**United Taconite Indurating Line #2**

**Given/A ssumed**  Flow rate (acfm) 797,316 adjusted from 568,896 dscfm @ 68 F UTac 10/25/07 BART update Flue Gas Temperature (degrees F) 280 6/18/12 USS email to EPA Uncontrolled SO2 emissions (TPY ) 2749.7 UTac 10/25/07 SO2 molar weight 64 GSA and Baghouse (@ 910,000 acfm) 11,500,000 $ calculated from EPA cost info for 910,000 acfm @ 280 F at USS 6/18/12 USS email to EPA Freight 1,074,758 $ EPA Sales taxes 6.5% UTac 10/25/07 Retrofit factor 1.0 assumed SO2 Control efficiency 95% PETC report Operating Hours per Y ear 8,688 UTac 10/25/07 Operating Hours per Shift 8 assumed Operating Shifts per Y ear 1,086 calculated Utilization 93% UTac 10/25/07 Operating Labor Cost ($/hr) 45.31 $ UTac 10/25/07 Maintenance Labor Cost ($/hr) 47.22 $ UTac 10/25/07 Lime molar weight 56 Chemical usage molar ratio 1.4 PETC report Chemical cost ($/ton) 125.00 $ EPA Solvent usage (gal/kacfm) 2.9 calculated from ESSAR Steel PSD application updated 5/09/11 Solvent cost ($/kgal) 0.93 $ from ESSAR Steel PSD application updated 5/09/11 CaSO4 molar weight 172 dihydrate Wa ste disposal ($/ton) 33.00 $ from ESSAR Steel PSD application updated 5/09/11 Gas Cleanaing System Electricity Cost 175,234

$ calculated from EPA cost info of 200,000 $ /yr for 910,000 acfm at USS ID Fan Power 985,693 $ calculated from EPA cost info of 1,125,000 $ /yr for 910,000 acfm at USS USS 7/19/12 Equipment Life (y r) 20 UTac 10/25/07 Interest Rate (%) 7.00% UTac 10/25/07

### United Taconite Indurating Line #2

**Capital Cost factors for Gas A bsorbers--OA**  **QPS Control Cost Manual, Chap 5**

Cost Item Factor Cost Direct Costs Purchased equipment costs Absorber + auxiliary

equipment, EC A $10,623,103 six-tenths pow er law Instrumentation 0.10 A $1,062,310 Sales taxes 0.065 A $690,502 Freight A $1,074,758 Purchased equipment cost, PEC B= 1.18 A $13,450,674

Direct installation costs Foundations & supports 0.12 B $1,614,081 Handling & erection 0.40 B $5,380,269 Electrical 0.01 B $134,507 Piping 0.30 B $4,035,202 Insulation 0.01 B $134,507 Painting 0.01 B $134,507 Direct installation costs x 1 x 0.85 B $11,433,073

Site preparation As required, SP Buildings As required, Bldg.

Total Direct Costs, DC 1.85 B+SP+Bldg $24,883,746

Indirect Costs (installation) Engineering 0.10 B $1,345,067 Construction and field expenses 0.10 B $1,345,067 Contractor fees 0.10 B $1,345,067 Start-up 0.01 B $134,507 Performance test 0.01 B $134,507 Contingencies 0.03 B $403,520

Total Indirect Costs, IC 0.35 B $4,707,736

Total Capital Investment = DC + IC 2.20 B+SP+Bldg $29,591,482**United Taconite Indurating Line #2**

**Annual Cost factors for Gas Absorbers--OAQPS Control Cost Manual, Chap 5**

Cost Item Cost Direct Annual Costs, DC Operating labor Operator 0.5 hr/shift 24,603 $ Supervisor 15% of operator 3,690 $

Operating materials Solvent 2.9 gal/kacfm * 797,316 acfm = 2,272 gpm = 1,101,614 $

Chemicals 1.4 lb-mole CaO/lb-mole SO2 * 85,928 lb-moles SO2/yr = 117,912 lb-mole CaO/yr

117,912 lb-mole CaO/yr * 56 lb/lb-mole = 6,603,099 lb CaO/yr 6,603,099 lb CaO/yr/ 2,000 lb/ton * 125.00 $ / ton = 412,694 $

Wa ste Disposal 2,612 ton SO2 removed/yr = 81,632 mole SO2 removed/yr = 81,632 mole CaSO4-2H2O produced/yr = 81,632 mole CaSO4-2H2O produced/yr * 172 lb/lb-mole = 7,020 tpy CaSO4-2H2O 7,020 tpy CaSO4-2H2O * 33.00 $ /ton = 231,671 $

27% of CaO is wasted = 896 tpy * 33.00 $ /ton = 29,554 $ Maintenance Labor 0.5 hr/shift 25,640 $ Material 100.00% of maintenance 25,640 $ Electricity Gas Cleanaing System Electricity Cost 175,234 $ ID Fan Power 985,693 $ Total DC 3,016,035 $

Indirect Annual Costs, IC Overhead 60% of total labor and material costs 47,745 $ Administrative charges 2% of Total Capital Investment 591,830 $ Property tax exempt in MN

- $ Insurance 1% of Total Capital Investment 295,915 $ Capital recovery 0.0944 * Total Capital Investment 2,793,227 $ Total IC 3,728,716 $

Total Annual Cost DC + IC 6,744,751 $

## United Taconite Indurating Line #2 SO2 Uncontrolled emissions (TPY) 2,749.7 Control efficiency

(%) 95% Em ission reduction (TPY) 2,612 Controlled emissions (TPY) 137 Total annualized cost ($/y r) $6,744,751 Cost/ton removed ($/T) $2,582