# US Steel - Minntac 9/6/2006

BART Report - Attachment A: Emission Control Cost A nalysis Table A.1: Furnaces Cost Summary

NO x

## Control Cost Summary

Control Technology Control Eff % Controlled Emissions T/y Emission

Reduction T/yr Installed Capital Cost $ Annualized

Operating Cost $/yr Pollution Control Cost $/ton Incremental

Control Cost $/ton Selective Catalytic Reduction with Reheat (SCR) Line 3 80% 269.0 1076.0 $69,222,423 $19,513,772 $18,135 n/a Line 4 80% 362.4 1449.6 $58,874,795 $28,169,433 $19,433 n/a Line 5 80% 364.0 1456.0 $58,874,795 $28,169,433 $19,347 n/a Line 6 80% 355.2 1420.8 $56,748,729 $26,419,264 $18,595 n/a Line 7 80% 385.6 1542.4 $56,748,729 $26,419,264 $17,129 n/a Low NO X

### Burners + Ported Kilns Line 3 n/a n/a n/a n/a n/a n/a n/a Line 4 15% 2908.6 248.5 $5,091,356 $480,588 $5,844 $5,076 Line 5 15% 3359.4 272.6 $6,474,892 $611,184 $5,974 $5,209 Line 6 n/a n/a n/a n/a n/a n/a n/a Line 7 n/a n/a n/a n/a n/a n/a n/a Low NO X

### Burners Line 3 n/a n/a n/a n/a n/a n/a n/a Line 4 10% 1630.8 181.2 $1,474,892 $139,219 $768 -$3,673 Line 5 10% 1638.0 182.0 $1,474,892 $139,219 $765 -$3,657 Line 6 n/a n/a n/a n/a n/a n/a n/a Line 7 10% 1735.2 192.8 $1,200,000 $113,272 $588 n/a Ported Kilns Line 3 5% 1277.8 67.3 $3,616,464 $341,369 $5,076 n/a Line 4 5% 1721.4 90.6 $5,000,000 $471,965 $5,209 n/a Line 5 5% 1729.0 91.0 $5,000,000 $471,965 $5,186 n/a Line 6 n/a n/a n/a n/a n/a n/a n/a Line 7 n/a n/a n/a n/a n/a n/a n/a


## SO 2

## Control Cost Summary

Control Technology Control Eff % Controlled Emissions T/y Emission

Reduction T/yr Installed Capital Cost $ Annualized

Operating Cost $/yr Pollution Control Cost $/ton Incremental

Control Cost $/ton

Line 3 80% 65.9 263.5 $27,948,027 $5,322,323 $20,201 n/a Line 4 80% 89.5 358.0 $39,347,773 $8,448,332 $23,597 n/a Line 5 80% 89.5 358.0 $39,347,773 $8,448,332 $23,597 n/a Line 6 80% 109.0 435.9 $36,370,821 $7,939,628 $18,216 n/a Line 7 80% 109.0 435.9 $37,793,453 $8,123,761 $18,638 n/a

Line 3 60% 131.7 197.6 $19,626,314 $2,816,433 $14,253 n/a Line 4 60% 179.0 268.5 $26,664,036 $4,123,939 $15,358 n/a Line 5 60% 179.0 268.5 $26,664,036 $4,123,939 $15,358 n/a Line 6 60% 217.9 326.9 $25,704,464 $3,953,025 $12,093 n/a Line 7 60% 217.9 326.9 $25,704,464 $3,953,025 $12,093 n/a Secondary Wet Scrubber (after existing scrubber) Wet Walled Electrostatic Precipitator (WWESP) (after existing scrubber)

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Cost Summary 9/7/2006 Page 1 of 75US Steel - MinntacBART Report - Attachment A: Emission Control Cost AnalysisTable A.2 - Summary of Utility, Chemical and SupplyCostsOperating Unit:Line 3 waste gasStudy Year2006Emission Unit Number EU 223Stack/Vent Number SV 103Operating Unit:Line 4 waste gasEmission Unit Number EU 259Stack/Vent Number SV 118Operating Unit:Line 5 waste gasEmission Unit Number EU 280Stack/Vent Number SV 127Operating Unit:Line 6 waste gasEmission Unit Number EU 313Stack/Vent Number SV 144Operating Unit:Line 7 waste gasEmission Unit Number EU 332Stack/Vent Number SV 151ReferenceItem Unit Cost Units Cost Year Data Source NotesOperating Labor 61 $/hrPer Chrissy Bartovich e-mailMaintenance Labor 61 $/hrPer Chrissy Bartovich e-mailElectricity0.051 $/kwh2006Expected annual average industrial price ofelectricity in the West North Central Divisionfor 2007 - DOEhttp://tonto.eia.doe.gov/steo_query/app/elecpage.htmNatural Gas 9.2575 $/mscf2005Energy Information Administration. AverageUS Industrial Natural Gas Prices. July '05 toJune '06.http://tonto.eia.doe.gov/dnav/ng/hist/n3035us3m.htmWater0.08 $/mgal2006 Per Chrissy Bartovich e-mailCooling Water 0.08 $/mgal2006 Per Chrissy Bartovich e-mailCompressed Air 0.32 $/mscf 0.25 1998EPA Air Pollution Control Cost Manual 6thEd 2002, Section 6 Chapter 1Example problem; Dried & Filtered, Ch 1.6 '98 costadjusted for 3%inflationWastewater Disposal Neutralization 1.69 $/mgal 1.50 2002EPA Air Pollution Control Cost Manual 6thEd 2002, Section 2 Chapter 2.5.5.5Section 2 lists $1- $2/1000 gal. Cost adjusted for3% inflation Sec 6 Ch3 lists $1.30 - $2.15/1,000 galChemicals & SuppliesLime91.40 $/ton 91.40 2006 Estimate from Cutler-Magney CompanyOxygen40.00 $/ton2006 BOC estimate.Ammonia (29% aqua.) 0.12 $/lb0.101 2000EPA Air Pollution Control Cost Manual 6thEd 2002, Section 4 Chapter 2, page 2-50Annual costs for a retrofit SCR system example problem. '00 costsadjusted for 3% inflation.Caustic305.96 $/ton280 2003 Hawkins Chemical50% solution (50 Deg Be); includes delivery. '03 cost adjusted for inflationSCR Catalyst 141.00 $/ft3Cormetech, Inc.OtherSales Tax6.5% %Interest Rate 7.00% %EPA Air Pollution Control Cost ManualIntroduction, Chapter 2, section 2.4.2. Social (discount) rate used as a default.Operating InformationAnnual Op. Hrs 7946 HoursEngineering EstimateUtilization Rate 93%Equipment Life 20 yrsEngineering EstimateY:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Minntac\Minntac Control CostsUtility Chem$ Data9/7/2006 Page 2 of 75Standardized Flow RateSV 103268,515 scfm @ 32o FCalculated.SV 118556,174 scfm @ 32o FCalculated.SV 127556,174 scfm @ 32o FCalculated.SV 144518,805 scfm @ 32o FCalculated.SV 151518,805 scfm @ 32o FCalculated.TemperatureSV 103130 Deg FBART spreadsheet.SV 118115 Deg FBART spreadsheet.SV 127115 Deg FBART spreadsheet.SV 144109 Deg FBART spreadsheet.SV 151109 Deg FBART spreadsheet.Moisture ContentSV 10310.5%Assumed value.SV 11810.5%Assumed value.SV 12710.5%Assumed value.SV 14410.5%Assumed value.SV 15110.5%Assumed value.Actual Flow RateSV 103322,000 acfmBART spreadsheet.SV 118650,000 acfmBART spreadsheet.SV 127650,000 acfmBART spreadsheet.SV 144600,000 acfmSame as line 7SV 151600,000 acfmBART spreadsheet.Standardized Flow RateSV 103288,163 scfm @ 68o FCalculated.SV 118596,870 scfm @ 68o FCalculated.SV 127596,870 scfm @ 68o FCalculated.SV 144556,766 scfm @ 68o FCalculated.SV 151556,766 scfm @ 68o FCalculated.Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Minntac\Minntac Control CostsUtility Chem$ Data9/7/2006 Page 3 of 75Dry Std Flow RateSV 103257,906 dscfm @ 68o FCalculated.SV 118534,198 dscfm @ 68o FCalculated.SV 127534,198 dscfm @ 68o FCalculated.SV 144498,306 dscfm @ 68o FCalculated.SV 151498,306 dscfm @ 68o FCalculated.24-hourMax Emis Projected future actual lb/hr ton/yearPollutant Lb/Hr emissions (tpy) ppmv ppmvMax 24 hour emissions source Projected future actualemissions sourceNitrous Oxides (NOx)SV 103876.9 1,345.0 474 166.1 Based on max stack test plus 10% Basedon 2005 AEI plus 10%.SV 1181353.0 1,812.0 353 108.0 Based on max stack test plus 10% Based on 2005 AEI plus 10%.SV 1271353.0 1,820.0 353 108.5 Based on max stack test plus 10% Based on 2005 AEI plus 10%.SV 1441202.3 1,776.0 336 113.5 Based on max stack test plus 10% Based on 2005 AEI plus 10%.SV 1511202.3 1,928.0 336 123.2 Based on max stack test plus 10% Based on 2005 AEI plus 10%.Sulfur Dioxides (SO2)SV 10398.6 329.3 38 29.2Based on max stack test plus 10%, minus30% to account for new scrubber.Based on AEI avg 2004/2005 plus 10%., minus 30% toaccount for newscrubber.SV 118146.3 447.5 27 19.2 Based on max stack test plus 10%. Basedon AEI avg 2004/2005 plus 10%.SV 127146.3 447.5 27 19.2 Based on max stack test plus 10%. Basedon AEI avg 2004/2005 plus 10%.SV 144184.8 544.8 37 25.0 Based on max stack test plus 10%. Basedon AEI avg 2004/2005 plus 10%.SV 151184.8 544.8 37 25.0 Based on max stack test plus 10%. Basedon AEI avg 2004/2005 plus 10%.Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Minntac\Minntac Control CostsUtility Chem$ Data9/7/2006 Page 4 of 75

## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a - NO x

## Control - Selective Catalytic Reduction with Reheat

Operating Unit: Line 3 waste gas

Emission Unit Number EU 223 Stack/Vent Number SV 103 Chemical Engineering Design Capacity 200 mmbtu/hr Standardized Flow Rate 268,515 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 130 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 322,000 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 2 88,163 scfm @ 68o F Dry Std Flow Rate 257,906 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 28,387,757 Purchased Equipment Total SCR Only 30,232,961 SCR + Reheat 30,950,318

Total Capital Investment (TCI) = DC + IC SCR + Reheat 69,222,423
Operating Costs Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, u tilities, etc. SCR + Reheat 11,235,240 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 8,288,440 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 19,513,772



### Emission Control Cost Calculation Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 876.9 1,345.0

80% 269.0 1,076.0 18,135

Notes & Assumptions 1 Estimated Equipment Cost per EPA Air Pollution Cont rol Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 2 For Calculation purposes, duty reflects increased f low rate, not actual duty. 3 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 4 Capital Cost per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.4 3 5 Reagent Use per EPA Air Pollution Control Cost Manu al 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.3 5 6 SCR Catalyst Volume per EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2. 18 - 2.24 7 SCR Reactor Size per EPA Air Pollution Control CostManual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31 8 SCR Catalyst Replacement per EPA Air Pollution Cont rol 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 Cos t Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46 11 Control Efficiency = 80% reduction 12 Site specific electricity costs 13 Catalyst replacement every 3 years. 14 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line3 SCR Line3 SCR 5 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a - NOx Control - Selective Catalytic Red uction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 28,387,757 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 1,845,204 Freight 5% of control device cost (A) NA Purchased Equipment Total 30,232,961

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 9% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 9% of purchased equip cost (A) 2,643,899
Project Contingeny (C) 15% of (A + B) 4,931,529
Total Plant Cost (D) A + B + C 37,808,389
Allowance for Funds During Construction (E) 0 for SCR 0
Royalty Allowance (F) 0 for SCR 0
Pre Production Costs (G) 2% of (D+E)) 756,168
Inventory Capital Reagent Vol * $/gal 102,618
Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 38,667,175 Retrofit Factor (14) 60% of TCI 23,200,305 Sitework and foundations 1,400,000 Structural steel 4,800,000

Total Capital Investment Retrofit Installed 68,067,479



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Total 1.50 % of Total Capital Investment 580,008 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 652 kW-hr, 7946 hr/yr, 93% utilization 24 5,543 SCR Catalyst 64.71 Catalyst Replacement 193,359 Ammonia (29% aqua.) 0.12 $/lb, 3,024 lb/hr, 7946 hr/y r, 93% utilization 2,694,872 Total Annual Direct Operating Costs 3,853,135
Indirect Operating Costs Overhead 60% of total labor and material costs 94,284 Administration (2% total capital costs) 2% of total capital costs (TCI) 773,343 Property tax (1% total capital costs) 1% of total capital costs (TCI) 386,672 Insurance (1% total capital costs) 1% of total capital costs (TCI) 386,672 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 6,425,089 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 8,066,059

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 11,919,195

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line3 SCR Line3 SCR 6 of 75

## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a - NOx Control - Selective Catalytic Red uction with Reheat

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944
Replacement Catayst Estimate amount of catalyst required Equipment Life 24,000 hours Vol. #1 2708 ft 3 

### Cormetech, Inc. FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc. Rep part cost per unit $141 Flow #2 288,163 scfm Vol #2 4408.7 ft 3 

### Amount Required 4,409 ft 3 

### Catalyst Cost 621,630 Y catalyst life factor 3 Years Annualized Cost 193,359

Equivalent Duty 1,547 Plant Cap kW A 158,727 Est power platn eff 35% Unc Nox lb/mmBtu B 0.62 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 158,727 Capital Cost $/kW D $150.00 $23,809,086.67 Total SCR Equipment Uncontrolled Nox t/y 3,840.9 Fixed O&M E $157,139.97 Annual Operating Hrs 7,946 Variable O&M F $394,208.98 Uncontrolled Nox lb/mmBtu 0.625 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 1,547

Electrical Use Equivalent Duty 1,547 MMBtu/hr kW NOx Cont Eff 80% Power 651.5 NOx in 0.62 lb/MMBtu n catalyst layers 4 layers Press drop catalyst 

### 1 in H 2 

### O per layer Press drop duct 

### 3 in H 2 

### O Total 651.5

Reagent Use & Other Operating Costs Ammonia Use 56.0 lb/ft 3 

### Density 877 lb/hr Neat 404.0 gal/hr 29% solution Volume 14 day inventory 135,729 gal $102,6 18 Inventory Cost 3024 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.625

Actual 77,372 dscf/MMBtu Method 19 Factor 10,000 dscf/MMBtu Adjusted Duty 1,547 MMBtu/hr
Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 580,008 % of Total Capital Investment Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 651.5 kW-hr 4,814,574 245,543 $/kw h, 652 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 193,359 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 3024 lb/hr 22,345,675 2,694 ,872 $/lb, 3,024 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line3 SCR Line3 SCR 7 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NO x

## Control - Cost of Flue Gas Re-Heating (Thermal Oxi dizer)

Operating Unit: Line 3 waste gas

Emission Unit Number EU 223 Stack/Vent Number SV 103 Chemical Engineering Design Capacity 200 mmbtu/hr Standardized Flow Rate 268,515 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 130 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 322,000 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 2 88,163 scfm @ 68o F Dry Std Flow Rate 257,906 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 590,417 Purchased Equipment Total (B) 22% of control devicecost (A) 717,356

Installation - Standard Costs 30% of purchased equi p cost (B) 215,207 Installation - Site Specific Costs NA Installation Total 215,207 Total Direct Capital Cost, DC 932,563 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 222,380 Total Capital Investment (TCI) = DC + IC 1,154,944
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 7,382,105 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 212,472 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 7,594,577

Notes & Assumptions 1 Equipment cost estimate EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 3.2 Chapter 2

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line3 Reheat Line3 Reheat 8 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Cost of Flue Gas Re-Heat ing (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 590,417 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 59,042 MN Sales Taxes 6.5% of control device cost (A) 38,377 Freight 5% of control device cost (A) 29,521 Purchased Equipment Total (B) 22% 717,356

Installation Foundations & supports 8% of purchased equip cost (B) 57,389 Handling & erection 14% of purchased equip cost (B) 100,430 Electrical 4% of purchased equip cost (B) 28,694 Piping 2% of purchased equip cost (B) 14,347 Insulation 1% of purchased equip cost (B) 7,174 Painting 1% of purchased equip cost (B) 7,174 Installation Subtotal Standard Expenses 30% 215,207

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 215,207 Total Direct Capital Cost, DC 932,563
Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 71,736 Construction & field expenses 5% of purchased equip cost (B) 35,868 Contractor fees 10% of purchased equip cost (B) 71,736 Start-up 2% of purchased equip cost (B) 14,347 Performance test 1% of purchased equip cost (B) 7,174 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 21,521 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 222,380
Total Capital Investment (TCI) = DC + IC 1,154,944
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,154,944



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 61.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,193 kW-hr, 7946 hr/yr, 93% utilization 449,620 Natural Gas 9.26 $/mscf, 1,666 scfm, 7946 hr/yr, 93% utilization 6,837,058

Total Annual Direct Operating Costs 7,382,105
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total c apital costs (TCI) 23,099 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 11,549 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 11,549 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 109,019 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 212,472

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 7,594,577

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line3 Reheat Line3 Reheat 9 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Cost of Flue Gas Re-Heat ing (Thermal Oxidizer)

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 3 years CRF 0.3811 Rep part cost per unit 0 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (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 & sa les 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 322,000 19 0.6 1,193.0 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 322,000 23 0.6 1,444.2 EPA Cost Cont M anual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 1193.0

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1193.0 kW-hr 8,816,081 449,620 $/ kwh, 1,193 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 1,666 scfm 738,543 6,837,058 $/ms cf, 1,666 scfm, 7946 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 Control C ost Spreadsheets\Minntac\Minntac Control Costs Line3 Reheat Line3 Reheat 10 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Cost of Flue Gas Re-Heat ing (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 Twi 130 Deg F - Temperature of waste gas into heat rec overy Tfi 750 Deg F - Temperature of Flue gas into of heat r ecovery T ref 77 Deg F - Reference temperature for fuel combustio n calculations FER 70% Factional Heat Recovery % Heat recovery sect ion efficiency

Two 564 Deg F - Temperature of waste gas out of heat r ecovery

Tfo 316 Deg F - Temperature of flue gas into of heat r ecovery

-h caf 21502 Btu/lb Heat of combustion auxiliary fuel (met hane) -h wg 0 Btu/lb Heat of combustion waste gas C p wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (a ir) p wg 0.0739 lb/scf - Density of waste gas (air) at 77 De g F p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F Q wg 288,163 scfm - Flow of waste gas

Q af 1,666 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 289,828 scfm Flue Gas Cost in 1989 $'s $495,188 Current Cost Using CHE Plant Cost Index $590,417 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 Co mposition

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 Control C ost Spreadsheets\Minntac\Minntac Control Costs Line3 Reheat Line3 Reheat 11 of 75

## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b - NO x

## Control - Selective Catalytic Reduction with Reheat

Operating Unit: Line 4 waste gas

Emission Unit Number EU 259 Stack/Vent Number SV 118 Design Capacity 300 mmbtu/hr Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 96,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 23,050,831 Purchased Equipment Total SCR Only 24,549,135 SCR + Reheat 25,409,745

Total Capital Investment (TCI) = DC + IC SCR + Reheat 58,874,795
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. SCR + Reheat 21,125,878 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 7,066,876 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 28,169,433



### Emission Control Cost Calculation Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,812.0

80% 362.4 1,449.6 19,433

Notes & Assumptions 1 Estimated Equipment Cost per EPA Air Pollution Cont rol Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 2 For Calculation purposes, duty reflects increased f low rate, not actual duty. 3 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 4 Capital Cost per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.4 3 5 Reagent Use per EPA Air Pollution Control Cost Manu al 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.3 5 6 SCR Catalyst Volume per EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2. 18 - 2.24 7 SCR Reactor Size per EPA Air Pollution Control CostManual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31 8 SCR Catalyst Replacement per EPA Air Pollution Cont rol 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 Cos t Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46 11 Control Efficiency = 80% reduction 12 Site specific electricity costs 13 Catalyst replacement every 3 years. 14 CUECost Workbook Version 1.0, USEPA Document Page 2

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b - NOx Control - Selective Catalytic Red uction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 23,050,831 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 1,498,304 Freight 5% of control device cost (A) NA Purchased Equipment Total 24,549,135

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 11% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 11% of purchased equip cost (A) 2,643,899
Project Contingeny (C) 15% of (A + B) 4,078,955
Total Plant Cost (D) A + B + C 31,271,989
Allowance for Funds During Construction (E) 0 for SCR 0
Royalty Allowance (F) 0 for SCR 0
Pre Production Costs (G) 2% of (D+E)) 625,440
Inventory Capital Reagent Vol * $/gal 158,329
Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 32,055,758 Retrofit Factor (14) 60% of TCI 19,233,455 Sitework and foundations 1,400,000 Structural steel 4,800,000

Total Capital Investment Retrofit Installed 57,489,212



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Total 1.50 % of Total Capital Investment 480,836 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,409 kW-hr, 7946 hr/yr, 93% utilization 531,079 SCR Catalyst 64.71 Catalyst Replacement 400,504 Ammonia (29% aqua.) 0.12 $/lb, 4,666 lb/hr, 7946 hr/yr, 93% utilization 4,157,919 Total Annual Direct Operating Costs 5,709,691
Indirect Operating Costs Overhead 60% of total labor and material costs 91,281 Administration (2% total capital costs) 2% of total capital costs (TCI) 641,115 Property tax (1% total capital costs) 1% of total capital costs (TCI) 320,558 Insurance (1% total capital costs) 1% of total capital costs (TCI) 320,558 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 5,426,575 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 6,800,087

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 12,509,778

See Summary page for notes and assumptions

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b - NOx Control - Selective Catalytic Red uction with Reheat

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944
Replacement Catayst Estimate amount of catalyst required Equipment Life 24,000 hours Vol. #1 2708 ft 3 

### Cormetech, Inc. FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc. Rep part cost per unit $141 Flow #2 596,870 scfm Vol #2 9131.8 ft 3 

### Amount Required 9,132 ft 3 

### Catalyst Cost 1,287,579 Y catalyst life factor 3 Years Annualized Cost 400,504
Equivalent Duty 3,484 Plant Cap kW A 357,359 Est power platn eff 35% Unc Nox lb/mmBtu B 0.43 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 357,359 Capital Cost $/kW D $64.50 $23,050,831.27 Total SCR Equipment Uncontrolled Nox t/y 1,353.0 Fixed O&M E $152,135.49 Annual Operating Hrs 8000 Variable O&M F $624,082.60 Uncontrolled Nox lb/mmBtu 0.428 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000

Electrical Use Equivalent Duty 3,484 MMBtu/hr kW NOx Cont Eff 80% Power 1,409.2 NOx in 0.43 lb/MMBtu n catalyst layers 4 layers Press drop catalyst 

### 1 in H 2 

### O per layer Press drop duct 

### 3 in H 2 

### O Total 1409.2

Reagent Use & Other Operating Costs Ammonia Use 56.0 lb/ft 3 

### Density 1353 lb/hr Neat 623.3 gal/hr 29% solution Volume 14 day inventory 209,416 gal $158,3 29 Inventory Cost 4666 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.428

Actual 106,840 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 3,484 MMBtu/hr
Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 480,836 % of Total Capital Investment Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1409.2 kW-hr 10,413,319 531,079 $/ kwh, 1,409 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 400,504 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 4666 lb/hr 34,477,146 4,157 ,919 $/lb, 4,666 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b - NO x

## Control - Cost of Flue Gas Re-Heating (Thermal Oxi dizer)

Operating Unit: Line 4 waste gas

Emission Unit Number EU 259 Stack/Vent Number SV 118 Chemical Engineering Design Capacity 300 mmbtu/hr Standardized Flow Rate 556,174 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 115 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 5 96,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 708,321 Purchased Equipment Total (B) 22% of control devicecost (A) 860,610

Installation - Standard Costs 30% of purchased equi p cost (B) 258,183 Installation - Site Specific Costs NA Installation Total 258,183 Total Direct Capital Cost, DC 1,118,793 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 266,789 Total Capital Investment (TCI) = DC + IC 1,385,582
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 15,416,187 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 243,468 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 15,659,655

Notes & Assumptions 1 Equipment cost estimate EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 3.2 Chapter 2

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 708,321 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 70,832 MN Sales Taxes 6.5% of control device cost (A) 46,041 Freight 5% of control device cost (A) 35,416 Purchased Equipment Total (B) 22% 860,610

Installation Foundations & supports 8% of purchased equip cost (B) 68,849 Handling & erection 14% of purchased equip cost (B) 120,485 Electrical 4% of purchased equip cost (B) 34,424 Piping 2% of purchased equip cost (B) 17,212 Insulation 1% of purchased equip cost (B) 8,606 Painting 1% of purchased equip cost (B) 8,606 Installation Subtotal Standard Expenses 30% 258,183

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 258,183 Total Direct Capital Cost, DC 1,118,793
Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 86,061 Construction & field expenses 5% of purchased equip cost (B) 43,031 Contractor fees 10% of purchased equip cost (B) 86,061 Start-up 2% of purchased equip cost (B) 17,212 Performance test 1% of purchased equip cost (B) 8,606 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 25,818 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 266,789
Total Capital Investment (TCI) = DC + IC 1,385,582
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,385,582



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 61.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 2,408 kW-hr, 7946 hr/yr, 93% utilization 907,618 Natural Gas 9.26 $/mscf, 3,511 scfm, 7946 hr/yr, 93% utilization 14,413,142

Total Annual Direct Operating Costs 15,416,187
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total c apital costs (TCI) 27,712 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 13,856 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 13,856 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 130,789 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 243,468

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 15,659,655

See Summary page for notes and assumptions

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 3 years CRF 0.3811 Rep part cost per unit 0 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (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 & sa les 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 650,000 19 0.6 2,408.3 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 650,000 23 0.6 2,915.3 EPA Cost Cont M anual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 2408.3

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 2408.3 kW-hr 17,796,438 907,618 $/kwh, 2,408 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 3,511 scfm 1,556,915 14,413,142 $/mscf, 3,511 scfm, 7946 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

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 Twi 115 Deg F - Temperature of waste gas into heat rec overy Tfi 750 Deg F - Temperature of Flue gas into of heat r ecovery T ref 77 Deg F - Reference temperature for fuel combustio n calculations FER 70% Factional Heat Recovery % Heat recovery sect ion efficiency

Two 560 Deg F - Temperature of waste gas out of heat r ecovery

Tfo 306 Deg F - Temperature of flue gas into of heat r ecovery

-h caf 21502 Btu/lb Heat of combustion auxiliary fuel (met hane) -h wg 0 Btu/lb Heat of combustion waste gas C p wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (a ir) p wg 0.0739 lb/scf - Density of waste gas (air) at 77 De g F p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F Q wg 596,870 scfm - Flow of waste gas

Q af 3,511 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 600,381 scfm Flue Gas Cost in 1989 $'s $594,076 Current Cost Using CHE Plant Cost Index $708,321 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 Co mposition

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)

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c - NO x

## Control - Selective Catalytic Reduction with Reheat

Operating Unit: Line 5 waste gas

Emission Unit Number EU 280 Stack/Vent Number SV 127 Design Capacity 300 mmbtu/hr Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 96,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 23,050,831 Purchased Equipment Total SCR Only 24,549,135 SCR + Reheat 25,409,745

Total Capital Investment (TCI) = DC + IC SCR + Reheat 58,874,795
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. SCR + Reheat 21,125,878 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 7,066,876 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 28,169,433



### Emission Control Cost Calculation Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,820.0

80% 364.0 1,456.0 19,347

Notes & Assumptions 1 Estimated Equipment Cost per EPA Air Pollution Cont rol Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 2 For Calculation purposes, duty reflects increased f low rate, not actual duty. 3 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 4 Capital Cost per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.4 3 5 Reagent Use per EPA Air Pollution Control Cost Manu al 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.3 5 6 SCR Catalyst Volume per EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2. 18 - 2.24 7 SCR Reactor Size per EPA Air Pollution Control CostManual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31 8 SCR Catalyst Replacement per EPA Air Pollution Cont rol 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 Cos t Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46 11 Control Efficiency = 80% reduction 12 Site specific electricity costs 13 Catalyst replacement every 3 years. 14 CUECost Workbook Version 1.0, USEPA Document Page 2

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c - NOx Control - Selective Catalytic Red uction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 23,050,831 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 1,498,304 Freight 5% of control device cost (A) NA Purchased Equipment Total 24,549,135

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 11% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 11% of purchased equip cost (A) 2,643,899
Project Contingeny (C) 15% of (A + B) 4,078,955
Total Plant Cost (D) A + B + C 31,271,989
Allowance for Funds During Construction (E) 0 for SCR 0
Royalty Allowance (F) 0 for SCR 0
Pre Production Costs (G) 2% of (D+E)) 625,440
Inventory Capital Reagent Vol * $/gal 158,329
Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 32,055,758 Retrofit Factor (14) 60% of TCI 19,233,455 Sitework and foundations 1,400,000 Structural steel 4,800,000

Total Capital Investment Retrofit Installed 57,489,212



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Total 1.50 % of Total Capital Investment 480,836 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,409 kW-hr, 7946 hr/yr, 93% utilization 531,079 SCR Catalyst 64.71 Catalyst Replacement 400,504 Ammonia (29% aqua.) 0.12 $/lb, 4,666 lb/hr, 7946 hr/yr, 93% utilization 4,157,919 Total Annual Direct Operating Costs 5,709,691
Indirect Operating Costs Overhead 60% of total labor and material costs 91,281 Administration (2% total capital costs) 2% of total capital costs (TCI) 641,115 Property tax (1% total capital costs) 1% of total capital costs (TCI) 320,558 Insurance (1% total capital costs) 1% of total capital costs (TCI) 320,558 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 5,426,575 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 6,800,087

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 12,509,778

See Summary page for notes and assumptions

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c - NOx Control - Selective Catalytic Red uction with Reheat

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944
Replacement Catayst Estimate amount of catalyst required Equipment Life 24,000 hours Vol. #1 2708 ft 3 

### Cormetech, Inc. FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc. Rep part cost per unit $141 Flow #2 596,870 scfm Vol #2 9131.8 ft 3 

### Amount Required 9,132 ft 3 

### Catalyst Cost 1,287,579 Y catalyst life factor 3 Years Annualized Cost 400,504
Equivalent Duty 3,484 Plant Cap kW A 357,359 Est power platn eff 35% Unc Nox lb/mmBtu B 0.43 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 357,359 Capital Cost $/kW D $64.50 $23,050,831.27 Total SCR Equipment Uncontrolled Nox t/y 1,353.0 Fixed O&M E $152,135.49 Annual Operating Hrs 8000 Variable O&M F $624,082.60 Uncontrolled Nox lb/mmBtu 0.428 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000 SCR Capital Cost

Electrical Use Duty 3,484 MMBtu/hr kW NOx Cont Eff 80% Power 1,409.2 NOx in 0.43 lb/MMBtu n catalyst layers 4 layers Press drop catalyst 

### 1 in H 2 

### O per layer Press drop duct 

### 3 in H 2 

### O Total 1409.2

Reagent Use & Other Operating Costs Ammonia Use 56.0 lb/ft 3 

### Density 1353 lb/hr Neat 623.3 gal/hr 29% solution Volume 14 day inventory 209,416 gal $158,3 29 Inventory Cost 4666 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.428

Actual 106,840 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 3,484 MMBtu/hr
Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 480,836 % of Total Capital Investment Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1409.2 kW-hr 10,413,319 531,079 $/ kwh, 1,409 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 400,504 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 4666 lb/hr 34,477,146 4,157 ,919 $/lb, 4,666 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c - NO x

## Control - Cost of Flue Gas Re-Heating (Thermal Oxi dizer)

Operating Unit: Line 5 waste gas

Emission Unit Number EU 280 Stack/Vent Number SV 127 Chemical Engineering Design Capacity 300 mmbtu/hr Standardized Flow Rate 556,174 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 115 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 5 96,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 708,321 Purchased Equipment Total (B) 22% of control devicecost (A) 860,610

Installation - Standard Costs 30% of purchased equi p cost (B) 258,183 Installation - Site Specific Costs NA Installation Total 258,183 Total Direct Capital Cost, DC 1,118,793 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 266,789 Total Capital Investment (TCI) = DC + IC 1,385,582
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 15,416,187 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 243,468 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 15,659,655

Notes & Assumptions 1 Equipment cost estimate EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 3.2 Chapter 2

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 708,321 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 70,832 MN Sales Taxes 6.5% of control device cost (A) 46,041 Freight 5% of control device cost (A) 35,416 Purchased Equipment Total (B) 22% 860,610

Installation Foundations & supports 8% of purchased equip cost (B) 68,849 Handling & erection 14% of purchased equip cost (B) 120,485 Electrical 4% of purchased equip cost (B) 34,424 Piping 2% of purchased equip cost (B) 17,212 Insulation 1% of purchased equip cost (B) 8,606 Painting 1% of purchased equip cost (B) 8,606 Installation Subtotal Standard Expenses 30% 258,183

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 258,183 Total Direct Capital Cost, DC 1,118,793
Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 86,061 Construction & field expenses 5% of purchased equip cost (B) 43,031 Contractor fees 10% of purchased equip cost (B) 86,061 Start-up 2% of purchased equip cost (B) 17,212 Performance test 1% of purchased equip cost (B) 8,606 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 25,818 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 266,789
Total Capital Investment (TCI) = DC + IC 1,385,582
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,385,582



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 61.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 2,408 kW-hr, 7946 hr/yr, 93% utilization 907,618 Natural Gas 9.26 $/mscf, 3,511 scfm, 7946 hr/yr, 93% utilization 14,413,142

Total Annual Direct Operating Costs 15,416,187
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total c apital costs (TCI) 27,712 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 13,856 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 13,856 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 130,789 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 243,468

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 15,659,655

See Summary page for notes and assumptions

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 3 years CRF 0.3811 Rep part cost per unit 0 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (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 & sa les 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 650,000 19 0.6 2,408.3 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 650,000 23 0.6 2,915.3 EPA Cost Cont M anual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 2408.3

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 2408.3 kW-hr 17,796,438 907,618 $/kwh, 2,408 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 3,511 scfm 1,556,915 14,413,142 $/mscf, 3,511 scfm, 7946 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

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 Twi 115 Deg F - Temperature of waste gas into heat rec overy Tfi 750 Deg F - Temperature of Flue gas into of heat r ecovery T ref 77 Deg F - Reference temperature for fuel combustio n calculations FER 70% Factional Heat Recovery % Heat recovery sect ion efficiency

Two 560 Deg F - Temperature of waste gas out of heat r ecovery

Tfo 306 Deg F - Temperature of flue gas into of heat r ecovery

-h caf 21502 Btu/lb Heat of combustion auxiliary fuel (met hane) -h wg 0 Btu/lb Heat of combustion waste gas C p wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (a ir) p wg 0.0739 lb/scf - Density of waste gas (air) at 77 De g F p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F Q wg 596,870 scfm - Flow of waste gas

Q af 3,511 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 600,381 scfm Flue Gas Cost in 1989 $'s $594,076 Current Cost Using CHE Plant Cost Index $708,321 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 Co mposition

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)

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d - NO x

## Control - Selective Catalytic Reduction with Reheat

Operating Unit: Line 6 waste gas

Emission Unit Number EU 313 Stack/Vent Number SV 144 Design Capacity 300 mmbtu/hr Standardized Flow Rate 518,805 scfm @ 32o F Expected Utilization Rate 93% Temperature 109 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 56,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 22,013,215 Purchased Equipment Total SCR Only 23,444,074 SCR + Reheat 24,289,858

Total Capital Investment (TCI) = DC + IC SCR + Reheat 56,748,729
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. SCR + Reheat 19,634,014 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 6,807,183 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 26,419,264



### Emission Control Cost Calculation Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,202.3 1,776.0

80% 355.2 1,420.8 18,595

Notes & Assumptions 1 Estimated Equipment Cost per EPA Air Pollution Cont rol Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 2 For Calculation purposes, duty reflects increased f low rate, not actual duty. 3 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 4 Capital Cost per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.4 3 5 Reagent Use per EPA Air Pollution Control Cost Manu al 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.3 5 6 SCR Catalyst Volume per EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2. 18 - 2.24 7 SCR Reactor Size per EPA Air Pollution Control CostManual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31 8 SCR Catalyst Replacement per EPA Air Pollution Cont rol 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 Cos t Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46 11 Control Efficiency = 80% reduction 12 Site specific electricity costs 13 Catalyst replacement every 3 years. 14 CUECost Workbook Version 1.0, USEPA Document Page 2

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d - NOx Control - Selective Catalytic Red uction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 22,013,215 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 1,430,859 Freight 5% of control device cost (A) NA Purchased Equipment Total 23,444,074

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 11% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 11% of purchased equip cost (A) 2,643,899
Project Contingeny (C) 15% of (A + B) 3,913,196
Total Plant Cost (D) A + B + C 30,001,168
Allowance for Funds During Construction (E) 0 for SCR 0
Royalty Allowance (F) 0 for SCR 0
Pre Production Costs (G) 2% of (D+E)) 600,023
Inventory Capital Reagent Vol * $/gal 140,694
Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 30,741,886 Retrofit Factor (14) 60% of TCI 18,445,131 Sitework and foundations 1,400,000 Structural steel 4,800,000

Total Capital Investment Retrofit Installed 55,387,017



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Total 1.50 % of Total Capital Investment 461,128 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,309 kW-hr, 7946 hr/yr, 93% utilization 493,304 SCR Catalyst 64.71 Catalyst Replacement 373,594 Ammonia (29% aqua.) 0.12 $/lb, 4,146 lb/hr, 7946 hr/yr, 93% utilization 3,694,801 Total Annual Direct Operating Costs 5,162,181
Indirect Operating Costs Overhead 60% of total labor and material costs 87,172 Administration (2% total capital costs) 2% of total capital costs (TCI) 614,838 Property tax (1% total capital costs) 1% of total capital costs (TCI) 307,419 Insurance (1% total capital costs) 1% of total capital costs (TCI) 307,419 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 5,228,143 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 6,544,990

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 11,707,171

See Summary page for notes and assumptions

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d - NOx Control - Selective Catalytic Red uction with Reheat

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944
Replacement Catayst Estimate amount of catalyst required Equipment Life 24,000 hours Vol. #1 2708 ft 3 

### Cormetech, Inc. FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc. Rep part cost per unit $141 Flow #2 556,766 scfm Vol #2 8518.2 ft 3 

### Amount Required 8,518 ft 3 

### Catalyst Cost 1,201,067 Y catalyst life factor 3 Years Annualized Cost 373,594
Equivalent Duty 3,250 Plant Cap kW A 333,349 Est power platn eff 35% Unc Nox lb/mmBtu B 0.41 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 333,349 Capital Cost $/kW D $66.04 $22,013,215.04 Total SCR Equipment Uncontrolled Nox t/y 1,202.3 Fixed O&M E $145,287.22 Annual Operating Hrs 8000 Variable O&M F $586,106.42 Uncontrolled Nox lb/mmBtu 0.408 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000 SCR Capital Cost

Electrical Use Duty 3,250 MMBtu/hr kW NOx Cont Eff 80% Power 1,308.9 NOx in 0.41 lb/MMBtu n catalyst layers 4 layers Press drop catalyst 

### 1 in H 2 

### O per layer Press drop duct 

### 3 in H 2 

### O Total 1308.9

Reagent Use & Other Operating Costs Ammonia Use 56.0 lb/ft 3 

### Density 1202 lb/hr Neat 553.8 gal/hr 29% solution Volume 14 day inventory 186,091 gal $140,6 94 Inventory Cost 4146 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.408

Actual 99,661 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 3,250 MMBtu/hr
Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 461,128 % of Total Capital Investment Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1308.9 kW-hr 9,672,634 493,304 $/kwh, 1,309 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 373,594 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 4146 lb/hr 30,637,009 3,694 ,801 $/lb, 4,146 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d - NO x

## Control - Cost of Flue Gas Re-Heating (Thermal Oxi dizer)

Operating Unit: Line 6 waste gas

Emission Unit Number EU 313 Stack/Vent Number SV 144 Chemical Engineering Design Capacity 300 mmbtu/hr Standardized Flow Rate 518,805 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 109 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 5 56,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 696,118 Purchased Equipment Total (B) 22% of control devicecost (A) 845,784

Installation - Standard Costs 30% of purchased equi p cost (B) 253,735 Installation - Site Specific Costs NA Installation Total 253,735 Total Direct Capital Cost, DC 1,099,519 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 262,193 Total Capital Investment (TCI) = DC + IC 1,361,712
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 14,471,833 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 240,260 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 14,712,093

Notes & Assumptions 1 Equipment cost estimate EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 3.2 Chapter 2

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 696,118 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 69,612 MN Sales Taxes 6.5% of control device cost (A) 45,248 Freight 5% of control device cost (A) 34,806 Purchased Equipment Total (B) 22% 845,784

Installation Foundations & supports 8% of purchased equip cost (B) 67,663 Handling & erection 14% of purchased equip cost (B) 118,410 Electrical 4% of purchased equip cost (B) 33,831 Piping 2% of purchased equip cost (B) 16,916 Insulation 1% of purchased equip cost (B) 8,458 Painting 1% of purchased equip cost (B) 8,458 Installation Subtotal Standard Expenses 30% 253,735

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 253,735 Total Direct Capital Cost, DC 1,099,519
Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 84,578 Construction & field expenses 5% of purchased equip cost (B) 42,289 Contractor fees 10% of purchased equip cost (B) 84,578 Start-up 2% of purchased equip cost (B) 16,916 Performance test 1% of purchased equip cost (B) 8,458 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 25,374 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 262,193
Total Capital Investment (TCI) = DC + IC 1,361,712
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,361,712



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 61.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 2,223 kW-hr, 7946 hr/yr, 93% utilization 837,802 Natural Gas 9.26 $/mscf, 3,298 scfm, 7946 hr/yr, 93% utilization 13,538,605

Total Annual Direct Operating Costs 14,471,833
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total c apital costs (TCI) 27,234 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 13,617 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 13,617 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 128,536 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 240,260

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 14,712,093

See Summary page for notes and assumptions

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 3 years CRF 0.3811 Rep part cost per unit 0 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (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 & sa les 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 600,000 19 0.6 2,223.0 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 600,000 23 0.6 2,691.0 EPA Cost Cont M anual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 2223.0

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 2223.0 kW-hr 16,427,481 837,802 $/kwh, 2,223 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 3,298 scfm 1,462,447 13,538,605 $/mscf, 3,298 scfm, 7946 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

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## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d - NOx Control - Cost of Flue Gas Re-Heating (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 Twi 109 Deg F - Temperature of waste gas into heat rec overy Tfi 750 Deg F - Temperature of Flue gas into of heat r ecovery T ref 77 Deg F - Reference temperature for fuel combustio n calculations FER 70% Factional Heat Recovery % Heat recovery sect ion efficiency

Two 558 Deg F - Temperature of waste gas out of heat r ecovery

Tfo 301 Deg F - Temperature of flue gas into of heat r ecovery

-h caf 21502 Btu/lb Heat of combustion auxiliary fuel (met hane) -h wg 0 Btu/lb Heat of combustion waste gas C p wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (a ir) p wg 0.0739 lb/scf - Density of waste gas (air) at 77 De g F p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F Q wg 556,766 scfm - Flow of waste gas

Q af 3,298 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 560,065 scfm Flue Gas Cost in 1989 $'s $583,841 Current Cost Using CHE Plant Cost Index $696,118 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 Co mposition

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)

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.e - NO x

## Control - Selective Catalytic Reduction with Reheat

Operating Unit: Line 7 waste gas

Emission Unit Number EU 332 Stack/Vent Number SV 151 Design Capacity 300 mmbtu/hr Standardized Flow Rate 518,805 scfm @ 32o F Expected Utilization Rate 93% Temperature 109 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 56,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 22,013,215 Purchased Equipment Total SCR Only 23,444,074 SCR + Reheat 24,289,858

Total Capital Investment (TCI) = DC + IC SCR + Reheat 56,748,729
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. SCR + Reheat 19,634,014 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 6,807,183 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 26,419,264



### Emission Control Cost Calculation Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,202.3 1,928.0

80% 385.6 1,542.4 17,129

Notes & Assumptions 1 Estimated Equipment Cost per EPA Air Pollution Cont rol Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 2 For Calculation purposes, duty reflects increased f low rate, not actual duty. 3 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 4 Capital Cost per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.4 3 5 Reagent Use per EPA Air Pollution Control Cost Manu al 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.3 5 6 SCR Catalyst Volume per EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2. 18 - 2.24 7 SCR Reactor Size per EPA Air Pollution Control CostManual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31 8 SCR Catalyst Replacement per EPA Air Pollution Cont rol 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 Cos t Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46 11 Control Efficiency = 80% reduction 12 Site specific electricity costs 13 Catalyst replacement every 3 years. 14 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 SCR Line7 SCR 33 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.e - NOx Control - Selective Catalytic Red uction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 22,013,215 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 1,430,859 Freight 5% of control device cost (A) NA Purchased Equipment Total 23,444,074

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 11% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 11% of purchased equip cost (A) 2,643,899
Project Contingeny (C) 15% of (A + B) 3,913,196
Total Plant Cost (D) A + B + C 30,001,168
Allowance for Funds During Construction (E) 0 for SCR 0
Royalty Allowance (F) 0 for SCR 0
Pre Production Costs (G) 2% of (D+E)) 600,023
Inventory Capital Reagent Vol * $/gal 140,694
Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 30,741,886 Retrofit Factor (14) 60% of TCI 18,445,131 Sitework and foundations 1,400,000 Structural steel 4,800,000

Total Capital Investment Retrofit Installed 55,387,017



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Total 1.50 % of Total Capital Investment 461,128 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,309 kW-hr, 7946 hr/yr, 93% utilization 493,304 SCR Catalyst 64.71 Catalyst Replacement 373,594 Ammonia (29% aqua.) 0.12 $/lb, 4,146 lb/hr, 7946 hr/yr, 93% utilization 3,694,801 Total Annual Direct Operating Costs 5,162,181
Indirect Operating Costs Overhead 60% of total labor and material costs 87,172 Administration (2% total capital costs) 2% of total capital costs (TCI) 614,838 Property tax (1% total capital costs) 1% of total capital costs (TCI) 307,419 Insurance (1% total capital costs) 1% of total capital costs (TCI) 307,419 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 5,228,143 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 6,544,990

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 11,707,171

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 SCR Line7 SCR 34 of 75

## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.e - NOx Control - Selective Catalytic Red uction with Reheat

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944
Replacement Catayst Estimate amount of catalyst required Equipment Life 24,000 hours Vol. #1 2708 ft 3 

### Cormetech, Inc. FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc. Rep part cost per unit $141 Flow #2 556,766 scfm Vol #2 8518.2 ft 3 

### Amount Required 8,518 ft 3 

### Catalyst Cost 1,201,067 Y catalyst life factor 3 Years Annualized Cost 373,594
Equivalent Duty 3,250 Plant Cap kW A 333,349 Est power platn eff 35% Unc Nox lb/mmBtu B 0.41 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 333,349 Capital Cost $/kW D $66.04 $22,013,215.04 Total SCR Equipment Uncontrolled Nox t/y 1,202.3 Fixed O&M E $145,287.22 Annual Operating Hrs 8000 Variable O&M F $586,106.42 Uncontrolled Nox lb/mmBtu 0.408 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000 SCR Capital Cost

Electrical Use Duty 3,250 MMBtu/hr kW NOx Cont Eff 80% Power 1,308.9 NOx in 0.41 lb/MMBtu n catalyst layers 4 layers Press drop catalyst 

### 1 in H 2 

### O per layer Press drop duct 

### 3 in H 2 

### O Total 1308.9

Reagent Use & Other Operating Costs Ammonia Use 56.0 lb/ft 3 

### Density 1202 lb/hr Neat 553.8 gal/hr 29% solution Volume 14 day inventory 186,091 gal $140,6 94 Inventory Cost 4146 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.408

Actual 99,661 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 3,250 MMBtu/hr
Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 461,128 % of Total Capital Investment Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1308.9 kW-hr 9,672,634 493,304 $/kwh, 1,309 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 373,594 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 4146 lb/hr 30,637,009 3,694 ,801 $/lb, 4,146 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 SCR Line7 SCR 35 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.e - NO x

## Control - Selective Catalytic Reduction with Reheat

Operating Unit: Line 7 waste gas

Emission Unit Number EU 332 Stack/Vent Number SV 151 Chemical Engineering Design Capacity 300 mmbtu/hr Standardized Flow Rate 518,805 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 109 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 5 56,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 696,118 Purchased Equipment Total (B) 22% of control devicecost (A) 845,784

Installation - Standard Costs 30% of purchased equi p cost (B) 253,735 Installation - Site Specific Costs NA Installation Total 253,735 Total Direct Capital Cost, DC 1,099,519 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 262,193 Total Capital Investment (TCI) = DC + IC 1,361,712
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 14,471,833 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 240,260 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 14,712,093

Notes & Assumptions 1 Equipment cost estimate EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 3.2 Chapter 2

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 Reheat Line7 Reheat 36 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.e - NOx Control - Selective Catalytic Red uction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 696,118 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 69,612 MN Sales Taxes 6.5% of control device cost (A) 45,248 Freight 5% of control device cost (A) 34,806 Purchased Equipment Total (B) 22% 845,784

Installation Foundations & supports 8% of purchased equip cost (B) 67,663 Handling & erection 14% of purchased equip cost (B) 118,410 Electrical 4% of purchased equip cost (B) 33,831 Piping 2% of purchased equip cost (B) 16,916 Insulation 1% of purchased equip cost (B) 8,458 Painting 1% of purchased equip cost (B) 8,458 Installation Subtotal Standard Expenses 30% 253,735

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 253,735 Total Direct Capital Cost, DC 1,099,519
Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 84,578 Construction & field expenses 5% of purchased equip cost (B) 42,289 Contractor fees 10% of purchased equip cost (B) 84,578 Start-up 2% of purchased equip cost (B) 16,916 Performance test 1% of purchased equip cost (B) 8,458 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 25,374 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 262,193
Total Capital Investment (TCI) = DC + IC 1,361,712
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,361,712



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 61.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 2,223 kW-hr, 7946 hr/yr, 93% utilization 837,802 Natural Gas 9.26 $/mscf, 3,298 scfm, 7946 hr/yr, 93% utilization 13,538,605

Total Annual Direct Operating Costs 14,471,833
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total c apital costs (TCI) 27,234 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 13,617 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 13,617 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 128,536 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 240,260

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 14,712,093

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 Reheat Line7 Reheat 37 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.e - NOx Control - Selective Catalytic Red uction with Reheat

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 3 years CRF 0.3811 Rep part cost per unit 0 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (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 & sa les 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 600,000 19 0.6 2,223.0 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 600,000 23 0.6 2,691.0 EPA Cost Cont M anual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 2223.0

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operatio n: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 2223.0 kW-hr 16,427,481 837,802 $/kwh, 2,223 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 3,298 scfm 1,462,447 13,538,605 $/mscf, 3,298 scfm, 7946 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 Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 Reheat Line7 Reheat 38 of 75

## US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.e - NOx Control - Selective Catalytic Red uction with Reheat

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

Auxiliary Fuel Use Equation 3.19 Twi 109 Deg F - Temperature of waste gas into heat rec overy Tfi 750 Deg F - Temperature of Flue gas into of heat r ecovery T ref 77 Deg F - Reference temperature for fuel combustio n calculations FER 70% Factional Heat Recovery % Heat recovery sect ion efficiency

Two 558 Deg F - Temperature of waste gas out of heat r ecovery

Tfo 301 Deg F - Temperature of flue gas into of heat r ecovery

-h caf 21502 Btu/lb Heat of combustion auxiliary fuel (met hane) -h wg 0 Btu/lb Heat of combustion waste gas C p wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (a ir) p wg 0.0739 lb/scf - Density of waste gas (air) at 77 De g F p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F Q wg 556,766 scfm - Flow of waste gas

Q af 3,298 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 560,065 scfm Flue Gas Cost in 1989 $'s $583,841 Current Cost Using CHE Plant Cost Index $696,118 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 Co mposition

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 Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 Reheat Line7 Reheat 39 of 75

# US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.a: NO X

# Control - Low-NO X

# Burners

Operating Unit: Line 4 waste gas

Emission Unit Number EU 259 Stack/Vent Number SV 118 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 596,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F Size 165 mmbtu/hr

CONTROL EQUIPMENT COSTS Capital Costs (1)



### Total Capital Investment (TCI) = DC + IC 1,474,892
Operating Costs (2) 

### Total Annual Cost (Annualized Capital Cost) 139,219

Capital Recovery Factor

Interest Rate 7.00% Equipment Life 20 years CRF 0.0944 Capital Recovery Cost 139,219

Actual 

## Emission Control Cost Calculation Emis Max Emis Annual Control Eff (3) 

### Exit Conc. Controlled Emis Reduction Control Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,812.0

10% 1630.8 181.2 768 Sulfur Dioxide (SO 2 

### ) 146.3 447.5

0% NA NA NA

Notes & Assumptions 1 Total installed capital cost based on recent Low-NO X burner installation on Line 6 pre-heat section Cost is ratioed to Line 4 burner size using 6/10 ru le based on Line 6 burner size of 117 mmbtu/hr and Line 6 cost of $1.2 million 2 Total annualized cost is equal to the annualized ca pital cost. 3 Control efficiency based on estimated reduction of line 6 total NO X

### emissions based on NO X

### CEMS

# US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.b: NO X

# Control - Low-NO X

# Burners

Operating Unit: Line 5 waste gas

Emission Unit Number EU 280 Stack/Vent Number SV 127 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 596,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F Size 165 mmbtu/hr

CONTROL EQUIPMENT COSTS Capital Costs (1)



### Total Capital Investment (TCI) = DC + IC 1,474,892
Operating Costs (2) 

### Total Annual Cost (Annualized Capital Cost) 139,219

Capital Recovery Factor

Interest Rate 7.00% Equipment Life 20 years CRF 0.0944 Capital Recovery Cost 139,219

Actual 

## Emission Control Cost Calculation Emis Max Emis Annual Control Eff (3) 

### Exit Conc. Controlled Emis Reduction Control Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,820.0

10% 1638.0 182.0 765 Sulfur Dioxide (SO 2 

### ) 146.3 447.5

0% NA NA NA

Notes & Assumptions 1 Total installed capital cost based on recent Low-NO X burner installation on Line 6 pre-heat section Cost is ratioed to Line 5 burner size using 6/10 ru le based on Line 6 burner size of 117 mmbtu/hr and Line 6 cost of $1.2 million 2 Total annualized cost is equal to the annualized ca pital cost. 3 Control efficiency based on estimated reduction of line 6 total NO X

### emissions based on NO X

### CEMS

# US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.c: NO X

# Control - Low-NO X

# Burners

Operating Unit: Line 7 waste gas

Emission Unit Number EU 332 Stack/Vent Number SV 151 Standardized Flow Rate 518,805 scfm @ 32o F Expected Utilization Rate 93% Temperature 109 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 556,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F Size 165 mmbtu/hr

CONTROL EQUIPMENT COSTS Capital Costs (1)



### Total Capital Investment (TCI) = DC + IC 1,200,000
Operating Costs (2) 

### Total Annual Cost (Annualized Capital Cost) 113,272

Capital Recovery Factor

Interest Rate 7.00% Equipment Life 20 years CRF 0.0944 Capital Recovery Cost 113,272

Actual 

## Emission Control Cost Calculation Emis Max Emis Annual Control Eff (3) 

### Exit Conc. Controlled Emis Reduction Control Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,202.3 1,928.0

10% 1735.2 192.8 588 Sulfur Dioxide (SO 2 

### ) 184.8 544.8

0% NA NA NA

Notes & Assumptions 1 Total installed capital cost based on recent Low-NO X burner installation on Line 6 pre-heat section 2 Total annualized cost is equal to the annualized ca pital cost. 3 Control efficiency based on estimated reduction of line 6 total NO X

### emissions based on NO X

### CEMS

# US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.a: NO X

# Control - Ported Kilns

Operating Unit: Line 3 waste gas

Emission Unit Number EU 223 Stack/Vent Number SV 103 Standardized Flow Rate 268,515 scfm @ 32o F Expected Utilization Rate 93% Temperature 130 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 322,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 288,163 scfm @ 68o F Dry Std Flow Rate 257,906 dscfm @ 68o F Size 165 mmbtu/hr

CONTROL EQUIPMENT COSTS Capital Costs (1) 

### Minntac Line 4/5 Budget Estimate = 5,000,000 $ Total Capital Investment (TCI) = DC + IC 3,616,464 Minntac Line 4/5 volumetric flow = 650,000 acfm Operating Costs (2) 

### Minntac Line 3 volumetric flow = 378,824 acfm Total Annual Cost (Annualized Capital Cost) 341,369 Use "6/10 Rule" to calculate Line 3 Cost = 3,616,464 $

Capital Recovery Factor

Interest Rate 7.00% Equipment Life 20 years CRF 0.0944 Capital Recovery Cost 341,369

Actual 

## Emission Control Cost Calculation Emis Max Emis Annual Control Eff (3) 

### Controlled Emis Reduction Control Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 876.9 1,345.0

5% 1277.8 67.3 5,076
Notes & Assumptions 1 Capital costs based on Minntac Line 4/5 budget esti mate and scaled to Line 3 stack flow rate. 2 Total annualized cost is equal to the annualized ca pital cost. 3 Control efficiency based on report, "NO X

### Emissions Analysis Pre and Post Installation of Ai r Injection Ports on Line 7 at USS/Minntac."

# US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.b: NO X

# Control - Ported Kilns

Operating Unit: Line 4 waste gas

Emission Unit Number EU 259 Stack/Vent Number SV 118 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 596,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F Size 165 mmbtu/hr

CONTROL EQUIPMENT COSTS Capital Costs (1)



### Total Capital Investment (TCI) = DC + IC 5,000,000 Minntac Line 4/5 Budget Estimate = 5,000,000 $
Operating Costs (2) 

### Total Annual Cost (Annualized Capital Cost) 471,965

Capital Recovery Factor

Interest Rate 7.00% Equipment Life 20 years CRF 0.0944 Capital Recovery Cost 471,965

Actual 

## Emission Control Cost Calculation Emis Max Emis Annual Control Eff (3) 

### Controlled Emis Reduction Control Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,812.0

5% 1721.4 90.6 5,209
Notes & Assumptions 1 Capital costs based on Minntac Line 4/5 budget esti mate. 2 Total annualized cost is equal to the annualized ca pital cost. 3 Control efficiency based on report, "NO X

### Emissions Analysis Pre and Post Installation of Ai r Injection Ports on Line 7 at USS/Minntac."

# US Steel - Minntac

BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.c: NO X

# Control - Ported Kilns

Operating Unit: Line 5 waste gas

Emission Unit Number EU 280 Stack/Vent Number SV 127 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 596,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F Size 165 mmbtu/hr

CONTROL EQUIPMENT COSTS Capital Costs (1)



### Total Capital Investment (TCI) = DC + IC 5,000,000 Minntac Line 4/5 Budget Estimate = 5,000,000 $
Operating Costs (2) 

### Total Annual Cost (Annualized Capital Cost) 471,965

Capital Recovery Factor

Interest Rate 7.00% Equipment Life 20 years CRF 0.0944 Capital Recovery Cost 471,965

Actual 

## Emission Control Cost Calculation Emis Max Emis Annual Control Eff (3) 

### Controlled Emis Reduction Control Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,820.0

5% 1729.0 91.0 5,186
Notes & Assumptions 1 Capital costs based on Minntac Line 4/5 budget esti mate. 2 Total annualized cost is equal to the annualized ca pital cost. 3 Control efficiency based on report, "NO X

### Emissions Analysis Pre and Post Installation of Ai r Injection Ports on Line 7 at USS/Minntac."

## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.a: SO 2

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Line 3 waste gas

Emission Unit Number EU 223 Stack/Vent Number SV 103 Standardized Flow Rate 268,515 scfm @ 32o F Expected Utilization Rate 93% Temperature 130 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 322,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 2 88,163 scfm @ 68o F Dry Std Flow Rate 257,906 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 4,994,311 Purchased Equipment Total (B) 22% of control devicecost (A) 6,068,088

Installation - Standard Costs 67% of purchased equip cost (B) 4,065,619 Installation - Site Specific Costs 6,200,000 Installation Total 4,065,619 Total Direct Capital Cost, DC 10,133,707 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 3,458,810 Total Capital Investment (TCI) = DC + IC 27,948,027
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 2,023,179 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 3,299,144 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 5,322,323

Actual 

### Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 876.9 1,345.0

0% 1345.0 - NA Sulfur Dioxide (SO 2 ) 98.6 329.3

80% 65.9 263.5 20,201

Notes & Assumptions 1 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 3. 2 Original estimate from Durr. Used 0.6 power law fa ctor to adjust price to stack flow rate acfm from b id basis of 291,000 acfm 3 CUECost Workbook Version 1.0, USEPA Document Page 2

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.a: SO2 Control - Wet Walled ElectrostaticPrecipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2- ESP + auxiliary equipment 4,994,311 Instrumentation 10% of control device cost (A) 499,431 MN Sales Taxes 6.5% of control device cost (A) 324,630 Freight 5% of control device cost (A) 249,716 Purchased Equipment Total (B) 22% 6,068,088

Installation Foundations & supports 4% of purchased equip cost (B) 242,724 Handling & erection 50% of purchased equip cost (B) 3,034,044 Electrical 8% of purchased equip cost (B) 485,447 Piping 1% of purchased equip cost (B) 60,681 Insulation 2% of purchased equip cost (B) 121,362 Painting 2% of purchased equip cost (B) 121,362 Installation Subtotal Standard Expenses 67% 4,065,619
Total Direct Capital Cost, DC 10,133,707
Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 1,213,618 Construction & field expenses 20% of purchased equip cost (B) 1,213,618 Contractor fees 10% of purchased equip cost (B) 606,809 Start-up 1% of purchased equip cost (B) 60,681 Performance test 1% of purchased equip cost (B) 60,681 Model Studies 2% of purchased equip cost (B) 121,362 Contingencies 3% of purchased equip cost (B) 182,043 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 3,458,810
Total Capital Investment (TCI) = DC + IC 13,592,517 Retrofit multiplier 3 60% of TCI 8,155,510

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 27,948,027



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Labor 61.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 6,283 Maintenance Materials 1.00 % of Maintenance Labor 49,943 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 28 6,765 Water 0.08 $/mgal, 1,610 gpm, 7946 hr/yr, 93% utilization 5 7,108 WW Treat Neutralization 1.69 $/mgal, 1,610 gpm, 7946 hr/yr, 93% utilization 1,205,171 Caustic 305.96 $/ton, 246 lb/hr, 7946 hr/yr, 93% utilization 278,556 Total Annual Direct Operating Costs 2,023,179
Indirect Operating Costs Overhead 60% of total labor and material costs 117,347 Administration (2% total capital costs) 2% of total c apital costs (TCI) 271,850 Property tax (1% total capital costs) 1% of total capital costs (TCI) 135,925 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 135,925 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 2,638,096 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,299,144

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 5,322,323
See summary page for notes and assumptions

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.a: SO2 Control - Wet Walled ElectrostaticPrecipitator

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 322,000 10 582.8 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 30.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47 Plate Area ESP Power 76,157 147.7 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 760.9

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 1610.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 246.40 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2. 0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 15.0 hr/wk 660 6,283 $/Hr, 15.0 hr /wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 49,943 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 760.9 kW-hr 5,622,840 286,765 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/mgal 1,610.0 gpm 713,853 57,108 $/mgal, 1,61 0 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 1,610.0 gpm 713,853 1,205,171 $/mgal, 1,610 g pm, 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 246.4 lb/hr 910 278,556 $/ton, 246 lb/hr, 7946 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

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.b: SO 2

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Line 4 waste gas

Emission Unit Number EU 259 Stack/Vent Number SV 118 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 96,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 7,612,198 Purchased Equipment Total (B) 22% of control devicecost (A) 9,248,821

Installation - Standard Costs 67% of purchased equip cost (B) 6,196,710 Installation - Site Specific Costs 6,200,000 Installation Total 6,196,710 Total Direct Capital Cost, DC 15,445,530 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,271,828 Total Capital Investment (TCI) = DC + IC 39,347,773
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 3,768,592 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 4,679,741 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 8,448,332

Actual 

### Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,812.0

0% 1812.0 - NA Sulfur Dioxide (SO 2 ) 146.3 447.5

80% 89.5 358.0 23,597

Notes & Assumptions 1 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 3. 2 Original estimate from Durr. Used 0.6 power law fa ctor to adjust price to stack flow rate acfm from b id basis of 291,000 acfm 3 CUECost Workbook Version 1.0, USEPA Document Page 2

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.b: SO2 Control - Wet Walled ElectrostaticPrecipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2- ESP + auxiliary equipment 7,612,198 Instrumentation 10% of control device cost (A) 761,220 MN Sales Taxes 6.5% of control device cost (A) 494,793 Freight 5% of control device cost (A) 380,610 Purchased Equipment Total (B) 22% 9,248,821

Installation Foundations & supports 4% of purchased equip cost (B) 369,953 Handling & erection 50% of purchased equip cost (B) 4,624,410 Electrical 8% of purchased equip cost (B) 739,906 Piping 1% of purchased equip cost (B) 92,488 Insulation 2% of purchased equip cost (B) 184,976 Painting 2% of purchased equip cost (B) 184,976 Installation Subtotal Standard Expenses 67% 6,196,710
Total Direct Capital Cost, DC 15,445,530
Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 1,849,764 Construction & field expenses 20% of purchased equip cost (B) 1,849,764 Contractor fees 10% of purchased equip cost (B) 924,882 Start-up 1% of purchased equip cost (B) 92,488 Performance test 1% of purchased equip cost (B) 92,488 Model Studies 2% of purchased equip cost (B) 184,976 Contingencies 3% of purchased equip cost (B) 277,465 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,271,828
Total Capital Investment (TCI) = DC + IC 20,717,358 Retrofit multiplier 3 60% of TCI 12,430,415

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 39,347,773



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Labor 61.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 12,683 Maintenance Materials 1.00 % of Maintenance Labor 76,122 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,536 kW-hr, 7946 hr/yr, 93% utilization 578,873 Water 0.08 $/mgal, 3,250 gpm, 7946 hr/yr, 93% utilization 1 15,281 WW Treat Neutralization 1.69 $/mgal, 3,250 gpm, 7946 hr/yr, 93% utilization 2,432,799 Caustic 305.96 $/ton, 366 lb/hr, 7946 hr/yr, 93% utilization 413,481 Total Annual Direct Operating Costs 3,768,592
Indirect Operating Costs Overhead 60% of total labor and material costs 136,895 Administration (2% total capital costs) 2% of total c apital costs (TCI) 414,347 Property tax (1% total capital costs) 1% of total capital costs (TCI) 207,174 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 207,174 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 3,714,151 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 4,679,741

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 8,448,332
See summary page for notes and assumptions

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.b: SO2 Control - Wet Walled ElectrostaticPrecipitator

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 650,000 10 1,176.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 61.2 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47 Plate Area ESP Power 153,733 298.2 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 1,536.0

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 3250.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 365.75 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2. 0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 15.0 hr/wk 660 12,683 $/Hr, 15.0 h r/wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 76,122 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1536.0 kW-hr 11,350,454 578,873 $/kwh, 1,536 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/mgal 3,250.0 gpm 1,441,007 115,281 $/mgal, 3 ,250 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 3,250.0 gpm 1,441,007 2,432,799 $/mgal, 3,250 gpm, 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 365.8 lb/hr 1,351 413,481 $/ton, 366 lb/hr, 7946 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

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.c: SO 2

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Line 5 waste gas

Emission Unit Number EU 280 Stack/Vent Number SV 127 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 96,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 7,612,198 Purchased Equipment Total (B) 22% of control devicecost (A) 9,248,821

Installation - Standard Costs 67% of purchased equip cost (B) 6,196,710 Installation - Site Specific Costs 6,200,000 Installation Total 6,196,710 Total Direct Capital Cost, DC 15,445,530 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,271,828 Total Capital Investment (TCI) = DC + IC 39,347,773
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 3,768,592 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 4,679,741 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 8,448,332

Actual 

### Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,820.0

0% 1820.0 - NA Sulfur Dioxide (SO 2 ) 146.3 447.5

80% 89.5 358.0 23,597

Notes & Assumptions 1 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 3. 2 Original estimate from Durr. Used 0.6 power law fa ctor to adjust price to stack flow rate acfm from b id basis of 291,000 acfm 3 CUECost Workbook Version 1.0, USEPA Document Page 2

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.c: SO2 Control - Wet Walled ElectrostaticPrecipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2- ESP + auxiliary equipment 7,612,198 Instrumentation 10% of control device cost (A) 761,220 MN Sales Taxes 6.5% of control device cost (A) 494,793 Freight 5% of control device cost (A) 380,610 Purchased Equipment Total (B) 22% 9,248,821

Installation Foundations & supports 4% of purchased equip cost (B) 369,953 Handling & erection 50% of purchased equip cost (B) 4,624,410 Electrical 8% of purchased equip cost (B) 739,906 Piping 1% of purchased equip cost (B) 92,488 Insulation 2% of purchased equip cost (B) 184,976 Painting 2% of purchased equip cost (B) 184,976 Installation Subtotal Standard Expenses 67% 6,196,710
Total Direct Capital Cost, DC 15,445,530
Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 1,849,764 Construction & field expenses 20% of purchased equip cost (B) 1,849,764 Contractor fees 10% of purchased equip cost (B) 924,882 Start-up 1% of purchased equip cost (B) 92,488 Performance test 1% of purchased equip cost (B) 92,488 Model Studies 2% of purchased equip cost (B) 184,976 Contingencies 3% of purchased equip cost (B) 277,465 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,271,828
Total Capital Investment (TCI) = DC + IC 20,717,358 Retrofit multiplier 3 60% of TCI 12,430,415

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 39,347,773



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Labor 61.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 12,683 Maintenance Materials 1.00 % of Maintenance Labor 76,122 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,536 kW-hr, 7946 hr/yr, 93% utilization 578,873 Water 0.08 $/mgal, 3,250 gpm, 7946 hr/yr, 93% utilization 1 15,281 WW Treat Neutralization 1.69 $/mgal, 3,250 gpm, 7946 hr/yr, 93% utilization 2,432,799 Caustic 305.96 $/ton, 366 lb/hr, 7946 hr/yr, 93% utilization 413,481 Total Annual Direct Operating Costs 3,768,592
Indirect Operating Costs Overhead 60% of total labor and material costs 136,895 Administration (2% total capital costs) 2% of total c apital costs (TCI) 414,347 Property tax (1% total capital costs) 1% of total capital costs (TCI) 207,174 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 207,174 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 3,714,151 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 4,679,741

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 8,448,332
See summary page for notes and assumptions

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.c: SO2 Control - Wet Walled ElectrostaticPrecipitator

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 650,000 10 1,176.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 61.2 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47 Plate Area ESP Power 153,733 298.2 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 1,536.0

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 3250.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 365.75 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2. 0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 15.0 hr/wk 660 12,683 $/Hr, 15.0 h r/wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 76,122 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1536.0 kW-hr 11,350,454 578,873 $/kwh, 1,536 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/mgal 3,250.0 gpm 1,441,007 115,281 $/mgal, 3 ,250 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 3,250.0 gpm 1,441,007 2,432,799 $/mgal, 3,250 gpm, 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 365.8 lb/hr 1,351 413,481 $/ton, 366 lb/hr, 7946 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

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.d: SO 2

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Line 6 waste gas

Emission Unit Number EU 313 Stack/Vent Number SV 144 Standardized Flow Rate 518,805 scfm @ 32o F Expected Utilization Rate 93% Temperature 109 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 56,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 6,928,558 Purchased Equipment Total (B) 22% of control devicecost (A) 8,418,198

Installation - Standard Costs 67% of purchased equip cost (B) 5,640,193 Installation - Site Specific Costs 6,200,000 Installation Total 5,640,193 Total Direct Capital Cost, DC 14,058,391 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 4,798,373 Total Capital Investment (TCI) = DC + IC 36,370,821
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 3,620,521 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 4,319,107 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 7,939,628

Actual 

### Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,202.3 1,776.0

0% 1776.0 - NA Sulfur Dioxide (SO 2 ) 184.8 544.8

80% 109.0 435.9 18,216

Notes & Assumptions 1 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 3. 2 Original estimate from Durr. Used 0.6 power law fa ctor to adjust price to stack flow rate acfm from b id basis of 291,000 acfm 3 CUECost Workbook Version 1.0, USEPA Document Page 2

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.d: SO2 Control - Wet Walled ElectrostaticPrecipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2- ESP + auxiliary equipment 6,928,558 Instrumentation 10% of control device cost (A) 692,856 MN Sales Taxes 6.5% of control device cost (A) 450,356 Freight 5% of control device cost (A) 346,428 Purchased Equipment Total (B) 22% 8,418,198

Installation Foundations & supports 4% of purchased equip cost (B) 336,728 Handling & erection 50% of purchased equip cost (B) 4,209,099 Electrical 8% of purchased equip cost (B) 673,456 Piping 1% of purchased equip cost (B) 84,182 Insulation 2% of purchased equip cost (B) 168,364 Painting 2% of purchased equip cost (B) 168,364 Installation Subtotal Standard Expenses 67% 5,640,193
Total Direct Capital Cost, DC 14,058,391
Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 1,683,640 Construction & field expenses 20% of purchased equip cost (B) 1,683,640 Contractor fees 10% of purchased equip cost (B) 841,820 Start-up 1% of purchased equip cost (B) 84,182 Performance test 1% of purchased equip cost (B) 84,182 Model Studies 2% of purchased equip cost (B) 168,364 Contingencies 3% of purchased equip cost (B) 252,546 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 4,798,373
Total Capital Investment (TCI) = DC + IC 18,856,763 Retrofit multiplier 3 60% of TCI 11,314,058

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 36,370,821



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Labor 61.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 10,842 Maintenance Materials 1.00 % of Maintenance Labor 69,286 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,397 kW-hr, 7946 hr/yr, 93% utilization 526,675 Water 0.08 $/mgal, 3,000 gpm, 7946 hr/yr, 93% utilization 1 06,413 WW Treat Neutralization 1.69 $/mgal, 3,000 gpm, 7946 hr/yr, 93% utilization 2,245,661 Caustic 305.96 $/ton, 462 lb/hr, 7946 hr/yr, 93% utilization 522,292 Total Annual Direct Operating Costs 3,620,521
Indirect Operating Costs Overhead 60% of total labor and material costs 131,688 Administration (2% total capital costs) 2% of total c apital costs (TCI) 377,135 Property tax (1% total capital costs) 1% of total capital costs (TCI) 188,568 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 188,568 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 3,433,148 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 4,319,107

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 7,939,628
See summary page for notes and assumptions

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.d: SO2 Control - Wet Walled ElectrostaticPrecipitator

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 600,000 10 1,086.0 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 56.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47 Plate Area ESP Power 131,418 255.0 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 1,397.5

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 3000.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 462.00 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2. 0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 15.0 hr/wk 660 10,842 $/Hr, 15.0 h r/wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 69,286 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1397.5 kW-hr 10,326,966 526,675 $/kwh, 1,397 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/mgal 3,000.0 gpm 1,330,160 106,413 $/mgal, 3 ,000 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 3,000.0 gpm 1,330,160 2,245,661 $/mgal, 3,000 gpm, 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 462.0 lb/hr 1,707 522,292 $/ton, 462 lb/hr, 7946 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

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## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.e: SO 2

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Line 7 waste gas

Emission Unit Number EU 332 Stack/Vent Number SV 151 Standardized Flow Rate 518,805 scfm @ 32o F Expected Utilization Rate 93% Temperature 109 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 5 56,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 7,255,257 Purchased Equipment Total (B) 22% of control devicecost (A) 8,815,138

Installation - Standard Costs 67% of purchased equip cost (B) 5,906,142 Installation - Site Specific Costs 6,200,000 Installation Total 5,906,142 Total Direct Capital Cost, DC 14,721,280 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,024,628 Total Capital Investment (TCI) = DC + IC 37,793,453
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 3,632,323 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 4,491,439 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 8,123,761

Actual 

### Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,202.3 1,928.0

0% 1928.0 - NA Sulfur Dioxide (SO 2 ) 184.8 544.8

80% 109.0 435.9 18,638

Notes & Assumptions 1 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 3. 2 Original estimate from Durr. Used 0.6 power law fa ctor to adjust price to stack flow rate acfm from b id basis of 291,000 acfm 3 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 WWESP 9/7/2006 Page 58 of 75

## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.e: SO2 Control - Wet Walled ElectrostaticPrecipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2- ESP + auxiliary equipment 7,255,257 Instrumentation 10% of control device cost (A) 725,526 MN Sales Taxes 6.5% of control device cost (A) 471,592 Freight 5% of control device cost (A) 362,763 Purchased Equipment Total (B) 22% 8,815,138

Installation Foundations & supports 4% of purchased equip cost (B) 352,606 Handling & erection 50% of purchased equip cost (B) 4,407,569 Electrical 8% of purchased equip cost (B) 705,211 Piping 1% of purchased equip cost (B) 88,151 Insulation 2% of purchased equip cost (B) 176,303 Painting 2% of purchased equip cost (B) 176,303 Installation Subtotal Standard Expenses 67% 5,906,142
Total Direct Capital Cost, DC 14,721,280
Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 1,763,028 Construction & field expenses 20% of purchased equip cost (B) 1,763,028 Contractor fees 10% of purchased equip cost (B) 881,514 Start-up 1% of purchased equip cost (B) 88,151 Performance test 1% of purchased equip cost (B) 88,151 Model Studies 2% of purchased equip cost (B) 176,303 Contingencies 3% of purchased equip cost (B) 264,454 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,024,628
Total Capital Investment (TCI) = DC + IC 19,745,908 Retrofit multiplier 3 60% of TCI 11,847,545

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 37,793,453



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 121,177 Supervisor 15% 15% of Operator Costs 18,176 Maintenance Maintenance Labor 61.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 11,707 Maintenance Materials 1.00 % of Maintenance Labor 72,553 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,418 kW-hr, 7946 hr/yr, 93% utilization 534,344 Water 0.08 $/mgal, 3,000 gpm, 7946 hr/yr, 93% utilization 1 06,413 WW Treat Neutralization 1.69 $/mgal, 3,000 gpm, 7946 hr/yr, 93% utilization 2,245,661 Caustic 305.96 $/ton, 462 lb/hr, 7946 hr/yr, 93% utilization 522,292 Total Annual Direct Operating Costs 3,632,323
Indirect Operating Costs Overhead 60% of total labor and material costs 134,168 Administration (2% total capital costs) 2% of total c apital costs (TCI) 394,918 Property tax (1% total capital costs) 1% of total capital costs (TCI) 197,459 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 197,459 Capital Recovery 0.0944 for a 20- year equipment lifeand a 7% interest rate 3,567,435 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 4,491,439

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 8,123,761
See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Minntac\Minntac Control Costs Line7 WWESP 9/7/2006 Page 59 of 75

## US Steel - Minntac

BART Report - Attachment A: Emission Control Cost Analysis Table A.6.e: SO2 Control - Wet Walled ElectrostaticPrecipitator

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 600,000 10 1,086.0 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 56.5 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47 Plate Area ESP Power 141,907 275.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 1,417.8

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 3000.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 462.00 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61 $/Hr 2.0 hr/8 hr shift 1,987 121,177 $/Hr, 2. 0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 18,176 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 15.0 hr/wk 660 11,707 $/Hr, 15.0 h r/wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 72,553 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1417.8 kW-hr 10,477,342 534,344 $/kwh, 1,418 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/mgal 3,000.0 gpm 1,330,160 106,413 $/mgal, 3 ,000 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 3,000.0 gpm 1,330,160 2,245,661 $/mgal, 3,000 gpm, 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 462.0 lb/hr 1,707 522,292 $/ton, 462 lb/hr, 7946 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

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### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.a: SO 2

### Control - Wet Scrubber

Operating Unit: Line 3 waste gas

Emission Unit Number EU 223 Stack/Vent Number SV 103 Standardized Flow Rate 268,515 scfm @ 32o F Expected Utilization Rate 93% Temperature 130 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 322,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 288,163 scfm @ 68o F Dry Std Flow Rate 257,906 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 3,453,270 Purchased Equipment Total (B) 22% of control device cost (A) 4,195,723

Installation - Standard Costs 85% of purchased equip cost (B) 3,566,365 Installation - Site Specific Costs 6,200,000 Installation Total 3,566,365 Total Direct Capital Cost, DC 7,762,088 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 629,358 Total Capital Investment (TCI) = DC + IC 19,626,314
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 570,934 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 2,245,499 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,816,433

Actual Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 876.9 1,345.0

0% 1345.0 - NA Sulfur Dioxide (SO 2 ) 98.6 329.3

60% 131.7 197.6 14,253

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 circul ating water rate 4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Th ird Edition. 5 CUECost Workbook Version 1.0, USEPA Document Page 2

Line3 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.a: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 3,453,270 Instrumentation 10% of control device cost (A) 345,327 MN Sales Taxes 6.5% of control device cost (A) 224,463 Freight 5% of control device cost (A) 172,663 Purchased Equipment Total (B) 22% 4,195,723

Installation Foundations & supports 12% of purchased equip cost (B) 503,487 Handling & erection 40% of purchased equip cost (B) 1,678,289 Electrical 1% of purchased equip cost (B) 41,957 Piping 30% of purchased equip cost (B) 1,258,717 Insulation 1% of purchased equip cost (B) 41,957 Painting 1% of purchased equip cost (B) 41,957 Installation Subtotal Standard Expenses 85% 3,566,365
Total Direct Capital Cost, DC 7,762,088
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 209,786 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 209,786 Start-up 1% of purchased equip cost (B) 41,957 Performance test 1% of purchased equip cost (B) 41,957 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 125,872 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 629,358
Total Capital Investment (TCI) = DC + IC 8,391,446 Retrofit multiplier5 60% of TCI 5,034,868
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 19,626,314

OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 662 kW-hr, 7946 hr/yr, 93% utilization 249,56 7 Water 0.08 $/kgal, 302 gpm, 7946 hr/yr, 93% utilization 10,717 WW Treat Neutralization 1.69 $/kgal, 245 gpm, 7946 hr/yr , 93% utilization 183,186 Lime 91.40 $/ton, 95 lb/hr, 7946 hr/yr, 93% utilization 32,0 37 Total Annual Direct Operating Costs 570,934
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 167,829 Property tax (1% total capital costs) 1% of total capital costs (TCI) 83,914 Insurance (1% total capital costs) 1% of total capital costs (TCI) 83,914 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 1,852,585 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,245,499

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,816,433

See Summary page for notes and assumptions

Line3 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.a: SO2 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 $/ft 3 Amount Required 0 ft 3 Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for b aghouse 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 & sa les tax Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQ PS 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 322,000 8.55 0.7

- 460.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.48 Flow Liquid SPGR ∆P ft H2O Efficiency Hp kW Circ Pump 12,236 gpm 1 60 0.7

- 197.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 302 gpm 1 60 0.7 - 4.9 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 662.2
Reagent Use & Other Operating Costs Caustic Use 98.56 lb/hr SO2 2.50 lb NaOH/lb SO2 246.40 lb/hr Caustic Lime Use 98.56 lb/hr SO2 0.96 lb Lime/lb SO2 94.86 lb/hr lime, lime addition at 1.1 times the sto ichiometric ratio Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf Circulating Water Rate 2 12,236 gpm Water Makeup Rate/WW Disch 3= 2.0% of circulating water rate + evap. loss = 302 gpm Evaporation Loss 4= 57.42 gpm

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 662.2 kW-hr 4,893,479 249,567 $/kwh, 662 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/kgal 302.1 gpm 133,963 10,717 $/kgal, 302 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 244.7 gpm 108,506 183,186 $/kgal, 245 gpm, 7946hr/yr, 93% utilization Lime 91.4 $/ton 94.9 lb/hr 351 32,037 $/ton, 95 lb/hr, 7946 hr/yr, 93% utilization

*annual use rate is in same units of measurement asthe unit cost factor
See Summary page for notes and assumptions

Line3 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.b: SO 2

### Control - Wet Scrubber

Operating Unit: Line 4 waste gas

Emission Unit Number EU 259 Stack/Vent Number SV 118 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 596,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 5,263,384 Purchased Equipment Total (B) 22% of control device cost (A) 6,395,011

Installation - Standard Costs 85% of purchased equip cost (B) 5,435,759 Installation - Site Specific Costs 6,200,000 Installation Total 5,435,759 Total Direct Capital Cost, DC 11,830,771 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 959,252 Total Capital Investment (TCI) = DC + IC 26,664,036
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 1,038,186 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 3,085,753 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 4,123,939

Actual Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,812.0

0% 1812.0 - NA Sulfur Dioxide (SO 2 ) 146.3 447.5

60% 179.0 268.5 15,358

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 circul ating water rate 4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Th ird Edition. 5 CUECost Workbook Version 1.0, USEPA Document Page 2

Line4 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.b: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 5,263,384 Instrumentation 10% of control device cost (A) 526,338 MN Sales Taxes 7% of control device cost (A) 342,120 Freight 5% of control device cost (A) 263,169 Purchased Equipment Total (B) 22% 6,395,011

Installation Foundations & supports 12% of purchased equip cost (B) 767,401 Handling & erection 40% of purchased equip cost (B) 2,558,004 Electrical 1% of purchased equip cost (B) 63,950 Piping 30% of purchased equip cost (B) 1,918,503 Insulation 1% of purchased equip cost (B) 63,950 Painting 1% of purchased equip cost (B) 63,950 Installation Subtotal Standard Expenses 85% 5,435,759
Total Direct Capital Cost, DC 11,830,771
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 319,751 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 319,751 Start-up 1% of purchased equip cost (B) 63,950 Performance test 1% of purchased equip cost (B) 63,950 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 191,850 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 959,252
Total Capital Investment (TCI) = DC + IC 12,790,022 Retrofit multiplier5 60% of TCI 7,674,013
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 26,664,036

OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,337 kW-hr, 7946 hr/yr, 93% utilization 503, 785 Water 0.08 $/kgal, 610 gpm, 7946 hr/yr, 93% utilization 21,634 WW Treat Neutralization 1.69 $/kgal, 494 gpm, 7946 hr/yr , 93% utilization 369,785 Lime 91.40 $/ton, 141 lb/hr, 7946 hr/yr, 93% utilization 47, 555 Total Annual Direct Operating Costs 1,038,186
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 255,800 Property tax (1% total capital costs) 1% of total capital costs (TCI) 127,900 Insurance (1% total capital costs) 1% of total capital costs (TCI) 127,900 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 2,516,896 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,085,753

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 4,123,939

See Summary page for notes and assumptions

Line4 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.b: SO2 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 $/ft 3 Amount Required 0 ft 3 Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for b aghouse 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 & sa les tax Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQ PS 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 650,000 8.55 0.7

- 928.9 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.48 Flow Liquid SPGR ∆P ft H2O Efficiency Hp kW Circ Pump 24,700 gpm 1 60 0.7

- 398.0 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 610 gpm 1 60 0.7 - 9.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 1336.7
Reagent Use & Other Operating Costs Caustic Use 146.30 lb/hr SO2 2.50 lb NaOH/lb SO2 365.75 lb/hr Caustic Lime Use 146.30 lb/hr SO2 0.96 lb Lime/lb SO2 140.81 lb/hr lime, lime addition at 1.1 times the st oichiometric ratio Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf Circulating Water Rate 2 24,700 gpm Water Makeup Rate/WW Disch 3= 2.0% of circulating water rate + evap. loss = 610 gpm Evaporation Loss 4= 115.90 gpm

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1336.7 kW-hr 9,878,141 503,785 $/kwh, 1,337 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/kgal 609.9 gpm 270,423 21,634 $/kgal, 610 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 494.0 gpm 219,033 369,785 $/kgal, 494 gpm, 7946hr/yr, 93% utilization Lime 91.4 $/ton 140.8 lb/hr 520 47,555 $/ton, 141 lb/hr, 7946 hr/yr, 93% utilization

*annual use rate is in same units of measurement asthe unit cost factor
See Summary page for notes and assumptions

Line4 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.c: SO 2

### Control - Wet Scrubber

Operating Unit: Line 5 waste gas

Emission Unit Number EU 280 Stack/Vent Number SV 127 Standardized Flow Rate 556,174 scfm @ 32o F Expected Utilization Rate 93% Temperature 115 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 650,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 596,870 scfm @ 68o F Dry Std Flow Rate 534,198 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 5,263,384 Purchased Equipment Total (B) 22% of control device cost (A) 6,395,011

Installation - Standard Costs 85% of purchased equip cost (B) 5,435,759 Installation - Site Specific Costs 6,200,000 Installation Total 5,435,759 Total Direct Capital Cost, DC 11,830,771 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 959,252 Total Capital Investment (TCI) = DC + IC 26,664,036
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 1,038,186 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 3,085,753 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 4,123,939

Actual Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,353.0 1,820.0

0% 1820.0 - NA Sulfur Dioxide (SO 2 ) 146.3 447.5

60% 179.0 268.5 15,358

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 circul ating water rate 4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Th ird Edition. 5 CUECost Workbook Version 1.0, USEPA Document Page 2

Line5 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.c: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 5,263,384 Instrumentation 10% of control device cost (A) 526,338 MN Sales Taxes 7% of control device cost (A) 342,120 Freight 5% of control device cost (A) 263,169 Purchased Equipment Total (B) 22% 6,395,011

Installation Foundations & supports 12% of purchased equip cost (B) 767,401 Handling & erection 40% of purchased equip cost (B) 2,558,004 Electrical 1% of purchased equip cost (B) 63,950 Piping 30% of purchased equip cost (B) 1,918,503 Insulation 1% of purchased equip cost (B) 63,950 Painting 1% of purchased equip cost (B) 63,950 Installation Subtotal Standard Expenses 85% 5,435,759
Total Direct Capital Cost, DC 11,830,771
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 319,751 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 319,751 Start-up 1% of purchased equip cost (B) 63,950 Performance test 1% of purchased equip cost (B) 63,950 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 191,850 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 959,252
Total Capital Investment (TCI) = DC + IC 12,790,022 Retrofit multiplier5 60% of TCI 7,674,013
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 26,664,036

OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,337 kW-hr, 7946 hr/yr, 93% utilization 503, 785 Water 0.08 $/kgal, 610 gpm, 7946 hr/yr, 93% utilization 21,634 WW Treat Neutralization 1.69 $/kgal, 494 gpm, 7946 hr/yr , 93% utilization 369,785 Lime 91.40 $/ton, 141 lb/hr, 7946 hr/yr, 93% utilization 47, 555 Total Annual Direct Operating Costs 1,038,186
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 255,800 Property tax (1% total capital costs) 1% of total capital costs (TCI) 127,900 Insurance (1% total capital costs) 1% of total capital costs (TCI) 127,900 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 2,516,896 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,085,753

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 4,123,939

See Summary page for notes and assumptions

Line5 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.c: SO2 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 $/ft 3 Amount Required 0 ft 3 Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for b aghouse 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 & sa les tax Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQ PS 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 650,000 8.55 0.7

- 928.9 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.48 Flow Liquid SPGR ∆P ft H2O Efficiency Hp kW Circ Pump 24,700 gpm 1 60 0.7

- 398.0 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 610 gpm 1 60 0.7 - 9.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 1336.7
Reagent Use & Other Operating Costs Caustic Use 146.30 lb/hr SO2 2.50 lb NaOH/lb SO2 365.75 lb/hr Caustic Lime Use 146.30 lb/hr SO2 0.96 lb Lime/lb SO2 140.81 lb/hr lime, lime addition at 1.1 times the st oichiometric ratio Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf Circulating Water Rate 2 24,700 gpm Water Makeup Rate/WW Disch 3= 2.0% of circulating water rate + evap. loss = 610 gpm Evaporation Loss 4= 115.90 gpm

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1336.7 kW-hr 9,878,141 503,785 $/kwh, 1,337 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/kgal 609.9 gpm 270,423 21,634 $/kgal, 610 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 494.0 gpm 219,033 369,785 $/kgal, 494 gpm, 7946hr/yr, 93% utilization Lime 91.4 $/ton 140.8 lb/hr 520 47,555 $/ton, 141 lb/hr, 7946 hr/yr, 93% utilization

*annual use rate is in same units of measurement asthe unit cost factor
See Summary page for notes and assumptions

Line5 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.d: SO 2

### Control - Wet Scrubber

Operating Unit: Line 6 waste gas

Emission Unit Number EU 313 Stack/Vent Number SV 144 Standardized Flow Rate 518,805 scfm @ 32o F Expected Utilization Rate 93% Temperature 109 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 556,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 5,016,580 Purchased Equipment Total (B) 22% of control device cost (A) 6,095,145

Installation - Standard Costs 85% of purchased equip cost (B) 5,180,873 Installation - Site Specific Costs 6,200,000 Installation Total 5,180,873 Total Direct Capital Cost, DC 11,276,018 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 914,272 Total Capital Investment (TCI) = DC + IC 25,704,464
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 981,838 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 2,971,187 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 3,953,025

Actual Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,202.3 1,776.0

0% 1776.0 - NA Sulfur Dioxide (SO 2 ) 184.8 544.8

60% 217.9 326.9 12,093

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 circul ating water rate 4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Th ird Edition. 5 CUECost Workbook Version 1.0, USEPA Document Page 2

Line6 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.d: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 5,016,580 Instrumentation 10% of control device cost (A) 501,658 MN Sales Taxes 7% of control device cost (A) 326,078 Freight 5% of control device cost (A) 250,829 Purchased Equipment Total (B) 22% 6,095,145

Installation Foundations & supports 12% of purchased equip cost (B) 731,417 Handling & erection 40% of purchased equip cost (B) 2,438,058 Electrical 1% of purchased equip cost (B) 60,951 Piping 30% of purchased equip cost (B) 1,828,543 Insulation 1% of purchased equip cost (B) 60,951 Painting 1% of purchased equip cost (B) 60,951 Installation Subtotal Standard Expenses 85% 5,180,873
Total Direct Capital Cost, DC 11,276,018
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 304,757 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 304,757 Start-up 1% of purchased equip cost (B) 60,951 Performance test 1% of purchased equip cost (B) 60,951 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 182,854 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 914,272
Total Capital Investment (TCI) = DC + IC 12,190,290 Retrofit multiplier5 60% of TCI 7,314,174
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 25,704,464

OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,234 kW-hr, 7946 hr/yr, 93% utilization 465, 032 Water 0.08 $/kgal, 563 gpm, 7946 hr/yr, 93% utilization 19,970 WW Treat Neutralization 1.69 $/kgal, 456 gpm, 7946 hr/yr , 93% utilization 341,340 Lime 91.40 $/ton, 178 lb/hr, 7946 hr/yr, 93% utilization 60, 069 Total Annual Direct Operating Costs 981,838
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 243,806 Property tax (1% total capital costs) 1% of total capital costs (TCI) 121,903 Insurance (1% total capital costs) 1% of total capital costs (TCI) 121,903 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 2,426,320 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,971,187

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 3,953,025

See Summary page for notes and assumptions

Line6 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.d: SO2 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 $/ft 3 Amount Required 0 ft 3 Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for b aghouse 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 & sa les tax Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQ PS 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 600,000 8.55 0.7

- 857.4 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.48 Flow Liquid SPGR ∆P ft H2O Efficiency Hp kW Circ Pump 22,800 gpm 1 60 0.7

- 367.4 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 563 gpm 1 60 0.7 - 9.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 1233.9
Reagent Use & Other Operating Costs Caustic Use 184.80 lb/hr SO2 2.50 lb NaOH/lb SO2 462.00 lb/hr Caustic Lime Use 184.80 lb/hr SO2 0.96 lb Lime/lb SO2 177.87 lb/hr lime, lime addition at 1.1 times the st oichiometric ratio Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf Circulating Water Rate 2 22,800 gpm Water Makeup Rate/WW Disch 3= 2.0% of circulating water rate + evap. loss = 563 gpm Evaporation Loss 4= 106.99 gpm

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1233.9 kW-hr 9,118,284 465,032 $/kwh, 1,234 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/kgal 563.0 gpm 249,621 19,970 $/kgal, 563 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 456.0 gpm 202,184 341,340 $/kgal, 456 gpm, 7946hr/yr, 93% utilization Lime 91.4 $/ton 177.9 lb/hr 657 60,069 $/ton, 178 lb/hr, 7946 hr/yr, 93% utilization

*annual use rate is in same units of measurement asthe unit cost factor
See Summary page for notes and assumptions

Line6 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.e: SO 2

### Control - Wet Scrubber

Operating Unit: Line 7 waste gas

Emission Unit Number EU 332 Stack/Vent Number SV 151 Standardized Flow Rate 518,805 scfm @ 32o F Expected Utilization Rate 93% Temperature 109 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 600,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 556,766 scfm @ 68o F Dry Std Flow Rate 498,306 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 5,016,580 Purchased Equipment Total (B) 22% of control device cost (A) 6,095,145

Installation - Standard Costs 85% of purchased equip cost (B) 5,180,873 Installation - Site Specific Costs 6,200,000 Installation Total 5,180,873 Total Direct Capital Cost, DC 11,276,018 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 914,272 Total Capital Investment (TCI) = DC + IC 25,704,464
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 981,838 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 2,971,187 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 3,953,025

Actual Emission Control Cost Calculation Emis Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,202.3 1,928.0

0% 1928.0 - NA Sulfur Dioxide (SO 2 ) 184.8 544.8

60% 217.9 326.9 12,093

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 circul ating water rate 4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Th ird Edition. 5 CUECost Workbook Version 1.0, USEPA Document Page 2

Line7 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.e: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 5,016,580 Instrumentation 10% of control device cost (A) 501,658 MN Sales Taxes 7% of control device cost (A) 326,078 Freight 5% of control device cost (A) 250,829 Purchased Equipment Total (B) 22% 6,095,145

Installation Foundations & supports 12% of purchased equip cost (B) 731,417 Handling & erection 40% of purchased equip cost (B) 2,438,058 Electrical 1% of purchased equip cost (B) 60,951 Piping 30% of purchased equip cost (B) 1,828,543 Insulation 1% of purchased equip cost (B) 60,951 Painting 1% of purchased equip cost (B) 60,951 Installation Subtotal Standard Expenses 85% 5,180,873
Total Direct Capital Cost, DC 11,276,018
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 304,757 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 304,757 Start-up 1% of purchased equip cost (B) 60,951 Performance test 1% of purchased equip cost (B) 60,951 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 182,854 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 914,272
Total Capital Investment (TCI) = DC + IC 12,190,290 Retrofit multiplier5 60% of TCI 7,314,174
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 25,704,464

OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 30,294 Supervisor 15% 15% of Operator Costs 4,544 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946hr/yr 30,294 Maintenance Materials 100% of maintenance labor costs 30,294 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,234 kW-hr, 7946 hr/yr, 93% utilization 465, 032 Water 0.08 $/kgal, 563 gpm, 7946 hr/yr, 93% utilization 19,970 WW Treat Neutralization 1.69 $/kgal, 456 gpm, 7946 hr/yr , 93% utilization 341,340 Lime 91.40 $/ton, 178 lb/hr, 7946 hr/yr, 93% utilization 60, 069 Total Annual Direct Operating Costs 981,838
Indirect Operating Costs Overhead 60% of total labor and material costs 57,256 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 243,806 Property tax (1% total capital costs) 1% of total capital costs (TCI) 121,903 Insurance (1% total capital costs) 1% of total capital costs (TCI) 121,903 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 2,426,320 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,971,187

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 3,953,025

See Summary page for notes and assumptions

Line7 Wet Scrubber

### US Steel - Minntac BART Report - Attachment A: Emission Control Cost A nalysis Table A.7.e: SO2 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 $/ft 3 Amount Required 0 ft 3 Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for b aghouse 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 & sa les tax Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQ PS 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 600,000 8.55 0.7

- 857.4 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.48 Flow Liquid SPGR ∆P ft H2O Efficiency Hp kW Circ Pump 22,800 gpm 1 60 0.7

- 367.4 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 563 gpm 1 60 0.7 - 9.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 1233.9
Reagent Use & Other Operating Costs Caustic Use 184.80 lb/hr SO2 2.50 lb NaOH/lb SO2 462.00 lb/hr Caustic Lime Use 184.80 lb/hr SO2 0.96 lb Lime/lb SO2 177.87 lb/hr lime, lime addition at 1.1 times the st oichiometric ratio Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf Circulating Water Rate 2 22,800 gpm Water Makeup Rate/WW Disch 3= 2.0% of circulating water rate + evap. loss = 563 gpm Evaporation Loss 4= 106.99 gpm

Operating Cost Calculations Annual hours of operation: 7,946 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 4,544 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 497 30,294 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 30,294 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1233.9 kW-hr 9,118,284 465,032 $/kwh, 1,234 kW-hr, 7946 hr/yr, 93% utilization Water 0.08 $/kgal 563.0 gpm 249,621 19,970 $/kgal, 563 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 456.0 gpm 202,184 341,340 $/kgal, 456 gpm, 7946hr/yr, 93% utilization Lime 91.4 $/ton 177.9 lb/hr 657 60,069 $/ton, 178 lb/hr, 7946 hr/yr, 93% utilization

*annual use rate is in same units of measurement asthe unit cost factor
See Summary page for notes and assumptions

Line7 Wet Scrubber