STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of

The State of Connecticut and

J0iddletown Power LLC

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Trading Agreement

and Order No. 8214A

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

Middletown Power LLC (":tv1P") agree that it is in the public interest that they work

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

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

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

A. At the request and with the agreement ofN1P, the Commissioner finds the following:

1. This Trading Agreement and Order supercedes Trading Agreement and Order

8214 issued on March 22, 2002.

2. MP is an exempt wholesale electric generating company with its principal place

of business in Sewickley, Pennsylvania. On December 15, 1999?v1P purchased

from The Connecticut Light and Power Company and now owns one fossil

fuel-fired electric generating station, :tv1iddletown Station, at 1866 River Road,

:tv1iddletown, Connecticut ("facility").

3. At the facility, NRG :tv1i.ddletown Operations Inc. operates fuel burning

equipment, consisting of :tv1iddletown Station Unit 3, a 245 megawatt cyclone

boiler, Connecticut Registration Number 104-0100 ("boiler"). The boiler has

the dual capacity to operate on No.6 fuel oil, No.2 fuel oil and/or natural gas.

No.2 fuel oil is used primarily as an ignition fuel as part of the start·up

procedure. A continuous emissions monitor ("CEM") certified to 40 Code of

Federal Regulations ("CFR") Pan 75, measures NOx emissions from the boiler.

4. The boiler sometimes exceeds the NOx allowable emission rate limit specified

in Section 22a-174-22(e) of the Regulations.

5. To reduce excess NOx emissions :MJ> has represented that it monitors and

controls the combustion process of the boiler, and burns natural gas, so that

emissions frequently can be kept below the NOx emission limitations

established by Section 22a-174-22(e) of the Regulations.

6. Pursuant to Section 22a-174-220) of the Regulations, during; the non-ozone

season, :tv1P intends both to acquire and generate approved DERCs until

September 30, 2004 for the boiler at the facility. Pursuant to Section 22a-174-

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Middletown Power LLC Trading Agreement Jnd

Order No. 8214A

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22m of the Regulations, during the ozone season, M:P intends both to acquire

and generate approved Budget discrete emission reduction credits ("BDERCs")

until September 30. 2004 for the boiler at me facility.

7. When properly documented by MY. and approved by the Corrunissioner, the

emission reduction's identified above, and as computed in accordance with the

tenns of this Tra'cing Agreement and Order, will ccofenn to the requirements

of Section 22a-174-22UJ(3) of the Regulations. Specifically, the reductions

will be:

Real because they will result in a reduction of acrual emissions released

into the air, net of any consequential increase in actual emissions resulting

from shifting demand. The emission reductions will be properly measured,

recorded and reported.

Quantifiable because they are based on CEM data as applied in an

appropriate reliable and replicable premcol, providing the rate and total

mass amount of reduction.

Surplus because they are not required by any Connecticut statute or

regulation mandated by a current State Implementation Plan ("SlP"), and

are not currently relied upon in any applicable anainment plan, any

reasonable funher progress plan or milestone demonstration.

Pennanent because the advanced control system and installation

capabilities are in piace and operating, and an appropriate tracking system is

in place to monitor all data required to verify and quantify the creation of

DERCs.

Enforceable because the DERCs are approved by the Commissioner

retrospectively after the submission by:MP of a report that documents their

creation.

8. The emissions trading baselines ("baseline emission rate") and the allowable

emission limits for the boiler in pounds per million British thennal units

("lbslMMBtu") of heat input when operating on fuel oil and natural gas are

provided on the following table 1:

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Middletown Power LLC Trading Agreement and

Order No. 8214A

Table 1

NOx Allowable Limits and Baseline Emission Rate in IbsIMMBtu

Emission Fuel Heat Input Emissions AllowablelBaseline emission

Unit. MMBtu/hr Test rate

IbsIMMBcu

Boiler 3 No.6 2,370 CEM 0.43

Registration No.2 , CEM 0.17

, No. 104-0100 NacGas CEM 0.43

9. Starting on Ocwber 1, 2003, and during the period from October 1 through April

30, inclusive, each year until September 30, 2004,:MP may only obtain approval

of actual reductions in NOx emissions, generated by operating the boiler at a rate

that is below 0.15 lbs!M:MBtu during the non-ozone season on No.6 fuel oil,

No.2 fuel oil, and/or natural gas.

10. The Commissioner, in accordance with the provisions of Trading Agreement and

Order 8214 and Addenda 1 and 2, pursuant to Section 22a-174-22(d)(3) of the

Regulations, previously approved the non-ozone season NOx DERCs referenced

in Table 2 of this Trading Agreement and Order. DERC creation serial numbers

(if assigned by the Department) to these previously approved reductions of NOx

emissions are provided in Table 2 of this Trading Agreement and Order.

DERCs are subject to the vintage restrictions in this Trading Agreement and

Order. Dates that after which the unused DERCs will no longer be eligible for

use as a result of the vintage restrictions are provided in Table 2 of this Trading

Agreement and Order in the expiration date column.

Previously approved N x s

Year of Non~ozoneseason NOx DERC Tons Expiration

Generation serial numbers Date

1999 CT99/8214(DC)NOxnozl-8 8 12131/04

2000 CTOO/8214(DC)NOxnozl-372 372 12/31/05

2001 CTO1/8214(DC)NOxnozl-43 43 12131/06

Table 2

o DERC

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

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

1. Comply with Section 22a-174-22(d)(l) of the Regulations through use of BDERC and

DERC trading;

, . 2. Ozone season BDERCs may be generated and used in accordance wlth this Trading

Agreemem and Order; and

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Middletown Power LLC Trading Agreement and

Order No. 8214A

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

generate additional BDERCs and DERCs. Upon issuance of an addendum to this

Trading Agreement and Order the Commissioner may approve the generation of

additional BDERCs and DERCs by MP retrospectively. Approved BDERCs and

DERCs generated by l'v1P may be held by MP or rransferred to other persons in

accordance with thisTrading Agreement and Order.

C. With the agreement of:M}l, the Commissioner, acting under Sections 22a-6, 22a-171,

22a-174, 22a-176, and 22a-177 of the Connecticut General Statutes, hereby orders MP

as follows:

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

BDERCs and DERCs as allowed under this Trading Agreement and Order until"

September 30, 2004.

2. Upon issuance of this Trading Agreement and Order, at the facility, MP shall comply

with Section 22a-174-22 of the Regulations through emission reduction trading. Until

MP achieves pennanent compliance with the emission standard in Section 22a-174-

22(e) of ehe regulation or by September 30, 2004, whichever occurs earlier:

a. :MP shall use approved DERCs and BDERCs as required under this Trading

Agreement and Order; and

b. MP shall have in its possession sufficient approved BDERCs and DERCs to meet

applicable NOx emission limits as allowed under this Trading Agreement and

Order.

3. DERC generation.

a. Until September 30, 2004, when the boiler has daily NOx emissions below

the applicable baseline emission rate(s), or the proportioned baseline

emission rate, or when the boiler has seasonal NOx emissions below 0.15

lbSl1vfMBtu during the non-Olone season starting on October I, 2003,:MP

shall calculate the amount of DERCs generated as follows:

DERCs (tons) = I[Total heat input' of all fuels in MMBtu x «proportioned

baseline emission raee2

) - (the CEM-recorded NOx emission

rate'))] 7 2000 Ibslton) x (0.90)'

1 Heal input shall be calculated using the lower of CEM-recorded d3l3 or aCNa! fuel US<lge

data in MMBtU per unit of fuel combusted.

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Middletown Power LLC Trading Agreement and

Order No. 8214A

2This f:lte shall be calculated by 1) multiplying the he"'! input of each fuel combusted by the

baseline emission rate(s) for such fuel: 2) summing those productS: and 3) dividing the sum

by the total heal input. If the boiler is operating exclusively on one fuel, }.{P may replace the

proportioned baseline emission rate with the applicable baseline emission rate, for that fuel.

Starting on October 1, 2003. the baseline emission rate during the non-ozone season shall be

0.15 lbs!MMBlu.

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) During the'ozone season until. September 30. 2004 and during the non-OZOne season until

October 1.2003, this rale shall be calculated pursuant to the methodology described in 40

Code of Federal Regulations Part 75 and weighted pursuant 10 the Depanment's policy

Statement entitled "Guidance for Calculation of Emission Reduction Credits and

Detennination of Compliance with NOx RACT for Sources Subject to 40 CFR 75 (Acid

Rain Sources)" dated December 18, 1998 which is attached to and incorporated by reference

into this Trading Agreement and Order as part of Attachment 1.

• An additional ten (10) percent of all DERCs (tons) generated by the boiler shall also be

retired by the facility and pennanently removed from all calculations on a daily basiS to

assure a benefit to the envirorunenL Starting on October 1, 2003. during the non-ozone

season, the ten percent discount shall be retired by the facility and permanently removed

from all calculations on a seasonal basis to assure a benefit [0 the environmenL

b. During the ozone season until September 30. 2004 and during the non-alone

season until October 1. 2003: For purposes of calculating the number of

BDERCs and DERCs generated from the boiler at the facility,.MP shall use the

baseline emission rates for the boiler, or the proportioned baseline emission rate

set fonh in footnote 2 of paragraph C.3.a. of this Trading Agreement and Order,

when simultaneously operating on more than one fuel. MP shall use the above

referenced baseline emission rate(s) when calculating the proportioned baseline

emission rate.

c. Stmin£: on October 1. 2003 and until September 30. 2004 during the non·

ozone season: For purposes of generating DERCs from the boiler at the

facility, shall use 0.15 IbsJM:M:Btu of heat input when operating on No.

6 fuel oil, No.2 fuel oil, and/or natural gas as the non-ozone season baseline

emission rate for the boiler. Ten (10) percent of all DERCs (lOns) generated

by the boiler shall be retired by the facility and permanently removed from

all calculations on a non-ozone season basis to assure a benefit to the

environment.

d. Non-ozone Season Restrictions. Non-ozone season NOx DERCs generated

by:MP shall be created and approved in accordance with this Trading

Agreement and Order, and shall remain valid until they are used or until

their vintage expiration date, or until September 30, 2004, whichever occurs

first.

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Middletown Power LLC Trading Agreement and

Order No. 8214A

e. DuriTIS!: the ozone season until September 30. 2004 and duriTIS!: the non-ozone

season until October 1. 2003: In requesting approval of DERCs generated by

the boiler, :MP shall provide documentation containing a sample spreadsheet

with calculation fonnulas used to determine reponed numbers; monthly

operating reports of actual fuel usage including the fuel BTU content, number of

gallons, and cubic feet used for each fuel type; daily lv1Jv1Btu for each fuel type

and actual heat input based upon CEM-recorded data; daily weighted and

unweighted actual NOx emission rates (24-hour average); and DERCs generated

using the baseline emission fale(s), or the proportioned baseline emission rate

set forth in footnote 2 of paragraph C.3.a. of this Trading Agreement and Order,

net of the ten (10) percent environmental discount.

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f. During: the non-ozone season starting: on October 1. 2003 and until September

30,2004:

In requesting approval of DERCs generated by the boiler, M:P shall provide

documentation containing a sample spreadsheet with calculation fonnulas used

to determine reported numbers; non-ozone season operating reports of actual

fuel usage including the fuel BTU content, number of gallons, and cubic feet

used for each fuel type; non-ozone season M:MBtu for each fuel type and actual

heat input based upon CEM-recorded data; non-ozone season actual NOx

emission rates (seven month average); and DERCs generated using the 0.15

IbsJM:MBtu baseline emission rate(s); net of the (10) percent environmental

discount.

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

calculate DERCs generated'by the boiler, MP shall not include missing data

calculated in accordance with any missing data substitution procedures, including

those allowed under Section 22a-174-22b of the Regulations and 40 CFR Part 75.

5. Upon sufficient documentation, as detennined by the Commissioner, that MP has

met "the requirements of this Trading Agreement and Order, the Commissioner may

provide written approval ofDERCs generated by:tv1P retrospectively. Requests for

approval of all subsequent DERCs created shall be submitted in writing to the

Commissioner, Such requests shall be compiled on a monthly basis and shall be

submitted at least on an annual basis. Approved DERCs generated by :M:P under

this Trading Agreement and Ordermay be held or transferred to other persons,

6. DERC use. Until September 30,2004, before the first day of each month, and

starting on October I, 2003 also before the first day of each non-ozone season, MP

should have in its possession sufficient approved DERCs for the boiler based on the

following:

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Middletown Power LLC Trading Agreement and

Order No. 8214A

3. At all times:

Before the first day of each month, calculate projected worst case DERCs

required for that calendar month as follows: ,

Estimated DERCs (tons) = {{estimated worst case NOx emission rate in

IbslMMBtu - ((0.95) x (NOx allowable emission limit

or proponioned emission rate calculated pursuant to

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

IbsIMMBtu))J x (Estimated fuel use in MMBtu)} t

2000 pounds/tons.

No later than the twentieth day of each month, rv1P shall calculate and

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

(i) For the boiler on each day, determine whether the 24-hour

average NOx emission rate* is less than the baseline emission

rate or greater than the NOx allowable emission limit.

(ii) When the boiler has a daily NOx emission rate (24-hour average)

exceeding the NOx allowable emission limit, calculate the

amount of DERCs used, as follows:

Actual DERCs (tons) = {[(CEM-recorded NOx daily average

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

allowable emission limit or proportioned

emission rate calculated pursuant to Section

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

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

2000 poundsltons.

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

40 CFR Pan 75.

(iii) With the exception of BDERCs, excess DERCs from previous

months can be applied to subsequent months. BDERCs are

subject to the limitations set forth in paragraph C.7. of this

Trading Agreement and Order.

b. During the non-Olone season starting Qn October 1. 2003:

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Middle'own Power LLC Trading Agreement and

Order No. 8214A

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

22a-174-22 of the Regulations, meet a non-ozone season emission limit of

0.15IbslMMB<u. Prior to October I, 2003, MP shall estimate and acquire

the amount of DERCs or allowances required for such non-ozone season

needed to comply with Section 22a·174-22(e)(3) of the Regulations as

follows: I ,

Estimated DERCs (tons) = [Estimated fuel use in :f\.1}..ffitu from October 1

through April 30 x (lower of the estimated seasonal

average NOx errtission Tate or the proportioned 24-hour

allowable emission limit in Ibsf.M1vfBtu dUring October 1

through April 30) - (0.95 x 0.15 IbsIMMB<u)] 2000

pounds/ton.

No later than May 31, 2004, in addition to the DERCs retired in paragraph

C.6.a., calculate and pennanently retire DERCs used in the preceding non-ozone

season as follows:

Actual DERCs (tons) = (Actual fuel use in :M1v1Btu from October 1 through

April 30 x (lower of the actual seasonal average NOx

emission rate or the proportioned 24-hour allowable

emission limit in IbsJM:MBtu during October 1 through

April 30) - (0.95 x 0.151bsIMMBru)] 2000 pounds/ton.

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

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

calculated in accordance with missing data substitution procedures under 40

CFR Pan 75.

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

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

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

during a given year shall only be used during the following ozone season. BDERCs are

subject w all DERC requirements set fonh in this Trading Agreement and Order except

for those requirements penaining solely to non-ozone season DERCs and as otherwise

may be provided.

8. MP shall make and keep records for the boiler of: daily fuel use and fuel type; excess

NOx emissions; daily NOx mass emissions. the actual NOx emission rates (24~hour

average) and starting on October 1. 2003 non-ozone season NOx emission rareSt

number of operating hours per day. the number of invalid data hours of the total

operating hours per day; the number of DERCs in its possession. created. purchased and

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Middletown Power LLC Trading Agreement and

Order No. 8214A

used (by serial number if assigned) each month in accordance with the appropriate

emission rates and limits in this Trading Agreement and Order; the number of DERCs

used during the ozone season and non-Olone season (the remainder of the ye2I"); as well

as documentation anesting to the fact that approved DERCs used during the ozone

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

shall be sufficient. MP shall maintain and submit such records in accordance with , Section 22a-174·22 of the Regulations.

9. Record Keeping. MP shall retain records and supporting documentation as described in

this Trading Agreement and Order for a minimum of five years, commencing on the

date such records were created. .MP shall provide the records specified above to the

Commissioner within thirty (30) days of receipt of a written request from the

Commissioner.

10. Annual Emission Statement. No later than March 1 of every year after issuance of this

Trading Agreement and Order, MP shall include with the .tumual Emission Statement

provided to the Commissioner, a record of each sale or other transfer, and use of any

and all of the DERCs approved within and subsequent to issuance of this Trading

Agreement and Order until all such DERCs have been used or are no longer in MP's

possession. MP shall also include actual NOx emissions from the boiler and the amount

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

generated andlor purchased from other facilities), generated and/or approved for the

previous calendar year. These reports shall be on a fonn prescribed by the

Commissioner and shall be in monthly increments. Should MP choose to discontinue

the generation of DERCs, will notify t!1e Commissioner upon discontinuance. MP

shall retain records and supporting documentation as described in this Trading

Agreement and Order for a minimum of five years, commencing on the date such

records were created. .MP shall provide the records specified above to the

Commissioner within thirty (30) days of receipt of a written request from the

Commissioner.

II. Allowance Use. Pursuant 10 Section 22a-174-22(d)(3) of the Regulations, MP may use

NOx allowances, pursuant to Section 22a-174-22(j) of the Regulations to achieve all or

a ponion of the reductions required by Section 22a-174-22 of the Regulations. Any

allowance used for compliance with Section 22a-174-22(e) of the Regulations shall be

subject to all restrictions andlor requirements applicable to DERCs contained in this

Trading Agreement and Order. Each allowance used for compliance with Section 22a174-22 of the Regulations shall be equivalent to one discrete emission reduction credit

and shall be deducted from MP's NOx Budget Program compliance account upon such

use. Allowances shall be considered used for compliance with Section 22a-174-22 of

the Regulations when they are transferred from the facility's compliance account or

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Middletown Power LLC Trading Agreement and

Order No. 8114A

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overdraft account to a State of Connecticut NOx allowance retirement account, account

ill CTOOOOOOO300 in the NOx Allowance Tracking System.

12. DERC Doubling. At a minimum, DERCs required shall be adjusted upwards by 100%

if DERCs are not in :M}l's possession for use prior to the first day of each month or

applicable season. However, based on the gravity of the noncompliance, the

Commissioner may require additional upward adjusLmenl.

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

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

the year of the generation/allocation of such DERCslallowances. DERCslallowances

generated/allocated more than five (5) calendar years ago are not valid for use for

compliance with Section 22a-174-22 of the Regulations. Notwithstanding the above the

DERCs/allowances generated/allocated prior to calendar year 2000 shall be valid for

use until December 31, 2004.

14. Extension. No later than September 30, 2004, with respect to the boiler, MP shall

comply with the requirements of Subdivision 22a-174-22(d)(1) of the Regulations.

However, after full program review of this and other Trading Agreements and Orders

and, if determined to be appropriate, the Commissioner may grant a wrinen extension of

this Trading Agreement and Order.

15. Fmure Compliance Repon. On or before March 31, 2004,:M}l shall submit a repon

indicating how the facility shall comply with Section 22a-174-22 of the Regulations

with respect to the boiler on. and after September 30,2004.

16. Full compliance. M:P shall not be considered in full compliance with this Trading

Agreement and Order until all actions required by this Trading Agreement and Order

have been completed as approved and to the Commissioner's satisfaction.

17. Approvals. shall use best effons to submit to the Commissioner all documents

required by this Trading Agreement and Order in a complete and approvable fonn. If

the Commissioner nOtifies MP that any document or other action is deficient, and does

not approve it with conditions or modifications, it is deemed disapproved, and:MP shall

correct the deficiencies and resubmit it within the time specified by the Commissioner

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

notice of deficiencies. In approving any document or other action under this Trading

Agreement and Order, the Commissioner may approve the document or other action as

submitted or perfonned or with such conditions or modifications as the Commissioner

deems necessary to carry out the purposes of this Trading Agreement and Order.

Nothing in this paragraph shall excuse noncompliance or delay.

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Middletown Power LLC Trading Agreement and

Order No. 8214A

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18. Definitions. As used in this Trading Agreement and Order, "Approved DERCs" are

mose for which the Commissioner has provided written authorization for use in

compliance with Section 22a-174·22 of the Regulations; "Commissioner" means the

Commissioner or a representative of the Commissioner; "Ozone season" means the

period from May 1 through September 30 in any given calendar year. The date of

"issuance" of this Trading Agreement and Order is the date the Trading Agreement and

Order is deposited in-the U.S. mail or personally delivered, whichever is earlier.

19. Dates. The date of submission to the Commissioner of any document required by this

Trading Agreement and Order shall be the date such document is received by the

Commissioner. The date of any notice by the Commissioner under Trading Agreement

and Order, including but not limited to notice of approval or disapproval of any

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

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

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

means calendar day. Any document or action which is required by this Trading

Agreement and Order to be submitted or performed by a date which falls on a Saturday,

Sunday or a Connecticut or federal holiday shall be submitted or performed by the next

day which is not a Saturday, Sunday or Connecticut or federal holiday.

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

which is required to be submitted to the Commissioner under this Trading Agreement

and Order shall be signed by MP or, if MP is not an individual, by an individual who is

an authorized representative oLMP, in accordance with Section 22a·174-2a(a) of the

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

actually preparing such doc'ument, and each such individual shall certify in writing as

follows:

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

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

investigation, including my inquiry of those individuals responsible for

obtaining the information, that the submitted information is true, accurate and

complete to the best of my knowledge and belief. I understand that any faJse

statement made in the submitted information is punishable as a criminal offense

under Section 53a-157b of the Connecticut General Statutes and any other

applicable law."

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

Commissioner with respect to the matters addressed herein, and is nonappealable and

immediately enforceable. Failure to comply with this Trading Agreement and Order

may subject MP [0 an injunction and penalties.

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Middletown Power LLC Trading Agreement and

Order No. 8214A

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22. False statements. Any false statement in any infonnation submitted pursuant to this

Trading Agreement and Order is punishable as a criminal offense under Section 53a157b of the Connecticut General Statutes and any other applicable law.

23. Notice of transfer: liability of rv1P. Until:tv1P has fully complied with this Trading

Agreement and Order,lMP shall notify the Commissioner in writing no later than 15

days after transferriii'g all or any ponion of the facility, the operations, the site or the

business which is the subject of this Trading Agreement and Order or after obtaining a

new mailing or location address. :tv1P's obligations under this Trading Agreement and

Order shall not be affected by the passage of title to any propeny to any other person or

municipality.

24. Commissioner's DOwers. Nothing in this Trading Agreement and Order shall affect the

Commissioner's authority to institute any proceeding or take any other action to prevent

or abate violations of law, prevent or abate pollution, recover costs and natural resource

damages, and to impose penalties for past, present, or future violations of law. If at any

time lhe Commissioner determines that the actions taken by MP pursuant to this

Trading Agreement and Order have not succ.essfully corrected all violations, fully

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

pollution, the Commissioner may institute any proceeding to require MP to undertake

further investigation or further action to prevent or abate violations or pollution.

25. N1P's obligations under law. Nothing in this Trading Agreement and Order shall relieve

MP of other obligations under applicable federal, state and local law.

26. No assurance bv Commissioner. No provision of this Trading Agreement and Order

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

assurance by the Commissioner that the actions taken by :tv1P pursuant to this Trading

Agreement and Order will result in compliance or prevent or abate pollution.

27. Access to facilitv. Any representative of the Department of Environmental Protection

may enter the facility without prior notice for the purposes of monitoring and enforcing

the actions required or allowed by this Trading Agreement and Order.

28. a effect on ri2'hrs of other pe~ons. This Trading Agreement and Order neither creates

nor affects any rights of pe~ons or municipalities that are not panies to this Trading

Agreement and Order.

29. No Creation of PrQpenv Rights. This Trading Agreement and Order does not create

any property rights with respect to these DERCs.

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Middletown Power LLC Trading Agreement and

Order o.8214A

30.. IOtice to Commissioner of cham~es. Within 15 days of the date MP becomes aware of

a change in any information submitted to the Commissioner under this Trading

Agreement and Order, or that any such information was inaccurate or misleading or

that any relevant information was omitted, MP shall submit the correct or omitted

information to the Commissioner.

I , 31. Notification of noncompliance. In the event that MP becomes aware that it did not or

may not comply, or did nOt or may not comply on time, with any requirement of this

Trad.ing Agreement and Order or of any document required hereunder. MP shall

immediately notify by telephone the ind.ividual identified in the next paragraph and

shall Lake all reasonable steps [0 ensure that any noncompliance or delay is avoided or,

if unavoidable, is minimized to the greatest extent possible. Within five (5) days of the

initial notice, MP shall submit in writing the date, time, and duration of the

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

review and wrinen approval of the Commissioner, dates by which compliance will be

achieved, and MP shall comply with any dates which may be approved in writing by

the Commissioner. Notification by MP shall not excuse noncompliance or delay, and

the Commissioner's approval of any compliance dates proposed shall not excuse

noncompliance or delay unless specifically so stated by the Commissioner in writing.

32. Submission of documents. Any document required to be submined to the

Commissioner under this Trading Agreement and Order shall, unless otherwise

specified in this Trading Agreement and Order or in writing by the Commissioner, be

directed to:

~. ~chael ~eur

Department of Environmental Protection

Bureau of Air Management

Emissions and Credit Trading Section

79 Elm Street

Hartford, Connecticut 06106-5127

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Middl~town Pow~r LLC Trading Agreement and

Ord~r No. 8214A

1 /: .~ ~/~j6:.{/ Anhur I. Rocque, Ir.

Commissioner

MP consents to the issuance of this Trading Agreement and Order without further notice. The

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

and to legally bind MP to the terms and conditions of the Trading Agreement and Order.

Middletown Power LLC

Signature 1~&2dU!-

Name C;n~~O{liC

Title Re:yro:J EnUI(()(IMtcrfC<! VfuJ'CLjif

Date, Lj-C)c-cO

Issued as a t order of the Commissioner of Environmental Protection

on I~J ,~O . ,2003

j

TOWN OF MIDDLETOWN LAND RECORDS

MAll..ED CERTIFIED MAIL.

RETURN RECEIPT REQUESTED

Cenified Document No.

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