United States Steel: Keewatin Taconite Company9/6/2006BART Report - Attachment A: Emission Control Cost AnalysisTable A.1: Cost SummaryNOxControl Cost SummaryControl TechnologyControlEff %ControlledEmissions T/yEmissionReduction T/yrInstalled CapitalCost $AnnualizedOperating Cost $/yrPollution ControlCost $/tonIncrementalControl Cost$/tonSelective CatalyticReduction with Reheat(SCR)80% 830.8 3323.2 $63,936,099 $31,615,514 $9,514 $9,952Ported Kilns 5% 3946.3 207.7 $6,465,590 $610,306 $2,938 n/aSO2Control Cost SummaryControl TechnologyControlEff %ControlledEmissions T/yEmissionReduction T/yrInstalled CapitalCost $AnnualizedOperating Cost $/yrPollution ControlCost $/tonIncrementalControl Cost$/tonWet Walled ElectrostaticPrecipitator (WWESP)(after existing scrubber)80% 190.1 760.4 $45,081,576 $11,531,318$15,165n/aSecondary Wet Scrubber(after existing scrubber)60% 380.2 570.3 $30,203,843 $5,058,352 $8,870 n/aY:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control CostsCost Summary9/7/2006 Page 1 of 17United States Steel: Keewatin Taconite CompanyBART Report - Attachment A: Emission Control Cost AnalysisTable A.2: Summary of Utility, Chemical and SupplyCostsOperating Unit:Indurating FurnaceStudy Year2006Emission Unit Number EU 030Stack/Vent Number SV051MItem Unit Cost Units Cost Year Data Source NotesOperating Labor61 $/hrPer Kevin Pylka e-mail 07-31-06Maintenance Labor61 $/hrPer Kevin Pylka e-mail 07-31-06Electricity0.051 $/kwh2006Expected annual average industrial price ofelectricity in the West North Central Divisionfor 2007 - DOEhttp://tonto.eia.doe.gov/steo_query/app/elecpage.htmNatural Gas9.2575 $/mscf2005Energy Information Administration. AverageUS Industrial Natural Gas Prices. July '05 toJune '06.http://tonto.eia.doe.gov/dnav/ng/hist/n3035us3m.htmWater0.28 $/mgal 0.20 1995EPA Air Pollution Control Cost Manual, 6thEd 2002, Section 5 Ch 1, page 1-40Annual Costs for Packed Tower Absorber Example Problem. '95 costadjusted for 3% inflation.Cooling Water0.28 $/mgal 0.23 1999EPA Air Pollution Control Cost Manual, 6thed. Section 3.1 Ch 1Ch 1 Carbon Absorbers, 1999 $0.15 - $0.30 Avg of 22.5 and 7 yrs and3% inflationCompressed Air0.32 $/mscf 0.25 1998EPA Air Pollution Control Cost Manual 6th Ed2002, Section 6 Chapter 1Example problem; Dried & Filtered, Ch 1.6 '98 cost adjusted for 3%inflationWastewater Disposal Neutralization1.69 $/mgal 1.50 2002EPA Air Pollution Control Cost Manual 6th Ed2002, Section 2 Chapter 2.5.5.5Section 2 lists $1- $2/1000 gal. Cost adjusted for 3% inflation Sec 6 Ch3 lists $1.30 - $2.15/1,000 galSCR Catalyst141.00$/ft3Cormetech, Inc.Chemicals & SuppliesLime91.62 $/ton91.62 2006Estimate from Cutler-Magney Company.Oxygen40.00 $/ton2006BOC estimate.Ammonia (29% aqua.)0.12 $/lb0.101 2000EPA Air Pollution Control Cost Manual 6th Ed2002, Section 5 Chapter 2, page 2-50Annual costs for a retrofit SCR system example problem. '00 costsadjusted for 3% inflation.Caustic305.96 $/ton280 2003 Hawkins Chemical50% solution (50 Deg Be); includes delivery. '03 cost adjusted for inflationOtherSales Tax6.5% %Interest Rate7.00% %EPA Air Pollution Control Cost ManualIntroduction, Chapter 2, section 2.4.2.Social (discount) rate used as a default.Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control CostsUtility Chem$ Data9/7/2006 Page 2 of 17Operating InformationAnnual Op. Hrs8400 HoursUtilization Rate93%Equipment Life20 yrsEngineering EstimateStandardized Flow RateSV051M704,757 scfm @ 32o FCalculated.TemperatureSV051M132 Deg FBART spreadsheet.Moisture ContentSV051M16.5%Per Kevin Pylka e-mail 07-31-06Actual Flow RateSV051M848,000 acfmBART spreadsheet.Standardized Flow RateSV051M756,324 scfm @ 68o FCalculated.Dry Std Flow RateSV051M631,531 dscfm @ 68o FCalculated.Max Emis1Projected Future lb/hr ton/yearPollutant Lb/Hr Actuals4(tpy) ppmv ppmvNitrous Oxides (NOx)SV051M1397.0 4,154.0 309 209.4with 100% coal2466.0with 100% natural gas31270.0Enter percent coal burned 40%Enter percent natural gas burned 60%1) Based on Oct '05 stack test with 10% factor added.2) Based on Jun 2006 stack test3) Based on Oct 2005 stack test4) Based on percent of each type of fuel burned, and max lb/hr emissions in cells C122 and C123.Max Emis1Projected FutureSulfur Dioxides (SO2)Lb/Hr Actuals2(tpy)SV051M400.0 950.5 63 34.41) Max emissions based on recent stack test data, but assumed to use a coal with 1% Sulfur instead of 0.47%2) Projected future actuals are based on the permit limit of 217 lb/hr.Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control CostsUtility Chem$ Data9/7/2006 Page 3 of 17

# United States Steel: Keewatin Taconite Company

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

# Control - Selective Catalytic Reduction with Rehea t

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M Design Capacity 350 mmbtu/hr Standardized Flow Rate 704,757 scfm @ 32o F Expected Utilization Rate 93% Temperature 132 Deg F Expected Annual Hours of Operation 8,400 Hours Moisture Content 16.5% Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 7 56,324 scfm @ 68o F Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 25,614,464 Purchased Equipment Total SCR Only 27,279,404 SCR + Reheat 28,192,467

Total Capital Investment (TCI) = DC + IC SCR + Reheat 63,936,099

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. SCR + Reheat 23,952,985 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 7,687,489 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 31,615,514



## 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) 1,397.0 4,154.0

80% 830.8 3,323.2 9,514

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 Cost Manual 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 CUECost Workbook Version 1.0, USEPA Document Page 2

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# United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3: NOx Control - Selective Catalytic Reduct ion with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 25,614,464 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 1,664,940 Freight 5% of control device cost (A) NA Purchased Equipment Total 27,279,404

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 10% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 10% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 4,488,495

Total Plant Cost (D) A + B + C 34,411,798

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)) 688,236

Inventory Capital Reagent Vol * $/gal 66,258

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 35,166,291

Retrofit factor (11) 60% of TCI 21,099,775 Site preparation 1,400,000 Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 62,466,066



## OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 8400 hr/yr 128,100 Supervisor 15% 15% of Operator Costs 19,215 Maintenance Maintenance Total 1.50 % of Total Capital Investment 527,494 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,640 kW-hr, 8400 hr/yr, 93% utilization 653,432 SCR Catalyst 64.71 Catalyst Replacement 507,499 Ammonia 0.12 $/lb, 1,952 lb/hr, 8400 hr/yr, 93% utilization 1,839,424 Total Annual Direct Operating Costs 3,675,165

Indirect Operating Costs Overhead 60% of total labor and material costs 101,433 Administration (2% total capital costs) 2% of total capital costs (TCI) 703,326 Property tax (1% total capital costs) 1% of total capital costs (TCI) 351,663 Insurance (1% total capital costs) 1% of total capital costs (TCI) 351,663 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 5,896,355 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 7,404,440

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 11,079,604

See Summary page for notes and assumptions

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# United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3: NOx Control - Selective Catalytic Reduct ion 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 #2 756,324 scfm
Vol #2 11571.3 ft 3 

### Amount Required 11,571 ft 3 

### Catalyst Cost 1,631,558 Y catalyst life factor 3 Years Annualized Cost 507,499

Equivalent Duty 4,119 Plant Cap kW A 422,471 Est power platn eff 35% Unc Nox lb/mmBtu B 0.35 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 422,471 Capital Cost $/kW D $60.63 $25,614,463.64 Total SCR Equipment Uncontrolled Nox t/y 1,397.0 Fixed O&M E $169,055.46 Annual Operating Hrs 8000 Variable O&M F $719,855.06 Uncontrolled Nox lb/mmBtu 0.354 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000 SCR Capital Cost

Electrical Use Duty 4,119 MMBtu/hr kW NOx Cont Eff 80% Power 1,640.1 NOx in 0.35 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 1640.1

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

### Density 566 lb/hr Neat 260.8 gal/hr 29% solution Volume 14 day inventory 87,637 gal $66,258 Inventory Cost 1952 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.354

Actual 108,262 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 4,119 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,400 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 2,100 128,100 $/Hr, 2.0 hr/8 hr shift, 8400 hr/yr Supervisor 15% of Op. NA 19,215 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 527,494 % 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 1640.1 kW-hr 12,812,399 653,432 $ /kwh, 1,640 kW-hr, 8400 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 507,499 Catalyst Replacement Ammonia 0.12 $/lb 1952 lb/hr 15,252,365 1,839,424 $/lb, 1, 952 lb/hr, 8400 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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# United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3: NO x 

# Control - Cost to Reheat Flue Gas (Thermal Oxidize r)

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M Chemical Engineering Standardized Flow Rate 704,757 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 132 Deg F 1998 /1999 390 Expected Annual Hours of Operation 8,400 Hours Moistur e Content 16.5% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 7 56,324 scfm @ 68o F Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 751,493 Purchased Equipment Total (B) 22% of control device cost (A) 913,064

Installation - Standard Costs 30% of purchased equi p cost (B) 273,919 Installation - Site Specific Costs NA Installation Total 273,919 Total Direct Capital Cost, DC 1,186,983 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 283,050 Total Capital Investment (TCI) = DC + IC 1,470,033

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 20,277,820 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 258,089 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 20,535,909

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\Keetac\Keetac Control Costs EU030 Reheat EU030 Reheat 7 of 17

# United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3: NOx Control - Cost to Reheat Flue Gas (T hermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 751,493 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 75,149 MN Sales Taxes 6.5% of control device cost (A) 48,847 Freight 5% of control device cost (A) 37,575 Purchased Equipment Total (B) 22% 913,064

Installation Foundations & supports 8% of purchased equip cost (B) 73,045 Handling & erection 14% of purchased equip cost (B) 127,829 Electrical 4% of purchased equip cost (B) 36,523 Piping 2% of purchased equip cost (B) 18,261 Insulation 1% of purchased equip cost (B) 9,131 Painting 1% of purchased equip cost (B) 9,131 Installation Subtotal Standard Expenses 30% 273,919

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 273,919 Total Direct Capital Cost, DC 1,186,983

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 91,306 Construction & field expenses 5% of purchased equip cost (B) 45,653 Contractor fees 10% of purchased equip cost (B) 91,306 Start-up 2% of purchased equip cost (B) 18,261 Performance test 1% of purchased equip cost (B) 9,131 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 27,392 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 283,050

Total Capital Investment (TCI) = DC + IC 1,470,033

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,470,033



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 61.00 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr 32,025 Supervisor 15% 15% of Operator Costs 4,804 Maintenance Maintenance Labor 61.00 $/Hr, 0.5 hr/8 hr shift, 840 0 hr/yr 32,025 Maintenance Materials 100% of maintenance labor costs 32,025 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 3,142 kW-hr, 8400 hr/yr, 93% utilization 1,251,747 Natural Gas 9.26 $/mscf, 4,361 scfm, 8400 hr/yr, 93% utilization 18,925,194

Total Annual Direct Operating Costs 20,277,820

Indirect Operating Costs Overhead 60% of total labor and material costs 60,527 Administration (2% total capital costs) 2% of total c apital costs (TCI) 29,401 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 14,700 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 14,700 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 138,761 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 258,089

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 20,535,909

See Summary page for notes and assumptions

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# United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3: NOx Control - Cost to Reheat Flue Gas (T hermal 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 ba g. 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 848,000 19 0.6 3,141.8 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 848,000 23 0.6 3,803.3 EPA Cost Cont M anual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 3141.8

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operatio n: 8,400 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 525 32,025 $/Hr, 0. 5 hr/8 hr shift, 8400 hr/yr Supervisor 15% of Op. NA 4,804 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 525 32,025 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr Maint Mtls 100 % of Maintenance Labor NA 32,025 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 3141.8 kW-hr 24,544,054 1,251,74 7 $/kwh, 3,142 kW-hr, 8400 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 4,361 scfm 2,044,309 18,925,194 $ /mscf, 4,361 scfm, 8400 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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# United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3: NOx Control - Cost to Reheat Flue Gas (T hermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 T wi 

### 132 Deg F - Temperature of waste gas into heat rec overy T fi 

### 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

T wo 

### 565 Deg F - Temperature of waste gas out of heat r ecovery

T fo 

### 317 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 

### 756,324 scfm - Flow of waste gas

Q af 

### 4,361 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 760,686 scfm Flue Gas Cost in 1989 $'s $630,284 Current Cost Using CHE Plant Cost Index $751,493 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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# United States Steel: Keewatin Taconite Company

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

# Control - Ported Kilns

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M Design Capacity 350 mmbtu/hr Standardized Flow Rate 704,757 scfm @ 32o F Expected Utilization Rate 93% Temperature 132 Deg F Expected Annual Hours of Operation 8,400 Hours Moistur e Content 16.5% Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 7 56,324 scfm @ 68o F Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs (1) 

### Minntac Line 4/5 Budget Estimate = 5,000,000 $ Total Capital Investment (TCI) = DC + IC 6,465,590 Minntac Line 4/5 volumetric flow = 650,000 acfm Operating Costs (2) 

### Keetac volumetric flow = 848,000 acfm Total Annual Cost (Annualized Capital Cost) 610,306 Use "6/10 Rule" to calculate Keetac Cost = 6,465,590 $

Capital Recovery Factor

Interest Rate 7.00% Equipment Life 20 years CRF 0.0944 Capital Recovery Cost 610,306



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

### Cont Emis Reduction Cont Cost Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem Nitrous Oxides (NOx) 1,397.0 4,154.0

5% 3946.3 207.7 2,938

Notes & Assumptions 1 Capital costs based on Minntac Line 4/5 Budget Esti mate and scaled using 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."

## United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.5: SO 2 

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M Standardized Flow Rate 704,757 scfm @ 32o F Expected Utilization Rate 93% Temperature 132 Deg F Expected Annual Hours of Operation 8,400 Hours Moistur e Content 16.5% Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 7 56,324 scfm @ 68o F Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 8,928,933 Purchased Equipment Total (B) 22% of control device cost (A) 10,848,654

Installation - Standard Costs 67% of purchased equip cost (B) 7,268,598 Installation - Site Specific Costs 6,200,000 Installation Total 7,268,598 Total Direct Capital Cost, DC 18,117,252 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 6,183,733 Total Capital Investment (TCI) = DC + IC 45,081,576

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 6,152,007 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 5,379,312 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 11,531,318

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) 1,397.0 4,154.0

0% 4154.0 - NA Sulfur Dioxide (SO 2 ) 400.0 950.5

80% 190.1 760.4 15,165

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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## United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.5: SO2 Control - Wet Walled Electrostatic P recipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2 - ESP + auxiliary equipment 8,928,933 Instrumentation 10% of control device cost (A) 892,893 MN Sales Taxes 6.5% of control device cost (A) 580,381 Freight 5% of control device cost (A) 446,447 Purchased Equipment Total (B) 22% 10,848,654

Installation Foundations & supports 4% of purchased equip cost (B) 433,946 Handling & erection 50% of purchased equip cost (B) 5,424,327 Electrical 8% of purchased equip cost (B) 867,892 Piping 1% of purchased equip cost (B) 108,487 Insulation 2% of purchased equip cost (B) 216,973 Painting 2% of purchased equip cost (B) 216,973 Installation Subtotal Standard Expenses 67% 7,268,598

Total Direct Capital Cost, DC 18,117,252

Indirect Capital Costs Engineering, supervision 20% of purchased equip cost (B) 2,169,731 Construction & field expenses 20% of purchased equip cost (B) 2,169,731 Contractor fees 10% of purchased equip cost (B) 1,084,865 Start-up 1% of purchased equip cost (B) 108,487 Performance test 1% of purchased equip cost (B) 108,487 Model Studies 2% of purchased equip cost (B) 216,973 Contingencies 3% of purchased equip cost (B) 325,460 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 6,183,733

Total Capital Investment (TCI) = DC + IC 24,300,985

Retrofit multiplier 3 60% of TCI 14,580,591 Site preparation 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 45,081,576



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 8400 hr/yr 128,100 Supervisor 15% 15% of Operator Costs 19,215 Maintenance Maintenance Labor 61.00 $/Hr, 15.0 hr/wk, 8400 hr/yr 16,546 Maintenance Materials 1.00 % of Maintenance Labor 89,289 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 2,004 kW-hr, 8400 hr/yr, 93% utilization 798,356 Water 0.28 $/mgal, 4,240 gpm, 8400 hr/yr, 93% utilization 5 50,198 WW Treat Neutralization 1.69 $/mgal, 4,240 gpm, 8400 hr/yr, 93% utilization 3,355,208 Reagent 305.96 $/ton, 1,000 lb/hr, 8400 hr/yr, 93% utilizati on 1,195,094 Total Annual Direct Operating Costs 6,152,007

Indirect Operating Costs Overhead 60% of total labor and material costs 151,890 Administration (2% total capital costs) 2% of total c apital costs (TCI) 486,020 Property tax (1% total capital costs) 1% of total capital costs (TCI) 243,010 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 243,010 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 4,255,382 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 5,379,312

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 11,531,318

See summary page for notes and assumptions

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## United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.5: SO2 Control - Wet Walled Electrostatic P recipitator

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 848,000 10 1,534.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 79.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47
Plate Area ESP Power 200,562 389.1 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 2,003.8

Reagent Use & Other Operating Costs
gpm Water 5.00 gal/min-kacfm 4240.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 1000.00 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 8,400 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 2,100 128,100 $/Hr, 2. 0 hr/8 hr shift, 8400 hr/yr Supervisor 15% of Op. NA 19,215 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 15.0 hr/wk 660 16,546 $/Hr, 15.0 h r/wk, 8400 hr/yr Maint Mtls 1 % of Purchase Cost NA 89,289 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 2003.8 kW-hr 15,654,040 798,356 $/kwh, 2,004 kW-hr, 8400 hr/yr, 93% utilization Water 0.28 $/mgal 4,240.0 gpm 1,987,373 550,198 $/mgal, 4 ,240 gpm, 8400 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 4,240.0 gpm 1,987,373 3,355,208 $/mgal, 4,240 gpm, 8400 hr/yr, 93% utilization Reagent 305.96 $/ton 1,000.0 lb/hr 3,906 1,195,094 $/ton, 1,000 lb/hr, 8400 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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## United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.6: SO 2 

## Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M Standardized Flow Rate 704,757 scfm @ 32o F Expected Utilization Rate 93% Temperature 132 Deg F Expected Annual Hours of Operation 8,400 Hours Moisture Content 16.5% Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 756,324 scfm @ 68o F Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 6,173,828 Purchased Equipment Total (B) 22% of control device cost (A) 7,501,201

Installation - Standard Costs 85% of purchased equip cost (B) 6,376,021 Installation - Site Specific Costs 6,200,000 Installation Total 6,376,021 Total Direct Capital Cost, DC 13,877,222 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 1,125,180 Total Capital Investment (TCI) = DC + IC 30,203,843

Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 1,546,699 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 3,511,652 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 5,058,352

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) 1,397.0 4,154.0

0% 4154.0 - NA Sulfur Dioxide (SO 2 ) 400.0 950.5

60% 380.2 570.3 8,870

Notes & Assumptions 1 Original estimate from STS Consultants. Use 0.6 Po wer 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

EU030 Wet Scrubber

## United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.6: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 6,173,828 Instrumentation 10% of control device cost (A) 617,383 MN Sales Taxes 7% of control device cost (A) 401,299 Freight 5% of control device cost (A) 308,691 Purchased Equipment Total (B) 22% 7,501,201

Installation Foundations & supports 12% of purchased equip cost (B) 900,144 Handling & erection 40% of purchased equip cost (B) 3,000,480 Electrical 1% of purchased equip cost (B) 75,012 Piping 30% of purchased equip cost (B) 2,250,360 Insulation 1% of purchased equip cost (B) 75,012 Painting 1% of purchased equip cost (B) 75,012 Installation Subtotal Standard Expenses 85% 6,376,021

Total Direct Capital Cost, DC 13,877,222

Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 375,060 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 375,060 Start-up 1% of purchased equip cost (B) 75,012 Performance test 1% of purchased equip cost (B) 75,012 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 225,036 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 1,125,180

Total Capital Investment (TCI) = DC + IC 15,002,402 9,001,441 Retrofit multiplier 5 60% of TCI Site preparation 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 30,203,843



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr 32,025 Supervisor 15% 15% of Operator Costs 4,804 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr 32,025 Maintenance Materials 100% of maintenance labor costs 32,025 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 1,744 kW-hr, 8400 hr/yr, 93% utilization 694, 798 Water 0.28 $/kgal, 796 gpm, 8400 hr/yr, 93% utilization 103,25 2 WW Treat Neutralization 1.69 $/kgal, 644 gpm, 8400 hr/yr , 93% utilization 509,992 Lime 91.62 $/ton, 385 lb/hr, 8400 hr/yr, 93% utilization 137 ,779 Total Annual Direct Operating Costs 1,546,699

Indirect Operating Costs Overhead 60% of total labor and material costs 60,527 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 300,048 Property tax (1% total capital costs) 1% of total capital costs (TCI) 150,024 Insurance (1% total capital costs) 1% of total capital cos ts (TCI) 150,024 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 2,851,029 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,511,652

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 5,058,352

See Summary page for notes and assumptions

EU030 Wet Scrubber

## United States Steel: Keewatin Taconite Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.6: 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 848,000 8.55 0.7

- 1,211.9 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 32,224 gpm 1 60 0.7

- 519.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 796 gpm 1 60 0.7 - 12.8 EPA Cost Cont Manual 6th ed Sectio n 5.2 Chapter 1 Eq 1.49 Other Total 1743.9

Reagent Use & Other Operating Costs Caustic Use 400.00 lb/hr SO2 2.50 lb NaOH/lb SO2 1000.00 lb/hr Caustic Lime Use 400.00 lb/hr SO2 0.96 lb Lime/lb SO2 385.00 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 32,224 gpm Water Makeup Rate/WW Disch 3 = 2.0% of circulating water rate + evap. loss = 796 gpm Evaporation Loss 4 = 151.21 gpm

Operating Cost Calculations Annual hours of operation: 8,400 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 525 32,025 $/Hr, 0. 5 hr/8 hr shift, 8400 hr/yr Supervisor 15% of Op. NA 4,804 15% of Operator Costs Maintenance Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 525 32,025 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr Maint Mtls 100 % of Maintenance Labor NA 32,025 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 1743.9 kW-hr 13,623,492 694,798 $/kwh, 1,744 kW-hr, 8400 hr/yr, 93% utilization Water 0.28 $/kgal 795.7 gpm 372,956 103,252 $/kgal, 796 gpm , 8400 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 644.5 gpm 302,081 509,992 $/kgal, 644 gpm, 8400 hr/yr, 93% utilization Lime 91.6 $/ton 385.0 lb/hr 1,504 137,779 $/ton, 385 lb/hr, 8400 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

EU030 Wet Scrubber