (those) Root Cause(s) during the interim period. U nless EPA o r the relevant Plaintiff-Intervener objects w ithin thirty (30) days o f receipt o f the RCFA, such election shall be effective. E. Corrective Action 245. in response to any Incident, Prem cor, as expeditiously as reasonably practicable, shall take such interim and/or long-term corrective actions, if any, as are reasonable and consistent w ith Sierra Club v. EPA 18cv3472 NDCA -75Tiers 8&9 ED 002061 00164347-00075 Case 5 :0 7 -c v -0 0 ^ |-W R F Document 25-2 Filed 1 1 0 /0 7 Page 25 of 47 good engineering practice to minimize the likelihood o f a recurrence o f the R oot Cause o f that Incident. 245A. Prem cor shall im plem ent the follow ing corrective action at the P ort A rthur Refinery: ( 1) D elayed C oker 843 W et G as Com pressor R eliability a. U pgrade and install an adequate level o f redundancy in the UPS supply serving critical com pressor instrum entation and F ail Safe C ontrol system s by D ecem ber 31,2009; b. D evelop for the coker's current cycle and for any subsequent cycle a task schedule sim ilar to Foster W heeler's task schedule for the 18-hour cycle by June , 3 0 ,2 0 0 7 ; (2) SGRU 1242 Sats Gas Com pressor R eliability a. R etrofit advanced com pressor surge and m olecular weight control system s on the existing com pressor by D ecem ber 31,2009; b. Integrate the com pressor control system w ith the unit DCS such that the cause o f any com pressor trip is identified and recorded by December 31,2009; (3) Im pro v e Amine U nit Process Control a. Install redundant nozzles/level transm itter/indication on D-1250 Cold LP Separator OH KO Drum by Decem ber 31,2009; b. R elocate high level alarm on D 1260 product stripper reflux drum b y June 30, 2007; c. Tmtal1 redundant nozzles/level transm itter/indication on D -1260 product stripper reflux drum by December 31,2009; d. Install differential pressure transm itters across dP indicator on T-1530 at HCU 942 by June 30,2007; -76- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00076 Case 5 :0 7 -c v -0 0 ^ |-W R F Document 25-2 Filed 1 1 0 /0 7 Page 26 of 47 Install redundant pressure indication on D -1290 Fractionator Feed Flash Drum (stripper bottoms) at HCU 942 by D ecem ber 31,2 0 0 9 ; Install redundant nozzles/level transm itter/indication on D -6850 C3/C4 Am ine Settler by D ecem ber 31,2009; g- Install redundant nozzles/level transm itter/indication on T-6880 C oker Sponge A bsorber by Decem ber 31,2009; Automate purge on T-101 Pum p-around at ATU 7841 b y 06/30/2007; (4) Install oil sk im m in g on T-4002 spent am ine tank by D ecem ber 3 1 ,2 0 0 9 ; and (5) Revam p D -102 Amine/Oil C oalescer at ATU 7841 by December 31,2007. 246. If EPA does not notify Prem cor in w riting w ithin sixty (60) days o f receipt o f the report(s) required by Paragraph 242 that it objects to one or m ore aspects o f Premcor's proposed corrective action(s), if any, and schedule^) o f im plem entation, if any, then that (those) action(s) and scheduled) shall be deem ed acceptable for purposes o f compliance w ith Paragraph 245 o f this Addendum. 247. EPA does not, by its agreem ent to the entry o f this A ddendum or b y its failure to object to anyrcorrective action that Prem cor m ay take in the future, w arrant or aver in any m anner that any o f Prem cor's corrective actions in the future w ill result in com pliance w ith the provisions o f the Clean A ir A ct or its im plem enting regulations. N otw ithstanding EPA 's review o f any plans, reports, corrective is or procedures under th is P art XII, Prem cor shall rem ain solely responsible for non-com pliance w ith the Clean A ir A ct and its im plem enting regulations. N othing in this paragraph shall be construed a s a wwaiver o f EPA 's rights under the C lean A ir A ct and its regulations for future violations o f the Act o r its regulations. 248. If EPA does object, in w hole o r in part, to Prem cor's proposed corrective action(s) and/or its scheduled) o f im plem entation, or, where applicable, to the absence o f such proposal(s) and/or schedule(s), it shall notify Prem cor o f that fact w ithin sixty (60) days following receipt o f the -77- ;ib v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00077 Case 5:07-cv-00^p-W RF Document 25-2 Filed 1 1 ^ /0 7 Page 27 of 47 RCFA required b y Paragraph 242. EPA shall not, in such notice, am end or m odify the schedule o f activities identified in Paragraphs 228 and 245a. I f EPA and Prem cor cannot agree on the appropriate corrective action(s), if any, to be taken in response to a particular Incident, either P arty m ay invoke the D ispute Resolution provisions o f Part XXIII o f die Addendum . F. AG Flaring. T ail G as Incidents. Port Arthur Hydrocarbon Flaring Incidents And Stipulated Penalties 249. The provisions o f this Section XELF are intended to im plem ent the process outlined in the logic diagram attached hereto as A ppendix F to this Addendum . These provisions shall be interpreted and construed, to the m axim um extent feasible, to be consistent w ith that Appendix. However, in the event o f a conflict between th e language o f those paragraphs and A ppendix F, the language o f those paragraphs shall control. 250. The stipulated penalty provisions o f Paragraph 260(a) shall apply to any A cid Gas Flaring or Tail Gas Incident at a Prem cor R efinery, or Hydrocarbon Flaring Incident at the Port A rthur Refinery ("Port A rthur HC Flaring Incident"), for w hich the R oot Cause w as one o r m ore o f the follow ing acts, om issions, o r events: a. Error resulting from careless operation by the personnel charged w ith the responsibility for the Sulfur Recovery Plant, TGU, or U pstream Process U nits; b. Failure to follow w ritten procedures; c. A failure o f a part, equipm ent o r system that is due to a failure by Prem cor to operate and m aintain that part, equipm ent or system in a m anner consistent w ith good engineering practice; d. W ith respect to fire Port A rthur R efinery, a HC Flaring Incident resulting from any o f the following root causes once the corresponding corrective action has been com pleted pursuant to Paragraph 245a: i. Short-term loss o f pow er to critical C oker 843 W et Gas Com pressor instrum entation and fail safe control system s. -78- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00078 ---------------------------------------------------------------------------------------------------------------------------------------- ^ Case 5:07-cv-00^-W R F Document 25-2 Filed 1 1 ^ 0 7 Page 28 of 47 ii. T rips ofK -2300 A/B W et G as Com pressors from surging because o f low m olecular w eight feed streams. iii. Lack o f capturing and recording operating data generated by S G R U 1242 compressor control system in the distributed control system does not allow troubleshooting the cause o f a K -2300 A/B W et G as Compressors trips. iv. Process upset due to erroneous level indication in D -1250 C old LP Separator OH KO Drum at HCU 942 caused by plugging o f a nozzle. v. H igh elevation o f th e high level alarm point on D -1260 Product Stripper R eflux Drum at HCU 942 does not allow operators additional tim e to correct a rising level situation before drum overfill. vi. Process upset due to erroneous level indication in D -1260 Product Stripper Reflux D rum at HCU 942 caused by plugging o f a nozzle. vii. l ack o f dP indicator and pressure transm itter on T-1530 at HCU 942 does not provide O perators an early warning o f when to inject anti-foam agent into die amine absorber. . viii. Lack o f duplicate pressure transm itters on D -1290 Fractionator Feed Flash D rum (stripper bottom s) at HCU 942 increases the likelihood o f erroneous pressure indication due to instrument failure. ix. Process upset due to erroneous level indication in D -6850 C3/C4 Amine Settler at ATU 7841 caused by plugging o f a nozzle. . x. Process upset due to erroneous level indication in T-6880 Coker Sponge A bsorber at DCU 843 caused b y plugging o f a nozzle. Sierfa'iub'v." EPA' 18cv3472 NDCA -79Tiers 8&9 ED 002061 00164347-00079 Case 5:07-cv-00638^&\W RF Document 25-2 Filed 11/22^ZD17 Page 29 of 47 xi. Lack o f automatic purging in T-101 Pum p-Around at ATU 7841 can result in over-purging and lost o f pump suction at P-101A/B Pump Around Pumps, thereby causing an upset to T-101 Amine Regenerator. xii. Lack o f oil skimming system does not allow the separation o f oil from the solvent in T-4002 Spent Amine Tank at ATU 7841. xiii. Inadequate efficiency o f D-102 Coalescer at ATU 7841 does not allow for better separation o f oil from the solvent in T-4002 Spent Amine. xiv. Failure to update the task schedule for DCU 843 to match the Coker's current cycle. W ith respect to the Port Arthur Refinery, an AG Flaring Incident resulting from any o f the following root causes once the corresponding corrective action has been completed pursuant to Paragraph 228: i. Failure to install additional Claus Trains 546-600 and 546-700. ii. Failure to revam p the GFU 241 and 242 Rich Amine Flash drum to include oil skimming facilities and skim oil pumps. iii. Failure to install a rich amine flash drum at GFU 243. 251. If the AG Flaring Incident, Tail Gas Incident or Port A rthur HC Flaring Incident is not a result o f one o f the root causes identified in Paragraph 250, then the stipulated penalty provisions o f Paragraph 260(a) shall apply if the AG Flaring Incident, Tail Gas Incident or Port Arthur HC Flaring Incident: Results in em issions o f sulfur dioxide at a rate greater than twenty (20.0) pounds per hour continuously for three (3) consecutive hours or more and Premcor failed to act consistent w ith the PM O Plan and/or to take any action during the Incident to lim it the duration and/or quantity o f SO2 emissions associated w ith such incident; or -80- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00080 1 Case 5:07-cv-006aScWRF Document 25-2 Filed 11/2Q/07 Page 30 of 47 b. W ith respect to any o f the Premcor R efineries, causes the total num ber o f A cid Gas Flaring Incidents in a rolling twelve (12) month period to exceed five (5) or causes the total number o f Tail Gas Incidents in a rolling twelve (12) month period to exceed five (5), or, w ith respect to only the P ort A rthur Refinery, causes the total num ber o f Port A rthur H C Incidents in a rolling tw elve (12) m onth period to exceed ten (10) for the first three (3) years following the Date o f Entry o f this Addendum or causes the total num ber o f P ort A rthur HC Incidents in a rolling tw elve (12) m onth period to exceed five (5) thereafter. In the event that an Incident falls under both Paragraphs 250 and 251, then Paragraph 250 shall apply. 252. W ith respect to any A G Flaring Incident, Tail G as Incident or Port A rthur HC Flaring Incident not identified in Paragraph 250 o r 251, the M o w in g provisions shall apply: a. Agreed U pon M alfunction: I f the R oot Cause o f the Incident w as sudden, infrequent, and not reasonably preventable through the exercise o f good engineering practice, then that cause shall be designated as an agreed-upon m alfunction for purposes o f review ing subsequent Incidents, and the stipulated penalty provisions o f Paragraph 260 shall not apply. b. First Tim e: If th e R oot Cause o f the Incident w as sudden and infrequent but reasonably preventable through the exercise o f good engineering practices, then Prem cor shall im plem ent corrective action(s) pursuant to Paragraph 245 and the stipulated penalty provisions o f Paragraph 260 shall not apply. c. R ecurrence: I f the R oot Cause o f the Incident is a recurrence o f the sam e Root Cause that caused a previous Incident occurring after the Date o f Entry, then the stipulated penalty provisions o f Paragraph 260(a) shall apply unless either the Root Cause o f the previous Incident was designated as an Agreed U pon M alfunction under Paragraph 252.a, or Premcor w as in the process o f Sierra Club v. EPA 18cv3472 NDCA -81Tiers 8&9 ED 002061 00164347-00081 Case 5:07-cv-0 q ^ p -W R F Document 25-2 Filed 1 ^ / 0 7 Page 31 of 47 tim ely devi'eloping or im plem enting a corrective action plan under Paragraphs 228, 242, 245, or 245a for such pfrIevious Incident 253 D efenses: Prem cor m ay raise the following affirm ative defenses in response to a dem and by the U nited States for stipulated penalties: a. Force m aieure. b. As to Paragraph 250, the Incident does not m eet the identified criteria c. A s to Paragraph 251, the Incident does not meet the identified criteria and/or was due to a M alfunction. d. A s to Paragraph 252, the Incident does not m eet the identified criteria, was due to a M alfunction and/or Prem cor w as in the process o f tim ely developing or im plem enting a corrective action plan under Paragraphs 228, 242, 245, or 245a for the previous Incident. e. In the event a dispute under Paragraph 250 o r 251 is brought to the Court pursuant to the D ispute R esolution provisions o f this Addendum , Premcor m ay also assert a start up, shutdow n and/or upset defense, bu t the U nited States shall be entitled to assert that such defenses are not available. I f Prem cor prevails in persuading the C ourt that the defenses o f startup, shutdow n and/or upset are available for Incidents under 40 C.F.R. 60.104(a)(1), Prem cor shall not be liable for stipulated penalties for em issions resulting from such startup, shutdow n and/or upset. I f the U nited States prevails in persuading the Court that the defenses o r startup, shutdow n and/or upset are not available, Prem cor shall be liable for such stipulated penalties. 254. O ther than for a M alfunction o r force m aieure. if no Incident and no violation o f the emissioi>n lim its under section XDLB occurs at a R efinery for a rolling 36 m onth period, then the stipulattied penalty provisions o f Paragraph 260(a) shall no longer apply to that Refinery. EPA m ay -82- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00082 Case 5:07-cv-00^pFWRF Document 25-2 Filed i : ) / 0 7 Page 32 of 47 elect to prospectively reinstate the stipulated penalty provision if Premcor has an Incident w hich w ould otherwise be subject to stipulated penalties. EPA 's decision shall not be subject to dispute resolution. Once reinstated, the stipulated penalty provision shall continue for the rem aining life o f this Addendum for that Refinery. G. M iscellaneous 255. C alculation o f the Quantity o f Sulfur D ioxide Em issions resulting from A G and HC Flaring, or purposes o f this Addendum , the quantity o f SQ j em issions resulting from AG Flaring shall be calculated b y the following form ula: To;n s o f SO2 = [FR][TD][ConcH2S][8.31 x 10 s], The quanitity o f S 0 2 em itted shall be rounded to one decim al point. (Thus, for exam ple, for a calculatioin that results in a num ber equal to 10.050 tons, the quantity o f SO2 em itted shall be rounded to 10.1 tons and 10.049 tons w ould be rounded to 10.0 tons.) For purposes o f determining the occurrence of, or the total quantity o f SO2 em issions resulting from, an AG Flaring Incident that is com prised o f interm ittent A G Flatring, the quantity o f SO2 em itted shall be equal to the sum o f the quantities o f SO2 flared during each such period o f interm ittent AG Flaring. 25; 6. Palrnktinr o f the R ate o f SO? Emissions during A G and HC Flaring. F or purposes o f this Add the rate o f SO2 em issions resulting from AG Flaring shall be expressed in term s o f pounds p,er hour, and shall be calculated by the following formula: ER = [FR][ConcH2S][0.166]. The emi ssion rate shall be rounded to one decimal point. (Thus, for exam ple, for a calculation that results in an emission rate o f 19.950 pounds o f S 0 2per hour, the em ission rate shall be rounded to 20.0 pounds o f S 0 2per hour; for a calculation that results in an em ission rate o f 19.949 pounds o f S 0 2per hour, the em ission rate shall be rounded to 19.9.) 257. M eaning o f V ariables and D erivation o f M ultipliers used in the Equations in Paragraphs 255 and 256: 83- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00083 Case 5 :0 7 -c v -0 0 ^ -W R F Document 25-2 Filed 1 1 ^ /0 7 Page 33 of 47 ER = Em ission R ate in pounds o f Sulfur D ioxide per hour E l = Average Flow Rate to Flaring D evice(s) during Flaring, in standard cubic feet per hour TD = Total D uration o f Flaring in hours ^oncH2S = A verage Concentration o f H ydrogen Sulfide in gas during Flaring (or im m ediately prior to Flaring if all gas is being flared) expressed as a volum e fraction (scf H2S /scf gas) 8,31 x 10'5= [lb. m ole H 2S/385 scf H2S][64 lbs. S O ^ b . m ole H2S][Ton/2000 lbs.] 0,166 = [lb. m ole H2S/385 scf H2S][1.0 lb m ole S 0 2/1 lb. m ole H2S][64 lb. SO2/1.0 lb. m ole SO2] Standard conditions: 68 deg. F , 14.7 lb.-force/sq.in. absolute The flow o f gas to the A G F laring D evice(s) ("FR") shall be as m easured by the relevant flow meter or as calculated through the exercise o f best engineering judgm ent. H ydrogen sulfide concentration C'ConcH2S") shall be determined from any installed SRP feed gas analyzer. In the event that the flow o f gas is not measured by an SRP feed gas analyzer or the data point is inaccurate, the m issing or inaccurate data point(s) shall b e estim ated according to best engineering judgm ent. The report required under Paragraph 242 shall include the data used in the calculation and an explanation o f the basis for any estimates o f m issing data points. 258. flfllroilation o f fiie Quantity o f SO? Em issions resulting from a T ail Gas Incident. For the purposes o f this Addendum, the quantity o f SQ* emissions resulting from a Tail Gas Incident shall be calculated by one o f the follow ing m ethods or an equivalent m ethod approved b y EPA , based on the type o f event: a. I f the event constitutes a Tail Gas Incident m eeting the definition o f Paragraph 220(17)(a), the S 0 2emissions are calculated using the m ethods outlined in Paragraph 255, or b. If the event constitutes a Tail Gas Incident m eeting the definition o f Paragraph 220(17)(b), then the follow ing form ula applies to each tw enty-four (24) hour period o f an incident beginning w ith the first hour th at the rolling tw elve ( 12) hour average SO2 concentration exceeds the 84- Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00084 Case 5:07-cv-00aft3-WRF Document 25-2 Filed 1 ^ / 0 7 Page 34 of 47 250 ppm d Subpart J lim it and ending w ith die twenty-four (24) hour period in which the 250 ppm vd NSPS lindit is last exceeded. T otal SO2 em issions during an incident are determined b y summing the em issions during each twenty-four (24) hour period o f the incident: HtCfi ERToi = Z ([F R h c .]i[C o n c .S 0 2-2 5 0 ]i [(20.9-% 02)/20.9]i [0.166 x 10*1) i= l W here: ERtci = Excess Emissions from Tail Gas at the SRP incinerator, in S 0 2 lbs. over a twenty-four (24) hour period FRjnc. = Incinerator Exhaust Gas Flow Rate (standard cubic feet per hour, dry basis) (actual stack m onitor data or engineering estimate based on the acid gas feed rate to the SRP) for each hour o f the incident Cone. SO2 = A ctual SO2 concentration (CEM data) in the incinerator exhaust gas, ppmvd adjusted to 0% O2 for each hour o f the incident % 0 2 = O2 concentration (CEM data) in % in the incinerator exhaust gas on dry basis for each hour o f the incident 0.166 x 10"6= [lb. m ole o f S 0 2/ 385 SO2] [ 64 lbs. S 0 2/lb. m ole S 0 2] [ lx 10'6 ] Htgi = Hours when the incinerator CEM was exceeding 250 ppmvd adjusted to 0% 0 2 in each tw enty-four (24) hour period o f the incident (as described above). Standard conditions: 68 deg. F, 14.7 tb.-force/sq.in. absolute [n the event the S 0 2 and/or the 0 2 CEM hourly concentration data are inaccurate or not available o r a flow m eter for FRj,,c, does no t exist o r is inoperable, then estim ates w ill be used based on best engineering judgment. Sierra Club v. EPA 18cV3472 NDCA 85 Tiers 8&9 ED 002061 00164347-00085 Case 5:07-cv-00aC-WRF Document 25-2 Filed 1 1 ^ /0 7 Page 35 of 47 259. Any disputes under the provisions o f this Part XII shall be resolved in accordance w ith Part XXIII (D ispute R esolution) o f this Addendum. H Stipulated Penalties U nder T his P a rt 260. Except for Port A rthur HC Flaring Incidents, nothing in this P art X II shall be understoi>od to subject Prem cor to stipulated penalties for HC Flaring Incidents under Paragraph 260(a). Prem cor shall be liable for stipulated penalties for any Port A rthur HC Flaring Incident, to the extent that such Port Arthur HC Flaring Incident does not qualify for a defense to stipulated penalties authorizi;ed raider this Addendum . Premcor shall be liable for the following stipulated penalties for violations o f the requirem ents o f this Part. For each violation, the am ounts identified below apply on the first day o f violation, and are calculated for each increm ental period o f violation (or portion thereof): a. AG Flaring Incidents and Port Arthur HC F laring Incidents for w hich Prem cor is liable un<der this Part. Stipulated penalties for Port A rthur H C Flaring Incidents shall be equal to seventy' five percent (75%) o f the penalty for A G Flaring Incidents. Tons Einitted in AG Flaring Incident Length o f Tim e from Commencement of Flaring w ithin the AG Flaring Incident to Term ination o f Flaring w ithin the AG Flaring Incident is 3 hours o r less Length o f Time from Commencement o f Flaring w ithin the AG Flaring Incident to Termination o f Flaring within the AG Flaring Incident is greater than 3 hours but less than or equal to 24 hours Length o f Time from Commencement o f Flaring w ithin the AG Flaring Incident to Termination o f Flaring w ithin the AG Flaring Incident is greater than 24 hours 5 Tons or Less $500 per ton Create : than 5 tons, $1,200 per ton but les >than or $750 per ton $1,800 per ton 86' $1000 per ton $2,300 per ton, up to, hut not Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00086 Case 5:07-cv-001|B-W RF Document 25-2 Filed 1^ ) / 0 7 Page 36 of 47 equal to 15 tons exceeding, $27,500 in any one calendar day G reater tb an 15 tons $1,800 per ton, up to, but not exceeding, $27,500 in any one calendar day $2,300 per ton, up to, but not exceeding, $27,500 in any one calendar day $27,500 per calendar day i. For purposes o f calculating stipulated penalties pursuant to this subparagraph, only one cell w ithin the m atrix shall apply. Thus, for exam ple, for an AG Flaring Incident in which the AG Flaring starts at 1:00 p.m . and ends at 3:00 p.m ., and for w hich 14.5 tons o f sulfur dioxide are em itted, the penalty w ould be $17,400 (14.5 x $1,200); th e penalty w ould not be $13,900 [(5 x $500) + (9.5 x $ 1200)]. ii. For purposes o f determ ining w hich colum n in the table set forth in this subparagraph applies under circum stances in w hich flaring occurs interm ittently during an A G or P ort A rthur HC Flaring Incident, the flaring shall be deemed to com m ence at the tim e that the flaring that triggers the initiation o f an AG or Port A rthur HC Flaring Incident com m ences, and shall be deem ed to term inate at the tim e o f the term ination o f the last episode o f flaring w ithin the AG or Port Arthur HC Flaring Incident. Thus, for example, for A G Flaring w ithin an AG Flaring Incident that (i) starts at 1:00 p.m . on D ay 1 and ends at 1:30 p m . on Day 1; (ii) recom m ences at 4:00 p.m. on D ay 1 and ends at 4:30 p.m . on D ay 1; (Mi) recommences at 1:00 a.m. on D ay 2 and ends at 1:30 a.m. on D ay 2; and (iv) no further AG Flaring occurs w ithin the A G Flaring Incident, the AG Flaring w ithin the A G Flaring Incident shall be deemed to last 12.5 hours -- not Sierra Club v. EPA 18cv3472 NDCA -87Tiers 8&9 ED 002061 00164347-00087 Case 5:07-cv-00 ^ p -W R F Document 25-2 Filed 1 1 ^ /0 7 Page 37 of 47 1.5 hours -- and the column for AG Flaring o f "greater than 3 hours but less than or equal to 24 hours" shall apply. b. For those corrective action(s) w hich Premcor is required to undertake following D ispute Resolution (Part XXIII), then, from the date EPA notifies Prem cor o f EPA 's determ ination that corrective action, in addition to or distinct from any corrective action proposed by Premcor is required to respond to the Incident, reported under Paragraph 242, until the earlier o f the following dates: (i) the date that a final agreem ent is reached between EPA and Prem cor regarding the corrective action; or (ii) the date that a court order regarding the corrective action is entered: $5,000 per m onth c. Failure to com plete any corrective action under Section XH.E o f this Decree in accordance with the schedule for such corrective action agreed to by Prem cor or im posed on Premcor pursuant to the D ispute R esolution provisions o f Part XXIII o f this A ddendum provided (w ith any such extensions thereto as to w hich EPA and Prem cor m ay agree in w riting): $5,000 per w eek d. Failure to tim ely subm it a report required by this Part XII, beginning on the seventh day past the report's due date: $5,000 p er w eek, per report e. For subm itting any report that does not include the elem ents identified in Paragraph 242, beginning on the seventh day after Prem cor receives w ritten notice from EPA o f the deficiencies in such report and until corrected: $5,000 p a week, p a report I, C ertification 261. All notices, reports or any other submissions required o f Premcor by this Part XII shall contain the follow ing certification: "I certify under penalty o f law that I have personally examined and am fam iliar w ith the inform ation submitted herein and that I have m ale a diligent inquiry o f those 88 - - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00088 Case 5:07-cv-00|Jp-W RF Document 25-2 Filed i : ^ / 0 7 Page 38 of 47 imwlividuals immediately responsible for obtaining the inform ation and that to the best o f miy know ledge and belief, the inform ation subm itted herewith is true, accurate, and oomplete. I am aw are that there are significant penalties for subm itting false in iform ation, including th e possibility o f fine and im prisonm ent." 262. Except as otherw ise provided herein, the reporting requirements set forth in this Part X II doniot relieve Prem cor o f its obligation to any State, local authority, or EPA to subm it any other reports or inform ation required by the CAA, or by any other state, federal o r local requirem ents. J . F lare G as Recovery System s 263 Periodic M aintenance o f Flare Gas Recovery System s. The Parties recognize that periodic m aintenance m ay be required for properly designed and operated flare gas recovery system s. To the ei:Xtent that Premcor currently operates or w ill operate flare gas recovery system s, Prem cor w ill take all reasonable m easures to m inim ize em issions w hile such periodic maintenance is being perform ed. 264. Safe Operation o f R efining Processes. The Parties recognize that a flare gas recovery system tay need to be bypassed in the event o f an emergency, including unscheduled m aintenance o f such syrjstem in order to ensure continued safe operation o f refinery processes. N othing in this Addendi precludes Prem cor from tem porarily bypassing a flare gas recovery system under such circum st ances. To the extent that a H ydrocarbon Flaring Incident at the Prem cor Refineries has as its R oot Capuse the bypass o f a flare gas recovery system for safety or m aintenance reasons as stated above, Prem cor w ill be required only to describe in the semiannual reports due under Part XVI the emergency or m aintenance activity giving rise to the H ydrocarbon Flaring Incident at the Prem cor Refiner} including an estim ate o f em issions, and to list the date, tim e, and duration o f such Incident. 65. rnTTimkfliotrmp For the six (6) m onth period after the installation o f a flare gas recovery system (that is, during the tim e in w hich the flare gas recovery system is being comm is sioned), Prem cor w ill not be required to undertake H ydrocarbon Flaring Incident investigations if the R oot Cause o f the Hydrocarbon Flaring Incident is directly related to the com m issioning o f the flare gas recovery system and w ill not be required to take any further action. -89- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00089  9 Case 5:07-cv-0 -WRF Document 25-2 Filed 1 ^ / 0 7 Page 39 of 47 2 56. Lim a R efinery. Em issions U nit P025 - Benzene NESHAPS Sew er System. a. Prem cor shall install, operate and m aintain a compressor system to route all Em issions U nit P025 (benzene NESHAP sewer system ) vapors to an existing sulfur recovery unit fuel gas amine treater ("Com pressor System ") by no later than A pril 1,2008. Prem cor shall com plete installation o f the Com pressor System in accordance with th e following schedule: i. W ithin th irty (30) days o f the D ate o fE n try o f th is A ddendum , Premcor shall complete the process design and perform the project detailed design. This includes the selection o f th e com pressor design, procurem ent o f financial funding, and com pletion o f the detailed m echanical, electrical, instrum ental and civil design. i i B y no later than Septem ber 30,2007, Premcor shall order all the long lead item s. This includes, bu t is not lim ited to, procurem ent o f m aterials and installation o f auxiliary com ponents. iii. B y A pril 1,2008, Prem cor shall com plete the installation o f the Compressor System and shall, thereafter, route all vapors to an existing sulfur recovery unit fuel gas am ine treater. b. Prem cor shall subm it progress reports for the requirements specified in Paragraph 266.a w ithin fourteen (14) days after each completion date. The reports shall include a narrative description o f w hether the requirem ent has been completed and how it w as accom plished, with any docum entation necessary to dem onstrate that the requirem ent w as com pleted. I f a requirem ent has not been com pleted, the report shall include an explanation o f the reasons for the missed com pletion date, and a description o f all actions to be taken to complete the requirem ent, hi the event o f a m issed com pletion date, a follow -up progress report shall be subm itted every fourteen (14) days after the initial report o f non-completion until the requirem ent is com pleted. In addition to these progress reports, Prem cor shall also submit a status reports concerning the w ork on the com pressor system by July 1,2007, fourteen (14) days after D ate o fE ntry, and January 14,2008. 90- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00090 H /jl/( Case 5:07-cv-006||3-WRF Document 25-2 Filed 11/20/07 Page 40 of 47 c. W ithin th irty days after the com pletion o f the installation o f the Com pressor System , Prem cor shall subm it T itle V perm it and permit to install modification applications to the State o f Ohio that incorporate the requirem ents in 266,a. The applications shall include suggested m onitoring, recordkeeping and reporting that are sufficient to provide reasonable assurance the Compressor System is properly routing the Emissions Unit P025 (benzene NESHAP sewer system) vapors to an existing sulfur recovery unit fuel gas amine treater, as w ell as addressing all other applicable requirements. 267. Reserved. XD3. R E FIN E R Y SELF-EVALUATIONS AND AUDITS R eserved 26 B .-2 6 9 . Reserved. NSPS O O P A udits 270. Premcor m ay elect to perform an audit o f compliance w ith the regulatory obligations of Subpart QQQ o f the N SPS, prom ulgated at 40 C .F R Part 60, Subpart QQQ ("Subpart QQQ") at one or more Prem cor R efineries ("QQQ A udit"). W ithin ninety (90) days o f the D ate o f Lodging, Premcor shall notify EPA in w riting w hich Prem cor R efineries, i f any, are electing to perform a QQQ A udit pursuant to this Section XULB. 271. QQQ A udits m ay cover all potential obligations from reporting years 1999 through D ate o f Entry o f this Decree, including, b ut not lim ited to: (1) potential failures to m ake required appliciability determ inations; (2) potential failures to. install proper control or m onitoring equipment; (3) pobrntial failures to undertake w ork practices; and (4) potential failures to subm it accurate and/or timely reports. 272. The QQQ A udits m ay be perform ed by either an outside contractor or qualified internal staff. ftem cor m ay, where appropriate, consult w ith EPA regarding the scope o f any o f the proposed Sierra Club v. EP,A 18CV3472' NDCA 91Tiers 8&9 ED 002061 00164347-00091 Case 5:07-cv-00Sfi3-WRF Document 25-2 Filed 1100/07 Page 41 of 47 QQQ A<idits. The QQQ Audits m ust be completed within one (1) year o f notification under Paragraph 270. 27:'3. For each R efinery electing to conduct a QQQ A udit, a final QQQ A udit report shall be submitted to EPA w ithin thirty (30) days o f com pletion o f the QQQ A udit (the "QQQ A udit Report"). The QQQ A udit R eport shall: describe the processes, procedures, and m ethodology used to conduct the audit;; clearly identify any violations o r potential violations o f Subpart QQQ discovered at the Refinery through the QQQ A udit; describe any and all m easures taken or to be taken to correct the disclosed violations; and provide details concerning the costs associated w ith such corrective action(s) and ecoQiomic b e n e fits) obtained by Prem cor. Each QQQ A udit report shall be signed by an appropriate com pany official and the followinig certification shall directly precede such signature: I certify penalty o f law that I have personally examined and am fam iliar w ith the inform ation subm itted herein and that I have m ade a diligent inquiry o f those individuals im m ediately responsible for obtaining the inform ation and that to the best o f my know ledge and belief, the inform ation submitted herew ith is true* accurate, and Complete. I am aw are that there are significant penalties for subm itting false inform ation, including th e possibility o f fine and im prisonm ent." 275. V iolations and potential violations reported in a QQQ A udit and corrected by the date o f the (>q q A udit R eport or such other reasonable additional time as EPA allow s shall b e deem ed to satisfy ffie requirem ents o f EPA 's A udit Policy. Once EPA has m ade the determ ination that a QQQ A udit conducted b y Prem cor w as consistent w ith the requirem ents o f this Section XDOLB, EPA w ill notify P:remcor in w riting. Prem cor shall thereupon be released from liability for any claim s for civil and admindi strative penalties w ith respect to all violations or potential violations disclosed and corred;ted in accordance w ith this P art XHI, and contained in EPA 's notification. 276. For each R efinery that undertakes a QQQ A udit, Premcor shall pay a stipulated penalty o f $50 ,000, in total, for each such Refinery covering any and all disclosed violations, but if EPA determmiles that the econom ic benefit o f non-com pliance exceeds $25,000, Prem cor shall pay an additi[opal stipulated penalty equal to the difference betw een such econom ic benefit and $25,000. -92- SierrarCliiB v.'EPA 18cv3472" NDCA Tiers 8&9 ED 002061 00164347-00092 Case 5:07-cv-00)6ff|ip|3-WRF Document 25-2 Filed 11/2^0/ /(07 Page 42 of 47 277. Reserved. C R efinery M A C T I A udits 278. Premcor may elect to perform an audit o f compliance w ith the regulatory obligations o f 40 C.F.R. Part 63, Subpart CC prom ulgated at 40 C .F.R Section 63.640 et seq., (the "R efinery M ACT I") at one or m ore Prem cor R efineries ("M ACT Audit"). W ithin ninety (90) days o f the D ate o f Lodging Premcor shall notify EPA in w riting w hich R efineries, i f any, are electing to perform a M ACTAi.udit pursuant to this Section XHI.C. 279. M ACT A udits may cover all potential obligations from reporting years 1999 through D ate o f Entry o f this Decree. R eporting obligations under M ACT CC m ay include, but are not lim ited to: (1) pidtential failures to m ake required applicability determinations; (2) potential failures to install proper pntrol o r m onitoring equipm ent; (3) potential failures to undertake w ork practices; and (4) potential failures to subm it accurate and/or tim ely reports. 280. The M ACT Audits m ay be perform ed b y either an outside contractor o r qualified internal staff. Prem cor m ay, w here appropriate, consult w ith EPA regarding the scope o f any o f the proposed M ACT A udits. The M ACT A udits m ust be com pleted by no later than one year o f notification under Paragraph 278. 281. For each R efinery electing to conduct a M ACT A udit, a final M ACT A udit R eport shall be submiiitted to EPA w ithin 30 days o f com pletion o f the M ACT A udit. The M ACT A udit R eport shall describe the processes, procedures, and m ethodology used to conduct th e audit; clearly identify any violatioifis OTpotential violations o f Refinery M ACT I discovered at the R efinery through the M ACT Audit: describe any and all m easures taken to correct the disclosed violations; and provide details concern:mg the costs associated w ith such corrective action(s) and econom ic b en efits) obtained by Prem cor. 282. Each M ACT A udit R eport shall be signed by an appropriate company official and the follow ing certification shall directly precede such signature: 93 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00093 1 Case 5:07-cv-006jm /VRF Document 25-2 Filed 11/2^0/ /(07 Page 43 of 47 "1certify under penalty o f law that I have personally examined and am fam iliar w ith die inform ation subm itted herein and that I have m ade a diligent inquiry o f those individuals im m ediately responsible for obtaining th inform ation and that to the best o f my knowledge and belief, the inform ation submitted herewith is true, accurate, and com plete. I am aware that there are significant penalties for subm itting false information, including the possibility o f fine and imprisonment." 283. V iolations and potential violations reported in a M ACT A udit R eport and corrected by the date o f the M ACT A udit R eport or such other reasonable additional tim e as EPA allow s shall be deemed to satisfy the requirem ents o f EPA 's A udit Policy. Once EPA has made the determ ination that a MACT Audit conducted by Premcor was consistent with the requirements o f this Section XJ3LC, EPA w ill notify Premcor in writing. Prem cor shall thereupon be released from liability for any claim s for civil and adm inistrative penalties w ith respect to all violations o r potential violations disclosed and corrected in accordance w ith this Part XIII, and contained in EPA 's notification. 284. For each R efinery that undertakes a M ACT I A udit, Prem cor shall pay a stipulated penalty o f $50,000, in total, for such R efinery covering any and all disclosed violations, but if EPA determ ines that the econom ic benefit o f its non-com pliance exceeds $25,000, Prem cor shall also pay an additional stipulated penalty equal to the difference betw een such econom ic benefit and $25,000. 285. Reserved. XIV. PERM ITTING 286. Construction- Prem cor agrees to apply for and m ake all reasonable efforts to obtain in a timely manner all appropriate federally enforceable perm its (or construction perm it waivers) for the construction o f the pollution control technology required to meet the above pollution reductions at the Premcor Refineries. For purposes o f the PSD and New Source Review ("NSR") non-attainm ent regulations, any source subject to an optimization study o r dem onstration period pursuant to this Addendum, w hether involving the construction o f control equipment o r utilization o f catalyst additives, w ill not be deem ed to have "com m enced operation" as a m odified source including such control technology o r catalyst additive until after the optim ization study or dem onstration period, as applicable, is completed and applicable em ission lim itations are established for such source in -94- Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00094 Case 5:07-cv-00i6f |Sp3--WRF Document 25-2 Filed 11/i2^0/l07 Page 44 of 47 accordance w ith this Addendum . N othing in this paragraph constitutes a determination by the U nited States or any Plaintiff-Intervener hereto, nor any adm ission by Prem cor that any perm it is required prior to the installation or operation o f any equipment installed pursuant to this Addendum. 287. In subm itting to the appropriate perm itting authority an application for an air quality permit governing any em ission control measure identified in this Addendum, Premcor may include in its perm it application any contem poraneous changes associated w ith a single project. The calculation o f the em ission increase or decrease attributed to the project shall apply the following criteria: a. The "baseline" em ission rate used fo r the project shall reflect em issions o f the relevant criteria pollutants prior to project im plem entation and shall not reflect projected em ission reductions from any em ission control m easures identified in this A ddendum prior to the date that such em ission control m easures are required o r installed pursuant to this Addendum, w hichever date is earlier (the "Pre-Project B aseline Em ission Rate"); b. The projected em ission rate attributable to the project follow ing com pletion o f the project governed by the perm it application shall be based upon the net emission increase or decrease resulting from all contem poraneous changes that are part o f a single project and that are reflected in the perm it application (the "Post-Project Projected Em ission Rate"); and c. B oth the Pre-Project B aseline Em ission Rate and the Post-Project Projected Em ission R ate shall otherwise be determ ined, and the resulting net em ission increase otherw ise calculated, in accordance w ith relevant regulations applicable at the tim e o f perm it application subm ittal. 288. In the event that any provision o f this A ddendum provides for im position upon an emission unit o f any em ission lim itation, either through the Addendum or any air quality perm it to be issued in accordance w ith the term s o f the Addendum , the com pliance o f the em ission unit w ith the -95- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00095 Case 5:07-cv-00^p-W RF Document 25-2 Filed 11/00/07 Page 45 of 47 relevant em ission lim itation shall be determined based only on emissions from the source subsequent to the effective date o f th e em ission lim itation. 289. - 290. Reserved. 291. O btaining Perm it Lim its fo r Addendum Em ission L im its and Standards That Are Effective U pon Entry. B y no later than December 3 1 ,2 0 0 7 , Prem cor shall subm it applications to the appropriate pem iitting authority to incorporate the am ission lim its and standards required by the Addendum that are effective as o f the D ate o f Entry o f the Addendum into federally enforceable m inor or major new source review perm its or other perm its (other than T itle V perm its) w hich are federally enforceable. Follow ing subm ission o f the perm it application, Prem cor shall cooperate w ith the appropri ate perm itting authority b y prom ptly subm itting all inform ation that such perm itting authority seeks fo lowing its receipt o f the perm it application. U pon issuance o f such perm its o r in conjunction w ith sueh permitting, Prem cor shall file any applications necessary to incorporate the requirem ents o f those pierm its into the T itle V perm it for the relevant refinery. N othing in this A ddendum is intended nor shal it be construed to require the establishm ent o f em ission lim its (e.g., pounds p er hour or tons per year) other than those concentration or rate based lim its expressly prescribed in this Addendum . 292. Obtaining Perm it Lim its For Addendum Em ission Lim its That Becom e Effective After D ate o f Entry. A s soon as practicable, but in no event later than ninety (90) days after the effective date or establishm ent o f any em ission lim its and standards required by or under this Addendum , Premcor shall subm it applications to th e appropriate perm itting authority to incorporate those em ission limits and standards into federally enforceable m inor or m ajor new source review perm its or other permits (other than T itle V perm its) w hich are federally enforceable. Following subm ission o f the perm it application, Prem cor shall cooperate w ith the appropriate perm itting authority by prom ptly submittiing all inform ation that such perm itting authority seeks follow ing its receipt o f the permit application. Upon issuance o f such perm it o r in conjunction w ith such perm itting, Premcor shall file Sierra Club v. EPA 18cv3472 NDCA -96Tiers 8&9 ED 002061 00164347-00096 Case 5:07-cv-00Q||3-WRF Document 25-2 Filed 11/20/07 Page 46 of 47 any appli cations necessary to incorporate the requirem ents o f that perm it into the T itle V permit o f the appropri;:4te refinery. 2;p3. Mf^Tianisiti for Title V Incorporation. The Parties agree that the incorporation o f any em ission limits or other standards into the Title V perm its for the Premcor Refineries, as required under P;aragraphs 291 and 292, shall be in accordance w ith the applicable state o r local Title V rules. 2194. This Addendum is not intended to require the continued use o f a particular control tedinolo,gy past the com pliance dates established in this Addendum. The parties agree that once the concentiation based perm it lim its are established using the m ethodology provided for in the Addendtiurn, Premcor may elect to comply with that concentration based permit limit through other control technology methods. Nothing here relieves Premcor from obtaining any appropriate state permits or authorizations to switch to such other control technology or m ethods. XV. EMISSION REDUCTION CREDITS 295. This Part sets forth the exclusive process for Premcor to use any NOx or SO2 emission reductio;:ns required by this Addendum as em ission reduction credits for PSD netting or m ajor nonatt .ent New Source Review ("NSR") offsets, or in any m inor N SR perm it or permit proceeding where such credits or offsets are relied upon to avoid PSD or m ajor nonattainm ent N SR permitting, Except as provided in this Part, Premcor will neither generate nor use any NOx or SO2 emission reductio:ns resulting from any projects conducted pursuant to this Addendum as em ission reduction credits or offsets in any PSD, m ajor nonattainm ent and/or m inor N SR perm it o r perm it proceeding ("NSR Perm it" or "N SR Perm itting"). 2 96. Outside the Scope o f Prohibition. N othing in this Addendum is intended to prohibit PremcOr from: a. utilising or generating netting reductions or em ission offset credits from refinery units that are covered by this Addendum to the extent that the proposed netting reductions or emission offset credits represent the difference betw een the - 97 - ' Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00097 m Case 5:07-cv-00^p-W R F Document 25-2 Filed ll/a o /0 7 Page 47 of 47 emissions lim itations set forth in or used to meet the term s o f this Addendum for these refinery units and the m ore stringent em issions limitations that Prem cor m ay elect to accept for these refinery units in N SR Perm itting; utilizing or generating netting reductions or em ission offset credits for refinery units that are not subject to an em ission lim itation pursuant to this Addendum; c. utilizing em ission reductions from the installation o f controls required by this Addendum in determ ining w hether a project that includes both the installation o f controls under this Addendum and other construction occurring at the sam e tim e and that is perm itted as a single project, triggers N SR Perm itting; and i u tiliz in g or generating em ission reductions for a particular R efinery's compliance w ith any rules o r regulations designed to address regional haze, state specific air quality issues, o r the non-attainm ent status o f any area (excluding NSR Permitting, but specifically including tbe B eaum ont/Port A rthur A rea NOx SIP, and other such programs) that apply to the particular Refinery. N otw ithstanding th e preceding sentence, Prem cor w ill not trade or sell any em issions reductions to another refinery or plant. Generating N O x and SO? Emission Credits 296A. For purposes o f this A ddendum , emissions credits for PSD netting and N onattainm ent N SR offsets m ay be applied and used only at the refinery where they w ere generated. 297. Em ission reduction credits generated by each un it shall be determined in accordance w ith th<e PSD /N onattainm ent N SR regulations applicable to the relevant facility at the tim e the reductioins are proposed to be generated. The quantity o f em ission reduction credits shall be calculated as the difference betw een such unit's baseline emissions and its applicable em issions at the time the emissio:n reductions are proposed to be used for netting or are generated for offset purposes, as lim ited by the percentages expressed and the lim itations on use set forth in Paragraphs 299 and 300. -9 8 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00098 Case 5:07-cv-0Qo ^iS;3-WRF Document 25-3 Filed lli2 p /0 7 Page 1 of 2 298. To apply o r use em ission reduction credits under this Part, Premcor m ust m ake any such emission reductions federally enforceable. Such emission reductions are creditable for five years from their date o f generation and shall survive term ination o f the Addendum . B Using N O x a n d SO? E m ission C red its and O ffsets 299. Subject to Paragraph 305, Prem cor m ay use, w ithout further restriction o r lim itation up to five percent (5%) o f the NOx em ission reductions achieved through its compliance with Part IV o f this Adidendum as em ission reduction credits for netting and/or offsets in any N SR Perm it after the D ate o f Entry o f this Addendum; provided, how ever, that Prem cor m ay use such NO x em ission reductio;ns for netting or offset proposes only at a new o r m odified heater or boiler that is designed to achieve an em ission rate o f 0.020 lbs N O x per m illion B tu (even if the burners do not achieve that em ission rate in practice and a less stringent em ission lim it is therefore w arranted); and provided further, however, that, to the extent that Prem cor uses any NOx em ission reduction credits from the five pencent (5% ) o f the N O x em ission reductions achieved through its compliance w ith Part IV o f this Addendum pursuant to th is sentence, then the quantity o f credits available to Valero pursuant to Paragra;tph 299 o f the C onsent D ecree shall be reduced by the num ber o f NOx em ission reduction credits used by Prem cor pursuant to this sentence. Premcor m ay use up to an additional five percent %) of the NO x em ission reductions achieved through its com pliance w ith P art IV o f this Addendum as emisision reduction credits for netting and/or offsets in any PSD , Nonattainment N SR and/or m inor N S R permit or perm it proceeding after the D ate o f Entry o f this Addendum only at a new or modified heater or boiler that is designed to achieve an emission rate o f 0.020 lbs N O x per m illion B tu (even if the buriers do not achieve that em ission rate in practice and a less stringent emission lim it is therefore warranited) and that is constructed or m odified for purposes o f com pliance w ith Clean Fuels require!aments. For purposes o f this Addendum , a "Clean Fuels" requirem ent includes T ier II G asoline, Low or Ultra Low Sulfur D iesel, ether based oxygenate replacement (but only to the extent such Sierra Club v. EP,A 18cv3472 NDCA 99 Tiers 8&9 ED 002061 00164347-00099 ^|C Case 5:07-cv-0) (Q|p|83-WRF Document 25-3 Filed 110D/O7 Page 2 of 2 replacem ent is dem onstrated by Prem cor), or other specialty fuels identified in or required under any SIP. 3'00. Subject to Paragraph 305, Premcor may use, w ithout further restriction or lim itation, up to five per<cent (5%) o f the S 0 2 em ission reductions achieved through com pliance w ith this Addendum as em iss on reduction credits for netting and/or offsets in any N SR Permit after the D ate o f Entry o f this Add aadum, provided, however, that such new or m odified unit is for purposes o f com pliance with Clean Fuels requirements and that such new or m odified source m eets the definition o f a "Netting Unit" under Paragraph 301. Prem cor m ay use up to an additional five percent (5% ) o f the S 0 2 emission reductions achieved through its com pliance w ith this Addendum as em ission reduction credits for netting and/or offsets in any N SR Perm it after the Date o f Entry o f this Addendum only to the extent that such em ission reductions w ere generated by a "N etting U nit" and will be used for a new or modilied source that m eets the definition o f a "N etting U nit;" provided how ever that, to the extent that Pr<em<cor uses any SCh. em ission reduction credits from the additional five percent (5%) o f the S 0 2 em ission reductions achieved through its com pliance w ith this Addendum pursuant to this sentence, then the quantity o f credits available to V alero pursuant to Paragraph 300 o f the Consent Decree shall be redu ced by the num ber o f S 0 2 em ission reduction credits used by Prem cor pursuant to this sentence. 301, For purposes o f this Part XV, N etting U nits shall be defined as follows: . a. A ny FCCU that achieves an S 0 2 concentration o f 25 ppm vd on a 365-day rolling average basis, at 0% oxygen, or such other em ission lim it as m ay be established by EPA based upon a percentage reduction in S 0 2 em issions, as specifically authorized in Part VI o f this Addendum; b. Heaters and boilers that either com bust fuel gas containing less than 0.1 grams o f hydrogen sulfide per dry standard cubic foot o f fuel gas or em it S 0 2 at less than 20 ppm vd at 0% oxygen, both on a 3-hour rolling average basis; and - 100- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00100 1 f Case 5:07-cv-0083-WRF Document 25-4 Filed 13J20/07 Page 1 of 48 c. A n SRP that com plies w ith relevant provisions o f 40 C.F.R. Part 60, Subpart J. 302. Prem cor w ill submit to EPA annual reports regarding the generation and use o f em ission reduction credits under this P art XV. The first such report w ill be subm itted b y January 31, 2008. Su<ccessive reports w ill be subm itted on January 31 o f each subsequent year for die duration o f this AdidenHum Each such report shall contain the M o w in g inform ation for each Premcor Refinery, to the exitent that em ission reduction credits are both generated at such refinery and are limited by this Part: a. The quantity o f credits generated since the D ate o f Entry o f this Addendum and the emisdon unit(s) generating such credits, the date on w hich those credits were generated, and the basis for those determ inations; b. The quantity o f credits used since the Date o f E ntry o f this A ddendum and the emission units to w hich those credits were applied; c. To the extent know n at the tim e the report is subm itted, the additional units to w hich coedits w ill be applied in the future and the estimated amount o f such credits that w ill be used for each such unit; and d. To the extent Prem cor w ill seek to use the additional five percent (5% ) ofN O x credits provided for in the second sentence in Paragraph 299 and/or the five percent (5% ) o f SO2 credits provided for in the first sentence in Paragraph 300, the date by w hich C lean Fuels are expected to be piiroduced at that F acility and a detailed explanation o f w hy such unit(s) is (are) necessary for the production o f Clean Fuels. , 303. The provisions o f this P art are intended to restrict the quantity o f SO2 and NOx emissic:n reduction credits that m ay be generated by Premcor as a result o f the em ission reductions specific ally required by this Addendum for use in any netting and/or offcets in any NSR Perm it after the Dati;e o fE n try o f this Addendum . In addition, the provisions o f this Part restrict the use o f certain Sierra Club v. EPA 18cv3472 NDCA 101 Tiers 8&9 ED 002061 00164347-00101 1 Case 5:07-cv-0Qflfi3-WRF Document 25-4 Filed 11^20/07 Page 2 of 48 S 0 2 and NQx em ission reduction credits authorized for generation under this Addendum to projects necessary to the production o f C lean Fuels, as defined and in the m anner described in this Addendum . 304. W ithout lim itation to the foregoing, nothing in this Addendum is intended to contravene, im pair, be inconsistent w ith o r otherw ise restrict com pliance options available to Prem cor under any SEP to dem onstrate compliance w ith any em ission lim itation or other standard applicable to the Prem cor R efineries, including w ithout lim itation any provision established o r im posed under an applicable SEP governing infra-facility em ission trading. 05. N othing in this P art X V shall affect the validity o f perm its issued or perm it applications made prior to the Date o f Lodging, including any contem poraneous netting analyses in such perm its and/or applications. The follow ing shall apply to all such perm its and perm it applications: a. E m ission reduction credits and/or offsets used by or for units that w ere perm itted, constructed/m odified and began operation before O ctober 3 1 ,2006, shall not affect the amount o f credits and/or offsets available for Prem cor's use under Paragraphs 299 and 300. b. Em ission reduction credits and/or offsets used by o r for units that w ere permitted but did not begin operation before N ovem ber 10,2006, shall not affect the amount o f credits and/or offsets available for Prem cor's use under Paragraphs 299 and 300. c. Em ission reduction credits and/or offsets used by or for units that w ere not perm itted before October 3 1 ,2006, shall affect the am ount o f credits and/or offsets available for Premcor's use under Paragraphs 299 and 300. or purposes o f Paragraph 305(c), the effect o f such em ission reduction credits and/or offsets shall be to reduce the am ount o f credits and/or offsets available for Prem cor's use under Paragraphs 299 and 300 as applicable to such R efinery. Such reduction o f available credits and/or offsets w ill be for non-Clean Fuels projects and/or for Clean Fuels projects, as appropriate. I f such reductions exceed the am ount available under Paragraphs 299 and/or 300, the am ount available for Prem cor's use under these paragraphs shall be 0.0. For exam ple, if a refinery generates 500 tons o f SO2 emissions reduction 102 Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00102 Case 5:07-cv-0)Cqj|J|||3-W RF Document 25-4 Filed l^ j^ )/0 7 Page 3 of 48 credits through compliance w ith the Addendum , it would have 50 tons available for use under Paragraph 300 [5% o f 500 tons for general projects plus 5% o f 500 tons for Clean Fuels projects]. If 30 tons o f reductions were used in the existing permitting actions for a Clean Fuels project, such refinery would have 0 tons o f available credits to use for C lean Fuels projects and 20 tons available for general projects under Paragraph 300 o f the Addendum; but if 70 tons o f reductions wore so used, such refinery w ould have 0 tons o f credits available under Paragraph 300. 306. Reserved. XVI. GENERAL RECORDKEEPING. RECORD RETEN TION AND REPORTING 307. Prem cor shall retain all records required to be maintained in accordance w ith this Addendum for a period o f five (5) years or until Termination, w hichever is longer, unless applicable regulations require the records to be m aintained longer. ;;08. Follow ing the first full calendar quarter after the D ate o f E ntry o f the Addendum , Prem cor shall submit to EPA , within thirty (30) days after the end o f such calendar quarter, and sem iannually thereafter during the life o f this Addendum a progress report ("Progress Report") covering each refinery owned and operated by Prem cor. Each Progress R eport shall be certified in accordance w ith Paragraph 309 and shall contain, for each such refinery, as applicable, the following; a. progress report on the implementation o f the requirem ents o fP arts IV through X II o f this Addendum; b. a sum m ary o f emissions data that is specifically required by Parts IV through XII o f this A ddendum for the calendar quarter; c. a description o f any problems anticipated w ith respect to m eeting the com pliance programs o fP arts IV through XII o f th is Addendum ; d. a description o f im plem entation activity for all environm entally beneficial projects; and Sierra Club v. EPA 18cv3472 NDCA -1 0 3 Tiers 8&9 ED 002061 00164347-00103 ^p)/ Case 5:07-cv-00M^3-W RF Document 25-4 Filed 11220/07 Page 4 of 48 any such additional m atters as Prem cor believes should be brought to the attention o f the U nited States, EPA and/or the appropriate Plaintiff-Intervener. 309. To the extent that any provision o f this Addendum specifically requires that any notice, report or other submission m ust be certified, such subm issions shall contain the follow ing certification. Such certification may be signed by the refinery manager or his/her designee, as provided in writing by the refinery m anager, provided the designee is a com pany employee w ith responsibilities related to environmental m anagem ent or com pliance. certify under penalty o f law that this information was prepared under m y direction or Supervision in accordance w ith a system designed to ensure that qualified personnel properly gather and evaluate the information submitted. Based on m y directions and m y inquiry o f the person(s) who manage th e system , or the person(s) directly responsible for gathering the inform ation, he information subm itted is, to the best o f m y knowledge and belief, true, accurate, and complete." X V II. PENALTY 310. W ithin thirty (30) calendar days o f the D ate o f Entry, Prem cor shall pay a civil penalty, in the aggregate, o f $4,250,000 as follow s: (i) $2,750,000 to the U nited States, o f which $40,000 w ill be a civil penalty paid to the EPA Hazardous Substances Superfund; (ii) $800,000 to PlaintiffIntervener, the State o f Ohio; and (iii) $700,000 to Plaintiff-Intervener, Memphis Shelby County Health Departm ent. 311. Prem cor's paym ent o f civil penalty m onies to the U nited States shall be made by Electronic Funds T ransfer ("EFT") to the U nited States D epartm ent o f Justice, in accordance with current EFT procedures, referencing th e USAO File N o. andD O J Case Num ber 90-5-2-1-06811/1, and the civil action case nam e and case num ber o f the U nited States D istrict C ourt for the W estern District o f Texas. The costs o f such EFT shall be Prem cor's responsibility. Paym ent shall be made in accordance w ith instructions provided to Prem cor by the Financial Litigation U nit o fth e U .S . A ttorney's office for the W estern D istrict o f Texas. A ny funds received after 11:00 a.m. (est) shall be credited on the next business day. Prem cor shall provide notice o f paym ent, referencing the USAO 104- Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00104 L^/ Case 5:07~cv-006fi3-WRF Document 25-4 Filed 11/20/07 Page 5 of 48 File No. and DOJ Case Number, and the civil action case name and case number to the Departm ent o f Justice and to EPA, as provided in Paragraph 376 (Notice). 312. - 312C. Reserved. 312D. Premcor's paym ent o f civil penalty m onies to the State o f Ohio shall be m ade by two corporate checks, as follows: one in the amount o f $640,000, and the second in the am ount o f $160,000 w ith the notation that it is for "State o f Ohio School Bus Fund (Fund 5CD)." Both checks shall be made payable to the "Treasurer, State o f Ohio" and delivered to the attorneys for the State o f Ohio: M artha Sexton, or her successor, Paralegal Office o f the A ttorney General o f Ohio Environmental Enforcem ent Section 30 East Broad Street, 25th Floor Colum bus, OH 43215-3400 3 12E. Premcor's paym ent o f civil penalty m onies to the M emphis Shelby County Health Departm ent shall be made by corporate check m ade payable to "M emphis Shelby County H ealth Department" and delivered to: Robert Rogers, P.E. Technical M anager Memphis & Shelby County H ealth Departm ent Pollution Control Section 814 Jefferson Avenue M emphis, TN 38105 313. Reserved. 314. Upon the Date o f Entry, this Addendum shall constitute an enforceable judgm ent for purposes o f post-judgment collection in accordance w ith Rule 69 o f the Federal Rules o f Civil PProceddiure, the Federal D ebt Collection Procedure Act, 28 U.S.C. 3001-3308, and other applicable federal authority. The U nited States and the Plaintiff-Interveners shall be deem ed judgm ent creditors for puxpo;ses o f collection o f any unpaid amounts o f the civil and stipulated penalties and interest. 315. No amount o f the civil penalty to be paid by Prem cor shall be used to reduce its federal or state tax obligations. 105 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00105 Case 5:07-cv-006S3-WRF Document 25-4 Filed 11Z2D/07 Page 6 of 48 X V ffl. RESERVED XIX. SUPPLEM ENTAL/BENEflCIAL ENVIRONM ENTAL PROJECTS Ac Facifitv/Communitv-Specific Supplemental/Beneficial Environmental Projects 6. Premcor shall implement the follow ing Supplem ental Environm ental Projects ("SEPs") in accordance with the timetables and requirements set forth in this Part. In implementing the SEPs in this Part, Prem cor shall spend no less than a total o f $4,250,000. In the event that Prem cor completes any o f the SEPs identified in this Paragraph but does not expend the m inim um specified am ount for such SEP, Prem cor m ay propose for EPA approval either (i) an alternative SEP, or (ii) to transfer the rem aining funds to an existing SEP. a. Port Arthur. (1) rW nmimity-Based H ealth Project: Prem cor shall im plem ent at the G ulf C oast H ealth Center a program to enhance the C enter's resources for the diagnosis and treatm ent o f asthma, respirato>ry, cardio-pulm onary, or other illnesses, ailm ents, or health im pacts that m ay be caused or esacerbaited by exposure to air pollutants. W ithin one year o f th e Date o f Entry o f this Addendum , Premcor shall subm it a Statement o f W ork ("SOW"), including a schedule for the com pletion o f this SEP, that shall be subject to approval b y EPA. Prem cor shall spend not less than $1,000,000 on this SEP (2) Cmrimiinitv A ir M onitoring Project: Prem cor shall acquire and place into operation a mobile air m onitoring van, w hich shall be operated for the use and benefit o f the Jefferson County Local Em ergency Planning Com m ittee ("LEPC"), to, inter alia, m onitor and respond to emission events. Prem cor shall use best efforts to coordinate w ith the LEPC regarding the implementation o f this SEP. W ithin one year o f the D ate o f Entry o f this Addendum, Premcor shall submit a SOW, including a schedule and an estim ated cost for the acquisition and operation o f the mobile air m onitoring van, that shall be subject to review b y the LEPC and to approval by EPA. -106 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00106 Case 5:Q7-cv-OOa&3-WRF Document 25-4 Filed llg /0 7 Page 7 of 48 Premcor shall complete implementation o f the approved SOW by no later than three years from the D ate o f Ep.1Ltry. Premcor shall spend not less than $50,000 on this SEP. (3) Community School Shelter-in-Place Project: Prem cor shall install at the Booker T. Washin;igton Elementary School and the Memorial 9th Grade Center School in Port Arthur a . "shelter- in place" air control system to detect, isolate, and/or filter air pollutants and/or emissions that m ay result from emission events in the Port Arthur area. Premcor shall use best efforts to coordinate with the appropriate school authority regarding the im plem entation o f this SEP. W ithin one year o f the Date o f Entry o f the Addendum, Premcor shall submit a SOW, including a schedule and an estimated cost for each shelter-in-place system and any related improvements, that shall be subject to review by the appro]priate school authority and to approval by EPA. Premcor shall com plete im plem entation o f the appro ed SOW by no later than four years from the Date o f Entry. Premcor shall spend not less than $500. 000 on this SEP. (4) Community Low Income H ousing Em ission Reduction Project: Premcor shall provide new low-NOx-em itting natural gas or electric water heaters to replace existing higher-emitting water healters in low-incom e residences in the Port A rthur area. W ithin ninety (90) days o f the Date o f Entry o f this Addendum, Prem cor shall deposit not less than $50,000 into an escrow account establis!bed by Prem cor for the purpose o f im plem enting this SEP. Premcor shall, upon the w ritten request o f the South East Texas Regional Planning Commission, disburse such funds and any interest as directed by the Com m ission for purposes o f im plem enting this SEP through the Com m ission's "Ligbthouse Program ." Prem cor shall include an estim ate o f the anticipated em issions reductions resultmj from this SEP in Premcor's reporting pursuant to Paragraph 318.C. (5) Port Arthur VOC Reduction Project: Premcor shall install controls on unreguhited and/or uncontrolled atm ospheric relief vents at the Port A rthur Refinery that w ill route emissio!ms from such vents to a control device to eliminate or significantly reduce the potential for -107- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00107 Case 5:Q7~cv-Q0Sft3-WRF Document 25-4 Filed llg D /0 7 Page 8 of 48 fugitive VOC em issions. T his project w ill be com pleted by no later than December 31,2009. Prem cor shall spend not less than $675,000 on th is SEP. b. Lima. (1) C ity o f Lim a T raffic Signal Synchronization Study: Prem cor shall develop and im plem e;nt a Traffic Signal Synchronization study to optimize traffic flow in th e C ity o f Lim a to reduce eimissions from preventable vehicle idling resulting from inefficient traffic flow. W ithin ninety (90) days ofD ate o f E ntry o f this A ddendum , Prem cor shall deposit not less than $200,000 into an escrow a ccount established b y Prem cor for the purpose o f im plem enting th is SEP. Prem cor shall, uponw ritten request by the City o f Lima, disburse such funds and any interest as directed by the City for the pimpose o f implementing this SEP. Premcor shall include an estimate o f the anticipated emissioins reductions and health benefits resulting from this SEP in Premcor's reporting pursuant to Paragra]tph318.c. (2) Lima VOC R eduction Project: Premcor shall install controls on unregulated and/or unicontrolled atm ospheric relief vents at the Lima R efinery that w ill route em issions from such vents to a control device to elim inate o r significantly reduce the potential for fugitive VOC em issions, This pro ect w ill be com pleted by no later than Decem ber 31,2009. Prem cor shall spend not less than $675 3on this SEP. (3) Lima Infrared Camera Imaging Project. Premcor shall perform a SEP designed to demo1nstrate the use o f infrared imaging equipm ent to identify emissions from leaking components andothe r sources o f fugitive VOC em issions at the Lim a R efinery (the "L im a Infrared Cam era Imaging Project"). W ithin ninety (90) days o f the Date o f Entry o f this A ddendum , Premcor shall subm it plan for the Tima Infrared Camera Im aging Project. The plan shall include a description o f the projlect's overall objective(s), the procedures to be follow ed, a project budget (detailing expected equipmient costs, laboratory costs, and contractor costs), and a schedule for perform ing and com pleting the project. The plan shall include procedures for the use o f the infrared imaging equipment for a -108 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00108 Case 5:07-cv-0)QCf^i:3-WRF Document 25-4 Filed 1U M /07 Page 9 of 48 period o f'not less than one year to, inter alia, (i) periodically "sweep" the Lim a R efinery to identify fugitive sources ofV O C em issions from regulated arid unregulated sources, and (ii) m onitor valves, tanks, an.d other equipment to identify and m inim ize upsets and other uncontrolled VOC emissions during periods o f startup and shutdown. Premcor shall include in its reporting pursuant to Paragraph 318.can estim ate o f the em issions benefits associated w ith the Lim a Infrared Cam era Im aging Project, Premcor shall spend not less than $50,000 on this SEP. (4) State and Local SEPs: (i) State Particulate M atter Sueciation M onitoring and Sampling Project: W ithin ninety (90) days o f the Date o f Entry o f this Addendum, Premcor shall transfer no less than $200,000 to the Lake M ichigan A ir Directors Consortium to support PM 2.5 spciation monitoring and source Sampling. (ii) State D iesel Emission Reduction Project: W ithin ninety (90) days o f the Date of Entry o f this Addendum , Prem cor shall transfer no less than $50,000 to the Ohio Enviroinm ental Council for the installation o f diesel retrofit technologies to reduce em issions o f particulates and ozone precursors from municipal trucks and/or buses, c. M em phis: (1) The Memphis Infrared Camera Imaging Project. Premcor shall perform a SEP designited to dem onstrate the use o f infrared im aging equipm ent to identify em issions from leaking components and other sources o f fugitive VOC emissions at the Memphis R efinery (the "Memphis Infrared Camera P a g in g Project"). W ithin ninety (90) days o f the D ate o f Entry o f this Addendum, Premcdi shall submit a plan for the Memphis Infrared Camera Imaging Project. The plan shall include a descriiption o f the project's overall objective , the procedures to be follow ed, a project budget (detailing expected equipment costs, laboratory costs, and contractor costs), and a schedule for pcarformiing and completing the project The plan shall include procedures for the use o f the infrared imaginig equipment for a period o f not less than one year to, inter aha, (i) periodically "sweep" the -1 0 9 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00109 Case 5:07~cv~Q06&^2~~WRF Document 25-4 Filed 11/20/07 Page 10 of 48 M emphis Refinery to identify fugitive sources ofV O C emissions from regulated and unregulated sources, and (ii) monitor valves, tanks, and other equipment to identify and m inim ize upsets and other uncontrolled VOC emissions during periods o f startup and shutdown. Prem cor shall include in its reporting pursuant to Paragraph 318.C an estimate o f the emissions benefits associated with the M emphis Infrared Cam era Imaging P roject Prem cor shall spend not less than $50,000 on this SEP. (2) M em phis W astewater Treatment H?S Reduction Project: Premcor shall, in conjunction with the City o f Memphis, purchase and install vapor controls and undertake such other measures as are necessary to reduce or eliminate H2S off-gassing from the City o f Memphis wastewater treatm ent works. W ithin 270 days from the Date o f Entry o f this Addendum, Prem cor shall submit a Statement o f Work, including a schedule and identifying the work to he performed by Prem cor to im plem ent this SEP, that shall be subject to review by the C ity ofM em phis and approval by EPA. Prem cor shall coordinate with the City ofM em phis for the completion this SEP by no later than December 31,2009. Prem cor shall spend not less than $450,000 on this SEP (3) State and Local SEPs: (i) City n f Memphis Ozone Reduction Project: W ithin ninety (90) days o f the Date o f Entry o f this Addendum, Premcor shall transfer $250,000 to the Memphis Area Transit Authority ("MATA") to subsidize reduced bus fare services provided by M ATA on high ozone, or ozone alert," days to reduce the num ber o f com m uter passenger vehicles in use on high-ozone days in the M emphis area. (ii) Port ofM em phis Em ission Reduction Project: W ithin ninety (90) days o f the Date o f Entry o f this Addendum , Premcor shall transfer $50,000 to the International Port o f Memphis for the installation o f diesel retrofit technologies to reduce em issions o f particulates and ozone precursors from diesel engines and vehicles at the Port. 317. Reserved. 110 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00110 H Case 5:07-cv-006S-WRF Document 25-4 Filed .11/20/07 Page 11 of 48 G eneral P rotect R equirem ents 18. a. Prem cor is responsible for the satisfactory com pletion o f the projects required under this Addendum in accordance with this Part XIX. Upon completion o f each project set forth in Paragraph.:$ 316, Premcor will submit to EPA and the applicable Plaintiff-Intervener a cost report certified as accurate under penalty ofp erju ry by a responsible corporate official. If Premcor does not expend the project-specific amounts required under Paragraphs 316, Premcor w ill pay a stipulated penalty 0qual to the difference betw een the amount expended (as dem onstrated in the certified cost reports':)) and such project-specific required am ount The stipulated penalty w ill be paid as provided in Paragra]iph 321 (Payment o f Stipulated Penalties). b. By signing this Addendum and except with respect to Paragraph 316, Premcor certifies that it is not required, and has no liability undear any federal, state, regional or local law or regalati:on or pursuant to any agreements or orders o f any court, to perform or develop any o f the projects identified in this Part XIX. Premcor further certifies that it has not applied for or received, and w ill not in the future apply for or receive: (1) credit as a Supplemental Environm ental Project or other penalty offset in any other enforcem ent action for the projects set forth in this part, except with respect to Paraigraph 316; (2) credit for any em issions reductions resulting from the projects set forth in this part in any federal, state, regional or local em issions trading or early reduction program ; or (3) a deduct]o from any federal, state, regional, or local tax based on its participation in, perform ance of, or incurrence o f costs related to the projects set forth in this part. c. Premcor w ill include in each report required by Paragraph 308 a description o f itsprogress under this Part XIX. In addition, the report required by Paragraph 308 o f this Addendum for the period in which each project identified in Paragraphs 316 and/or 317 is com pleted w ill contain the foil awing inform ation with respect to such pro jects): i. A detailed description o f each project as implemented; 111 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00111 Case 5:07~cv~Q036|3p&WRF Document 25-4 Filed 11/|2jQ^ C/07 Page 12 of 48 li. A b rief description o f any significant operating problems encountered, including any th at had an im pact on the environm ent, and th e solutions for each problem ; ill. Certification that each project has been fully implemented pursuant to the provisions o f this Addendum; and IV. A description o f the environm ental and public health benefits resulting from im plementation o f each project (including quantification o f the benefits and pollutant reductions, if feasible). v. Prem cor agrees that it m ust clearly indicate that these projects are being undertaken as part o f the settlement o f an enforcem ent action for alleged violations o f the Clean A ir A ct and corollary state statutes in any public statem ents regarding these projects. XX. STIPU LA TED PEN A LTIES 319. Prem cor shall pay stipulated penalties to the U nited States o r the appropriate PiaintiffInterventer, w here appropriate, for each failure by Premcor to com ply w ith the term s o f this Addendum; provided. however, that the U nited States o r the appropriate Plaintiff-Intervener m ay elect to bring an action fO>ircontem pt in lieu o f seeking stipulated penalties for violations o f this Addendum . For each violatio)'H, the am ounts identified below shall apply on the first day o f violation and shall be calculated for eaclh increm ental period o f violation (or portion thereof). Stipulated penalties under subparagraphs 320(d) and 320(e) shall not start to accrue unless and until there is noncom pliance w ith the concernration-based, rolling average em ission lim its identified in those paragraphs for 5% or m ore o f the appldicable unit's operating time during any calendar quarter. For those provisions w here a stipulated penalty o f either a fixed am ount o r 1.2 tim es the reasonable econom ic benefit o f Prem cor's delayd com pliance is specifically identified below as available, the decision o f w hich alternative to seek shi.all rest exclusively w ith th e discretion o f the U nited States and the appropriate PlaintiffIntervertier. In no event shall any penalty assessed against Prem cor exceed the m axim um civil penalty 112 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00112 )f|p Case 5:07-cv-006fi3-WRF Document 25-4 Filed 11/20/07 Page 13 of 48 that may be assessed under the Clean A ir A ct 42 U.S.C 7413 for any individual violation o f this Addendium. 3:20. The follow ing provisions are not intended, nor shall be construed, to be duplicative, Instead, any action or omission by Prem cor that constitutes noncompliance with this Addendum shall give rise to a single stipulated penalty, hereunder, assessable to Prem cor, except to the extent that any stipulated penalty provision specifically provides for additional penalties for continuing violations. Requirem ents for NOx emission reductions from Covered Heaters and Boilers (Part IV): i. Failure to achieve the interim em ission reduction goals in accordance with Section IV.B: $100,000 per quarter. ii. Failure to achieve the final em ission reduction goals in accordance w ith Section IV.C or IV.G: $200,000 per quarter. Failure to subm it any w ritten deliverable required under this Addendum: Period o f D elay Penalty p er D ay 1st day through 30th day after deadline $200 31st day through 60th day after deadline $500 Beyond 60th day after deadline $ 1,000 Failure to conduct any perform ance test, to install, calibrate and operate a CEMS or COMS or to establish PEM S operating param eters in accordance w ith Appendix S: Period o f D elay Penalty per Day 1st day through 30th day after deadline $500 31st day through 60th day after deadline Beyond 60th day after deadline $ 1,000 $2,000 or an amount equal to 1.2 times the economic benefit o f delayed compliance, w hichever is greater. 113 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00113 Case 5:07-cv-00 f -WRF Document 25-4 Filed 11D/07 Page 14 of 48 4 . Requirem ents for NOx em ission reduction from FCCUs (Part V): Failure to m eet em ission lim its established pursuant to Part V: $750 for each calendar day in a calendar quarter on w hich the specified 7-day rolling average exceeds the applicable lim it; $2,500 for each calendar day in a calendar quarter on w hich the specified 365-day rolling average exceeds the applicable lim it. Requirem ents for SO2emission reductions from FCCUs (Part VI): i. Failure to m eet final em ission lim its for the FCCU exhaust gas at each refinery: $750 for each calendar day in a calendar quarter on w hich the specified 7-day rolling average exceeds the applicable limit; $2,500 for each calendar day in a calendar quarter on which the specified 365-day rolling average exceeds the applicable lim it. ii. For failure to com ply w ith any requirem ent o f the SO2Reducing Catalyst A dditives protocol, as set forth in Appendix E, including subm ission o f the D em onstration Report, per unit, per day: Period o f Delay o r Non-Compliance Penalty per day 1st through 30mday after deadline $1,000 31st through 60fe day after deadline $1,500 Beyond 60th day after deadline $2,000 or an am ount equal to 1.2 times the econom ic benefit o f the delayed com pliance, whichever is greater Sierra Club v. EPA 18cv3472 NDCA -1 1 4 Tiers 8&9 ED 002061 00164347-00114 Case 5:07-cv-00^p-W RF Document 25-4 Filed 1 1 ^ /0 7 Page 15 of 48 iii. For failure to comply w ith the plan required by Paragraph 85 for operating the FCCUs in th e event o f a H ydrotreater Outage, per unit, per day: Period o f D elay Penalty per day 1st through 30th day after deadline 3 1st through 60th day after deadline Beyond 60th day after deadline . $250 $1,000 $2,000 o r an amount equal to 1.2 tim es the econom ic benefit o f delayed com pliance, w hichever is greater f. Requirem ents for CO and particulate em issions controls for FCCUs (Part VH): i. Failure to comply with CO emission limit: $750 for each calendar day in a calendar quarter on w hich the specified 1-hour average exceeds the applicable lim it ii. Failure to com ply w ith particulate em ission lim it: $3,000 for each calendar day in a calendar quarter on which the Refinery exceeds the specified lim it g- Requirem ents for NSPS applicability to FCCU regenerators (Part VHT): i. Failure to com ply w ith NSPS em ission lim its, as required by Part VIII, per day per em ission lim it per em ission p o in t Period o f Non-Compliance Penalty per day 1st through 30th day Beyond 31st day $2,500 $5,000 or an amount equal to 1.2 tim es the economic benefit o f delayed compliance, w hichever is greater For burning Fuel Oil in a m anner inconsistent w ith the requirem ents o f Paragraphs 113 and 114 per unit, per day: -1 1 5 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00115 Case 5:07-cv-00^p-W R F Document 25-4 Filed lia f i/0 7 Page 16 of 48 Period o f Non-Comdliance 1st through 30* day Beyond 31st day Penalty per day $1,750 $5,000 or an amount equal to 1.2 tim es the economic benefit o f delayed compliance, whichever is greater iii. For failure to com ply with the NSPS Subpart J em ission lim its under Paragraphs 221 or 222 per unit; per day in a calendar quarter: Period o fNon-Compliance Penalty per day 1stthrough 30th day $1,000 31st through 60* day $2,000 Over 60 days $3,000 or an amount equal to 1.2 times the economic benefit o f delayed compliance, whichever is greater iv. For failure to eliminate, control, and/or include and m onitor all sulfur pit emissions in accordance with the requirements o f Paragraph 226, per unit, per day: Period o f Non-Compliance 1st through 30th day 31st through 60* day Beyond 60* day Penalty per dav $ 1,000 $1,750 $4,000 or an amount equal to 1.2 tim es the economic benefit o f delayed compliance whichever is greater y. For failure to comply with the Preventive Maintenance and Operation Plan under Paragraph 229 per refinery, per day. 116- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00116 '^0 Case 5:07-cv-006|jJ|WRF Document 25-4 Filed 1 1 /^ 0 7 Page 17 of 48 Period o f D elay or Non-Compliance Penalty per day 1st through 30&day after deadline $500 31st through 60th day $1,500 Over 60 days $2,000 vi. Each rolling 12-hour average o f sulfur dioxide em issions from any SRP in excess o f the limitation at 40 C.F.R. 60.104(a)(2)(i) that is not attributable to Startup, Shutdown, o r M alfunction o f the SRP, or that is not attributable to M alfunction o f the associated TGTU: Num ber o f rolling Penalty per rolling 12-hr 12-hr average exceedances average exceedance within calendar day 1 _ 12 $350 Over 12 $750 vii. O peration o f the SRP during Scheduled Maintenance o f its associated TGTU (except that this paragraph shall not apply during periods in w hich Prem cor is engaged in the Shutdown o f an SRP for, or Startup o f an SRP following, Scheduled M aintenance o f the SRP): $25,000 per SRP per day per refinery. h. Requirem ents for Benzene W aste NESHAP program enhancem ents (Part X): i. Failure to tim ely conduct audit or compliance review and verification under Section X.C and X.G: $7,500 per m onth per review /audit. ii. Failure to tim ely sam ple under Section X.K: $250 per week, per stream or $15,000 per quarter, per stream (whichever amount is greater, but not to exceed $75,000 per refinery per quarter). iii. Failure to timely install carbon canister under Section X.E: $1,000 per day per canister. 117 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00117 Case 5:07-cv-00^p-W R F Document 25-4 Filed ll^ p /0 7 Page 18 of 48 i iv. Failure to tim ely replace carbon canister under Section X.E: $1,000 p er day per canister v. Failure to perform m onitoring under Section X X : $500 per m onitoring event. vi. Failure to develop and tim ely im plem ent training program under Section X I: $10,000 p er quarter per refinery ' vii. Failure to mark segregated stormwater drains under Section X X : $1,000 per w eek per drain viii. I f it is discovered b y an EPA or state investigator or inspector, or their agent, that Prem cor failed to include all benzene w aste stream s in its TAB, for each waste stream that is: Less than 0.03 M g/yr - $250 per stream ; Between 0.03 and 0.1 M g/yr - $1,000 per stream ; Between 0.1 M g/yr and 0.5 M g/yr - $5,000 per stream ; G reater than .5 M g/yr - $10,000 per stream , i. Requirem ents for L eak D etection and R epair program enhancem ents (Part XI): i. Failure to have w ritten LD A R program under Section XLB: $3,500 per week. ii. Failure to im plem ent the training program under Section XI.C: $10,000 per m onth, per program . iii. Failure to tim ely conduct internal o r external audit under Section XLD: $5,000 p er m onth p er audit. iv. Failure to tim ely im plem ent internal leak definition under Section XI.G: $ 10,000 per m onth per process unit. v. Failure to develop and tim ely im plem ent initial attem pt at repair program under Section X I.I: $10,000 per m onth. EPA 18cv3472 NDCA -1 1 8 Tiers 8&9 ED 002061 00164347-00118 Case 5:07-cv-00^p-W R F Document 25-4 Filed 1 1 ^ / 0 7 Page 19 of 48 vi. Failure to implement and begin more frequent m onitoring program under Section XLJ: $10,000 per m onth per process unit. vii. Failure to tim ely monitor under Section X IJ: $10,000 per week per process unit. viii. Failure to have dataloggers and electronic storage under Section XI.K: $5,000 per m onth per refinery. ix. Failure to tim ely establish LDAR accountability under Section XLM: $3,750 per w eek per refinery. x. Failure to establish new equipment standards under Section XLN: $1,000 per month. xi. Failure to conduct calibration drift assessment or to rem onitor components (if and as required) under Section XLO: $100 per m issed event per day per refinery. xii. Failure to attem pt the drill and tap m ethod under Section XI.Q: $5,000 per component. xiii. For failure to comply w ith the requirement for chronic leakers set forth in Paragraph 2 1 2 : $5,000 per valve. xiv. If it is discovered by an EPA or state investigator or inspector, or their agent, that Premeor failed to include all required com ponents in its LDAR program: $87.50 per component. Requirements for Permitting (Part XIV): Failure to tim ely subm it a reasonably or adm inistratively com plete perm it application: Period ofD elav Days 1-30 Days 31-60 Penalty per D ay $800 $1,500 -1 1 9 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00119 Case 5:07-cv-00^p-W R F Document 25-4 Filed 1 1 ^ / 0 7 Page 20 of 48 Over 60 days $3,000 k. Requirements for Supplem ental/Beneficial Environmental Projects (Part IX): For Failure to timely complete implementation o f the projects required by Part IX: Period o f Non-Compliance 1st through 30th day after deadline Penalty per day $ 1,000 31st through 60th day after deadline B eyond 60th day after deadline $1,500 $ 2, 000. Reserved. m Requirem ent to Escrow Stipulated Penalties: Failure to escrow stipulated penalties, as required by Paragraph 322 o f this Part: $1,250 per day, and interest on the am ount overdue at the rate specified in 2 8 U .S .C . 1961(a). n. As to any failure to complete an obligation pursuant to this Addendum that does not otherwiseehave a specified stipulated penalty, the United States, relevant Plaintiff-Intervener and Premcor may reach agreement on a stipulated penalty amount and such agreed stipulated penalty may be assissed;and paid pursuant to this Part XX. For failure to perform a CERCLA/EPCRA Com pliance Review, subm it a CERC:LA/EPCRA Compliance Review Report, or perform corrective actions, as required by Paragratph 241a, per refinery: Period o f N on-Com pliance Penalty per day 1st through 30th day after deadline $500 31st through 60th day after deadline $1,500 B eyond 60th day after deadline $3,000 321. Prem cor shall pay such stipulated penalties upon w ritten demand by the United States or the appropriate Plaintiff-Intervener no later than sixty (60) days after Defendant receives such demand. Demand from either the U nited States or the appropriate Plaintiff-Intervener shall be deemed -120 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00120 I e Case 5:07-cv-00MfcWRF Document 25-4 Filed 11/20/07 Page 21 of 48 a dmnrf fiom both, but the U nited States and the appropriate Plaintiff-Intervener shall consult with each other prior to m aking a demand. Stipulated penalties owed by Prem eor shall be paid 50% to the United States and 50% to the appropriate Plaintiff-Intervener. Stipulated penalties shall be paid in the manner et forth in Part XVH unless the paym ent to the U nited States is less than $10,000, in which case such paym ent shall be certified or company check, payable to the appropriate United States Attome) s Office. A dem and for the paym ent o f stipulated penalties w ill identify the particular violatior (s) to which it relates, the am ounts dem anded for each violation (as can be best estim ated), the calcult on method underlying the demand and the grounds upon which the demand is based. After consulte tion w ith each other, the U nited States and the appropriate Plaintiff-Intervener may, in their unrevie rable discretion, w aive paym ent o f any portion o f stipulated penalties that m ay accrue under this Addendum. W here a single event triggers more than one stipulated penalty provision in this Addendum, only one such provision will apply. 322. Should Prem eor dispute its obligation to pay part or all o f a stipulated penalty, it m ay avoid the imposition o f the stipulated penalty for failure to pay a penalty due to the United States or the appropriate Plaintiff-Intervener, by placing the disputed amount dem anded by the United States o r the Plaintiff-Intervener in a com m ercial escrow account pending resolution o f the m atter and by invoking the Dispute Resolution provisions o fP a rt X X m w ithin the tim e provided in Paragraph 321 for paym ent o f stipulated penalties. If the dispute is thereafter resolved in Premcor's favor, the escrowed amount plus accrued interest shall be returned to Premeor, otherwise the U nited States or the appropriate Plaintiff-Intervener shall be entitled to the escrowed amount that w as determined to be due by the Court plus the interest that has accrued on such amount, with the balance, if any, returned to P rem eor. 323. N othing in this Addendum shall prevent the U nited States or the appropriate PlaintiffIntervener from pursuing a contem pt action against Prem eor in lieu o f dem anding stipulated penalties hereunder and requesting that the C ourt order specific performances o f the term s o f this Addendum. -121 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00121 Case 5:07-cv-00|Jp-WRF Document 25-4 Filed 1 1 ^ /0 7 Page 22 of 48 Nothing i.n this Addendum authorizes the appropriate Plaintiff-Intervener to take action or m ake any determinatiiions under th is A ddendum regarding Premcor refineries that are outside th at PlamtiflfIntervener s state or that are not subject to fins Addendum. 32.,4. The U nited States and the appropriate Plaintiff-Intervener reserve the right to pursue any other Eon-monetary rem edies to w hich they are legally entitled, including but not limited to injunctive relief for violations o f the Addendum. W here a violation o f this Addendum is also a violation o f the Clean A ir A ct, its regulations or federally enforceable state law , regulation o r permit, the United States (or the appropriate Plaintiff-Intervener) w ill not seek civil penalties w here it already has AtmtmArA and secured stipulated penalties for the same act or omission, nor will the U nited States (or the appropriate Plaintiff-Intervener) demand stipulated penalties for a violation o f the Addendum if it has commenced litigation under the Clean A ir A ct for the same acts or om issions. W here a violation o f this Addendum is also a violation o f state law, regulation or a perm it, the Plaintiff-Interveners will not seek civil or adm inistrative penalties w here they have already dem anded and secured stipulated penalties for the same acts o r om issions, nor w ill the Plaintiff-Interveners dem and stipulated penalties for a violation o f the Addendum if it has commenced litigation under the C lean A ir A ct for the same acts or om issions. XXI. RTfi-HT O F ENTRY 325. Any authorized representative o f EPA or a Plaintiff-Intervener, including their independient contractors, upon presentation o f credentials, shall have a right o f entry upon the prem ises o f the Pr<emcor Refineries at any reasonable tim e for file purpose o f m onitoring com pliance w ith the provisiOns o f this Addendum , including inspecting plant equipm ent, and inspecting and copying all records m aintained as required by this Addendum. Nothing in this Addendum shall lim it the authority ofE PA to conduct tests and inspections under Section 114 o f the Clean A ir A ct, 42 U.S.C. 7414, or any other statutory or regulatory provision. - 122- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00122 Case 5:07-cv-00^p-W RF Document 25-4 Filed llia fi/0 7 Page 23 of 48 X X II. FO RCE M A JEU RE 3:26. If any event occurs w hich causes or may cause a delay or impediment to performance in complyiiiig with any provision o f this Addendum (e.g. would require operation in an unsafe maimer), andwhic]h Prem cor believes qualifies as an event o f force m aieure, Prem cor shall notify the United States amd Plaintiff-Intervener in w riting as soon as practicable, but in any event w ithin forty-five (45) business days o f w hen Prem cor first knew o f the event or should have know n o f the event by the exercise o f due diligence. In this notice Prem cor shall specifically reference th is paragraph o f this Addendurn and describe the anticipated length o f tim e the delay m ay persist, th e cause or causes o f the delay, mid the m easures taken or to be taken b y Prem cor to prevent o r m inim ize the delay and the schedule by w hich those m easures w ill be im plem ented. Prem cor shall adopt all reasonable m easures to avoid o r minimize such delays. 327. Failure b y Prem cor to substantially com ply w ith the notice requirem ents o f Paragraph 326, as specified above, shall render th is P art voidable by the U nited States, after an opportunity for consultations with the Plaintiff-Intervener, as to the specific event for w hich Prem cor has failed to comply w ith such notice requirem ent. I f so voided, it shall be o f no effect as to the particular event involved 328. The United States, after an opportunity for consultation w ith the Plaintiff-Intervener, shall notify Prem cor in w riting regarding their claim o f a delay o r im pedim ent to performance w ithin forty-five (45) business days o f receipt o f the Force M ajeure notice provided under Paragraph 326. 329. If the U nited States, after an opportunity for consultation w ith the Plaintiff-Intervener, agrees that the delay or im pedim ent to perform ance has been or w ill be caused by circum stances beyond the control ofP rem cor including any entity controlled or contracted by it, and that it could not have prevented the delay by the exercise o f due diligence, the parties shall stipulate to an extension o f the required deadline(s) for all req u irem en ts) affected by the delay by a period equivalent to the delay actually caused by such circum stances, or such other period as m ay be appropriate in light o f the -123 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00123 w Case 5:07-cv-00^p-W RF Document 25-4 Filed ll^ fi/0 7 Page 24 of 48 circum stances. Such stipulation m ay be filed as a m odification to this Addendum by agreem ent o f the parties pursuant to the m odification procedures established in this Addendum . Prem cor shall not be liable for stipulated penalties for the period o f any such delay. 330. I f the United States and appropriate Plaintiff-Intervener do not accept Premcor's claim o f a delay o r im pedim ent to perform ance or Event o f Force M ajeure pursuant to this Addendum , then Premcor m ust subm it the m atter to this C ourt for resolution to avoid paym ent o f stipulated penalties, by filing a petition for determ ination w ith this Court. In the event that the U nited States and PlaintiffIntervemer do not agree, the position o f th e U nited States on the Force M ajeure claim shall become the final PL.aimtiffs' position. O nce Prem cor has subm itted this m atter to this C ourt, the United States and appropn ate Plaintiff-Intervener shall have tw enty (20) business days to file a response to the petition, IfP rem oor subm its the m atter to this C ourt for resolution and the Court determ ines that the delay or impediment to perform ance has been o r w ill be caused by circum stances beyond the control o f Premcor. including any entity controlled or contracted by it, and that it could not have prevented the delayby the exercise o f due diligence, Prem cor shall be excused as to that ev en ts) and delay (includin.]:g stipulated penalties) for all requirem ents affected by the delay for a period o f tim e equivaleirat to the delay caused by such circum stances o r such other period as m ay be determ ined by the Court. 331. Prem cor shall bear the burden o f proving that any delay o f any requirem ents) o f this Addendinm w as caused b y o r w ill be caused by circum stances beyond its control, including any entity controlled o r contracted by it, and th at it could not have prevented the delay b y the exercise o f due diligenoe,. Prem cor shall also bear the burden o f proving th e duration and extent o f any delay(s) attributailble to such circum stances. A n extension o f one com pliance date based on a particular event m ay, but does not necessarily, result in an extension o f a subsequent compliance date or dates, UnantiC:apated or increased costs or expenses associated w ith the perform ance o f obligations under this Addendum shall not constitute circum stances beyond the control o f Prem cor. 124 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00124 lljwap/07 Case 5:07-cv-00^p-WRF Document 25-4 Filed Page 25 of 48 332. Notwithstanding any other provision o f this Addendum, this Court shall not draw any inference$ nor establish any presum ptions adverse to any party as a result o f Premcor delivering a notice o f Force M ajeure o r the parties' inability to reach agreem ent. 333. As part o f the resolution o f any m atter submitted to this C ourt under this Part, the parties by agreement, or this C ourt by order, m ay in appropriate circum stances extend or m odify the schedule for com pletion o f work under this Addendum to account for the delay in the w ork that occurred as a result o f any delay or impediment to perform ance agreed to by the U nited States and the appropri)ate Plaintiff-Intervener o r approved by this Court. Prem cor shall be liable for stipulated penalties for its failure thereafter to com plete the work in accordance w ith the extended o r m odified schedule except to the extent that such schedule is further m odified, extended or otherw ise affected by asubsequenl force m ajeure event under this Part XXII. XXin. D ISPU TE R ESO LU TIO N 334. The dispute resolution procedure provided by this Part shall be available to resolve all disputes arising under this A ddendum , except as otherwise provided in P art XXII regarding Force M ajeure, provided that th e party m aking such application has m ade a good faith attempt to resolve the m atter w ith the other party. 335. The dispute resolution procedure required herein shall be invoked upon th e giving o f w ritten notice by one o f the parties to this Addendum to another advising o f a dispute pursuant to this Part. The notice shall describe the nature o f the dispute, and shall state the noticing party's position w ith regard to such dispute. The party or parties receiving such a notice shall acknow ledge receipt o f the notice and the parties shall expeditiously schedule a m eeting to discuss the dispute inform ally not later,than fourteen (14) days from the receipt o f such notice. 36. D isputes subm itted to dispute resolution shall, in the first instance, be the subject o f informal negotiations betw een the parties. Such period o f inform al negotiations shall not extend beyond hirty (30) calendar days from the date o f the first m eeting between representatives o f the -125 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00125 Case 5:07~cv~00jjp~WRF Document 25-4 Filed ll1j a^P / 0 7 Page 26 of 48 United States, the appropriate Plaintiff-Intervener and Prem cor, unless the parties' representatives agree to shorten or extend this period. 337. In the event that the parties are unable to reach agreement during such inform al negotiation period, the U nited States and the appropriate Plaintiff-Intervener shall provide Prem cor w ith a w ritten sum m ary o f their collective position regarding the dispute. The position advanced by the U nited States and Plaintiff-Intervener shall be considered binding unless, w ithin forty-five (45) calendar days o f Premcor's receipt o f th e w ritten summ ary o f the U nited States and PlaintiffIntervener's position, Prem cor files w ith this C ourt a petition w hich describes the nature o f the dispute. The U nited States shall respond to the petition w ithin forty-five (45) calendar days o f filing. 338. In the event the U nited States and the Plaintiff-Intervener m ake differing determ inations or take differing actions that affect Prem cor's rights or obligations under this A ddendum , then as betw een the U nited States and the Plaintiff-Intervener the determ ination or action o f the U nited States shall control. 339. W here the nature o f the dispute is such that a m ore tim ely resolution o f the issue is required the tim e periods set out in this Part m ay be shortened upon m otion o f one o f the parties to the dispute. 340. N otw ithstanding any other provision o f this Addendum, in dispute resolution, this Court shall neiather draw any inferences nor establish any presum ptions adverse to either party as a result o f invocati'on o f this Part or the parties' inability to reach agreement. 341. A s part o f the resolution o f any dispute subm itted to dispute resolution, th e parties by agreemient, or this C ourt by order, in appropriate circum stances, m ay extend or modify the schedule for completiion o f w ork under this Addendum to account for the delay in the work that occurred as a result o f disputi;e resolution. Prem cor shall be liable for stipulated penalties for its failure thereafter to compie :e the work in accordance w ith the extended or m odified schedule, subject to the Force M ajeure provisions o f Part XXII. 126 Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00126 Case 5:07-cv-00|p-W R F Document 25-4 Filed 1^1 ^p //0 7 Page 27 of 48 XXIV. EFFECT O F SETTLEM ENT 34:2. This Addendum is not a perm it; except as otherw ise provided herein, com pliance w ith its term s loes not ensure com pliance w ith any applicable federal, state or local law s or regulations governa; l air quality perm itting requirements. Except as otherwise expressly provided herein, nothing in this AiM edim i shall be construed to be a ruling on, or determ ination of, any issue related to any Federal, state or local permit. 34[:3, D efinitions. F or purposes o fth is Part XXIV (Effect o f Settlem ent), the following definitia s apply: a. , "Applicable NSR/PSD Requirem ents" shall mean: PSD requirements at Part C ofSubclhapter I o f the A ct, 42 U.S.C. 7475, and the regulations prom ulgated thereunder at 40 C.F.R. 52.21 and 51.166; the portions o f the applicable SEPs and related rules adopted as required by 40 C.F.R. 51.165 and 51.166; "Plan Requirem ents for Non-Attainm ent A reas" at Part D o f Subchapter I o f the Act, 42 U.S.C. 7502-7503, and the regulations prom ulgated thereunder at 40 C.F.R. 51.165 (a) and (b), 40 C.F.R. Part 51, A ppendix S, and 40 C.F.R. 52.24; Title V regulations or permit provisions that im plem ent, adopt or incorporate the Specific regulatory requirem ents identified above; and state or local regulations or permits that implement, adopt, or incorporate the specific federal reigulatory requirem ents identified above. b. "Applicable NSPS Subparts A and J Requirements" shall mean the standards, monito;rmiig, testing, reporting and recordkeeping requirements, found at 40 C.F.R. 60.100 through 60.109 'Subpart J), relating to a particular pollutant and a particular affected facility, and the corollary general requirem ents found at 40 C.F.R. 60.1 through 60.19 (Subpart A) that are applicable to any affected facility covered by Subpart J; any Title V regulations that im plem ent, adopt or incorporate the specific regulatory requirem ents identified above; any applicable, federally-enforceable state or local regulativons that im plem ent, adopt, o r incorporate the specific federal regulatory requirem ents identified above. and any Title V perm it provisions that im plem ent, adopt or incorporate the specific regulatory -127 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00127 Case 5:07-cv-006a| ap-WRF Document 25-4 Filed 11/f^2D|C/07 Page 28 of 48 requirem ents identified above; and any applicable state or local regulations, or permits enforceable by Plaintiff-Interveners that im plem ent, adopt, or incorporate the specific federal regulatory requirem ents identified above. c. "Post-Lodging Com pliance Dates" shall m ean any dates after the Date of Lodging provided in the relevant sections o f this Addendum. Post-Lodging Compliance Dates include dates certain (&&, "Decem ber 31,2004"), dates after Lodging represented in terms o f "m onths after Lodging'4(ag,, "Twelve M onths after the Date o f Lodging"), and dates after Lodging represented by actions taken (o g ,, "D ate o f C ertification"). The Post-Lodging Com pliance D ates represent the dates by which work is required to be com pleted or an emission limit is required to be m et under the applicab e provisions o f this Addendum. 344. R **A infinn o f L iability R egarding th e A pplicable NSR/PSD R eqnirem ents. W ith respect to em issions o f the follow ing pollutants from the following units, entry o f this Addendum shall resolve all civil liability for violations o f the Applicable NSR/PSD Requirem ents resulting from pre Lodging construction or modification: Em issions o f S 0 2, from the FCCUs at the Prem cor Refineries. B. Em issions o f NOx from the FCCUs at the Prem cor Refineries. C Emission o f NOx and SO2from all heaters and boilers at the Premcor Refineries. 345. Resolution o f lia b ility for PM Emissions Under the Applicable NSR/PSD R equirem ents. W ith respect to em issions o f PM from the FCCUs at the Prem cor R efineries, when Prem cor accepts an em ission lim it o f 0.5 pound PM per 1000 pounds o f coke burned (front h alf only according to Method 5B or 5F, as appropriate) on a 3-hour average basis and demonstrates compliance by conducting a 3-hour perform ance test representative o f norm al operating conditions for PM emissions at a particular Refinery, then aU civil liability shall be resolved for violations o f the A pplicable NSR/PSD Requirem ents relating to PM em issions at the relevant Refinery resulting from pre-Lodging construction or modification o f the FCCU at that Refinery. -128 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00128 Case 5 :0 7 -c v -0 0 ^ -W R F Document 25-4 Filed 1^^p/)0/ 7 Page 29 of 48 346, R solution o f lia b ility fo r C O E m issions U nder th e A pplicable NSR/PSD R equirem ents. W ith respect to em issions o f CO from the FCCUs at the Prem cor R efineries, if and when Pr<etracor accepts an em ission lim it o f 100 ppm vd o f CO at 0% O2on a 365-day rolling average basis and dem onstrates com pliance using CEMS at the relevant Refinery, then all civil liability shall be resolved :-or violations o f the A pplicable NSR/PSD Requirem ents relating to CO em issions at the relevant Refinery resulting from pre-Lodging construction or m odification o f the FCCU for that Refinery. 347. Reserved. 348. Exclusions from R elease C overage R egarding A pplicable NSR/PSD R equirem ents: NotwithSs tanding the resolution o f liability in Paragraphs 345-346, nothing in this Addendum precludes the Uniited States and/or the Plaintiff-Interveners from seeking from Prem cor injunctive relief, penalties or other appropriate relief for violations by Prem cor o f the Applicable NSR/PSD Requireicnts resulting from : (1) construction or m odification that commenced prior to the Date o f Lodgin:g o f the Addendum, if the resulting violations relate to pollutants o r units not covered by the AddendiUrn; or (2) any construction or m odification that commences after the Date o f Lodging o f the AddendiIran. 49. Exclusions from R esolution o f L iability U nder A pplicable PSD /N SR Requinmeats. Increases in em issions from units covered by this Addendum, where the increases result from the Post-Lodging construction or m odification as defined by 40 C.F.R 52.21 o f any units w ithin the Premcor R efineries are beyond the scope o f the release in Paragraphs 345-346. 350. R esolution o f lia b ility R egarding M atters on A ppendices!?, R , an d T. W ith respect :o the enforcem ent m atters identified in Appendix Q and Appendix R, and w ith respect to the emission events listed in Appendix T, entry o f this Addendum shall resolve all civil liability for the violatiom identified, alleged or resolved in Appendix Q and Appendix R, and for the em ission events -129 Sierra Club v. EP,A 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00129 Case 5:07-cv-00g||g-WRF Document 25-4 Filed l ^ p / 0 7 Page 30 of 48 listed in Appendix T, in the manner and to the extent set forth therein, from the date that the claims accrued up to the relevant Post-Lodging Compliance Dates. 35[l. R esolution o f L iability R egarding A pplicable NSPS Subparts A and J R equirem ents. W ith respect to Opacity and emissions o f SOx, PM , and CO, as applicable, from all heaters and boilers, SRPs, fuel gas combustion devices, and the FCCUs at the Prem cor Refineries, entry o f this Addendum shall resolve all civil liability for pre-Lodging violations o f the Applicable NSPS Sulparts A and J Requirements from the date that the claims accrued up to the relevant Post Lodging Compliance Dates. 352.. P rio r NSPS A pplicability D eterm inations. Nothing in this Addendum shall affect the status o f any FCCU, heateror boiler, fuel gas combustion device, or sulfur recovery plant currently subject td NSPS as previously determ ined by any federal, state, or local authority or any applicable perm it. 3 53. R esolution o f L iability Regarding Benzene W aste NESHAP R equirem ents. Entry o f this A Idendum shall resolve all civil liability for violations o f the statutory and regulatory require its set forth below in subparagraphs i. through iii. (the "BWON Requirements") that (1) commen :ed and ceased prior to the Date o f Entry o f the Addendum; and (2) commenced prior to the Date o f Entry o fth e Addendum and/or continued past the Date o f Entry, provided that the events giving rise to such violations are identified by Premcor in its BWON Compliance Review and Verification R eports) submitted pursuant to Paragraphs 127 and 128 and coirected by Premcor, as required under section X.D.: i. Benzene Waste NESHAP. The National Emission Standard for Benzene Waste Operations, 40 C.FJR. Part 61, Subpart FF, promulgated pursuant to Section 112(e) o fth e Act, 42 7412(e), including any federal regulation or perm it that adopts or incorporates the requirements o f Subpart FF by express reference, but only to the extent o f such adoption or incorporation; and -130- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00130 1 Case 5:07-cv-0063-WRF Document 25-4 Filed 11/2D/07 Page 31 of 48 ii. Any applicable, federally-enforceable state or local regulations o r perm its that implem ent, adopt, or incorporate the specific federal regulatory requirem ents identified in Paragraph 3531 iii. A ny applicable state or local regulations or perm its enforceable by the Plaintiff- Interveners that im plem ent, adopt, or incorporate the specific federal regulatory requirem ents identified in Paraggiph 3531. 354' . Resolution of L iability R egarding LD A R R equirem ents. Entry o f this Addendum shall res<wive all civil liability for violations o f the statutory and regulatory requirem ents set forth below in subpaia;graphs a. through c. that (1) commenced and ceased prior to the Date o f Entry o f the Addendium: and (2) comm enced prior to the Date o f Entry o f the Addendum and continued past the Date o f Bifitly, provided that the events giving rise to such violations are identified by Premcor in its Initial Aiudit R eports) submitted pursuant to Paragraph 188 and corrected by Prem cor as required under P;aragraph 192: a. LDAR Requirements. For all equipment in light liquid service and gas and/or vapor seijvice, the LDAR requirements o f Plaintiff-Interveners under state implementation plans adopted pursuant to the C lean A ir A ct o r prom ulgated by EPA pursuant to Sections 111 and 112 o f the Clean AiiirAct, and codified at 40 C.FJR. Part 60, Subparts W and GGG; 40 C.F.R. Part 61, Subparts J andV ; and 40 CJF.R. P art 63, Subparts F, H , and CC; b. Any applicable, federally-enforceable state or local regulations or perm its that implemient, adopt, or incorporate the specific regulatory requirem ents identified in Paragraph 354.a. c. A ny applicable state or local regulations or perm its enforceable by the Plaintiff- Interra*ers that implement, adopt, or incorporate the specific regulatory requirements identified in Paragrap>1h 354.a. 3354A. R esolution o f O th er Enforcem ent M atters. In addition to the foregoing m atters, this Addendiium resolves, settles, and finally satisfies claim s against Prem cor asserted by o r available to the -1 3 1 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00131 w Case 5 :0 7 -c v -0 0 ^ -W R F Document 25-4 Filed ll^ p /0 7 Page 32 of 48 U nited States and/or Plaintiff-Interveners to the extent specifically listed in A ppendix Q, R, and T hereto. Entry o f this Addendum shall resolve all civil and adm inistrative liability ofPrem cor for the m atters set forth in Appendix Q, R , and T in the m anner and to the extent set forth therein. 355. R eservation of R ights R egarding Benzene NBSBAP an d LDAR R eqiiirem ents. Notwithstanding the resolution o f liability in Paragraphs 353 and 354, nothing in this Addendum precludes the U nited States and/or die Plaintiff-hiterveners from seeking from Premcor injunctive and/or other equitable relief or civil penalties for violations by Premcor o f Benzene W aste NESHAP and/or LDAR requirem ents that (1) commenced prior to the D ate o f Entry o f this Addendum and continued after the Date o f Entry if Premcor fails to identify and address such violations as required by Paragraph 127,128,188,192 and/or section X.D o f this Addendum; or (2) comm enced after the Date of Entry,Ofthe Addendum. 356. A udit Policy. Nothing in this Addendum is intended to lim it or disqualify Prem cor on the grounds that inform ation w as not discovered and supplied voluntarily, from seeking to apply EPA's Audit Policy or any state o r local audit policy to any violations or non-com pliance that Prem cor discovers during the course o f any investigation, audit, or enhanced m onitoring that Premcor is required[to undertake pursuant to this Addendum. 357. riflim /Tssue P reclusion. In any subsequent adm inistrative or judicial proceeding initiated1by the U nited States or the Plaintiff-Interveners for injunctive relief, penalties, or other appropriiate relief relating to Premcor for violations o f the PSD/NSR, NSPS, NESHAP, and/or LDAR requirem ents, not identified in Part XXIV (Effect o f Settlem ent) o f the Addendum and/or the C om plaint: a Premcor shall not assert, and may not maintain, any defense or claim based upon the principles o f waiver, res judicata collateral estoppel, issue preclusion, o r claim -splitting as a result o f this Addendum. N or may Prem cor assert or m aintain any other defenses based upon any contention that the claim s raised by the U nited States or the Plaintiff-Interveners in the subsequent proceeding -132- Sierra Club v. EPA 18cv3472' NDCA Tiers 8&9 ED 002061 00164347-00132 Case 5:07-cv-00)Mj |Wp -WRF Document 25-4 Filed 11Z20/07 Page 33 of 48 w were or sh<ould have been brought in the instant case. Nothing in the preceding sentences is intended to affect the ability o f Premcor to assert that the claim s are deemed resolved by virtue o f Part XXIII o f the Addendum. b. Except in enforcing Paragraph 357.a. the United States and the PlaintiffInterveners may not assert or maintain that this Addendum constitutes a w aiver or determination of, or otherwise obviates, any claim or defense whatsoever o f Premcor, or that this Addendum constitutes acceptancee by Premcor o f any interpretation or guidance issued by EPA related to the matters addressed in this Addendum. 357A. Nothing in this Addendum is intended to lim it any rights, claims or defenses otherwise legally av' ariable to Prem cor in response to a claim o r allegation by any person not a party to this Addendium. Without lim itation to the foregoing, Premcor expressly reserves the right to respond to any allegation by any person that Prem cor is or has violated any provision o f applicable law at a refinery ovemed by this Addendum, including by asserting that such alleged violations have been resolved or otherwise addressed by this Addendum , that principals o f preem ption, w aiver, res judicata, claim p:reclusion, or issue preclusion bar such claim , o r that Prem cor is entitled to a set o ff against any liability f<or such claim in the form o f civil or adm inistrative penalties, injunctive relief o r any other remedy as a result o f the civil penalty paym ents, stipulated penalty paym ents, implementation o f supplerental environmental projects and/or emission control projects, standards or limitation undertaki;en by Prem cor under this Addendum. 358. im m inent an d S u b stan tial E ndangerm ent N othing in this Addendum shall be construfed to lim it the authority o f the U nited States and the Plaintiff-Interveners to undertake any action against any person, including Premcor to abate or correct conditions w hich m ay present an immimeniit and substantial endangerment to the public health, welfare, or the environm ent, or limit the authoriity o f a Plaintiff-Intervener to take action under similar circumstances under state statute or commo:h law that m ay be necessary to protect the public health, safety, welfare and the environm ent. -1 3 3 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00133 Case 5:07-cv-00ai3-WRF Document 25-4 Filed 1 ^ / 0 7 Page 34 of 48 XXV. TERM INATION 359. This Addendum shall be subject to term ination upon m otion by th e U nited States or Prem cdr under the conditions identified in Paragraph 363 below . P rior to seeking term ination, Prem cor m ust have com pleted and satisfied all o f the follow ing requirem ents o f this Addendum: a. Installation o f control technology system s as specified in this Addendum ; b. Com pliance w ith all provision contained in this A ddendum , w hich com pliance may be established for specific parts o f th e Addendum in accordance w ith Paragraph 360 below . c. Paym ent o f all penalties and other m onetary obligations due under the term s o f the Addendum ; no penalties or other m onetary obligations due hereunder can be outstanding or ow ed to the U nited States or the Plaintiff-Interveners; d. C om pletion o f the Supplem ental Environm ental Projects as set forth in Part XIX; and e. Application for and receipt o f perm its incorporating the em ission lim its and standards required by P art XIV [Perm its]. 360. C ertificatio n o f C om pletion. Prior to moving for term ination, Prem cor m ay certify compieition for one o r m ore Refineries subject to this Addendum o f one or m ore o f the follow ing parts o f the Addendum , provided that all o f the related requirements for that R efinery have been satisfied: P art V - N O x Em ission Reductions from Fluid C atalytic C racking U nit (including operation o f the unit for one year after com pletion in com pliance w ith the em ission lim it set pursuant to the Addendum ); li. Parts V I, V II and VUI - S 0 2 , CO, particulate and opacity Em ission Reductions from Fluid C atalytic C racking U nit (including operation o f the unit for one year after com pletion in com pliance w ith the em ission lim its set pursuant to the Addendum ); -1 3 4 - Sierra Club v. EPA 18cv3472. NDCA Tiers 8&9 ED 002061 00164347-00134 Case 5:07-cv-00|||g-W RF Document 25-4 Filed l ^ p / 0 7 Page 35 of 48 1U Parts IV and IX - H eaters and B oilers (including operation o f the relevant units for one year after completion in compliance w ith the em ission lim it set pursuant to the Addendum ); IV. Parts X and X I - B W ON and LDAR; Part XII - SRPs and Flares vi. Part XIX - Beneficial and Supplemental Environmental Projects 3 61. IfP rem cor elects to certify com pletion o f any o f the parts o f the A ddendum identified in Paragrap h 360 for any Refinery subject to this Addendum, then Prem cor may submit a w ritten report to EPA and the appropriate Plaintiff-Intervener describing the activities undertaken and certifying that the applicable Parts have been completed in full satisfaction o f the requirements o f this Addendum, and that Prem cor is in substantial and material compliance w ith all o f the other requirements o f the Addendum. The report shall contain the follow ing statement, signed b y a responsible corporate official o f Premcor: "To the best o f m y know ledge, after thorough investigation, I certify that the inform ation contained in or accom panying this subm ission is true, accurate and complete. I am aware that there are significant penalties for subm itting false inform ation, including the possibility o f fine and imprisonment for knowing violations." 362. U pon receipt o f Premcor's certification, EPA, after reasonable opportunity for review and comment by the Plaintiff-Interveners, shall notify Premcor whether the requirem ents set forth in the applicable Part(s) have been com pleted in accordance w ith this A ddendum . The parties recognize that ongoing obligations under such Part(s) rem ain and necessarily continue (e.g., reporting, record keeping, training, auditing requirem ents), and that Prem cor's certification, as applicable, is that it is in current compliance w ith all such obligations. I f EPA concludes that tie requirem ents o f such Part(s) have not been folly complied w ith in accordance w ith this Addendum , EPA shall notify Prem cor as to the activities that must be undertaken to com plete the applicable Parts o f the Addendum. Premcor shall perform all -1 3 5 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00135 Case 5:07-cv-0(|||3-W R F Document 25-4 Filed 1^ P /07 Page 36 of 48 activities described in Hie notice, subject to its right to invoke the dispute resolution procedures set forth in P art XX33I (D ispute R esolution). b. I f EPA concludes that the requirem ents o f the applicable paragraphs have been completed in accordance w ith this Addendum, EPA w ill so certify in writing to Premcor. This certification shall constitute the certification o f com pletion o f the applicable Parts for purposes o fth is Addendum. N othing in this Paragraph 362 shall preclude the U nited States or the Plaintiff-Interveners from seeking stipulated penalties for a violation o f any o f the requirem ents o f the Addendum regardless o f whether a C ertification o f Com pletion has been issued under th is paragraph. In addition, nothing in this Paragraph 362 shall perm it Premcor to fail to im plem ent any ongoing obligations under the Addfmdum regardless o f w hether a Certification o f Com pletion has been issued w ith respect to this paragraph o f the Addendum. i,63. A t such tim e as Premcor believes that it has satisfied the requirements for termination set forth in Paragraph 359, it shall certify such com pliance and com pletion to the U nited States and the Plaintiff-Interveners in w riting. U nless either the U nited States or any Plaintiff-Intervener objects in writing wiitth specific reasons w ithin 120 days o f receipt o f Premcor's certification under this paragraph, Premcor shall then move and the Court may order that this Addendum be terminated. If either the United States o r any Plaintiff-Intervener objects to the certification by Premcor then the m atter shall be subm itted to the C ourt for resolution under P art XXIII (Dispute Resolution) o fth is Addendum. 364. The Effect o f Settlement provisions set forth in Part XXTV shall survive term ination o f this Addendum. XXVI. G ENERAL PRO V ISIO N S 365. Pffiv.t n fP p fin erv n r Source Shutdown. N otw ithstanding any provision o fth is Addendum, the permanent shutdown o f any source or refinery subject to any requirement ofthis Addewdum shall satisfy any provision in this Addendum applicable to such source or refinery, and -136- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00136 Case 5:07-cv-00Q||3-WRF Document 25-4 Filed 11M^J1/07 Page 37 of 48 Prem cor shall not be obligated hereunder to continue operation o f such source or refinery in order to institute or satisfy any requirem ent otherwise applicable to such source or refinery pursuant to the term s of the Addendum. The foregoing does not relieve Prem cor's ongoing obligation to implement Part XIX [SEPs]. 3s66. Other Laws. Except as specifically provided by M s Addendum, nothing in this Addendturn shall relieve Prem cor o f its obligation to comply w ith all applicable federal, state and local laws ad,d regulations, including, but not limited to, m ore stringent standards. In addition, nothing in this Ad<Idendum shall be construed to prohibit or prevent the United States or Plaintiff-Interveners from develop:ing, implementing, and enforcing more stringent standards subsequent to the Date o f Lodging o f this Addendum through rulem aking, the permit process, or as otherwise authorized or required under federal, state, regional, or local laws and regulations. In addition, except as otherw ise expressly providiledin this Addendum, nothing in this Addendum is intended to eliminate, lim it or otherwise restrict any compliance options, exceptions, exclusions, w aivers, variances, o r other right otherwise providied or available to Prem cor under any applicable statute, regulation, ordinance, regulatory or statute:(]-ydeterm ination, or perm itting process. Subject to Part XXIV [Effect o f Settlem ent] and except as pro'vided under Part XX [Stipulated Penalties], nothing contained in M s Addendum shall be construed to prevent, alter or lim it the U nited States' and Plaintiff-Interveners' rights to seek or obtain other remedies or sanctions against Premcor available under other federal, state or local statutes or regula!lions, in the event that Premcor violates M s Addendum or o f the statutes and regulations appli'cable to violations o f M s Addendum . This shall include the U nited States' and PlaintiffInterve:ners' right to invoke the authority o f the Court to order Prem cor's com pliance w ith M s Adden<dum in a subsequent contem pt action. 367. Chanpftfi to Law. In the event that during the life of this Addendum there is change in thestatuites or regulations that provide the underlying basis for the Addendum such that Premcor would. not otherwise be required to perform any o f the obligations herein o r w ould have the option to -137- Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00137 )f|p Case 5:07-cv-006|3-W RF Document 25-4 Filed 11/20/07 Page 38 of 48 undertake or dem onstrate compliance in an alternative or different manner, Prem cor may petition the Court forrelief from any such requirements, in accordance w ith R ule 60 o f the Federal R ules o f Civil Procedures ("F.R.Civ.P."). However, if Premcor applies to the Court for reliefunder this Paragraph, the U nited States and the A pplicable Plaintiff-Interveners reserve the right to seek to void all or part o f the Reso'lution o fL iab ility reflected in Part XXIV [Effect o f Settlem ent]. N othing in th is Paragraph is intended to enlarge the Parties' rights under R ule 60, nor is this Paragraph intended to confer on any Party am -independent basis, outside o fR u le 60, for seeking such re lie f This Paragraph 367 does not apply toiPrem cor's obligation to com plete the supplem ental/beneficial environm ental projects referred to in Part XIX o fth is Addendum . 368. Reserved. 369. L iability for Stipulated Penalties. L iability for stipulated penalties, i f applicable, shall accrue!for violation o f such obligations, and paym ent o f such stipulated penalties m ay be dem anded by the United States or Plaintiff-Intervener, as provided in this A ddendum , provided that stipulated penalties that may have accrued between the D ate o f Lodging o f this Addendum and the Date o f Entry o f the Addendum m ay not be collected b y the U nited States o r any Plaintiff-Intervener unless and until the Addendum is entered by the Court. 370. C ontractors. E xcept w here expressly prohibited, Prem cor m ay rely upon a contractor to fulfill its obligations under this Addendum. W here Premcor uses one or m ore contractors to comply with material obligations under tins Addendum, Premcor shall ensure that the contractor is aware of and in Compliance with the requirements o f this Addendum . 371. Third Parties. E xcept as otherw ise provided herein, this A ddendum does not lim it, enlarge or affect the rights o f any party to this Addendum as against any third parties. 372. Costs. The U nited States, Plaintiff-Interveners and Prem cor shall each bear their own costs and attorneys' fees. Sierra Club v. EPA 18cv3472 NDCA 138 Tiers 8&9 ED 002061 00164347-00138 Case 5:07-cv-00)6fS|P3-WRF Document 25-4 Filed 1100/07 Page 39 of 48 373. Public D oruraentg Ail inform ation and documents submitted by Premcor to the United States and Plaintiff-Interveners pursuant to this Addendum shall be subject to public inspection, unless (a) subject to legal privileges or protection or (b) identified and supported as business confidential b y Prem cor in accordance w ith 40 C.F.R. Part 2, or any equivalent state statutes and regulations 37f4. rftnwMwits. The parties agree and acknowledge that final approval by the United States an>id the appropriate Plaintiff-Intervener and entry o f this Addendum is subject to the requiremra ts o f 28 C.F.R. 50.7, w hich provides for notice o f the lodging o f this A ddendum in the Federal lbagister, an opportunity for public comment, and consideration o f any comments. 3,75. Reserved. N otice. Unless otherwise provided herein, notifications hereunder to or communiications w ith the U nited States, the appropriate Plaintiff-Intervener, Premcor shall be deemed subm itt:ed on the date they are postmarked and sent either by overnight receipt m ail service or by certified or registered m ail, return receipt requested. W hen Premcor is required to subm it notices or comm' cate in w riting under this A ddendum to EPA relating to one o f the Prem cor Refineries, Premcor shall also subm it a copy o f that notice o r other w riting to the applicable Plaintiff-Intervener for the refinery located in that state. Except as otherw ise provided herein, w hen w ritten notification or commi cation is required b y th is Addendum , it shall be addressed as follows: As to the U nited States: Chief, Environmental Enforcem ent Section Environment and Natural Resources Division U.S. D epartm ent o f Justice ,0 . Box 7611, B en Franklin Station W ashington, DC 20044-7611 United States Attorney W estern D istrict o f Texas c/o U.S. M arshal Service U.S. Courthouse 655 E. Durango San Antonio, TX 78206 -139 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00139 Case 5:07-cv-00 ^ p - W R F Document 25-4 Filed 11|/2j |0//(07 Page 40 of 48 As to the U.S. Environmental Protection A gency D irector A ir Enforcem ent D ivision (2242A) Office o f Enforcement and Compliance Assurance S. Environm ental Protection A gency 1200 Pennsylvania A venue, N .W . W ashington, D.C. 20004 w ith a hard copy to: E lector / i r Enforcem ent Division Office o f Enforcement and Compliance Assurance c/o M atrix New W orld Engineering Inc. 120 Eagle R ock A ve., Suite 207 East Hanover, N J 07936-3159 and an electronic copy to: ' cm 11ivan@ matrixnewworld.com W ith copies to the EPA R egional office where the relevant refinery is located: EPA Region 4 : D irector Division o f Enforcement and Compliance Assistance 1J.S. Environm ental Protection A gency, Region 4 Sam Nunn Atlanta Federal Center i51 Forsyth Street, SW Atlanta, GA 30303-3104 EPA Region 5: D irector . Division o f Enforcem ent and Compliance A ssistance U.S. Environm ental Protection A gency, Region 5 77 W. Jackson Blvd. Chicago, IL 60604 Com pliance Tracker U.S. EPA Region 5 77 W . Jackson Blvd M ail Code: A E-17J Chicago, IL 60604 EPA Region 6: C h ie f A ir, Toxics, and Inspection C oordination Branch (6EN-A) -140- Sierra'Club v. 'EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00140 3fj| Case 5:07-cv-0063-WRF Document 25-4 Filed 11^1O//07 Page 41 of 48 Compliance Assurance and Enforcement Division U.S. Environm ental Protection Agency, Region 6 445 Ross Avenue D allas, Texas 75202 As to Plaintiff-Intervener, the State o f Ohio: eri J. Finfrock, or her successor .Vir Program Supervisor Office o f tiie Attorney General o f Ohio ]invironm ental Enforcement Section 30 East Broad Street, 25th Floor Columbus, Ohio 43215-3400 Don Waltermeyer hvironm ental Supervisor trio Environm ental Protection Agency ivision o f A ir Pollution Control Northwest D istrict Office 347 N orth Dunbridge Road Bowling Green, Ohio 43402 Artn Plaintiff-Intervener. Memphis Shelbv Countv Health Department Bob Rogers, P.E. Manager, Pollution Control Memphis & Shelby County Health Department Pollution Control Section 814 Jefferson Avenue M emphis, Tennessee 38105 As to Premcor: Mr. Norman R enfro, Vice President Health Safety & Environment The Premcor Refining Group Inc. and Lima Refining Company One Valero Place San Antonio, TX 78249 . Richard W alsh, Esquire The Premcor Refining Group Inc. and Lima Refining Company One Valero Place San Antonio, TX 78249 Bart E. Cassidy, Esquire M anko, Gold, Katcher & Fox, LLP 401 City Avenue, Suite 500 Bala Cynwyd, PA 19004 141 Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00141 Case 5:07-cv-00683-WRF Document 25-4 Filed 11Z20//07 Page 42 of 48 3^7. All EPA and Plaintiff-Intervener approvals or comments required under this Decree shall be iwriting. 378. Any party m ay change either the notice recipient or the address for providing notices to it by serving all other parties with a w ritten notice setting forth such new notice recipient or address. 379. The information required to be maintained or submitted pursuant to this Addendum is not subject to the Paperwork Reduction A ct o f 1980,44 U.S.C. 3501 et seq. 380. This Addendum shall be binding upon all Parties to this action, and their successors and assigns. The undersigned representative o f each Party to this Addendum certifies that he or she is duly authorized by the Party whom he or she represents to enter into the term s and bind that Party to them. 381. M odification. This Addendum m ay be m odified only by the w ritten approval o f the United States, the appropriate Plaintiff-Intervener and Prem cor, or by O rder o f the Court. Additionally, it is anticipated that EPA, the appropriate Plaintiff-Intervener and Premcor m ay reduce the frequency or nature o f reporting over time. Non-m aterial m odifications need not be filed w ith the Court to be effective, but material m odifications shall be effective only upon filing w ith the Court. The United States w ill file non-m aterial modifications with the Court on a periodic basis. For purposes o f this Paragraph, non-m aterial m odifications include, but are not lim ited to, m odifications to the frequency o f reporting obligations and m odifications to schedules that do not extend the date for compliance w ith em ission limitations follow ing the installation o f control equipm ent or the completion o fa catalyst additive program , provided such changes are agreed upon in w riting betw een EPA and Premcor. 382. Continuing Jurisdiction. The Court retains jurisdiction o f this case after entry o f this Addendum to enforce compliance with the trams and conditions o f this Addendum and to take any action necessary or appropriate for its interpretation, construction, execution, or modification. During the term of this Addendum, any party may apply to the Court for any relief necessary to construe or effectuate this Addendum. -142 - Sierra Club v. EPA 18cv3472 NDCA Tiers 8&9 ED 002061 00164347-00142 ED 002061 00164347-00143 1 Case 5:07-cv-00SS3-WRF Document 25-4 Filed 1^2.0/07 Page 44 of 48 OR PLAINTIFF, UNITED STATES OF AMERICA: RONALD J. TENPAS Acting Assistant A ttorney G eneral Environm ent and Natural Resources Division U.S. Department o f Justice SSOPennsylvania Avenue, N.W . W ashington, DC 20530-00001 D ate & a <x - 2 * ? SUSAN. Senior Attorney SCOTT BAUER CATHERINE KANE Trial Attorneys invironm ent and N atural Resources D ivision U.S. D epartm ent o f Justice 1425 New York Avenue, N.W . W ashington, DC 20005 D ate Sierra Club v. EPA 18cv3472 NDCA 144. Tiers 8&9 ED 002061 00164347-00144 ED 002061 00164347-00145 ED 002061 00164347-00146 ED 002061 00164347-00147 )t^p: Case 5:07-cv-0Qfifi3-WRF Document 25-4 Filed 110/07 Page 48 of 48 OR DEFENDANT, THE PREM COR REFINING GROUP INC. and LIMA REFINING COMPANY: fWfe D ate / ('t-jxfj ORMAN:L. RENFRO U Vice President The Premcor R efining Group Inc. and Lim a Refining Company P. 0 . Box 696000 San Antonio, TX 78269-6000 Telephone: (210) 345-2790 Fax: (210) 345-4976 Sierra Club v. EPA 18cv3472 NDCA 148 Tiers 8&9 ED 002061 00164347-00148