STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of

The State ofConnecticut and

Cascades Boxboard Group

Connecticut LLC

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Trading Agreement

and Order No. 8269

Whereas, the Commissioner of Environmental Protection ("Commissioner") and Cascades

Boxboard Group Connecticut LLC ("Cascades") agree that it is in the public interest that they

work cooperatively to improve the air quality within the State ofConnecticut and that the use of

discrete emission reduction credit ("DERC") trading to reduce nitrogen oxide ("NOx") emissions

will achieve this result in a timely and cost-effective manner.

A. At the request and with the agreement ofCascades, the Commissioner finds the

following:

1. Cascades is a corporation that on or about July 17, 2006, will purchase from Sprague

Paperboard, rnc., and will own and operate the manufacturing facility at 130 Inland

Road, Versailles, Connecticut ("facility").

2. At the facility, Cascades will operate fuel-burning equipment that consist of a Budget

Source Babcock and Wilcox natural gas and/or No.6 fuel oil fired PFr steam boiler

("PFI boiler") and a Non-budget Source Babcock and Wilcox natural gas fired FM

steam boiler ("FM boiler"), which are subject to Section 22a-174-22 ofthe

Regulations ofConnecticut State Agencies ("Regulations").

3. Cascades monitors NOx emissions from the PFr boiler using a continuous emissions

monitoring system ("CEM"), certified in accordance with 40 Code of Federal

Regulations ("CFR") Part 75.

4. When burning natural gas or No.6 fuel oil in the PFr boiler, Cascades exceeds the

allowable NOx emissions limits specified in Section 22a-174-22 (e) ofthe

Regulations.

5. Pursuant to Section 22a-174-22(j) ofthe Regulations, during the non-ozone season,

Cascades intends to acquire and use approved DERCs until May 1, 2009 for the PFr

boiler at the facility. Pursuant to Section 22a-174-22(j) ofthe Regulations, during

the ozone season, Cascades intends to acquire and use approved discrete emission

reduction credits ("DERCs") and/or Budget discrete emission reduction credit

("BDERCs") until May 1, 2009 for the PFr boiler at the facility in accordance with

this Trading Agreement and Order.

( Printed on Recycled Paper)

79 Elm Street • Hartford. CT 06106 - 5127

An Equal Opportunity Employer
Cascades Boxboard Group

Connecticut LLC

2 Trading Agreement

and Order No. 8269

6. Official U.S. Environmental Protection Agency ("EPA") Method 7E emission tests

performed on the FM boiler showed that NOx emissions rates were as follows:

Table 1

Cascades- FM and PFI Boiler

NOx Emission Rates and Allowable Limits in pounds per million Britisb thermal units

("lbsIMMBtu")

Unit: DEP Fuel Heat Emission Generation Allowable Date of Next

Permit! Input Rate FLER Limits Emission Emission

Registration # Test Test Due

FM Boiler Nat. Gas 70 0.11 0.13 0.20 5/10/01 7IJ 7/06

P-170-001

PFI Boiler No.60il 275 CEM N/A 0.25 N/A N/A

R-170-003 Nat. Gas 288 CEM N/A 0.20' N/A N/A

'Or the proportioned allowable limit, pursuant to Section 22a-I74-22(f)(2)(A) of

the Regulations when burning both natural gas and No.6 fuel oil simultaneously.

8. Pursuant to Section 22a-I74-22(j) of the Regulations, Cascades intends to generate

approved DERCs from the FM boiler until May 1, 2009 using a full load emission

rate ("FLER") of 0.13 IbslMMBtu as shown in Table 1 of this Trading Agreement

and Order.

9. When properly documented by Cascades, and approved by the Commissioner, the

emission reductions from the FM boiler identified above, and as computed in

accordance with the terms of this Trading Agreement and Order, will conform to the

requirements of Section 22a-I74-22(j)(3) of the Regulations. Specifically, the

reductions will be:

Real because they will result in a reduction of actual emissions released into the air,

net of any consequential incr.ease in actual emission resulting from shifting demand.

The emission reductions will be properly measured, recorded, and reported.

Ouantifiable because they are based on Department witnessed emission testing as

applied in an appropriate reliable and replicable protocol and periodic re-testing.

Surplus because they are not required by any Connecticut statute or regulation

mandated by a current State Implementation Plan ("SIP"), and are not currently relied

upon in any applicable attainment plan, any reasonable further progress plan or

milestone demonstration.

Permanent because the 10w-NOx burners will be in place and operating, and an

appropriate tracking system is in place to monitor all data required to verify and

quantify the creation of DERCs.

Enforceable because the DERCs are approved by the Commissioner retrospectively

after the submission by Cascades of a report that documents their creation.
.------------------------------------------~----~

Cascades Boxboard Group

Connecticut LLC

3 Trading Agreement

and Order No. 8269

B.l. The Commissioner, in accordance with the provisions of this Trading Agreement and

Order, pursuant to Section 22a-174-22(d)(3) of the Regulations, hereby allows Cascades

and approved sources within Connecticut to use NOx DERCs generated by Cascades

which have been approved by the Commissioner. These DERCs may be used for the

purposes of compliance under Section 22a-174-22(j) of the Regulations, to achieve a

portion of the nitrogen oxide emission reductions required.

B.2. The Commissioner, in accordance with the provisions of this Trading Agreement and

Order, pursuant to Section 22a-174-22(j) of the Regulations, hereby allows Cascades to:

a. Comply with Section 22a-174-22(d) of the Regulations through use of DERCs,

BDERCs and/or allowance trading;

b. Use ozone season BDERCs in accordance with this Trading Agreement and Order;

and

c. Upon sufficient documentation as prescribed in this Trading Agreement and Order,

generate additional DERCs. Upon issuance of an addendum to this Trading

Agreement and Order the Commissioner may approve the generation of additional

DERCs by Cascades retrospectively. Approved DERCs generated by Cascades may

be held by Cascades or transferred to other persons in accordance with this Trading

Agreement and Order.

C. With the agreement of Cascades, the Commissioner, acting under Sections 22a-6, 22a171, 22a-174, 22a-176, and 22a-l77 of the Connecticut General Statutes, hereby

orders Cascades as follows:

1. Upon issuance of this Trading Agreement and Order, Cascades may generate

approved DERCs from the FM boiler as allowed under this Trading Agreement and

Order until May 1,2009.

2. Upon issuance of this Trading Agreement and Order until Cascades achieves

permanent compliance with the emission standard in Section 22a-174-22(e) of the

Regulations or by May 1, 2009 for the PFI boiler and FM boiler, whichever occurs

earlier, Cascades shall comply with Section 22a-174-22 of the Regulations through

emission reduction trading in accordance with the following:

a. Cascades shall use approved DE~Cs as required under this Trading

Agreement and Order;
Cascades Boxboard Group

Connecticut LLC

4 Trading Agreement

and Order No. 8269

b. Cascades shall have in its possession sufficient approved DERCs, BDERCs,

or allowances to meet applicable NOx emission limits as allowed under this

Trading Agreement and Order;

c. Cascades shall comply during the operation of the FM boiler with the FLER

shown in Table 1 in accordance with this Trading Agreement and Order; and

d. Cascades shall not bum No.6 fuel oil in the FM boiler.

3. FM Boiler DERC Generation. Until May 1,2009, when burning natural gas in the

FM boiler at the facility, Cascades shall calculate the amount of DERCs generated as

follows:

DERCs (tons) Generated = {[(PM boiler natural gas heat input in MMBtu) x

(allowable limit in IbslMMBtu - FLER limit in

IbsfMMBtu)] -;. 2000 Ibsfton} x (0.90) x (0.90)

Where:

•

•

•

•

FLER for the FM boiler = generation FLER shown in Table 1.

Allowable limit = allowable limit rate for natural gas shown in Table 1 of

this Trading Agreement and Order.

Discount (0.90) (0.90) - A discount factor of ten (10) percent for the

benefit of the environment and another ten (10) percent for the uncertainty

of using one emission test every five years in lieu of CEMs, shall be

applied to all DERCs (tons) as calculated on a monthly basis.

Fuel heating value - 1050 Btufcf for natural gas.

a) In requesting DERC approval for credits generated, Cascades shall provide

documentation containing a sample spreadsheet with calculation formulas used

to determine reported numbers, monthly operating reports of daily actual fuel

usage including the BTU content and the number of cubic feet used based on

heat input, daily actual NOx mass emissions and NOx emission rates (24-hour

average), number of operating hours per day, and DERCs generated using the

allowable emission rate(s) in accordance with this Trading Agreement and

Order, net of the applicable environmental and potential uncertainty discounts.

b) Requests for approval of all DERCs generated by Cascades under this Trading

Agreement and Order shall be submitted in writing to the Commissioner. Such

requests shall be compiled on a monthly or seasonal basis and shall be

submitted at least on an annual basis. Approved DERCs generated by

Cascades under this Trading Agreement and Order may be held or transferred

to other persons and shall remain valid until they are used or until their vintage

expiration date, whichever occurs first. Should Cascades choose to generate

additional DERCs, reports documenting these DERCs shall be submitted to the

Commissioner on an ozone season, non-ozone season (January through April
Cascades Boxboard Group

Connecticut LLC

5 Trading Agreement

and Order No. 8269

and/or October through December), or annual basis. Such reports shall be

compiled on a monthly basis and shall be submitted at least on an annual basis.

4. If at any time during the period while this Trading Agreement and Order remains in

effect, Cascades has reason to believe it may be exceeding the FLER limit shown in

Table 1 of this Trading Agreement and Order, Cascades shall conduct NOx emissions

testing of the PM Boiler within sixty (60) days after the discovery of the potential

exceedance in accordance with the following:

Cascades shall submit to the Commissioner for his review and written

approval an Intent-To-Test ("ITT") protocol not less than thirty (30) days

prior to the emissions testing required pursuant to thisraragraph of this

Trading Agreement and Order. The ITT protocol shal include at least:

I.

II.

Ill.

IV.

v.

vi.

VII.

The Department of Environmental Protection's Bureau of Air

Management Test Form No.1, "Intent to Test";

System operating parameters indicative of the highest operating rate since

the previous emissions test, including, but not limited to: steam output

rate, temperature and pressure, fuel firing rate, and NOx emissions rate.

The ITT protocol shall provide that Cascades shall perform testing as

specified in Sections 22a-174-5 and 22a-174-22 of the Regulations,

including operating the FM boiler at not less than ninety percent

(90%) of its maximum rated capacity limit or highest operating rate

since its last/previous emissions test, whichever IS higher.

Cascades shall perform all testing required by paragraph C.4. in

accordance with the approved ITT protocol.

In conducting and performing the testing required by paragraph CA.

and in analyzing the results of such testIng, Cascades shall adhere to

methods specified in Sections 22a-174-5 and 22a-174-22 of the

Regulations and as ap,proved by the United States Environmental

Protection Agency (' EPA") and the Commissioner.

Cascades shall schedule all emissions testing so as to allow the

Commissioner to be present during such testing and to independently

verify facility operations, air pollution control equipment parameters,

and testing procedures.

Within 30 days after completing any emissions testing required by this

Trading Agreement and Order, Cascades shall submit to the

Commissioner a written report providing the results of such testing;

within 15 days of a notice from the Commissioner indicating any

deficiencies in such report, Cascades shall submit a revised report.

5. PH Boiler DERCs and BDERCs Use. Until May 1,2009, before the first day of

each month, and beginning on October 1, 2006, also before the first day of each

non-ozone season, Cascades shall have in its possession sufficient approved

DERCs for the PH boiler based on the following:
<;:ascades Boxboard Group

Connecticut LLC

6 Trading Agreement

and Order No. 8269

a. At all times:

Before the first day of each month, calculate projected DERCs required for

that calendar month as follows:

Estimated DERCs (tons) = {[estimated 24-hour NOx emission rate in

IbslMMBtu - «0.95) x (24-hour NOx allowable

emission limit in Table 1 or proportioned emission

rate calculated pursuant to Section 22a-174-

22(f)(2)(A) of the Regulations in IbslMMBtu))] x

(Estimated fuel use in MMBtu)} + 2000

pounds/ton.

No later than the twentieth day of each month, Cascades shall calculate and

permanently retire DERCs used in the preceding calendar month, as follows:

I. For the PFI boiler on each day, determine whether the 24-hour average

actual NOx emission rate* is greater than the NOx allowable limit in

Table 1 above.

11. When the PFI boiler has a 24-hour actual NOx emission rate exceeding the

NOx allowable limit, calculate and permanently retire the amount of

DERCs used, as follows:

Actual DERCs (tons) = {[(24-hour average actual CEM-recorded NOx

emission rate in IbslMMBtu*) - «0.95) x (NOx

allowable emission limit in IbslMMBtu in Table 1

or proportioned emission rate calculated pursuant

to Section 22a-174-22(f)(2)(A) of the Regulations

in IbslMMBtu))] x (actual fuel use in MMBtu)} -;.

2000 pounds/ton.

*This rate shall be calculated pursuant to the methodology described in 40

CFR Part 75.

111. With the exception of BDERCs, excess DERCs from previous months

can be applied to subsequent months. BDERCs are subject to the

limitations set forth in paragraph C.6 of this Trading Agreement and

Order.

b. During the non-ozone season:

In addition to meeting the 24-hour emission limit in Table 22-1 of

Section 22a-174-22 of the Regulations, Cascades shall meet a non-ozone

season emission limit of 0.15 IbslMMBtu. Prior to October 1, 2006,

October 1, 2007 and October 1, 2008, Cascades shall estimate and

acquire the amount of DERCs or allowances required for such nonozone season needed to comply with Section 22a-174-22(e)(3) of the
~ascades Boxboard Group

Connecticut LLC

Regulations as follows:

7 Trading Agreement

and Order No. 8269

Estimated DERCs (tons) =[Estimated maximum fuel use in MMBtu from

October 1 through April 30 x (lower of the

estimated seasonal average NOx emission rate or

the proportioned 24-hour allowable emission

limit calculated pursuant to Section 22a-174-

22(f)(2)(A) of the Regulations in IbslMMBtu

during October 1 through April 30 - (0.95 x 0.15

IbslMMBtu))] .;- 2000 pounds/ton.

No later than May 31, 2007, May 31, 2008, and May 31, 2009, in addition to

the DERCs retired pursuant to paragraph C.5.a. of this Trading Agreement and

Order, Cascades shall calculate and permanently retire DERCs used in the

preceding non-ozone season as follows:

Actual DERCs (tons) =[Actual fuel use in MMBtu from October I

through April 30 x (lower of the actual seasonal

average CEM-recorded NOx emission rate or the

proportioned 24-hour allowable emission limit

calculated pursuant to Section 22a-174-

22(f)(2)(A) of the Regulations in IbslMMBtu

during October I through April 30 - (0.95 x 0.15

IbsIMMBtu))] .;- 2000 pounds/ton.

c. When the daily or non-ozone season CEM-recorded NOx emission rate is used

to calculate DERCs used by the boiler, Cascades shall include missing data

calculated in accordance with missing data substitution procedures under 40

CPR Part 75.

6. BDERCs shall only be used by other NOx Budget Program sources located in

Connecticut. BDERCs shall only be used to offset ozone season excess emissions,

and shall not be used for compliance during the non-ozone season. BDERCs

generated during a given year shall only be used through the following ozone season.

BDERCs are subject to all DERC requirements set forth in this Trading Agreement

and Order except for those requirements pertaining solely to non-ozone season

DERCs and as otherwise may be provided.

7. Cascades shall make and keep records of: daily fuel use and fuel type; the 24-hour

actual NOx emission rate; starting on October 1, 2006 non-ozone season average

NOx emission rates; the number of operating hours per day; the number of invalid

data hours of the total operating hours per day; the number of DERCs created and

used each day in accordance with the appropriate emission rates and limits in this

Trading Agreement and Order; the number of DERCs in its possession and

purchased (by serial number if assigned) each month; the number of DERCs used

during the ozone and non-ozone season (by serial number if assigned); as well as
,

_.__._

.Cascades Boxboard Group

Connecticut LLC

8 Trading Agreement

and Order No. 8269

documentation attesting to the fact that approved DERCs used during the ozone

season were generated during the ozone season. Generator certification of this fact

shall be sufficient. Cascades shall maintain and submit such records to the

Commissioner in accordance with Section 22a-174-22 of the Regulations.

8. Record Keeping. Cascades shall retain records and supporting documentation as

described in this Trading Agreement and Order for a minimum of five years,

commencing on the date such records were created. Cascades shall provide the

records specified above to the Commissioner within thirty (30) days of receipt of a

written request from the Commissioner.

9. Reporting

a. Annual DERC Report. No later than March 1 of every year after issuance of this

Trading Agreement and Order, Cascades shall submit in writing to the

Commissioner, a record of each sale or other transfer of DERCs generated

pursuant to this Trading Agreement and Order for the previous calendar year.

Cascades shall also include actual NOx emissions from each boiler and the

amount of all DERCs used (including serial numbers (if assigned) and approved

DERCs generated and/or purchased from other facilities), generated and/or

approved for the previous calendar year. These reports shall be on a form

prescribed by the Commissioner and shall be in monthly increments, and for each

boiler by ozone and non-ozone seasons.

b. Starting on October 1, 2006: No later than July 30 of every year after issuance of

the Trading Agreement and Order, Cascades shall submit in writing to the

Commissioner the non-ozone season fuel consumption and amount of all DERCs

used (including serial numbers (if assigned) and approved DERCs purchased

from other facilities for the PFr boiler during the previous October through April

time period. These reports shall be on forms prescribed by the Commissioner.

10. Allowance Use. Pursuant to Section 22a-174-22(d)(3) of the Regulations, Cascades

may use NOx allowances, pursuant to Section 22a-174-22(j) of the Regulations to

achieve all or a portion of the reductions required by Section 22a-174-22 of the

Regulations. Any NOx allowance used for compliance with Section 22a-174-22(e) of

the Regulations shall be subject to all restrictions and/or requirements applicable to

DERCs contained in this Trading Agreement and Order. Each allowance used for

compliance with Section 22a-174-22 of the Regulations shall be equivalent to one

DERC and shall be deducted from Cascades's NOx Budget Program compliance

account upon such use. Allowances shall be considered used for compliance with

Section 22a-174-22 of the Regulations when they are transferred from the facility's

compliance account or overdraft account to a State of Connecticut NOx allowance

retirement account, account ID CT0000000300 in the NOx Allowance Tracking

System (NATS).
.Cascades Boxboard Group

Connecticut LLC

9 Trading Agreement

and Order No. 8269

11. DERC Shortfall. At a minimum, DERCs required shall be adjusted upwards by

100% if DERCs are not in Cascades's possession for use prior to the first day of each

month or applicable season. However, nothing in this Trading Agreement and Order

shall affect the Commissioner's authority to institute any proceeding or take any

other action to require additional upward adjustment, based on the gravity of any

alleged noncompliance or violation of law. Cascades shall permanently retire the

quantity of DERCs equivalent to the excess emissions plus a 100% premium within

sixty (60) days of Cascades's discovery of the DERC shortfall. Cascades shall

certify and report any such DERC retirement to the Commissioner in accordance

with paragraph C.33 of this Trading Agreement and Order.

12. Vintage Restriction. For the purposes of compliance with Section 22a-174-22 of the

Regulations, DERCs/allowances shall only remain valid for five (5) calendar years

from the year of the generation/allocation of such DERCs/allowances.

DERCs/allowances generated/allocated more than five (5) calendar years ago are not

valid for use for compliance with Section 22a-174-22 of the Regulations.

Notwithstanding the above the DERCs/allowances shall no longer be valid for the

purposes of compliance with Section 22a-174-22 of the Regulations on or after May

1,2009.

13. FLER Exceedance. Noncompliance with an established FLER shall subject

Cascades to make restitution by matching the quantity of emissions ("true up")

caused by the exceedance plus a 100% premium. The true up in tons of

DERCs shall be equal to the FLER exceedance in IbslMMBtu, multiplied by

the total heat input during the period of noncompliance divided by 2000

lbs/ton. If the period of noncompliance is not known, the time period from the

completion of the last/previous Commissioner witnessed emission test through

the date the FLER compliance is achieved as approved by the Commissioner

shall be used. However, nothing in this Trading Agreement and Order shall

affect the Commissioner's authority to institute any proceeding or take any

other action to require additional upward adjustment, based on the gravity of

any alleged noncompliance or violation of law. Cascades shall permanently

retire DERCs calculated in accordance with the above plus a 100% premium

within sixty (60) days of Cascades's discovery of the FLER exceedance.

Cascades shall report any FLER exceedance to the Commissioner in

accordance with paragraph C.33 of this Trading Agreement and Order.

14. FLER Modification. The FLER set forth in Table 1 of this Trading

Agreement and Order may be modified only after the consent of the

Commissioner by written modification of this Trading Agreement and Order.

15. Emissions Testing. Pursuant to Section 22a-174-22(k) of the Regulations

Cascades shall conduct NOx emission tests of the PM boiler at least once

every five years commencing from the next emission test due date as provided

in Table 1 of this Trading Agreement and Order.
~ascades Boxboard Group

Connecticut LLC

10 Trading Agreement

and Order No. 8269

16. Extension. No later than May 1,2009 with respect to the PFI boiler, Cascades

shall comply with the requirements of Sections 22a-174-22(d)(I) and 22a-174-

22(d)(2)(A) of the Regulations. No later than May 1,2009, with respect to the

PM boiler, Cascades shall comply with the requirements of Section 22a-174-

22(d)(l) of the Regulations. There is no assurance that after full program

review of this and other Trading Agreements and Orders that the

Commissioner will grant a written extension of this Trading Agreement and

Order.

17. Future Compliance Report. On or before September 1, 2008, Cascades shall

submit a report in writing to the Commissioner, as directed in paragraph C.34.

of this Trading Agreement and Order, indicating how the facility shall comply

with Section 22a-174-22 of the Regulations with respect to the PFI and PM

boilers on and after May 1,2009.

18. Full compliance. Cascades shall not be considered in full compliance with this

Trading Agreement and Order until all actions required by this Trading

Agreement and Order have been completed as approved and to the

Commissioner's satisfaction.

19. Approvals. Cascades shall use best efforts to submit to the Commissioner all

documents required by this Trading Agreement and Order in a complete and

approvable form. If the Commissioner notifies Cascades that any document or

other action is deficient, and does not approve it with conditions or

modifications, it is deemed disapproved, and Cascades shall correct the

deficiencies and resubmit it within the time specified by the Commissioner or,

if no time is specified by the Commissioner, within 30 days of the

Commissioner's notice of deficiencies. In approving any document or other

action under this Trading Agreement and Order, the Commissioner may

approve the document or other action as submitted or performed or with such

conditions or modifications as the Commissioner deems necessary to carry out

the purposes of this Trading Agreement and Order. Nothing in this paragraph

shall excuse noncompliance or delay.

20. Definitions. As used in this Trading Agreement and Order, "Approved

DERCs" are those for which the Commissioner has provided written

authorization for use in compliance with Section 22a-174-22 of the

Regulations; "Commissioner" means the Commissioner or a representative of

the Commissioner; "Ozone season" means the period from May 1 through

September 30 in any given calendar year; "Non-ozone season" means the

period from October 1 through April 30 in any given calendar year.

21. Dates. The date of "issuance" of this Trading Agreement and Order is the date

the Trading Agreement and Order is deposited in the U.S. mail or personally

delivered, whichever is earlier. The date of submission to the Commissioner

of any document required by this Trading Agreement and Order shall be the
Cascades Boxboard Group

Connecticut LLC

11 Trading Agreement

and Order No. 8269

date such document is received by the Commissioner. The date of any notice

by the Commissioner under this Trading Agreement and Order, including but

not limited to notice of approval or disapproval of any document or other

action, shall be the date such notice is deposited in the U.S. mail or is

personally delivered, whichever is earlier. Except as otherwise specified in

this Trading Agreement and Order, the word "day" as used in this Trading

Agreement and Order means calendar day. Any document or action which is

required by this Trading Agreement and Order to be submitted or performed

by a date which falls on a Saturday, Sunday or a Connecticut or federal

holiday shall be submitted or performed by the next day which is not a

Saturday, Sunday or Connecticut or federal holiday.

22. Certification of documents. Any document, including but not limited to any

notice, which is required to be submitted to the Commissioner under this

Trading Agreement and Order shall be signed by Cascades or, if Cascades is

not an individual, by an individual who is an authorized representative of

Cascades, in accordance with Section 22a-174-2a(a) of the Regulations of

Connecticut State Agencies, and by the individual(s) responsible for actually

preparing such document, and each such individual shall certify in writing as

follows:

"I have personally examined and am familiar with the information submitted in

this document and all attachments thereto, and I certify, based on reasonable

investigation, including my inquiry of those individuals responsible for obtaining

the information, that the submitted information is true, accurate and complete to

the best of my knowledge and belief. I understand that any false statement made

in the submitted information is punishable as a criminal offense under §53a-157b

ofthe Connecticut General Statutes and any other applicable law."

23. Noncompliance. This Trading Agreement and Order is a final order of the

Commissioner with respect to the matters addressed herein, and is

nonappealable and immediately enforceable. Failure to comply with this

Trading Agreement and Order may subject Cascades to an injunction and

penalties.

24. False statements. Any false statement in any information submitted pursuant to

this Trading Agreement and Order is punishable as a criminal offense under

§53a-157b of the Connecticut General Statutes and any other applicable law.

25. Notice of transfer; liability of Cascades. Until Cascades has fully complied

with this Trading Agreement and Order, Cascades shall notify the

Commissioner in writing no later than 15 days after transferring all or any

portion of the facility, the operations, the site or the business which is the

subject of this Trading Agreement and Order or after obtaining a new mailing

or location address. Cascades's obligations under this Trading Agreement and

Order shall not be affected by the passage of title to any property to any other

person or municipality.
.Cascades Boxboard Group

Connecticut LLC

12 Trading Agreement

and Order No. 8269

26. Commissioner's powers. Nothing in this Trading Agreement and Order shall

affect the Commissioner's authority to institute any proceeding or take any

other action to prevent or abate violations of law, prevent or abate pollution,

recover costs and natural resource damages, and to impose penalties for past,

present, or future violations of law. If at any time the Commissioner

determines that the actions taken by Cascades pursuant to this Trading

Agreement and Order have not successfully corrected all violations, fully

characterized the extent or degree of any pollution, or successfully abated or

prevented pollution, the Commissioner may institute any proceeding to require

Cascades to undertake further investigation or further action to prevent or

abate violations or pollution.

27. Cascades obligations under law. Nothing in this Trading Agreement and

Order shall relieve Cascades of other obligations under applicable federal,

state and local law.

28. No assurance by Commissioner. No provision of this Trading Agreement and

Order and no action or inaction by the Commissioner shall be construed to

constitute an assurance by the Commissioner that the actions taken by

Cascades pursuant to this Trading Agreement and Order will result in

compliance or prevent or abate pollution.

29. Access to facility. Any representative of the Department of Environmental

Protection may enter the facility without prior notice for the purposes of

monitoring and enforcing the actions required or allowed by this Trading

Agreement and Order.

30. No effect on rights of other persons. This Trading Agreement and Order

neither creates nor affects any rights of persons or municipalities that are not

parties to this Trading Agreement and Order.

3I. No Creation of Property Rights. This Trading Agreement and Order does not

create any property rights with respect to those DERCs.

32. Notice to Commissioner of changes. Within 15 days of the date Cascades

becomes aware of a change in any information submitted to the Commissioner

under this Trading Agreement and Order, or that any such information was

inaccurate or misleading or that any relevant information was omitted,

Cascades shall submit the correct or omitted information to the Commissioner.

33. Notification of noncompliance. In the event that Cascades becomes aware that

it did not or may not comply, or did not or may not comply on time, with any

requirement of this Trading Agreement and Order or of any document required

hereunder, Cascades shall immediately notify by telephone the Unit identified

in the next paragraph and shall take all reasonable steps to ensure that any
!=ascades Boxboard Group

Connecticut LLC

13 Trading Agreement

and Order No. 8269

noncompliance or delay is avoided or, if unavoidable, is minimized to the

greatest extent possible. Within five (5) days of the initial notice, Cascades

shall submit in writing the date, time, and duration of the noncompliance and

the reasons for the noncompliance or delay and propose, for the review and

written approval of the Commissioner, dates by which compliance will be

achieved, and Cascades shall comply with any dates which may be approved

in writing by the Commissioner. Notification by Cascades shall not excuse

noncompliance or delay, and the Commissioner's approval of any compliance

dates proposed shall not excuse noncompliance or delay unless specifically so

stated by the Commissioner in writing.

34. Submission of documents. Any document required to be submitted to the

Commissioner under this Trading Agreement and Order shall, unless

otherwise specified in this Trading Agreement and Order or in writing by the

Commissioner, be directed to:

Department of Environmental Protection

Bureau of Air Management

Emissions Trading Unit

79 Elm Street

Hartford, Connecticut 06106-5127
:f . .Cascades Boxboard Group

Connecticut LLC

14 Trading Agreement

andOrder~o. 8269

Cascades consents to the issuance ofthis Trading Agreement and Order without further notice.

The undersigned certifies that he/she is fully authorized to enter into this Trading Agreement and

Order and to legally bind Cascades to the terms and conditions ofthe Trading Agreement and

Order.

Cascades Boxboard Group

Connecticut LLC.

Sig~4 "S? 4C?? ~ame:

Title:

Date:

-Eric. \ afrau.nI't'\1.J'1IA:lllJeo::.- _

~res:ldetJt

Issued as a final order ofthe Commissioner of Environmental Protection.

MAILED CERTIFIED MAIL, RETU~ RECEIPT REQUESTED

Certified Document~o. 7002 2030 0006 5680 7222