Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost AnalysisTable 1: Cost Summary

NOx Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Total Annual Cost $/yr Pollution Control Cost $/ton

Furnace 11 Hood Exhaust 80% 5.7 106.7 $46,019,283 $11,628,024 $108,969 

Furnace 11 Waste Gas 80% 17.8 255.9 $43,197,692 $8,239,261 $32,199 

Furnace 12 Hood Exhaust 80% 5.6 104.4 $46,284,809 $11,688,411 $112,008 

Furnace 12 Waste Gas 80% 17.4 250.3 $43,455,895 $10,383,373 $41,488 

SO2 Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Total Annual Cost $/yr Pollution Control Cost $/ton

Wet Walled Electrostatic Precipitator (WWESP)Furnace 11 Hood Exhaust 80% 5.7 22.9 $23,617,556 $4,188,875 $182,993Furnace 11 Waste Gas 80% 1.9 7.6 $21,846,389 $3,799,211 $496,949Furnace 12 Hood Exhaust 80% 5.3 21.0 $23,617,556 $4,294,171 $204,058Furnace 12 Waste Gas 80% 1.8 7.0 $21,846,389 $3,764,113 $535,575Wet ScrubberFurnace 11 Hood Exhaust 60% 11.4 17.2 $16,952,864 $2,401,349 $139,872Furnace 11 Waste Gas 60% 3.8 5.7 $15,859,420 $2,201,975 $384,034Furnace 12 Hood Exhaust 60% 10.5 15.8 $16,952,864 $2,401,349 $152,149Furnace 12 Waste Gas 60% 3.5 5.3 $15,859,420 $2,201,975 $417,742Selective Catalytic Reduction with Reheat

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Cost Summary 
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost AnalysisTable 2: - Summary of Utility, Chemical and Supply Costs

Operating Unit: Furnace 11 Hood Exhaust Study Year 2006

Emission Unit Number EU 100Stack/Vent Number SV 101, 102, & 103

Operating Unit: Furnace 11 Waste Gas

Emission Unit Number EU 104Stack/Vent Number SV 104 & 105

Operating Unit: Furnace 12 Hood Exhaust

Emission Unit Number EU 110Stack/Vent Number SV 111, 112, & 113

Operating Unit: Furnace 12 Waste Gas

Emission Unit Number EU 114Stack/Vent Number SV 114 & 115

Reference

Item Unit Cost Units Cost Year Data Source Notes

Operating Labor 50 $/hr 2006 Site Specific - Northshore Mining .

Maintenance Labor 60 $/hr 2006 Site Specific - Northshore Mining . Construction Labor Rate.

Electricity 0.060 $/kwh 2006 Site Specific - Northshore Mining. Purchased.

Natural Gas 10.0204 $/mscf 2006 Site Specific - Northshore Mining . $9.40/MMBtu @ 1066 Btu/scf.

Water 0.28 $/mgal 0.20 1995

EPA Air Pollution Control Cost Manual, 6th Ed 2002, Section 5 Ch 1, page 1-40.

Annual Costs for Packed Tower Absorber Exampadjusted for 3% inflation.

Cooling Water 0.28 $/mgal 0.23 1999

EPA Air Pollution Control Cost Manual, 6th ed. Section 3.1 Ch 1.

Ch 1 Carbon Absorbers, 1999 $0.15 - $0.30 Avg 

3% inflation.

Compressed Air 0.32 $/mscf 0.25 1998

EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 1 .

Example problem; Dried & Filtered, Ch 1.6 '98 coinflation.

Wastewater Disposal Neutralization 1.69 $/mgal 1.50 2002

EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 2 Chapter 2.5.5.5.

Section 2 lists $1- $2/1000 gal. Cost adjusted for 3 lists $1.30 - $2.15/1,000 gal.

Chemicals & SuppliesLime 88.98 $/ton 88.98 2006 Estimate from Cutler-Magney Company.Oxygen 40.00 $/ton 2006 BOC estimate.

Ammonia (29% aqua.) 0.12 $/lb 0.101 2000

EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 5 Chapter 2, page 2-50.

Annual costs for a retrofit SCR system example padjusted for 3% inflation.

Caustic 305.96 $/ton 280 2003 Hawkins Chemical 50% solution (50 Deg Be); includes delivery. '03 c

OtherSales Tax 6.5% %Interest Rate 7.00% %

EPA Air Pollution Control Cost Manual Introduction, Chapter 2, section 2.4.2. Social (discount) rate used as a default.

Operating InformationAnnual Op. Hrs 8339.1 Hours 2006 Site Specific - Northshore Mining . Maximum hours of operation 2004-2005 with a 10

Utilization Rate 93%Equipment Life 20 yrs Engineering Estimate.

Standardized Flow RateSV 101, 102, & 103 181,762 scfm @ 32o F Calculated.SV 104 & 105 152,520 scfm @ 32o F Calculated.SV 111, 112, & 113 181,762 scfm @ 32o F Calculated.SV 114 & 115 152,520 scfm @ 32o F Calculated.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Utility Chem$ Data 
Reference

Item Unit Cost Units Cost Year Data Source Notes

TemperatureSV 101, 102, & 103 142 Deg F BART spreadsheet.SV 104 & 105 140 Deg F BART spreadsheet.SV 111, 112, & 113 142 Deg F BART spreadsheet.SV 114 & 115 140 Deg F BART spreadsheet.Moisture ContentSV 101, 102, & 103 11.3% 2006

Y:\23\38\126 NSM 2006 Stack Testing\WK4 Fce 11+\Data. Average from test results in:Test 1-3 Fce 11 HE 

SV 104 & 105 18.3% 2006

Y:\23\38\126 NSM 2006 Stack Testing\WK4 Fce 11+\Data. Average from test results in: Test 4-5 Fce 11 WG 

SV 111, 112, & 113 9.5% 2006

Y:\23\38\126 NSM 2006 Stack Testing\WK2 Fce 12\Data. Average from test results in: Fce 12 HE 1201-120

SV 114 & 115 16.4% 2006

Y:\23\38\126 NSM 2006 Stack Testing\WK2 Fce 12\Data. Average from test results in: Fce 12 WG 1204-12

Actual Flow RateSV 101, 102, & 103 222,400 acfm BART spreadsheet.SV 104 & 105 186,000 acfm BART spreadsheet.SV 111, 112, & 113 222,400 acfm BART spreadsheet.SV 114 & 115 186,000 acfm BART spreadsheet.Standardized Flow RateSV 101, 102, & 103 195,062 scfm @ 68o F Calculated.SV 104 & 105 163,680 scfm @ 68o F Calculated.SV 111, 112, & 113 195,062 scfm @ 68o F Calculated.SV 114 & 115 163,680 scfm @ 68o F Calculated.Dry Std Flow RateSV 101, 102, & 103 172,951 dscfm @ 68o F Calculated.SV 104 & 105 133,792 dscfm @ 68o F Calculated.SV 111, 112, & 113 176,529 dscfm @ 68o F Calculated.SV 114 & 115 136,902 dscfm @ 68o F Calculated.

Max Emis Actual Emissions lb/hr ton/year

Pollutant Lb/Hr Ton/year ('04&'05 Max) ppmv ppmvNitrous Oxides (NOx)SV 101, 102, & 103 51.3 112.4 41 20.7 2005 plus 10%

SV 104 & 105 124.8 273.7 130 65.1 2004 plus 10%SV 111, 112, & 113 51.3 109.9 40 19.8 2004 plus 10%SV 114 & 115 124.8 267.7 127 62.3 2004 plus 10%Sulfur Dioxides (SO2)SV 101, 102, & 103 35.5 28.6 21 3.8 2004 plus 10%SV 104 & 105 11.8 9.6 9 1.6 2004 plus 10%SV 111, 112, & 113 35.5 26.3 20 3.4 2004 plus 10%SV 114 & 115 11.8 8.8 9 1.5 2004 plus 10%guesscalculated valueknown or assumed datarequired data

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Utility Chem$ Data 
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 3: SOx

 Control - Wet Scrubber

Operating Unit: Furnace 11 Hood Exhaust

Emission Unit Number EU 100 Stack/Vent Number SV 101, 102, & 103

Standardized Flow Rate 181,762 scfm @ 32o F

Expected Utilization Rate 93% Temperature 142 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 11.3%

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 172,951 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,765,654

 Purchased Equipment Total (B) 22% of control device cost (A) 3,360,270

 Installation - Standard Costs 85% of purchased equip cost (B) 2,856,229

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,856,229

 Total Direct Capital Cost, DC 6,216,499

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 504,040

Total Capital Investment (TCI) = DC + IC 16,952,864

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 476,790

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,924,559

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,401,349

Actual

Emission Control Cost Calculation Emis Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 51.3 112.4 0% 112.4 - NA

Sulfur Dioxide (SO2) 28.6 35.5 60% 11.4 17.2 139,872 

Notes & Assumptions

1 Original estimate from STS Consultants. Use 0.6 Power law factor to adjust price to stack flow rate from bid basis of 500,000 acfm. 

2 Liquid/Gas ratio = 38 L/G = Gal/1,000 acf.

3 Water Makeup Rate/Wastewater Discharge = 2.0% of circulating water rate.

4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Third Edition.

5 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU100 Wet Scrubber 9/6/2006 Page 4 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 3: SOx Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,765,654

Instrumentation 10% of control device cost (A) 276,565

MN Sales Taxes 7% of control device cost (A) 179,768

Freight 5% of control device cost (A) 138,283

Purchased Equipment Total (B) 22% 3,360,270

Installation

Foundations & supports 12% of purchased equip cost (B) 403,232

Handling & erection 40% of purchased equip cost (B) 1,344,108

Electrical 1% of purchased equip cost (B) 33,603

Piping 30% of purchased equip cost (B) 1,008,081

Insulation 1% of purchased equip cost (B) 33,603

Painting 1% of purchased equip cost (B) 33,603

Installation Subtotal Standard Expenses 85% 2,856,229

Total Direct Capital Cost, DC 6,216,499

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 168,013

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 168,013

Start-up 1% of purchased equip cost (B) 33,603

Performance test 1% of purchased equip cost (B) 33,603

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 100,808

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 504,040

Total Capital Investment (TCI) = DC + IC 6,720,540

Retrofit multiplier560% of TCI 4,032,324

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,952,864

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 457 kW-hr, Annual Operating Hours, 93% utilization 212,823

Water 0.28 $/kgal, 209 gpm, Annual Operating Hours, 93% utilization 26,883

WW Treat Neutralization 1.69 $/kgal, 169 gpm, Annual Operating Hours, 93% utilization 132,783

Lime 88.98 $/ton, 34 lb/hr, Annual Operating Hours, 93% utilization 11,789

Total Annual Direct Operating Costs 476,790

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 134,411

Property tax (1% total capital costs) 1% of total capital costs (TCI) 67,205

Insurance (1% total capital costs) 1% of total capital costs (TCI) 67,205

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,600,230 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,924,559

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,401,349

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU100 Wet Scrubber 9/6/2006 Page 5 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 3: SOx Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 222,400 8.55 0.7 - 317.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48

Flow Liquid SPGR ∆ P ft H2O Efficiency Hp kW

Circ Pump 8,451 gpm 1 60 0.7 - 136.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 209 gpm 1 60 0.7 - 3.4 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 457.4

Reagent Use & Other Operating Costs

Caustic Use 35.50 lb/hr SO2 2.50 lb NaOH/lb SO2 88.75 lb/hr Caustic

Lime Use 35.50 lb/hr SO2 0.96 lb Lime/lb SO2 34.17 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

8,451 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 209 gpm

Evaporation Loss4 = 39.66 gpm

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 457.4 kW-hr 3,547,050 212,823 $/kwh, 457 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/kgal 208.7 gpm 97,104 26,883 $/kgal, 209 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/kgal 169.0 gpm 78,651 132,783 $/kgal, 169 gpm, Annual Operating Hours, 93% utilization

Lime 89.0 $/ton 34.2 lb/hr 132 11,789 $/ton, 34 lb/hr, Annual Operating Hours, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU100 Wet Scrubber 9/6/2006 Page 6 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 4: SOx

 Control - Wet Scrubber

Operating Unit: Furnace 11 Waste Gas

Emission Unit Number EU 104 Stack/Vent Number SV 104 & 105

Standardized Flow Rate 152,520 scfm @ 32o F

Expected Utilization Rate 93% Temperature 140 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 18.3%

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 133,792 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,484,419

 Purchased Equipment Total (B) 22% of control device cost (A) 3,018,569

 Installation - Standard Costs 85% of purchased equip cost (B) 2,565,783

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,565,783

 Total Direct Capital Cost, DC 5,584,352

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 452,785

Total Capital Investment (TCI) = DC + IC 15,859,420

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 407,966

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,794,010

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,201,975

Actual

Emission Control Cost Calculation Emis Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 124.8 273.7 0% 273.7 - NA

Sulfur Dioxide (SO2) 9.6 11.8 60% 3.8 5.7 384,034 

Notes & Assumptions

1 Original estimate from STS Consultants. Use 0.6 Power law factor to adjust price to stack flow rate from bid basis of 500,000 acfm. 

2 Liquid/Gas ratio = 38 L/G = Gal/1,000 acf.

3 Water Makeup Rate/Wastewater Discharge = 2.0% of circulating water rate.

4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Third Edition.

5 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU104 Wet Scrubber 9/6/2006 Page 7 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 4: SOx Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,484,419

Instrumentation 10% of control device cost (A) 248,442

MN Sales Taxes 7% of control device cost (A) 161,487

Freight 5% of control device cost (A) 124,221

Purchased Equipment Total (B) 22% 3,018,569

Installation

Foundations & supports 12% of purchased equip cost (B) 362,228

Handling & erection 40% of purchased equip cost (B) 1,207,427

Electrical 1% of purchased equip cost (B) 30,186

Piping 30% of purchased equip cost (B) 905,571

Insulation 1% of purchased equip cost (B) 30,186

Painting 1% of purchased equip cost (B) 30,186

Installation Subtotal Standard Expenses 85% 2,565,783

Total Direct Capital Cost, DC 5,584,352

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 150,928

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 150,928

Start-up 1% of purchased equip cost (B) 30,186

Performance test 1% of purchased equip cost (B) 30,186

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 90,557

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 452,785

Total Capital Investment (TCI) = DC + IC 6,037,137

Retrofit multiplier560% of TCI 3,622,282

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 15,859,420

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 383 kW-hr, Annual Operating Hours, 93% utilization 177,990

Water 0.28 $/kgal, 175 gpm, Annual Operating Hours, 93% utilization 22,483

WW Treat Neutralization 1.69 $/kgal, 141 gpm, Annual Operating Hours, 93% utilization 111,050

Lime 88.98 $/ton, 11 lb/hr, Annual Operating Hours, 93% utilization 3,930

Total Annual Direct Operating Costs 407,966

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 120,743

Property tax (1% total capital costs) 1% of total capital costs (TCI) 60,371

Insurance (1% total capital costs) 1% of total capital costs (TCI) 60,371

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,497,017 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,794,010

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,201,975

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU104 Wet Scrubber 9/6/2006 Page 8 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 4: SOx Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 186,000 8.55 0.7 - 265.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48

Flow Liquid SPGR ∆ P ft H2O Efficiency Hp kW

Circ Pump 7,068 gpm 1 60 0.7 - 113.9 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 175 gpm 1 60 0.7 - 2.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 382.5

Reagent Use & Other Operating Costs

Caustic Use 11.83 lb/hr SO2 2.50 lb NaOH/lb SO2 29.58 lb/hr Caustic

Lime Use 11.83 lb/hr SO2 0.96 lb Lime/lb SO2 11.39 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

7,068 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 175 gpm

Evaporation Loss4 = 33.17 gpm

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 382.5 kW-hr 2,966,507 177,990 $/kwh, 383 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/kgal 174.5 gpm 81,211 22,483 $/kgal, 175 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/kgal 141.4 gpm 65,778 111,050 $/kgal, 141 gpm, Annual Operating Hours, 93% utilization

Lime 89.0 $/ton 11.4 lb/hr 44 3,930 $/ton, 11 lb/hr, Annual Operating Hours, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU104 Wet Scrubber 9/6/2006 Page 9 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 5 SOx

 Control - Wet Scrubber

Operating Unit: Furnace 12 Hood Exhaust

Emission Unit Number EU 110 Stack/Vent Number SV 111, 112, & 113

Standardized Flow Rate 181,762 scfm @ 32o F

Expected Utilization Rate 93% Temperature 142 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 9.5%

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 176,529 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,765,654

 Purchased Equipment Total (B) 22% of control device cost (A) 3,360,270

 Installation - Standard Costs 85% of purchased equip cost (B) 2,856,229

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,856,229

 Total Direct Capital Cost, DC 6,216,499

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 504,040

Total Capital Investment (TCI) = DC + IC 16,952,864

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 476,790

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,924,559

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,401,349

Actual

Emission Control Cost Calculation Emis Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 51.3 109.9 0% 109.9 - NA

Sulfur Dioxide (SO2) 26.3 35.5 60% 10.5 15.8 152,149 

Notes & Assumptions

1 Original estimate from STS Consultants. Use 0.6 Power law factor to adjust price to stack flow rate from bid basis of 500,000 acfm. 

2 Liquid/Gas ratio = 38 L/G = Gal/1,000 acf.

3 Water Makeup Rate/Wastewater Discharge = 2.0% of circulating water rate.

4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Third Edition.

5 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU110 Wet Scrubber 9/6/2006 Page 10 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 5 SOx Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,765,654

Instrumentation 10% of control device cost (A) 276,565

MN Sales Taxes 7% of control device cost (A) 179,768

Freight 5% of control device cost (A) 138,283

Purchased Equipment Total (B) 22% 3,360,270

Installation

Foundations & supports 12% of purchased equip cost (B) 403,232

Handling & erection 40% of purchased equip cost (B) 1,344,108

Electrical 1% of purchased equip cost (B) 33,603

Piping 30% of purchased equip cost (B) 1,008,081

Insulation 1% of purchased equip cost (B) 33,603

Painting 1% of purchased equip cost (B) 33,603

Installation Subtotal Standard Expenses 85% 2,856,229

Total Direct Capital Cost, DC 6,216,499

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 168,013

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 168,013

Start-up 1% of purchased equip cost (B) 33,603

Performance test 1% of purchased equip cost (B) 33,603

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 100,808

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 504,040

Total Capital Investment (TCI) = DC + IC 6,720,540

Retrofit multiplier560% of TCI 4,032,324

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,952,864

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 457 kW-hr, Annual Operating Hours, 93% utilization 212,823

Water 0.28 $/kgal, 209 gpm, Annual Operating Hours, 93% utilization 26,883

WW Treat Neutralization 1.69 $/kgal, 169 gpm, Annual Operating Hours, 93% utilization 132,783

Lime 88.98 $/ton, 34 lb/hr, Annual Operating Hours, 93% utilization 11,789

Total Annual Direct Operating Costs 476,790

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 134,411

Property tax (1% total capital costs) 1% of total capital costs (TCI) 67,205

Insurance (1% total capital costs) 1% of total capital costs (TCI) 67,205

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,600,230 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,924,559

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,401,349

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU110 Wet Scrubber 9/6/2006 Page 11 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 5 SOx Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 222,400 8.55 0.7 - 317.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48

Flow Liquid SPGR ∆ P ft H2O Efficiency Hp kW

Circ Pump 8,451 gpm 1 60 0.7 - 136.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 209 gpm 1 60 0.7 - 3.4 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 457.4

Reagent Use & Other Operating Costs

Caustic Use 35.50 lb/hr SO2 2.50 lb NaOH/lb SO2 88.75 lb/hr Caustic

Lime Use 35.50 lb/hr SO2 0.96 lb Lime/lb SO2 34.17 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

8,451 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 209 gpm

Evaporation Loss4 = 39.66 gpm

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 457.4 kW-hr 3,547,050 212,823 $/kwh, 457 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/kgal 208.7 gpm 97,104 26,883 $/kgal, 209 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/kgal 169.0 gpm 78,651 132,783 $/kgal, 169 gpm, Annual Operating Hours, 93% utilization

Lime 89.0 $/ton 34.2 lb/hr 132 11,789 $/ton, 34 lb/hr, Annual Operating Hours, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU110 Wet Scrubber 9/6/2006 Page 12 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 6: SOx

 Control - Wet Scrubber

Operating Unit: Furnace 12 Waste Gas

Emission Unit Number EU 114 Stack/Vent Number SV 114 & 115

Standardized Flow Rate 152,520 scfm @ 32o F

Expected Utilization Rate 93% Temperature 140 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 16.4%

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 136,902 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,484,419

 Purchased Equipment Total (B) 22% of control device cost (A) 3,018,569

 Installation - Standard Costs 85% of purchased equip cost (B) 2,565,783

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,565,783

 Total Direct Capital Cost, DC 5,584,352

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 452,785

Total Capital Investment (TCI) = DC + IC 15,859,420

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 407,966

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,794,010

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,201,975

Actual

Emission Control Cost Calculation Emis Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 124.8 267.7 0% 267.7 - NA

Sulfur Dioxide (SO2) 8.8 11.8 60% 3.5 5.3 417,742 

Notes & Assumptions

1 Original estimate from STS Consultants. Use 0.6 Power law factor to adjust price to stack flow rate from bid basis of 500,000 acfm. 

2 Liquid/Gas ratio = 38 L/G = Gal/1,000 acf.

3 Water Makeup Rate/Wastewater Discharge = 2.0% of circulating water rate.

4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Third Edition.

5 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU114 Wet Scrubber 9/6/2006 Page 13 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 6: SOx Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,484,419

Instrumentation 10% of control device cost (A) 248,442

MN Sales Taxes 7% of control device cost (A) 161,487

Freight 5% of control device cost (A) 124,221

Purchased Equipment Total (B) 22% 3,018,569

Installation

Foundations & supports 12% of purchased equip cost (B) 362,228

Handling & erection 40% of purchased equip cost (B) 1,207,427

Electrical 1% of purchased equip cost (B) 30,186

Piping 30% of purchased equip cost (B) 905,571

Insulation 1% of purchased equip cost (B) 30,186

Painting 1% of purchased equip cost (B) 30,186

Installation Subtotal Standard Expenses 85% 2,565,783

Total Direct Capital Cost, DC 5,584,352

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 150,928

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 150,928

Start-up 1% of purchased equip cost (B) 30,186

Performance test 1% of purchased equip cost (B) 30,186

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 90,557

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 452,785

Total Capital Investment (TCI) = DC + IC 6,037,137

Retrofit multiplier560% of TCI 3,622,282

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 15,859,420

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 383 kW-hr, Annual Operating Hours, 93% utilization 177,990

Water 0.28 $/kgal, 175 gpm, Annual Operating Hours, 93% utilization 22,483

WW Treat Neutralization 1.69 $/kgal, 141 gpm, Annual Operating Hours, 93% utilization 111,050

Lime 88.98 $/ton, 11 lb/hr, Annual Operating Hours, 93% utilization 3,930

Total Annual Direct Operating Costs 407,966

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 120,743

Property tax (1% total capital costs) 1% of total capital costs (TCI) 60,371

Insurance (1% total capital costs) 1% of total capital costs (TCI) 60,371

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,497,017 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,794,010

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,201,975

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU114 Wet Scrubber 9/6/2006 Page 14 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 6: SOx Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 186,000 8.55 0.7 - 265.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48

Flow Liquid SPGR ∆ P ft H2O Efficiency Hp kW

Circ Pump 7,068 gpm 1 60 0.7 - 113.9 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 175 gpm 1 60 0.7 - 2.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 382.5

Reagent Use & Other Operating Costs

Caustic Use 11.83 lb/hr SO2 2.50 lb NaOH/lb SO2 29.58 lb/hr Caustic

Lime Use 11.83 lb/hr SO2 0.96 lb Lime/lb SO2 11.39 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

7,068 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 175 gpm

Evaporation Loss4 = 33.17 gpm

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, 

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 382.5 kW-hr 2,966,507 177,990 $/kwh, 383 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/kgal 174.5 gpm 81,211 22,483 $/kgal, 175 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/kgal 141.4 gpm 65,778 111,050 $/kgal, 141 gpm, Annual Operating Hours, 93% utilization

Lime 89.0 $/ton 11.4 lb/hr 44 3,930 $/ton, 11 lb/hr, Annual Operating Hours, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU114 Wet Scrubber 9/6/2006 Page 15 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 7: SO2

 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Furnace 11 Hood Exhaust

Emission Unit Number EU 100 Stack/Vent Number SV 101, 102, & 103

Standardized Flow Rate 181,762 scfm @ 32o F

Expected Utilization Rate 93% Temperature 142 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 11.3%

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 172,951 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,999,843

 Purchased Equipment Total (B) 22% of control device cost (A) 4,859,809

 Installation - Standard Costs 67% of purchased equip cost (B) 3,256,072

 Installation - Site Specific Costs 6,200,000

 Installation Total 3,256,072

 Total Direct Capital Cost, DC 8,115,881

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,770,091

Total Capital Investment (TCI) = DC + IC 23,617,556

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,425,578

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,763,297

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,188,875

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 51.3 112.4 0% 112.4 - NA

Sulfur Dioxide (SO2) 28.6 35.5 80% 5.7 22.9 182,993 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm.

3 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU100 WWESP 9/6/2006 Page 16 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 7: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,999,843

Instrumentation 10% of control device cost (A) 399,984

MN Sales Taxes 6.5% of control device cost (A) 259,990

Freight 5% of control device cost (A) 199,992

Purchased Equipment Total (B) 22% 4,859,809

Installation

Foundations & supports 4% of purchased equip cost (B) 194,392

Handling & erection 50% of purchased equip cost (B) 2,429,905

Electrical 8% of purchased equip cost (B) 388,785

Piping 1% of purchased equip cost (B) 48,598

Insulation 2% of purchased equip cost (B) 97,196

Painting 2% of purchased equip cost (B) 97,196

Installation Subtotal Standard Expenses 67% 3,256,072

Total Direct Capital Cost, DC 8,115,881

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 971,962

Construction & field expenses 20% of purchased equip cost (B) 971,962

Contractor fees 10% of purchased equip cost (B) 485,981

Start-up 1% of purchased equip cost (B) 48,598

Performance test 1% of purchased equip cost (B) 48,598

Model Studies 2% of purchased equip cost (B) 97,196

Contingencies 3% of purchased equip cost (B) 145,794

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,770,091

Total Capital Investment (TCI) = DC + IC 10,885,972

Retrofit multiplier3

60% of TCI 6,531,583

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 23,617,556

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2 hr/8 hr shift, Annual Operating Hours, 0% utilization 104,239

Supervisor 15% of Op., 0 , Annual Operating Hours, 0% utilization 15,636

Maintenance

Maintenance Labor 60.00 $/Hr, 15 hr/wk, Annual Operating Hours, 0% utilization 4,340

Maintenance Materials 1.00 % of Maintenance Labor 39,998

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 526 kW-hr, Annual Operating Hours, 93% utilization 244,544

Water 0.28 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization 143,251

WW Treat Neutralization 1.69 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization 873,571

Caustic 305.96 $/ton, 89 lb/hr, 8339.1 hr/yr, 93% utilization 105,296

Total Annual Direct Operating Costs 1,425,578

Indirect Operating Costs

Overhead 60% of total labor and material costs 98,528

Administration (2% total capital costs) 2% of total capital costs (TCI) 217,719

Property tax (1% total capital costs) 1% of total capital costs (TCI) 108,860

Insurance (1% total capital costs) 1% of total capital costs (TCI) 108,860

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,229,330 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,763,297

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,188,875

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU100 WWESP 9/6/2006 Page 17 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 7: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 222,400 10 402.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 20.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 52,600 102.0 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 525.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 1112.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 88.75 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor , 0 , Annual Operating Hours, 0% utilization

Op Labor 50 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2 hr/8 hr shift, Annual Operating Hours, 0% utilization

Supervisor 15% of Op. NA 15,636 of Op., 0 , Annual Operating Hours, 0% utilization

Maintenance , 0 , Annual Operating Hours, 0% utilization

Maint Labor 60.00 $/Hr 15.0 hr/wk 660 4,340 $/Hr, 15 hr/wk, Annual Operating Hours, 0% utilization

Maint Mtls 1 % of Purchase Cost NA 39,998 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 525.5 kW-hr 4,075,729 244,544 $/kwh, 526 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/mgal 1,112.0 gpm 517,438 143,251 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/mgal 1,112.0 gpm 517,438 873,571 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization

Caustic 305.96 $/ton 88.8 lb/hr 344 105,296 $/ton, 89 lb/hr, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU100 WWESP 9/6/2006 Page 18 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 8: SO2

 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Furnace 11 Waste Gas

Emission Unit Number EU 104 Stack/Vent Number SV 104 & 105

Standardized Flow Rate 152,520 scfm @ 32o F

Expected Utilization Rate 93% Temperature 140 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 18.3%

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 133,792 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,593,104

 Purchased Equipment Total (B) 22% of control device cost (A) 4,365,622

 Installation - Standard Costs 67% of purchased equip cost (B) 2,924,967

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,924,967

 Total Direct Capital Cost, DC 7,290,588

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,488,404

Total Capital Investment (TCI) = DC + IC 21,846,389

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,249,949

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,549,263

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,799,211

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 124.8 273.7 0% 273.7 - NA

Sulfur Dioxide (SO2) 9.6 11.8 80% 1.9 7.6 496,949 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm.

3 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU104 WWESP 9/6/2006 Page 19 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 8: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,593,104

Instrumentation 10% of control device cost (A) 359,310

MN Sales Taxes 6.5% of control device cost (A) 233,552

Freight 5% of control device cost (A) 179,655

Purchased Equipment Total (B) 22% 4,365,622

Installation

Foundations & supports 4% of purchased equip cost (B) 174,625

Handling & erection 50% of purchased equip cost (B) 2,182,811

Electrical 8% of purchased equip cost (B) 349,250

Piping 1% of purchased equip cost (B) 43,656

Insulation 2% of purchased equip cost (B) 87,312

Painting 2% of purchased equip cost (B) 87,312

Installation Subtotal Standard Expenses 67% 2,924,967

Total Direct Capital Cost, DC 7,290,588

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 873,124

Construction & field expenses 20% of purchased equip cost (B) 873,124

Contractor fees 10% of purchased equip cost (B) 436,562

Start-up 1% of purchased equip cost (B) 43,656

Performance test 1% of purchased equip cost (B) 43,656

Model Studies 2% of purchased equip cost (B) 87,312

Contingencies 3% of purchased equip cost (B) 130,969

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,488,404

Total Capital Investment (TCI) = DC + IC 9,778,993

Retrofit multiplier3

60% of TCI 5,867,396

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 21,846,389

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr 104,239

Supervisor 15% 15% of Operator Costs 15,636

Maintenance

Maintenance Labor 60.00 $/Hr, 15.0 hr/wk, 8339.1 hr/yr 4,125

Maintenance Materials 1.00 % of Maintenance Labor 35,931

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 440 kW-hr, Annual Operating Hours, 93% utilization 204,519

Water 0.28 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization 119,805

WW Treat Neutralization 1.69 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization 730,595

Caustic 305.96 $/ton, 30 lb/hr, 8339.1 hr/yr, 93% utilization 35,099

Total Annual Direct Operating Costs 1,249,949

Indirect Operating Costs

Overhead 60% of total labor and material costs 95,958

Administration (2% total capital costs) 2% of total capital costs (TCI) 195,580

Property tax (1% total capital costs) 1% of total capital costs (TCI) 97,790

Insurance (1% total capital costs) 1% of total capital costs (TCI) 97,790

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,062,145 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,549,263

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,799,211

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU104 WWESP 9/6/2006 Page 20 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 8: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 186,000 10 336.7 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 17.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 43,991 85.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 439.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 930.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 29.58 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 15,636 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr/wk, 8339.1 hr/yr

Maint Mtls 1 % of Purchase Cost NA 35,931 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 439.5 kW-hr 3,408,658 204,519 $/kwh, 440 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/mgal 930.0 gpm 432,749 119,805 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/mgal 930.0 gpm 432,749 730,595 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization

Caustic 305.96 $/ton 29.6 lb/hr 115 35,099 $/ton, 30 lb/hr, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU104 WWESP 9/6/2006 Page 21 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 9: SO2

 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Furnace 12 Hood Exhaust

Emission Unit Number EU 110 Stack/Vent Number SV 111, 112, & 113

Standardized Flow Rate 181,762 scfm @ 32o F

Expected Utilization Rate 93% Temperature 142 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 9.5%

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 176,529 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,999,843

 Purchased Equipment Total (B) 22% of control device cost (A) 4,859,809

 Installation - Standard Costs 67% of purchased equip cost (B) 3,256,072

 Installation - Site Specific Costs 6,200,000

 Installation Total 3,256,072

 Total Direct Capital Cost, DC 8,115,881

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,770,091

Total Capital Investment (TCI) = DC + IC 23,617,556

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,530,874

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,763,297

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,294,171

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 51.3 109.9 0% 109.9 - NA

Sulfur Dioxide (SO2) 26.3 35.5 80% 5.3 21.0 204,058 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm.

3 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU110 WWESP 9/6/2006 Page 22 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 9: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,999,843

Instrumentation 10% of control device cost (A) 399,984

MN Sales Taxes 6.5% of control device cost (A) 259,990

Freight 5% of control device cost (A) 199,992

Purchased Equipment Total (B) 22% 4,859,809

Installation

Foundations & supports 4% of purchased equip cost (B) 194,392

Handling & erection 50% of purchased equip cost (B) 2,429,905

Electrical 8% of purchased equip cost (B) 388,785

Piping 1% of purchased equip cost (B) 48,598

Insulation 2% of purchased equip cost (B) 97,196

Painting 2% of purchased equip cost (B) 97,196

Installation Subtotal Standard Expenses 67% 3,256,072

Total Direct Capital Cost, DC 8,115,881

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 971,962

Construction & field expenses 20% of purchased equip cost (B) 971,962

Contractor fees 10% of purchased equip cost (B) 485,981

Start-up 1% of purchased equip cost (B) 48,598

Performance test 1% of purchased equip cost (B) 48,598

Model Studies 2% of purchased equip cost (B) 97,196

Contingencies 3% of purchased equip cost (B) 145,794

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,770,091

Total Capital Investment (TCI) = DC + IC 10,885,972

Retrofit multiplier3

60% of TCI 6,531,583

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 23,617,556

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr 104,239

Supervisor 15% 15% of Operator Costs 15,636

Maintenance

Maintenance Labor 60.00 $/Hr, 15.0 hr/wk, 8339.1 hr/yr 4,340

Maintenance Materials 1.00 % of Maintenance Labor 39,998

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 526 kW-hr, Annual Operating Hours, 93% utilization 244,544

Water 0.28 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization 143,251

WW Treat Neutralization 1.69 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization 873,571

Caustic 305.96 $/ton, 89 lb/hr, 8339.1 hr/yr, 93% utilization 105,296

Total Annual Direct Operating Costs 1,530,874

Indirect Operating Costs

Overhead 60% of total labor and material costs 98,528

Administration (2% total capital costs) 2% of total capital costs (TCI) 217,719

Property tax (1% total capital costs) 1% of total capital costs (TCI) 108,860

Insurance (1% total capital costs) 1% of total capital costs (TCI) 108,860

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,229,330 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,763,297

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,294,171

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU110 WWESP 9/6/2006 Page 23 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 9: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 222,400 10 402.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 20.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 52,600 102.0 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 525.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 1112.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 88.75 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 15,636 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 15.0 hr/wk 660 4,340 $/Hr, 15.0 hr/wk, 8339.1 hr/yr

Maint Mtls 1 % of Purchase Cost NA 39,998 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 525.5 kW-hr 4,075,729 244,544 $/kwh, 526 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/mgal 1,112.0 gpm 517,438 143,251 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/mgal 1,112.0 gpm 517,438 873,571 $/mgal, 1,112 gpm, Annual Operating Hours, 93% utilization

Caustic 305.96 $/ton 88.8 lb/hr 344 105,296 $/ton, 89 lb/hr, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU110 WWESP 9/6/2006 Page 24 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 10: SO2

 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Furnace 12 Waste Gas

Emission Unit Number EU 114 Stack/Vent Number SV 114 & 115

Standardized Flow Rate 152,520 scfm @ 32o F

Expected Utilization Rate 93% Temperature 140 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 16.4%

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 136,902 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,593,104

 Purchased Equipment Total (B) 22% of control device cost (A) 4,365,622

 Installation - Standard Costs 67% of purchased equip cost (B) 2,924,967

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,924,967

 Total Direct Capital Cost, DC 7,290,588

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,488,404

Total Capital Investment (TCI) = DC + IC 21,846,389

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,214,850

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,549,263

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,764,113

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 124.8 267.7 0% 267.7 - NA

Sulfur Dioxide (SO2) 8.8 11.8 80% 1.8 7.0 535,575 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm.

3 CUECost Workbook Version 1.0, USEPA Document Page 2.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU114 WWESP 9/6/2006 Page 25 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 10: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,593,104

Instrumentation 10% of control device cost (A) 359,310

MN Sales Taxes 6.5% of control device cost (A) 233,552

Freight 5% of control device cost (A) 179,655

Purchased Equipment Total (B) 22% 4,365,622

Installation

Foundations & supports 4% of purchased equip cost (B) 174,625

Handling & erection 50% of purchased equip cost (B) 2,182,811

Electrical 8% of purchased equip cost (B) 349,250

Piping 1% of purchased equip cost (B) 43,656

Insulation 2% of purchased equip cost (B) 87,312

Painting 2% of purchased equip cost (B) 87,312

Installation Subtotal Standard Expenses 67% 2,924,967

Total Direct Capital Cost, DC 7,290,588

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 873,124

Construction & field expenses 20% of purchased equip cost (B) 873,124

Contractor fees 10% of purchased equip cost (B) 436,562

Start-up 1% of purchased equip cost (B) 43,656

Performance test 1% of purchased equip cost (B) 43,656

Model Studies 2% of purchased equip cost (B) 87,312

Contingencies 3% of purchased equip cost (B) 130,969

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,488,404

Total Capital Investment (TCI) = DC + IC 9,778,993

Retrofit multiplier3

60% of TCI 5,867,396

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 21,846,389

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr 104,239

Supervisor 15% 15% of Operator Costs 15,636

Maintenance

Maintenance Labor 60.00 $/Hr, 15.0 hr/wk, 8339.1 hr/yr 4,125

Maintenance Materials 1.00 % of Maintenance Labor 35,931

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 440 kW-hr, Annual Operating Hours, 93% utilization 204,519

Water 0.28 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization 119,805

WW Treat Neutralization 1.69 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization 730,595

Total Annual Direct Operating Costs 1,214,850

Indirect Operating Costs

Overhead 60% of total labor and material costs 95,958

Administration (2% total capital costs) 2% of total capital costs (TCI) 195,580

Property tax (1% total capital costs) 1% of total capital costs (TCI) 97,790

Insurance (1% total capital costs) 1% of total capital costs (TCI) 97,790

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,062,145 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,549,263

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,764,113

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU114 WWESP 9/6/2006 Page 26 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 10: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 186,000 10 336.7 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 17.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 43,991 85.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 439.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 930.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 29.58 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 15,636 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr/wk, 8339.1 hr/yr

Maint Mtls 1 % of Purchase Cost NA 35,931 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 439.5 kW-hr 3,408,658 204,519 $/kwh, 440 kW-hr, Annual Operating Hours, 93% utilization

Water 0.28 $/mgal 930.0 gpm 432,749 119,805 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization

WW Treat Neutralization 1.69 $/mgal 930.0 gpm 432,749 730,595 $/mgal, 930 gpm, Annual Operating Hours, 93% utilization

Caustic 305.96 $/ton 29.6 lb/hr 115 35,099 $/ton, 30 lb/hr, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

EU114 WWESP 9/6/2006 Page 27 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 11: - SCR + Reheat (100)

Operating Unit: Furnace 11 Hood Exhaust

Emission Unit Number EU 100 Stack/Vent Number SV 101, 102, & 103 Chemical Engineering

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 181,762 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 142 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,339 Hours Moisture Content 11.3% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 172,951 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment (A) 10,191,798

 Purchased Equipment Total (B) SCR Only 10,854,265

 Installation - Standard Costs 15% of purchased equip cost (B) SCR Only 2,024,725

 Installation - Site Specific Costs 0

 Installation Total 0

 Total Direct Capital Cost, DC 0

 Total Indirect Capital Costs, IC 0% of purchased equip cost (B) 0

Total Capital Investment (TCI) = DC + IC SCR + Reheat 46,019,283

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 7,301,482

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 4,326,542

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 11,628,024

Emission Control Cost Calculation

Baseline Predicted Limit Cont. Emis. Cont Emis Reduction Cont Cost

Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 112.4 1.5 0.01 5.7 106.7 108,969 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 Control Efficiency = 90% reduction which is typically the upper range of normal SCR control efficiency

12 $35/MW-hr, 140 MW

13 Catalyst replacement every 8000 hours. This requires an additional 2 week outage per 3 year outage cycle, annualized to 4.7 days.

Notes to User

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (100) NOx SCR+ Reheat 90% Eff (100) 28 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 11: - SCR + Reheat (100)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,191,798

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 662,467

Freight 5% of control device cost (A) NA

Purchased Equipment Total (A) 10,854,265

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 24% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 24% of purchased equip cost (A) 2,643,899

Project Contingeny ( C) 15% of (A + B) 2,024,725

Total Plant Cost D A + B + C 15,522,888

Allowance for Funds During Construction (E) Additional 10 week outage for installation 8,232,000

Pre Production Costs (G) 2% of (D+E)) 475,098

Inventory Capital Reagent Vol * $/gal 2,331

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 24,232,317

Retrofit multiplier3

60% of TCI 14,539,390

Total Retorfit Capital Investment 38,771,707

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr 104,239

Supervisor 15% 15% of Operator Costs 15,636

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 363,485

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 1,444 kW-hr, 8339.1 hr/yr, 93% utilization 672,157

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

Cat. Replacement [14] 35.00 Catalyst Replacement 423,178

NA NA - 

Ammonia 0.12 $/lb, 69 lb/hr, 8339.1 hr/yr, 93% utilization 64,238

NA NA - 

NA NA - 

NA NA - 

Total Annual Direct Operating Costs 1,642,933

Indirect Operating Costs

Overhead 60% of total labor and material costs 40,360

Administration (2% total capital costs) 2% of total capital costs (TCI) 484,646

Property tax (1% total capital costs) 1% of total capital costs (TCI) 242,323

Insurance (1% total capital costs) 1% of total capital costs (TCI) 242,323

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,287,359 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,297,011

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,939,944

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (100) NOx SCR+ Reheat 90% Eff (100) 29 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 11: - SCR + Reheat (100)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Equivalent Duty 1,052 Plant Cap kW A 107,954

Est power platn eff 35% Unc Nox lb/mmBtuB 0.05 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 107,954 Capital Cost $/kW D $94.41 $10,191,798.18 Total SCR Equipment

Uncontrolled Nox t/y 112.4 Fixed O&M E $67,265.87

Annual Operating Hrs 8000 Variable O&M F $205,606.98

Uncontrolled Nox lb/mmBtu 0.049 Ann Cap Factor G 0.82

Heat Input mmBtu/hrH 6,000

SCR Capital Cost

Duty 1,052 MMBtu/hr Catalyst Area 508 ft2614 f (h SCR)

Q flue gas 487,426 acfm Rx Area 584 83 f (h NH3

)

NOx Cont Eff 80% (as faction) Rx Height 24.2 ft 0 f (h New) new= -728, Retrofit = 0

NOx in 0.05 lb/MMBtu n layer 22 layers Y Bypass? Y or N

Ammonia Slip 2 ppm h layer 23.5 ft 127 f (h Bypass)

Fuel Sulfur 0.67 wt % (as %) n total 23 layers 8,220,568 f (vol catalyst)

Temperature 142 Deg F h SCR 131 ft f (h SCR)

Catalyst Volume 34,252 ft3

New/Retrofit R N or R 

Electrical Use

Duty 1,052 MMBtu/hr kW

NOx Cont Eff 80% (as faction) Power 1,444.5

NOx in 0.05 lb/MMBtu

n catalyst layers 23 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1444.5

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

20 lb/hr Neat 9.2 gal/hr

29% solution Volume 14 day inventory 3,083 gal $2,331 Inventory Cost

69 lb/hr

Design Basis Baseline Emis. Baseline Emis.Max Emis. (Model) Control Eff (%) Cont. Emis (lb/MMBtu)

T/yr lb/MMBtu lb/hr 80% 0.01

Nitrous Oxides (NOx) 112.4 0.05 51.25

Actual 69,180 dscf/MMBtu

Method 19 Factor 9,860 dscf/MMBtu

Adjusted Duty 1,052 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 15,636 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 363,485 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 1444.5 kW-hr 11,202,612 672,157 $/kwh, 1,444 kW-hr, 8339.1 hr/yr, 93% utilization

Cat. Replacement [14] 35 $/MW-hr 108.0 mw 112 423,178 Catalyst Replacement

7 Ammonia 0.12 $/lb 69 lb/hr 532,660 64,238 $/lb, 69 lb/hr, 8339.1 hr/yr, 93% utilization

** Std Air use is 2 scfm/kacfm *annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (100) NOx SCR+ Reheat 90% Eff (100) 30 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 12: Reheat (100)

Operating Unit: Furnace 11 Hood Exhaust

Emission Unit Number EU 100 Stack/Vent Number SV 101, 102, & 103 Chemical Engineering

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 181,762 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 142 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,339 Hours Moisture Content 11.3% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 172,951 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 535,530

 Purchased Equipment Total (B) 22% of control device cost (A) 650,668

 Installation - Standard Costs 30% of purchased equip cost (B) 195,201

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,395,201

 Total Direct Capital Cost, DC 7,045,869

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 201,707

Total Capital Investment (TCI) = DC + IC 7,247,576

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 5,658,549

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,029,530

Total Annual Cost (Annualized Capital Cost + Operating Cost) 6,688,079

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (100) Reheat (100) 31 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 12: Reheat (100)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 535,530

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 53,553

MN Sales Taxes 6.5% of control device cost (A) 34,809

Freight 5% of control device cost (A) 26,776

Purchased Equipment Total (B) 22% 650,668

Installation

Foundations & supports 8% of purchased equip cost (B) 52,053

Handling & erection 14% of purchased equip cost (B) 91,094

Electrical 4% of purchased equip cost (B) 26,027

Piping 2% of purchased equip cost (B) 13,013

Insulation 1% of purchased equip cost (B) 6,507

Painting 1% of purchased equip cost (B) 6,507

Installation Subtotal Standard Expenses 30% 195,201

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Installation Total 6,395,201

Total Direct Capital Cost, DC 7,045,869

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 65,067

Construction & field expenses 5% of purchased equip cost (B) 32,533

Contractor fees 10% of purchased equip cost (B) 65,067

Start-up 2% of purchased equip cost (B) 13,013

Performance test 1% of purchased equip cost (B) 6,507

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 19,520

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 201,707

Total Capital Investment (TCI) = DC + IC 7,247,576

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 7,247,576

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 60.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 824 kW-hr, 8339.1 hr/yr, 93% utilization 383,421

Natural Gas 10.02 $/mscf, 1,112 scfm, 8339.1 hr/yr, 93% utilization 5,182,616

Total Annual Direct Operating Costs 5,658,549

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 144,952

Property tax (1% total capital costs) 1% of total capital costs (TCI) 72,476

Insurance (1% total capital costs) 1% of total capital costs (TCI) 72,476

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 684,120 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,029,530

Total Annual Cost (Annualized Capital Cost + Operating Cost) 6,688,079

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (100) Reheat (100) 32 of 56
Cleveland Cliffs Incorporated: United Taconite

BART Report - <Insert attachment name> Emission Control Cost Analysis

Table 12: Reheat (100)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 2 years

CRF 0.5531

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 222,400 19 0.6 824.0 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 222,400 23 0.6 997.5 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 824.0

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 824.0 kW-hr 6,390,357 383,421 $/kwh, 824 kW-hr, 8339.1 hr/yr, 93% utilization

Natural Gas 10.02 $/mscf 1,112 scfm 517,206 5,182,616 $/mscf, 1,112 scfm, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (100) Reheat (100) 33 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 12: Reheat (100)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 142 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 568 Deg F - Temperature of waste gas out of heat recovery

Tfo 324 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 195,062 scfm - Flow of waste gas 

Qaf 1,112 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 196,173 scfm Flue Gas Cost in 1989 $'s $449,154

Current Cost Using CHE Plant Cost Index $535,530

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (100) Reheat (100) 34 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 13: - SCR + Reheat (104)

Operating Unit: Furnace 11 Waste Gas

Emission Unit Number EU 104 Stack/Vent Number SV 104 & 105 Chemical Engineering

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 152,520 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 140 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,339 Hours Moisture Content 18.3% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 133,792 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs Year

 Direct Capital Costs EPRI Correlation 1998

 Purchased Equipment (A) 2005 0

 Purchased Equipment Total (B) 0% of control device cost (A) SCR Only 9,372,318

 Installation - Standard Costs 15% of purchased equip cost (B) SCR Only 1,802,433

 Installation - Site Specific Costs 0

 Installation Total 0

 Total Direct Capital Cost, DC 0

 Total Indirect Capital Costs, IC 0% of purchased equip cost (B) 0

Total Capital Investment (TCI) = DC + IC SCR + Reheat 43,197,692

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 4,157,530

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 4,081,731

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 8,239,261

Emission Control Cost Calculation

Baseline Predicted Limit Cont. Emis. Cont Emis Reduction Cont Cost

Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 273.7 4.6 0.03 17.8 255.9 32,199 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 Control Efficiency = 90% reduction which is typically the upper range of normal SCR control efficiency

12 $35/MW-hr, 140 MW

13 Catalyst replacement every 8000 hours. This requires an additional 2 week outage per 3 year outage cycle, annualized to 4.7 days.

Notes to User

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (104) NOx SCR+ Reheat 90% Eff (104) 35 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 13: - SCR + Reheat (104)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 8,800,299

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 572,019

Freight 5% of control device cost (A) NA

Purchased Equipment Total (A) 9,372,318

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 28% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 28% of purchased equip cost (A) 2,643,899

Project Contingeny ( C) 15% of (A + B) 1,802,433

Total Plant Cost D A + B + C 13,818,649

Allowance for Funds During Construction (E) Additional 10 week outage for installation 8,232,000

Pre Production Costs (G) 2% of (D+E)) 441,013

Inventory Capital Reagent Vol * $/gal 5,677

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 22,497,340

Retrofit multiplier3

60% of TCI 13,498,404

Total Retorfit Capital Investment 35,995,743

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr 104,239

Supervisor 15% 15% of Operator Costs 15,636

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 337,460

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 1,167 kW-hr, 8339.1 hr/yr, 93% utilization 543,246

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

Cat. Replacement [14] 35.00 Catalyst Replacement 327,363

NA NA - 

Ammonia 0.12 $/lb, 167 lb/hr, 8339.1 hr/yr, 93% utilization 156,470

NA NA - 

NA NA - 

NA NA - 

Total Annual Direct Operating Costs 1,484,414

Indirect Operating Costs

Overhead 60% of total labor and material costs 34,849

Administration (2% total capital costs) 2% of total capital costs (TCI) 449,947

Property tax (1% total capital costs) 1% of total capital costs (TCI) 224,973

Insurance (1% total capital costs) 1% of total capital costs (TCI) 224,973

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,123,590 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,058,332

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,542,746

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (104) NOx SCR+ Reheat 90% Eff (104) 36 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 13: - SCR + Reheat (104)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Equivalent Duty 814 Plant Cap kW A 83,511

Est power platn eff 35% Unc Nox lb/mmBtuB 0.15 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 83,511 Capital Cost $/kW D $105.38 $8,800,298.76 Total SCR Equipment

Uncontrolled Nox t/y 273.7 Fixed O&M E $58,081.97

Annual Operating Hrs 8000 Variable O&M F $171,504.18

Uncontrolled Nox lb/mmBtu 0.153 Ann Cap Factor G 0.82

Heat Input mmBtu/hrH 6,000

SCR Capital Cost

Duty 814 MMBtu/hr Catalyst Area 393 ft2638 f (h SCR)

Q flue gas 377,064 acfm Rx Area 452 121 f (h NH3

)

NOx Cont Eff 80% (as faction) Rx Height 21.3 ft 0 f (h New) new= -728, Retrofit = 0

NOx in 0.15 lb/MMBtu n layer 23 layers Y Bypass? Y or N

Ammonia Slip 2 ppm h layer 24.5 ft 127 f (h Bypass)

Fuel Sulfur 0.67 wt % (as %) n total 24 layers 6,646,500 f (vol catalyst)

Temperature 140 Deg F h SCR 135 ft f (h SCR)

Catalyst Volume 27,694 ft3

New/Retrofit R N or R 

Electrical Use

Duty 814 MMBtu/hr kW

NOx Cont Eff 80% (as faction) Power 1,167.5

NOx in 0.15 lb/MMBtu

n catalyst layers 24 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1167.5

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

49 lb/hr Neat 22.3 gal/hr

29% solution Volume 14 day inventory 7,509 gal $5,677 Inventory Cost

167 lb/hr

Design Basis Baseline Emis. Baseline Emis.Max Emis. (Model) Control Eff (%) Cont. Emis (lb/MMBtu)

T/yr lb/MMBtu lb/hr 80% 0.03

Nitrous Oxides (NOx) 273.7 0.15 124.83

Actual 53,517 dscf/MMBtu

Method 19 Factor 9,860 dscf/MMBtu

Adjusted Duty 814 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 15,636 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 337,460 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 1167.5 kW-hr 9,054,097 543,246 $/kwh, 1,167 kW-hr, 8339.1 hr/yr, 93% utilization

Cat. Replacement [14] 35 $/MW-hr 83.5 mw 112 327,363 Catalyst Replacement

7 Ammonia 0.12 $/lb 167 lb/hr 1,297,437 156,470 $/lb, 167 lb/hr, 8339.1 hr/yr, 93% utilization

** Std Air use is 2 scfm/kacfm *annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (104) NOx SCR+ Reheat 90% Eff (104) 37 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 14: - Reheat (104)

Operating Unit: Furnace 11 Waste Gas

Emission Unit Number EU 104 Stack/Vent Number SV 104 & 105 Chemical Engineering

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 152,520 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 140 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,339 Hours Moisture Content 18.3% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 133,792 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 512,205

 Purchased Equipment Total (B) 22% of control device cost (A) 622,328

 Installation - Standard Costs 30% of purchased equip cost (B) 186,699

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,386,699

 Total Direct Capital Cost, DC 7,009,027

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 192,922

Total Capital Investment (TCI) = DC + IC 7,201,949

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 2,673,116

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,023,398

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,696,515

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (104) Reheat (104) 38 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 14: - Reheat (104)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 512,205

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 51,220

MN Sales Taxes 6.5% of control device cost (A) 33,293

Freight 5% of control device cost (A) 25,610

Purchased Equipment Total (B) 22% 622,328

Installation

Foundations & supports 8% of purchased equip cost (B) 49,786

Handling & erection 14% of purchased equip cost (B) 87,126

Electrical 4% of purchased equip cost (B) 24,893

Piping 2% of purchased equip cost (B) 12,447

Insulation 1% of purchased equip cost (B) 6,223

Painting 1% of purchased equip cost (B) 6,223

Installation Subtotal Standard Expenses 30% 186,699

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Installation Total 6,386,699

Total Direct Capital Cost, DC 7,009,027

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 62,233

Construction & field expenses 5% of purchased equip cost (B) 31,116

Contractor fees 10% of purchased equip cost (B) 62,233

Start-up 2% of purchased equip cost (B) 12,447

Performance test 1% of purchased equip cost (B) 6,223

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 18,670

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 192,922

Total Capital Investment (TCI) = DC + IC 7,201,949

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 7,201,949

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 60.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 689 kW-hr, 8339.1 hr/yr, 93% utilization 320,667

Natural Gas 10.02 $/mscf, 485 scfm, 8339.1 hr/yr, 93% utilization 2,259,937

Total Annual Direct Operating Costs 2,673,116

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 144,039

Property tax (1% total capital costs) 1% of total capital costs (TCI) 72,019

Insurance (1% total capital costs) 1% of total capital costs (TCI) 72,019

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 679,813 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,023,398

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,696,515

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (104) Reheat (104) 39 of 56
Cleveland Cliffs Incorporated: United Taconite

BART Report - <Insert attachment name> Emission Control Cost Analysis

Table 14: - Reheat (104)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 2 years

CRF 0.5531

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 186,000 19 0.6 689.1 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 186,000 23 0.6 834.2 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 689.1

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 689.1 kW-hr 5,344,453 320,667 $/kwh, 689 kW-hr, 8339.1 hr/yr, 93% utilization

Natural Gas 10.02 $/mscf 485 scfm 225,534 2,259,937 $/mscf, 485 scfm, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (104) Reheat (104) 40 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 14: - Reheat (104)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 140 Deg F - Temperature of waste gas into heat recovery

Tfi 450 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 357 Deg F - Temperature of waste gas out of heat recovery

Tfo 233 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 163,680 scfm - Flow of waste gas 

Qaf 485 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 164,165 scfm Flue Gas Cost in 1989 $'s $429,591

Current Cost Using CHE Plant Cost Index $512,205

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (104) Reheat (104) 41 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 15: - SCR + Reheat (110)

Operating Unit: Furnace 12 Hood Exhaust

Emission Unit Number EU 110 Stack/Vent Number SV 111, 112, & 113 Chemical Engineering

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 181,762 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 142 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,339 Hours Moisture Content 9.5% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 176,529 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs Year

 Direct Capital Costs EPRI Correlation 1998

 Purchased Equipment (A) 2005 10,324,640

 Purchased Equipment Total (B) 0% of control device cost (A) SCR Only 10,995,741

 Installation - Standard Costs 15% of purchased equip cost (B) SCR Only 2,045,946

 Installation - Site Specific Costs 0

 Installation Total 0

 Total Direct Capital Cost, DC 0

 Total Indirect Capital Costs, IC 0% of purchased equip cost (B) 0

Total Capital Investment (TCI) = DC + IC SCR + Reheat 46,284,809

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 7,339,040

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 4,349,371

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 11,688,411

Emission Control Cost Calculation

Baseline Predicted Limit Cont. Emis. Cont Emis Reduction Cont Cost

Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 109.9 1.4 0.01 5.6 104.4 112,008 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 Control Efficiency = 90% reduction which is typically the upper range of normal SCR control efficiency

12 $35/MW-hr, 140 MW

13 Catalyst replacement every 8000 hours. This requires an additional 2 week outage per 3 year outage cycle, annualized to 4.7 days.

Notes to User

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (110) NOx SCR+ Reheat 90% Eff (110) 42 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 15: - SCR + Reheat (110)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,324,640

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 671,102

Freight 5% of control device cost (A) NA

Purchased Equipment Total (A) 10,995,741

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 24% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 24% of purchased equip cost (A) 2,643,899

Project Contingeny ( C) 15% of (A + B) 2,045,946

Total Plant Cost D A + B + C 15,685,586

Allowance for Funds During Construction (E) Additional 10 week outage for installation 8,232,000

Pre Production Costs (G) 2% of (D+E)) 478,352

Inventory Capital Reagent Vol * $/gal 2,331

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 24,398,268

Retrofit multiplier3

60% of TCI 14,638,961

Total Retorfit Capital Investment 39,037,230

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr 104,239

Supervisor 15% 15% of Operator Costs 15,636

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 365,974

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 1,474 kW-hr, 8339.1 hr/yr, 93% utilization 686,019

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

Cat. Replacement [14] 35.00 Catalyst Replacement 431,932

NA NA - 

Ammonia 0.12 $/lb, 69 lb/hr, 8339.1 hr/yr, 93% utilization 64,238

NA NA - 

NA NA - 

NA NA - 

Total Annual Direct Operating Costs 1,668,038

Indirect Operating Costs

Overhead 60% of total labor and material costs 40,886

Administration (2% total capital costs) 2% of total capital costs (TCI) 487,965

Property tax (1% total capital costs) 1% of total capital costs (TCI) 243,983

Insurance (1% total capital costs) 1% of total capital costs (TCI) 243,983

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,303,024 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,319,840

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,987,878

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (110) NOx SCR+ Reheat 90% Eff (110) 43 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 15: - SCR + Reheat (110)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Equivalent Duty 1,074 Plant Cap kW A 110,187

Est power platn eff 35% Unc Nox lb/mmBtuB 0.05 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 110,187 Capital Cost $/kW D $93.70 $10,324,639.77 Total SCR Equipment

Uncontrolled Nox t/y 109.9 Fixed O&M E $68,142.62

Annual Operating Hrs 8000 Variable O&M F $209,166.23

Uncontrolled Nox lb/mmBtu 0.048 Ann Cap Factor G 0.82

Heat Input mmBtu/hrH 6,000

SCR Capital Cost

Duty 1,074 MMBtu/hr Catalyst Area 518 ft2613 f (h SCR)

Q flue gas 497,508 acfm Rx Area 596 80 f (h NH3

)

NOx Cont Eff 80% (as faction) Rx Height 24.4 ft 0 f (h New) new= -728, Retrofit = 0

NOx in 0.05 lb/MMBtu n layer 22 layers Y Bypass? Y or N

Ammonia Slip 2 ppm h layer 23.5 ft 127 f (h Bypass)

Fuel Sulfur 0.67 wt % (as %) n total 23 layers 8,387,553 f (vol catalyst)

Temperature 142 Deg F h SCR 131 ft f (h SCR)

Catalyst Volume 34,948 ft3

New/Retrofit R N or R 

Electrical Use

Duty 1,074 MMBtu/hr kW

NOx Cont Eff 80% (as faction) Power 1,474.3

NOx in 0.05 lb/MMBtu

n catalyst layers 23 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1474.3

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

20 lb/hr Neat 9.2 gal/hr

29% solution Volume 14 day inventory 3,083 gal $2,331 Inventory Cost

69 lb/hr

Design Basis Baseline Emis. Baseline Emis.Max Emis. (Model) Control Eff (%) Cont. Emis (lb/MMBtu)

T/yr lb/MMBtu lb/hr 80% 0.01

Nitrous Oxides (NOx) 109.9 0.05 51.25

Actual 70,611 dscf/MMBtu

Method 19 Factor 9,860 dscf/MMBtu

Adjusted Duty 1,074 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 15,636 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 365,974 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 1474.3 kW-hr 11,433,649 686,019 $/kwh, 1,474 kW-hr, 8339.1 hr/yr, 93% utilization

Cat. Replacement [14] 35 $/MW-hr 110.2 mw 112 431,932 Catalyst Replacement

7 Ammonia 0.12 $/lb 69 lb/hr 532,660 64,238 $/lb, 69 lb/hr, 8339.1 hr/yr, 93% utilization

** Std Air use is 2 scfm/kacfm *annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (110) NOx SCR+ Reheat 90% Eff (110) 44 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 16: - Reheat (110)

Operating Unit: Furnace 12 Hood Exhaust

Emission Unit Number EU 110 Stack/Vent Number SV 111, 112, & 113 Chemical Engineering

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 181,762 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 142 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,339 Hours Moisture Content 9.5% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 222,400 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 195,062 scfm @ 68o F

Dry Std Flow Rate 176,529 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 535,531

 Purchased Equipment Total (B) 22% of control device cost (A) 650,671

 Installation - Standard Costs 30% of purchased equip cost (B) 195,201

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,395,201

 Total Direct Capital Cost, DC 7,045,872

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 201,708

Total Capital Investment (TCI) = DC + IC 7,247,580

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 5,671,002

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,029,531

Total Annual Cost (Annualized Capital Cost + Operating Cost) 6,700,533

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (110) Reheat (110) 45 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 16: - Reheat (110)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 535,531

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 53,553

MN Sales Taxes 6.5% of control device cost (A) 34,810

Freight 5% of control device cost (A) 26,777

Purchased Equipment Total (B) 22% 650,671

Installation

Foundations & supports 8% of purchased equip cost (B) 52,054

Handling & erection 14% of purchased equip cost (B) 91,094

Electrical 4% of purchased equip cost (B) 26,027

Piping 2% of purchased equip cost (B) 13,013

Insulation 1% of purchased equip cost (B) 6,507

Painting 1% of purchased equip cost (B) 6,507

Installation Subtotal Standard Expenses 30% 195,201

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Installation Total 6,395,201

Total Direct Capital Cost, DC 7,045,872

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 65,067

Construction & field expenses 5% of purchased equip cost (B) 32,534

Contractor fees 10% of purchased equip cost (B) 65,067

Start-up 2% of purchased equip cost (B) 13,013

Performance test 1% of purchased equip cost (B) 6,507

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 19,520

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 201,708

Total Capital Investment (TCI) = DC + IC 7,247,580

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 7,247,580

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 60.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 824 kW-hr, 8339.1 hr/yr, 93% utilization 383,421

Natural Gas 10.02 $/mscf, 1,114 scfm, 8339.1 hr/yr, 93% utilization 5,195,069

Total Annual Direct Operating Costs 5,671,002

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 144,952

Property tax (1% total capital costs) 1% of total capital costs (TCI) 72,476

Insurance (1% total capital costs) 1% of total capital costs (TCI) 72,476

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 684,120 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,029,531

Total Annual Cost (Annualized Capital Cost + Operating Cost) 6,700,533

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (110) Reheat (110) 46 of 56
Cleveland Cliffs Incorporated: United Taconite

BART Report - <Insert attachment name> Emission Control Cost Analysis

Table 16: - Reheat (110)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 2 years

CRF 0.5531

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 222,400 19 0.6 824.0 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 222,400 23 0.6 997.5 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 824.0

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 824.0 kW-hr 6,390,357 383,421 $/kwh, 824 kW-hr, 8339.1 hr/yr, 93% utilization

Natural Gas 10.02 $/mscf 1,114 scfm 518,449 5,195,069 $/mscf, 1,114 scfm, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (110) Reheat (110) 47 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 16: - Reheat (110)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 140 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 567 Deg F - Temperature of waste gas out of heat recovery

Tfo 323 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 195,062 scfm - Flow of waste gas 

Qaf 1,114 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 196,176 scfm Flue Gas Cost in 1989 $'s $449,155

Current Cost Using CHE Plant Cost Index $535,531

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (110) Reheat (110) 48 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 17: - SCR + Reheat (114)

Operating Unit: Furnace 12 Waste Gas

Emission Unit Number EU 114 Stack/Vent Number SV 114 & 115

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 152,520 scfm @ 32o F

Expected Utiliztion Rate 93% Temperature 140 Deg F

Expected Annual Hours of Operation 8,339 Hours Moisture Content 16.4%

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 136,902 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment (A) 8,929,135

 Purchased Equipment Total (B) SCR Only 9,509,529

 Installation - Standard Costs 15% of purchased equip cost (B) SCR Only 1,823,014

 Installation - Site Specific Costs 0

 Installation Total 0

 Total Direct Capital Cost, DC 0

 Total Indirect Capital Costs, IC 0% of purchased equip cost (B) 0

Total Capital Investment (TCI) = DC + IC SCR + Reheat 43,455,895

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 6,279,410

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 4,103,963

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 10,383,373

Emission Control Cost Calculation

Baseline Predicted Limit Cont. Emis. Cont Emis Reduction Cont Cost

Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 267.7 4.5 0.03 17.4 250.3 41,488 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 Control Efficiency = 90% reduction which is typically the upper range of normal SCR control efficiency

12 $35/MW-hr, 140 MW

13 Catalyst replacement every 8000 hours. This requires an additional 2 week outage per 3 year outage cycle, annualized to 4.7 days.

Notes to User

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (114) NOx SCR+ Reheat 90% Eff (114) 49 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 17: - SCR + Reheat (114)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 8,929,135

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 580,394

Freight 5% of control device cost (A) NA

Purchased Equipment Total (A) 9,509,529

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 28% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 28% of purchased equip cost (A) 2,643,899

Project Contingeny ( C) 15% of (A + B) 1,823,014

Total Plant Cost D A + B + C 13,976,441

Allowance for Funds During Construction (E) Additional 10 week outage for installation 8,232,000

Pre Production Costs (G) 2% of (D+E)) 444,169

Inventory Capital Reagent Vol * $/gal 5,677

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 22,658,287

Retrofit multiplier3

60% of TCI 13,594,972

Total Retorfit Capital Investment 36,253,260

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr 104,239

Supervisor 15% 15% of Operator Costs 15,636

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 339,874

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 1,194 kW-hr, 8339.1 hr/yr, 93% utilization 555,760

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

NA NA - 

Cat. Replacement [14] 35.00 Catalyst Replacement 334,973

NA NA - 

Ammonia 0.12 $/lb, 167 lb/hr, 8339.1 hr/yr, 93% utilization 156,470

NA NA - 

NA NA - 

NA NA - 

Total Annual Direct Operating Costs 1,506,951

Indirect Operating Costs

Overhead 60% of total labor and material costs 35,359

Administration (2% total capital costs) 2% of total capital costs (TCI) 453,166

Property tax (1% total capital costs) 1% of total capital costs (TCI) 226,583

Insurance (1% total capital costs) 1% of total capital costs (TCI) 226,583

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,138,782 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,080,473

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,587,424

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (114) NOx SCR+ Reheat 90% Eff (114) 50 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 17: - SCR + Reheat (114)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Equivalent Duty 833 Plant Cap kW A 85,452

Est power platn eff 35% Unc Nox lb/mmBtuB 0.15 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 85,452 Capital Cost $/kW D $104.49 $8,929,134.83 Total SCR Equipment

Uncontrolled Nox t/y 267.7 Fixed O&M E $58,932.29

Annual Operating Hrs 8000 Variable O&M F $174,705.21

Uncontrolled Nox lb/mmBtu 0.150 Ann Cap Factor G 0.82

Heat Input mmBtu/hrH 6,000

SCR Capital Cost

Duty 833 MMBtu/hr Catalyst Area 402 ft2638 f (h SCR)

Q flue gas 385,829 acfm Rx Area 462 117 f (h NH3

)

NOx Cont Eff 80% (as faction) Rx Height 21.5 ft 0 f (h New) new= -728, Retrofit = 0

NOx in 0.15 lb/MMBtu n layer 23 layers Y Bypass? Y or N

Ammonia Slip 2 ppm h layer 24.5 ft 127 f (h Bypass)

Fuel Sulfur 0.67 wt % (as %) n total 24 layers 6,792,565 f (vol catalyst)

Temperature 140 Deg F h SCR 135 ft f (h SCR)

Catalyst Volume 28,302 ft3

New/Retrofit R N or R 

Electrical Use

Duty 833 MMBtu/hr kW

NOx Cont Eff 80% (as faction) Power 1,194.4

NOx in 0.15 lb/MMBtu

n catalyst layers 24 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1194.4

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

49 lb/hr Neat 22.3 gal/hr

29% solution Volume 14 day inventory 7,509 gal $5,677 Inventory Cost

167 lb/hr

Design Basis Baseline Emis. Baseline Emis.Max Emis. (Model) Control Eff (%) Cont. Emis (lb/MMBtu)

T/yr lb/MMBtu lb/hr 80% 0.03

Nitrous Oxides (NOx) 267.7 0.15 124.83

Actual 54,761 dscf/MMBtu

Method 19 Factor 9,860 dscf/MMBtu

Adjusted Duty 833 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 2.0 hr/8 hr shift 2,085 104,239 $/Hr, 2.0 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 15,636 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 339,874 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 1194.4 kW-hr 9,262,659 555,760 $/kwh, 1,194 kW-hr, 8339.1 hr/yr, 93% utilization

Cat. Replacement [14] 35 $/MW-hr 85.5 mw 112 334,973 Catalyst Replacement

7 Ammonia 0.12 $/lb 167 lb/hr 1,297,437 156,470 $/lb, 167 lb/hr, 8339.1 hr/yr, 93% utilization

** Std Air use is 2 scfm/kacfm *annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

NOx SCR+ Reheat 90% Eff (114) NOx SCR+ Reheat 90% Eff (114) 51 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 18: - Reheat (114)

Operating Unit: Furnace 12 Waste Gas

Emission Unit Number EU 114 Stack/Vent Number SV 104 & 105 Chemical Engineering

Desgin Capacity 150 MMBtu/hr Standardized Flow Rate 152,520 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 140 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,339 Hours Moisture Content 18.3% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 186,000 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 163,680 scfm @ 68o F

Dry Std Flow Rate 133,792 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 512,555

 Purchased Equipment Total (B) 22% of control device cost (A) 622,755

 Installation - Standard Costs 30% of purchased equip cost (B) 186,826

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,386,826

 Total Direct Capital Cost, DC 7,009,581

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 193,054

Total Capital Investment (TCI) = DC + IC 7,202,635

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 4,772,459

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,023,490

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,795,949

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (114) Reheat (114) 52 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 18: - Reheat (114)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 512,555

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 51,256

MN Sales Taxes 6.5% of control device cost (A) 33,316

Freight 5% of control device cost (A) 25,628

Purchased Equipment Total (B) 22% 622,755

Installation

Foundations & supports 8% of purchased equip cost (B) 49,820

Handling & erection 14% of purchased equip cost (B) 87,186

Electrical 4% of purchased equip cost (B) 24,910

Piping 2% of purchased equip cost (B) 12,455

Insulation 1% of purchased equip cost (B) 6,228

Painting 1% of purchased equip cost (B) 6,228

Installation Subtotal Standard Expenses 30% 186,826

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Installation Total 6,386,826

Total Direct Capital Cost, DC 7,009,581

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 62,275

Construction & field expenses 5% of purchased equip cost (B) 31,138

Contractor fees 10% of purchased equip cost (B) 62,275

Start-up 2% of purchased equip cost (B) 12,455

Performance test 1% of purchased equip cost (B) 6,228

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 18,683

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 193,054

Total Capital Investment (TCI) = DC + IC 7,202,635

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 7,202,635

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 26,060

Supervisor 15% 15% of Operator Costs 3,909

Maintenance

Maintenance Labor 60.00 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr 31,272

Maintenance Materials 100% of maintenance labor costs 31,272

Utilities, Supplies, Replacements & Waste Management

Electricity 0.06 $/kwh, 689 kW-hr, 8339.1 hr/yr, 93% utilization 320,667

Natural Gas 10.02 $/mscf, 935 scfm, 8339.1 hr/yr, 93% utilization 4,359,280

Total Annual Direct Operating Costs 4,772,459

Indirect Operating Costs

Overhead 60% of total labor and material costs 55,507

Administration (2% total capital costs) 2% of total capital costs (TCI) 144,053

Property tax (1% total capital costs) 1% of total capital costs (TCI) 72,026

Insurance (1% total capital costs) 1% of total capital costs (TCI) 72,026

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 679,878 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,023,490

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,795,949

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (114) Reheat (114) 53 of 56
Cleveland Cliffs Incorporated: United Taconite

BART Report - <Insert attachment name> Emission Control Cost Analysis

Table 18: - Reheat (114)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 2 years

CRF 0.5531

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 186,000 19 0.6 689.1 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 186,000 23 0.6 834.2 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 689.1

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 8,339

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 521 26,060 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Supervisor 15% of Op. NA 3,909 15% of Operator Costs

Maintenance

Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 521 31,272 $/Hr, 0.5 hr/8 hr shift, 8339.1 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 31,272 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.060 $/kwh 689.1 kW-hr 5,344,453 320,667 $/kwh, 689 kW-hr, 8339.1 hr/yr, 93% utilization

Natural Gas 10.02 $/mscf 935 scfm 435,040 4,359,280 $/mscf, 935 scfm, 8339.1 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (114) Reheat (114) 54 of 56
Cleveland Cliffs Incorporated: Northshore Mining

BART Report - Appendix A Emission Control Cost Analysis

Table 18: - Reheat (114)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 140 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 567 Deg F - Temperature of waste gas out of heat recovery

Tfo 323 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 163,680 scfm - Flow of waste gas 

Qaf 935 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 164,615 scfm Flue Gas Cost in 1989 $'s $429,885

Current Cost Using CHE Plant Cost Index $512,555

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

Reheat (114) Reheat (114) 55 of 56
Inputs

Calculated or scaled valuesEstimated value

1 2 3 4 5 6 7 

Stack No Facility Name

SO2 Max. 24-

hr Actual

Emissions

Flow Rate

at Exit

Specific 

Collection Area 

(SCA)1 

Surface Collection 

Area2

lb/hr acfm ft2/kacfm ft2 

BASE N/A 291,000 198 68,825 

SV 101, 102, & 103 Northshore Furnace 11 Hood Exhaust 35.50 222,400 198 52,600 

SV 104 & 105 Northshore Furnace 11 Waste Gas 11.83 186,000 198 43,991 

SV 111, 112, & 113 Northshore Furnace 12 Hood Exhaust 35.50 222,400 198 52,600 

SV 114 & 115 Northshore Furnace 12 Waste Gas 11.83 186,000 198 43,991 

SV021M-SV024M Hibbtac Pellet Indurating Furnace Line No 1 30.00 772,000 198 182,587 SV025M-SV028M Hibbtac Pellet Indurating Furnace Line No 2 38.00 795,000 198 188,027 SV029M-SV032M Hibbtac Pellet Indurating Furnace Line No 3 43.00 827,000 198 195,595 

SV 014 Ispat Indurating Furnace 125.00 205,478 198 48,598 

SV 015 Ispat Indurating Furnace 125.00 205,478 198 48,598 SV 016 Ispat Indurating Furnace 125.00 205,478 198 48,598 SV 017 Ispat Indurating Furnace 125.00 205,478 198 48,598 SV 046 UTAC Line 1 Pellet Induration 4.25 369,137 198 87,305 

SV 049 UTAC Line 2 Pellet Induration 286.67 380,000 198 89,875 SV 048 UTAC Line 2 Pellet Induration 345.50 346,000 198 81,833 

SV051M Keetac Grate Kiln - Indurator Waste Gas, Phase II 217.2 848,000 198 200,562 

SV 151 Minntac Line 7 waste gas 75.0 600,000 198 141,907 

SV 127 Minntac Line 5 waste gas 93.7 650,000 198 153,733 SV 144 Minntac Line 6 waste gas 113.5 555,650 198 131,418 SV 118 Minntac Line 4 waste gas 133.1 650,000 198 153,733 SV 103 Minntac Line 3 waste gas 128.9 322,000 198 76,157 

NSM Power 365.0 300,000 141,907 

1) Estimated value from Durr. Value indpendent of stack flow.2) Original estimate from Durr. Scaled linearly using stack flow rates.3) Pressure drop is not a design driving factor, but must be maintained at an acceptably low value. 10" H2O is used as a maximum value.

4) Capital price back calculated using reverse of EPA control cost manual factors from installed price estimate provided from DURR. 

Used 0.6 power law factor to adjust price to each stack's acfm from bid basis of 291,000 acfm.

Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Control Costs.xls

WWESP Scale