Ispat Inland Mining 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 $/tonSV 01480% 104.0 416.0 $33,429,177 $9,776,865$23,504SV 01580% 133.8 535.2 $33,531,232 $9,928,660$18,552SV 01680% 206.2 824.9 $33,713,372 $10,288,957$12,473SV 01780% 283.8 1135.4 $33,855,392 $10,668,091 $9,396SO2Control Cost SummaryControl TechnologyControlEff %ControlledEmissions T/yEmissionReduction T/yrInstalled CapitalCost $AnnualizedOperating Cost $/yrPollution ControlCost $/tonSV 01480% 9.0 35.8 $22,809,844 $4,184,373$116,801SV 01580% 9.0 35.8 $22,809,844 $4,184,373$116,801SV 01680% 9.0 35.8 $22,809,844 $4,184,373$116,801SV 01780% 9.0 35.8 $22,809,844 $4,184,373$116,801SV 01460% 17.9 26.9 $16,454,216 $2,229,797$82,989SV 01560% 17.9 26.9 $16,454,216 $2,229,797$82,989SV 01660% 17.9 26.9 $16,454,216 $2,229,797$82,989SV 01760% 17.9 26.9 $16,454,216 $2,229,797$82,989Wet Walled Electrostatic Precipitator (WWESP)(after existing scrubber)Secondary Wet Scrubber(after existing scrubber)Selective Catalytic Reduction with ReheatY:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control CostsCost Summary9/7/2006 Page 1 of 55Ispat Inland Mining CompanyBART Report - Attachment A: Emission Control Cost AnalysisTable A.2: Summary of Utility, Chemical and SupplyCostsOperating Unit:Indurating FurnaceStudy Year2006Emission Unit Number EU 026Stack/Vent Number SV 014Operating Unit:Indurating FurnaceEmission Unit Number EU 026Stack/Vent Number SV 015Operating Unit:Indurating FurnaceEmission Unit Number EU 026Stack/Vent Number SV 016Operating Unit:Indurating FurnaceEmission Unit Number EU 026Stack/Vent Number SV 017ReferenceItem Unit Cost Units Cost Year Data Source NotesOperating Labor32 $/hrAverage union labor rate for MN miningindustryMaintenance Labor32 $/hrAverage union labor rate for MN miningindustryElectricity0.051 $/kwh2006Energy Information Administration. Expectedannual average industrial price of electricityin the West North Central Division for 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 of22.5 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 costadjusted 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 for3% inflation Sec 6 Ch3 lists $1.30 - $2.15/1,000 galChemicals & SuppliesLime90.80 $/ton 90.80 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 $/ton280 2003 Hawkins Chemical50% solution (50 Deg Be); includes delivery. '03 cost adjusted for inflationSCR Catalyst141.00$/ft3Cormetech, Inc.OtherSales 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\Ispat\Ispat Inland Control CostsUtility Chem$ Data9/7/2006 Page 2 of 55Operating InformationAnnual Op. Hrs7946 HoursEngineering EstimateUtilization Rate93%Equipment Life20 yrsEngineering EstimateStandardized Flow RateSV 014173,108 scfm @ 32o FCalculated.SV 015173,108 scfm @ 32o FCalculated.SV 016173,108 scfm @ 32o FCalculated.SV 017173,108 scfm @ 32o FCalculated.TemperatureSV 014124 Deg FBART spreadsheet.SV 015124 Deg FBART spreadsheet.SV 016124 Deg FBART spreadsheet.SV 017124 Deg FBART spreadsheet.Moisture ContentSV 01410.5%Assumed value.SV 01510.5%Assumed value.SV 01610.5%Assumed value.SV 01710.5%Assumed value.Actual Flow RateSV 014205,478 acfmBART spreadsheet.SV 015205,478 acfmBART spreadsheet.SV 016205,478 acfmBART spreadsheet.SV 017205,478 acfmBART spreadsheet.Standardized Flow RateSV 014185,775 scfm @ 68o FCalculated.SV 015185,775 scfm @ 68o FCalculated.SV 016185,775 scfm @ 68o FCalculated.SV 017185,775 scfm @ 68o FCalculated.Dry Std Flow RateSV 014166,268 dscfm @ 68o FCalculated.SV 015166,268 dscfm @ 68o FCalculated.SV 016166,268 dscfm @ 68o FCalculated.SV 017166,268 dscfm @ 68o FCalculated.Max Emis Future Actual Emis. lb/hr ton/yearPollutant Lb/Hr tpy ppmv ppmvNitrous Oxides (NOx)SV 014155.4 520.0 130 99.6SV 015200.0 669.0 168 128.1SV 016308.3 1,031.1 259 197.5SV 017424.3 1,419.2 356 271.8Sulfur Dioxides (SO2)SV 014125.0 44.8 75 6.2SV 015125.0 44.8 75 6.2SV 016125.0 44.8 75 6.2SV 017125.0 44.8 75 6.2Max emissions are based on the permit limitand distributed to each stack based on 2005stack test data. Future actual emissions based on 2005 stack test +10%.Max emissions are based on emissions asreported in the BART questionairreFuture actual emissions based on AP-42 factors plusa 10% safetyfactor.Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control CostsUtility Chem$ Data9/7/2006 Page 3 of 55

# Ispat Inland Mining Company

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

# Control - Selective Catalytic Reduction with Rehea t

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014 Design Capacity 39 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 10,607,954 Purchased Equipment Total SCR Only 11,297,471 SCR + Reheat 11,940,272

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,429,177
Operating Costs Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, u tilities, etc. SCR + Reheat 5,853,091 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 3,953,922 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 9,776,865



## 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) 155.4 520.0

80% 104.0 416.0 23,504

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 CUECost Workbook Version 1.0, USEPA Document Page 2

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Selective Catalytic Redu ction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,607,954 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 689,517 Freight 5% of control device cost (A) NA Purchased Equipment Total 11,297,471

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 23% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,091,205

Total Plant Cost (D) A + B + C 16,032,575
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)) 320,652

Inventory Capital Reagent Vol * $/gal 18,190

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,371,417

Retrofit factor (11) 

### 60% of TCI 9,822,850 Sitework and Foundations 1,400,000 Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,394,267



## OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Total 1.50 % of Total Capital Investment 245,571 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 414 kW-hr, 7946 hr/yr, 93% utilization 15 6,002 SCR Catalyst 64.71 Catalyst Replacement 124,656 Ammonia (29% aqua.) 0.12 $/lb, 536 lb/hr, 7946 hr/yr, 93% utilization 477,700 Total Annual Direct Operating Costs 1,077,032

Indirect Operating Costs Overhead 60% of total labor and material costs 42,007 Administration (2% total capital costs) 2% of total capital costs (TCI) 327,428 Property tax (1% total capital costs) 1% of total capital costs (TCI) 163,714 Insurance (1% total capital costs) 1% of total capital costs (TCI) 163,714 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,057,790 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,754,654

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,831,686

See Summary page for notes and assumptions

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# Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Selective Catalytic Redu ction 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 #2 185,775 scfm Vol #2 2842.2 ft 3 

### Amount Required 2,842 ft 3 

### Catalyst Cost 400,757 Y catalyst life factor 3 Years Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228 Est power platn eff 35% Unc Nox lb/mmBtu B 0.16 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 111,228 Capital Cost $/kW D $95.37 $10,607,954.15 Total SCR Equipment Uncontrolled Nox t/y 155.4 Fixed O&M E $70,012.50 Annual Operating Hrs 8000 Variable O&M F $219,032.81 Uncontrolled Nox lb/mmBtu 0.158 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000

Electrical Use Duty 1,084 MMBtu/hr kW NOx Cont Eff 80% Power 413.9 NOx in 0.16 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 413.9

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

### Density 155 lb/hr Neat 71.6 gal/hr 29% solution Volume 14 day inventory 24,060 gal $18,190 Inventory Cost 536 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.158

Actual 258,612 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 1,084 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 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 245,571 % 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 413.9 kW-hr 3,058,863 156,002 $/kw h, 414 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 536 lb/hr 3,961,050 477,700 $/lb, 536 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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NO x

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

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014 Chemical Engineering Design Capacity 39 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 124 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 205,478 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 529,054 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

Installation - Standard Costs 30% of purchased equi p cost (B) 192,840 Installation - Site Specific Costs NA Installation Total 192,840 Total Direct Capital Cost, DC 835,641 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268 Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 4,776,058 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 169,120 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 529,054 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 52,905 MN Sales Taxes 6.5% of control device cost (A) 34,389 Freight 5% of control device cost (A) 26,453 Purchased Equipment Total (B) 22% 642,801

Installation Foundations & supports 8% of purchased equip cost (B) 51,424 Handling & erection 14% of purchased equip cost (B) 89,992 Electrical 4% of purchased equip cost (B) 25,712 Piping 2% of purchased equip cost (B) 12,856 Insulation 1% of purchased equip cost (B) 6,428 Painting 1% of purchased equip cost (B) 6,428 Installation Subtotal Standard Expenses 30% 192,840

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 192,840 Total Direct Capital Cost, DC 835,641

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 64,280 Construction & field expenses 5% of purchased equip cost (B) 32,140 Contractor fees 10% of purchased equip cost (B) 64,280 Start-up 2% of purchased equip cost (B) 12,856 Performance test 1% of purchased equip cost (B) 6,428 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 19,284 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,034,910



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 28 6,916 Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total c apital costs (TCI) 20,698 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 10,349 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 10,349 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 97,688 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

See Summary page for notes and assumptions

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Cost of Flue Gas Reheat (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 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 205,478 19 0.6 761.3 EPA Cost Cont Manua l 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/k wh, 761 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/ms cf, 1,081 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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.a: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 Twi 

### 124 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 

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

Tfo 

### 312 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 

### 185,775 scfm - Flow of waste gas

Q af 

### 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723 Current Cost Using CHE Plant Cost Index $529,054 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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# Ispat Inland Mining Company

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

# Control - Selective Catalytic Reduction with Rehea t

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015 Design Capacity 50 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 10,654,839 Purchased Equipment Total SCR Only 11,347,404 SCR + Reheat 11,990,205

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,531,232
Operating Costs Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, u tilities, etc. SCR + Reheat 5,992,515 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 3,966,292 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 9,928,660



## 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) 200.0 669.0

80% 133.8 535.2 18,552

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 CUECost Workbook Version 1.0, USEPA Document Page 2

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b: NOx Control - Selective Catalytic Redu ction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,654,839 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 692,565 Freight 5% of control device cost (A) NA Purchased Equipment Total 11,347,404

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 23% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,098,695

Total Plant Cost (D) A + B + C 16,089,998
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)) 321,800

Inventory Capital Reagent Vol * $/gal 23,404

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,435,201

Retrofit factor (11) 

### 60% of TCI 9,861,121 Sitework and Foundations 1,400,000 Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,496,322



## OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Total 1.50 % of Total Capital Investment 246,528 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 418 kW-hr, 7946 hr/yr, 93% utilization 15 7,561 SCR Catalyst 64.71 Catalyst Replacement 124,656 Ammonia (29% aqua.) 0.12 $/lb, 690 lb/hr, 7946 hr/yr, 93% utilization 614,609 Total Annual Direct Operating Costs 1,216,457

Indirect Operating Costs Overhead 60% of total labor and material costs 42,193 Administration (2% total capital costs) 2% of total capital costs (TCI) 328,704 Property tax (1% total capital costs) 1% of total capital costs (TCI) 164,352 Insurance (1% total capital costs) 1% of total capital costs (TCI) 164,352 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,067,423 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,767,024

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,983,481

See Summary page for notes and assumptions

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# Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b: NOx Control - Selective Catalytic Redu ction 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 #2 185,775 scfm Vol #2 2842.2 ft 3 

### Amount Required 2,842 ft 3 

### Catalyst Cost 400,757 Y catalyst life factor 3 Years Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228 Est power platn eff 35% Unc Nox lb/mmBtu B 0.20 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 111,228 Capital Cost $/kW D $95.79 $10,654,839.28 Total SCR Equipment Uncontrolled Nox t/y 200.0 Fixed O&M E $70,321.94 Annual Operating Hrs 8000 Variable O&M F $221,135.84 Uncontrolled Nox lb/mmBtu 0.203 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000

Electrical Use Duty 1,084 MMBtu/hr kW NOx Cont Eff 80% Power 418.1 NOx in 0.20 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 418.1

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

### Density 200 lb/hr Neat 92.1 gal/hr 29% solution Volume 14 day inventory 30,955 gal $23,404 Inventory Cost 690 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.203

Actual 201,004 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 1,084 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 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 246,528 % 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 418.1 kW-hr 3,089,427 157,561 $/kw h, 418 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 690 lb/hr 5,096,292 614,609 $/lb, 690 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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b: NO x

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

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015 Chemical Engineering Design Capacity 50 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 124 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 205,478 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 529,054 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

Installation - Standard Costs 30% of purchased equi p cost (B) 192,840 Installation - Site Specific Costs NA Installation Total 192,840 Total Direct Capital Cost, DC 835,641 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268 Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 4,776,058 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 169,120 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 529,054 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 52,905 MN Sales Taxes 6.5% of control device cost (A) 34,389 Freight 5% of control device cost (A) 26,453 Purchased Equipment Total (B) 22% 642,801

Installation Foundations & supports 8% of purchased equip cost (B) 51,424 Handling & erection 14% of purchased equip cost (B) 89,992 Electrical 4% of purchased equip cost (B) 25,712 Piping 2% of purchased equip cost (B) 12,856 Insulation 1% of purchased equip cost (B) 6,428 Painting 1% of purchased equip cost (B) 6,428 Installation Subtotal Standard Expenses 30% 192,840

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 192,840 Total Direct Capital Cost, DC 835,641

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 64,280 Construction & field expenses 5% of purchased equip cost (B) 32,140 Contractor fees 10% of purchased equip cost (B) 64,280 Start-up 2% of purchased equip cost (B) 12,856 Performance test 1% of purchased equip cost (B) 6,428 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 19,284 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,034,910



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 28 6,916 Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total c apital costs (TCI) 20,698 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 10,349 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 10,349 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 97,688 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

See Summary page for notes and assumptions

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b: NOx Control - Cost of Flue Gas Reheat (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 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 205,478 19 0.6 761.3 EPA Cost Cont Manua l 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/k wh, 761 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/ms cf, 1,081 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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.b: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 Twi 

### 124 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 

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

Tfo 

### 312 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 

### 185,775 scfm - Flow of waste gas

Q af 

### 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723 Current Cost Using CHE Plant Cost Index $529,054 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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# Ispat Inland Mining Company

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

# Control - Selective Catalytic Reduction with Rehea t

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016 Design Capacity 77 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 10,735,822 Purchased Equipment Total SCR Only 11,433,650 SCR + Reheat #REF!

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,713,372
Operating Costs Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, u tilities, etc. SCR + Reheat 6,330,746 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 3,958,211 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 10,288,957



## 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) 308.3 1,031.1

80% 206.2 824.9 12,473

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 CUECost Workbook Version 1.0, USEPA Document Page 2

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c: NOx Control - Selective Catalytic Redu ction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,735,822 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 697,828 Freight 5% of control device cost (A) NA Purchased Equipment Total 11,433,650

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 23% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,111,632

Total Plant Cost (D) A + B + C 16,189,181
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)) 323,784

Inventory Capital Reagent Vol * $/gal 36,074

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,549,039

Retrofit factor (11) 

### 60% of TCI 9,929,423 Sitework and Foundations 1,400,000 Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,678,462



## OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Total 1.50 % of Total Capital Investment 248,236 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 428 kW-hr, 7946 hr/yr, 93% utilization 16 1,349 SCR Catalyst 64.71 Catalyst Replacement 124,656 Ammonia (29% aqua.) 0.12 $/lb, 1,063 lb/hr, 7946 hr/yr, 93% utilization 947,344 Total Annual Direct Operating Costs 1,554,687

Indirect Operating Costs Overhead 60% of total labor and material costs 42,514 Administration (2% total capital costs) 2% of total capital costs (TCI) 330,981 Property tax (1% total capital costs) 1% of total capital costs (TCI) 165,490 Insurance (1% total capital costs) 1% of total capital costs (TCI) 165,490 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,084,616 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,789,091

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 5,343,779

See Summary page for notes and assumptions

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# Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c: NOx Control - Selective Catalytic Redu ction 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 #2 185,775 scfm Vol #2 2842.2 ft 3 

### Amount Required 2,842 ft 3 

### Catalyst Cost 400,757 Y catalyst life factor 3 Years Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228 Est power platn eff 35% Unc Nox lb/mmBtu B 0.31 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 111,228 Capital Cost $/kW D $96.52 $10,735,821.98 Total SCR Equipment Uncontrolled Nox t/y 308.3 Fixed O&M E $70,856.43 Annual Operating Hrs 8000 Variable O&M F $225,270.93 Uncontrolled Nox lb/mmBtu 0.313 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000

Electrical Use Duty 1,084 MMBtu/hr kW NOx Cont Eff 80% Power 428.1 NOx in 0.31 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 428.1

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

### Density 308 lb/hr Neat 142.0 gal/hr 29% solution Volume 14 day inventory 47,714 gal $36,074 Inventory Cost 1063 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.313

Actual 130,406 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 1,084 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 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 248,236 % 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 428.1 kW-hr 3,163,707 161,349 $/kw h, 428 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 1063 lb/hr 7,855,300 947,34 4 $/lb, 1,063 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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## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c: NO x

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

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016 Chemical Engineering Design Capacity 77 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 124 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 205,478 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 529,054 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

Installation - Standard Costs 30% of purchased equi p cost (B) 192,840 Installation - Site Specific Costs NA Installation Total 192,840 Total Direct Capital Cost, DC 835,641 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268 Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 4,776,058 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

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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## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 529,054 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 52,905 MN Sales Taxes 6.5% of control device cost (A) 34,389 Freight 5% of control device cost (A) 26,453 Purchased Equipment Total (B) 22% 642,801

Installation Foundations & supports 8% of purchased equip cost (B) 51,424 Handling & erection 14% of purchased equip cost (B) 89,992 Electrical 4% of purchased equip cost (B) 25,712 Piping 2% of purchased equip cost (B) 12,856 Insulation 1% of purchased equip cost (B) 6,428 Painting 1% of purchased equip cost (B) 6,428 Installation Subtotal Standard Expenses 30% 192,840

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 192,840 Total Direct Capital Cost, DC 835,641

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 64,280 Construction & field expenses 5% of purchased equip cost (B) 32,140 Contractor fees 10% of purchased equip cost (B) 64,280 Start-up 2% of purchased equip cost (B) 12,856 Performance test 1% of purchased equip cost (B) 6,428 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 19,284 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,034,910



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 28 6,916 Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total c apital costs (TCI) 20,698 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 10,349 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 10,349 Capital Recovery 0.0944 for a 20- year equipment life and a 7% intere st rate 97,688 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

See Summary page for notes and assumptions

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## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c: NOx Control - Cost of Flue Gas Reheat (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 0.00 $ 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 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 205,478 19 0.6 761.3 EPA Cost Cont Manua l 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/ms cf, 1,081 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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## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.c: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 T wi 

### 124 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 

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

T fo 

### 312 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 

### 185,775 scfm - Flow of waste gas

Q af 

### 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723 Current Cost Using CHE Plant Cost Index $529,054 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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# Ispat Inland Mining Company

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

# Control - Selective Catalytic Reduction with Rehea t

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017 Design Capacity 105 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs EPRI Correlation Purchased Equipment 10,796,007 Purchased Equipment Total SCR Only 11,497,747 SCR + Reheat 12,140,548

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,855,392
Operating Costs Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, u tilities, etc. SCR + Reheat 6,692,685 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost SCR + Reheat 4,005,554 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) SCR + Reheat 10,668,091



## 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) 424.3 1,419.2

80% 283.8 1,135.4 9,396

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 CUECost Workbook Version 1.0, USEPA Document Page 2

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d: NOx Control - Selective Catalytic Redu ction with Reheat

CAPITAL COSTS Direct Capital Costs Purchased Equipment (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,796,007 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) 701,740 Freight 5% of control device cost (A) NA Purchased Equipment Total 11,497,747

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 23% Replacement Power, two weeks 2,643,899
Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,121,247

Total Plant Cost (D) A + B + C 16,262,893
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)) 325,258

Inventory Capital Reagent Vol * $/gal 49,651

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,637,801

Retrofit factor (11) 

### 60% of TCI 9,982,681 Sitework and Foundations 1,400,000 Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,820,482



## OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Total 1.50 % of Total Capital Investment 249,567 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 439 kW-hr, 7946 hr/yr, 93% utilization 16 5,408 SCR Catalyst 64.71 Catalyst Replacement 124,656 Ammonia (29% aqua.) 0.12 $/lb, 1,463 lb/hr, 7946 hr/yr, 93% utilization 1,303,892 Total Annual Direct Operating Costs 1,916,627

Indirect Operating Costs Overhead 60% of total labor and material costs 42,752 Administration (2% total capital costs) 2% of total capital costs (TCI) 332,756 Property tax (1% total capital costs) 1% of total capital costs (TCI) 166,378 Insurance (1% total capital costs) 1% of total capital costs (TCI) 166,378 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,098,021 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,806,286

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 5,722,912

See Summary page for notes and assumptions

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# Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d: NOx Control - Selective Catalytic Redu ction 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 #2 185,775 scfm Vol #2 2842.2 ft 3 

### Amount Required 2,842 ft 3 

### Catalyst Cost 400,757 Y catalyst life factor 3 Years Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228 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 111,228 Capital Cost $/kW D $97.06 $10,796,006.80 Total SCR Equipment Uncontrolled Nox t/y 424.3 Fixed O&M E $71,253.64 Annual Operating Hrs 8000 Variable O&M F $228,901.35 Uncontrolled Nox lb/mmBtu 0.431 Ann Cap Factor G 0.82 Heat Input mmBtu/hr H 6,000

Electrical Use Duty 1,084 MMBtu/hr kW NOx Cont Eff 80% Power 438.9 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 438.9

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

### Density 424 lb/hr Neat 195.5 gal/hr 29% solution Volume 14 day inventory 65,671 gal $49,651 Inventory Cost 1463 lb/hr

Design Basis Max Emis Control Eff (%) lb/MMBtu 80% Nitrous Oxides (NOx) 0.431

Actual 94,746 dscf/MMBtu Method 19 Factor 9,200 dscf/MMBtu Adjusted Duty 1,084 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 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maintenance Total 1.5 % of Total Capital Investment 249,567 % 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 438.9 kW-hr 3,243,304 165,408 $/kw h, 439 kW-hr, 7946 hr/yr, 93% utilization SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement Ammonia (29% aqua.) 0.12 $/lb 1463 lb/hr 10,811,773 1,303 ,892 $/lb, 1,463 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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d: NO x

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

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017 Chemical Engineering Design Capacity 105 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 124 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 205,478 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 529,054 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

Installation - Standard Costs 30% of purchased equi p cost (B) 192,840 Installation - Site Specific Costs NA Installation Total 192,840 Total Direct Capital Cost, DC 835,641 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268 Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 4,776,058 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 169,120 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

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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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 529,054 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 52,905 MN Sales Taxes 6.5% of control device cost (A) 34,389 Freight 5% of control device cost (A) 26,453 Purchased Equipment Total (B) 22% 642,801

Installation Foundations & supports 8% of purchased equip cost (B) 51,424 Handling & erection 14% of purchased equip cost (B) 89,992 Electrical 4% of purchased equip cost (B) 25,712 Piping 2% of purchased equip cost (B) 12,856 Insulation 1% of purchased equip cost (B) 6,428 Painting 1% of purchased equip cost (B) 6,428 Installation Subtotal Standard Expenses 30% 192,840

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 192,840 Total Direct Capital Cost, DC 835,641

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 64,280 Construction & field expenses 5% of purchased equip cost (B) 32,140 Contractor fees 10% of purchased equip cost (B) 64,280 Start-up 2% of purchased equip cost (B) 12,856 Performance test 1% of purchased equip cost (B) 6,428 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 19,284 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910
Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,034,910



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 794 6 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 28 6,916 Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total c apital costs (TCI) 20,698 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 10,349 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 10,349 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 97,688 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,945,179

See Summary page for notes and assumptions

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d: NOx Control - Cost of Flue Gas Reheat (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 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 205,478 19 0.6 761.3 EPA Cost Cont Manua l 6th ed - Oxidizders Chapter 2.5.2.1 Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Man ual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/k wh, 761 kW-hr, 7946 hr/yr, 93% utilization Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/ms cf, 1,081 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

Note: Select reagent, catayst and repacement parts by entering number in coluND U. Unhide Col U to en ter choice.

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# Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.3.d: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

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

Auxiliary Fuel Use Equation 3.19 Twi 

### 124 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 

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

Tfo 

### 312 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 

### 185,775 scfm - Flow of waste gas

Q af 

### 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0% Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723 Current Cost Using CHE Plant Cost Index $529,054 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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## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.a: SO 2 

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 3,814,356 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077 Installation - Site Specific Costs 6,200,000 Installation Total 3,105,077 Total Direct Capital Cost, DC 7,739,520 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632 Total Capital Investment (TCI) = DC + IC 22,809,844
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 1,546,816 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 2,637,557 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

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) 155.4 520.0

0% 520.0 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

80% 9.0 35.8 116,801

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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## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.a: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2 - ESP + auxiliary equipment 3,814,356 Instrumentation 10% of control device cost (A) 381,436 MN Sales Taxes 6.5% of control device cost (A) 247,933 Freight 5% of control device cost (A) 190,718 Purchased Equipment Total (B) 22% 4,634,443

Installation Foundations & supports 4% of purchased equip cost (B) 185,378 Handling & erection 50% of purchased equip cost (B) 2,317,221 Electrical 8% of purchased equip cost (B) 370,755 Piping 1% of purchased equip cost (B) 46,344 Insulation 2% of purchased equip cost (B) 92,689 Painting 2% of purchased equip cost (B) 92,689 Installation Subtotal Standard Expenses 67% 3,105,077
Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 926,889 Construction & field expenses 20% of purchased equip cost (B) 926,889 Contractor fees 10% of purchased equip cost (B) 463,444 Start-up 1% of purchased equip cost (B) 46,344 Performance test 1% of purchased equip cost (B) 46,344 Model Studies 2% of purchased equip cost (B) 92,689 Contingencies 3% of purchased equip cost (B) 139,033 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632
Total Capital Investment (TCI) = DC + IC 10,381,152 Retrofit multiplier 3 60% of TCI 6,228,691

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 22,809,844



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125 Maintenance Materials 1.00 % of Maintenance Labor 38,144 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 18 2,993 Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 1 26,112 WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057 Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282 Total Annual Direct Operating Costs 1,546,816
Indirect Operating Costs Overhead 60% of total labor and material costs 69,223 Administration (2% total capital costs) 2% of total c apital costs (TCI) 207,623 Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 103,812 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV014 WWESP 9/7/2006 Page 33 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.a: SO2 Control - Wet Walled Electrostatic Precipitator

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

Replacement Parts & Equipment: Equipment Life 3 CRF 0.3811 Rep part cost per unit Amount Required 0 Total Rep Parts Cost 0 Installation Labor 0 Total Installed Cost 0 Annualized Cost 0

Electrical Use Flow acfm D P in H2O kW Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47
Plate Area ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 312.50 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 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr /wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,0 27 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm , 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 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

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV014 WWESP 9/7/2006 Page 34 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.b: SO 2 

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 3,814,356 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077 Installation - Site Specific Costs 6,200,000 Installation Total 3,105,077 Total Direct Capital Cost, DC 7,739,520 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632 Total Capital Investment (TCI) = DC + IC 22,809,844
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 1,546,816 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 2,637,557 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

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) 200.0 669.0

0% 669.0 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

80% 9.0 35.8 116,801

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\Ispat\Ispat Inland Control Costs SV015 WWESP 9/7/2006 Page 35 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.b: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2 - ESP + auxiliary equipment 3,814,356 Instrumentation 10% of control device cost (A) 381,436 MN Sales Taxes 6.5% of control device cost (A) 247,933 Freight 5% of control device cost (A) 190,718 Purchased Equipment Total (B) 22% 4,634,443

Installation Foundations & supports 4% of purchased equip cost (B) 185,378 Handling & erection 50% of purchased equip cost (B) 2,317,221 Electrical 8% of purchased equip cost (B) 370,755 Piping 1% of purchased equip cost (B) 46,344 Insulation 2% of purchased equip cost (B) 92,689 Painting 2% of purchased equip cost (B) 92,689 Installation Subtotal Standard Expenses 67% 3,105,077
Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 926,889 Construction & field expenses 20% of purchased equip cost (B) 926,889 Contractor fees 10% of purchased equip cost (B) 463,444 Start-up 1% of purchased equip cost (B) 46,344 Performance test 1% of purchased equip cost (B) 46,344 Model Studies 2% of purchased equip cost (B) 92,689 Contingencies 3% of purchased equip cost (B) 139,033 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632
Total Capital Investment (TCI) = DC + IC 10,381,152 Retrofit multiplier 3 60% of TCI 6,228,691

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 22,809,844



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125 Maintenance Materials 1.00 % of Maintenance Labor 38,144 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 18 2,993 Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 1 26,112 WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057 Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282 Total Annual Direct Operating Costs 1,546,816
Indirect Operating Costs Overhead 60% of total labor and material costs 69,223 Administration (2% total capital costs) 2% of total c apital costs (TCI) 207,623 Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 103,812 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV015 WWESP 9/7/2006 Page 36 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.b: SO2 Control - Wet Walled Electrostatic Precipitator

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

Replacement Parts & Equipment: Equipment Life 3 CRF 0.3811 Rep part cost per unit Amount Required 0 Total Rep Parts Cost 0 Installation Labor 0 Total Installed Cost 0 Annualized Cost 0

Electrical Use Flow acfm D P in H2O kW Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47
Plate Area ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 312.50 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 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr /wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,0 27 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm , 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 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

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV015 WWESP 9/7/2006 Page 37 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.c: SO 2 

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 3,814,356 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077 Installation - Site Specific Costs 6,200,000 Installation Total 3,105,077 Total Direct Capital Cost, DC 7,739,520 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632 Total Capital Investment (TCI) = DC + IC 22,809,844
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 1,546,816 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 2,637,557 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

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) 308.3 1,031.1

0% 1031.1 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

80% 9.0 35.8 116,801

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\Ispat\Ispat Inland Control Costs SV016 WWESP 9/7/2006 Page 38 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.c: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2 - ESP + auxiliary equipment 3,814,356 Instrumentation 10% of control device cost (A) 381,436 MN Sales Taxes 6.5% of control device cost (A) 247,933 Freight 5% of control device cost (A) 190,718 Purchased Equipment Total (B) 22% 4,634,443

Installation Foundations & supports 4% of purchased equip cost (B) 185,378 Handling & erection 50% of purchased equip cost (B) 2,317,221 Electrical 8% of purchased equip cost (B) 370,755 Piping 1% of purchased equip cost (B) 46,344 Insulation 2% of purchased equip cost (B) 92,689 Painting 2% of purchased equip cost (B) 92,689 Installation Subtotal Standard Expenses 67% 3,105,077
Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 926,889 Construction & field expenses 20% of purchased equip cost (B) 926,889 Contractor fees 10% of purchased equip cost (B) 463,444 Start-up 1% of purchased equip cost (B) 46,344 Performance test 1% of purchased equip cost (B) 46,344 Model Studies 2% of purchased equip cost (B) 92,689 Contingencies 3% of purchased equip cost (B) 139,033 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632
Total Capital Investment (TCI) = DC + IC 10,381,152 Retrofit multiplier 3 60% of TCI 6,228,691

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 22,809,844



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125 Maintenance Materials 1.00 % of Maintenance Labor 38,144 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 18 2,993 Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 1 26,112 WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057 Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282 Total Annual Direct Operating Costs 1,546,816
Indirect Operating Costs Overhead 60% of total labor and material costs 69,223 Administration (2% total capital costs) 2% of total c apital costs (TCI) 207,623 Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 103,812 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV016 WWESP 9/7/2006 Page 39 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.c: SO2 Control - Wet Walled Electrostatic Precipitator

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

Replacement Parts & Equipment: Equipment Life 3 CRF 0.3811 Rep part cost per unit Amount Required 0 Total Rep Parts Cost 0 Installation Labor 0 Total Installed Cost 0 Annualized Cost 0

Electrical Use Flow acfm D P in H2O kW Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47
Plate Area ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 312.50 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 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr /wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,0 27 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm , 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 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

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV016 WWESP 9/7/2006 Page 40 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.d: SO 2 

## Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moistur e Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 1 85,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 3,814,356 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077 Installation - Site Specific Costs 6,200,000 Installation Total 3,105,077 Total Direct Capital Cost, DC 7,739,520 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632 Total Capital Investment (TCI) = DC + IC 22,809,844
Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 1,546,816 Total Annual Indirect Operating Costs Sum indirectoper costs + capital recovery cost 2,637,557 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

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) 424.3 1,419.2

0% 1419.2 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

80% 9.0 35.8 116,801

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\Ispat\Ispat Inland Control Costs SV017 WWESP 9/7/2006 Page 41 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.d: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) 1 Purchased Equipment Costs (A) 2 - ESP + auxiliary equipment 3,814,356 Instrumentation 10% of control device cost (A) 381,436 MN Sales Taxes 6.5% of control device cost (A) 247,933 Freight 5% of control device cost (A) 190,718 Purchased Equipment Total (B) 22% 4,634,443

Installation Foundations & supports 4% of purchased equip cost (B) 185,378 Handling & erection 50% of purchased equip cost (B) 2,317,221 Electrical 8% of purchased equip cost (B) 370,755 Piping 1% of purchased equip cost (B) 46,344 Insulation 2% of purchased equip cost (B) 92,689 Painting 2% of purchased equip cost (B) 92,689 Installation Subtotal Standard Expenses 67% 3,105,077
Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs Engineering, supervision 20% of purchased equip cost(B) 926,889 Construction & field expenses 20% of purchased equip cost (B) 926,889 Contractor fees 10% of purchased equip cost (B) 463,444 Start-up 1% of purchased equip cost (B) 46,344 Performance test 1% of purchased equip cost (B) 46,344 Model Studies 2% of purchased equip cost (B) 92,689 Contingencies 3% of purchased equip cost (B) 139,033 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632
Total Capital Investment (TCI) = DC + IC 10,381,152 Retrofit multiplier 3 60% of TCI 6,228,691

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 22,809,844



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568 Supervisor 15% 15% of Operator Costs 9,535 Maintenance Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125 Maintenance Materials 1.00 % of Maintenance Labor 38,144 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 18 2,993 Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 1 26,112 WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057 Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282 Total Annual Direct Operating Costs 1,546,816
Indirect Operating Costs Overhead 60% of total labor and material costs 69,223 Administration (2% total capital costs) 2% of total c apital costs (TCI) 207,623 Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 103,812 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV017 WWESP 9/7/2006 Page 42 of 55

## Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost A nalysis Table A.4.d: SO2 Control - Wet Walled Electrostatic Precipitator

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

Replacement Parts & Equipment: Equipment Life 3 CRF 0.3811 Rep part cost per unit Amount Required 0 Total Rep Parts Cost 0 Installation Labor 0 Total Installed Cost 0 Annualized Cost 0

Electrical Use Flow acfm D P in H2O kW Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46 Fluid Head (ft) Pump Eff. Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47
Plate Area ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs gpm Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1 .6

lb/hr Reagent Use 2.50 lb NaOH/lb SO2 312.50 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 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 9,535 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr /wk, 7946 hr/yr Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,0 27 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm , 7946 hr/yr, 93% utilization Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 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

Y:\23\00 MN Taconite BART (2006)\Facility Control C ost Spreadsheets\Ispat\Ispat Inland Control Costs SV017 WWESP 9/7/2006 Page 43 of 55

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.a: SO 2 

## Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 2,637,401 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776 Installation - Site Specific Costs 6,200,000 Installation Total 2,723,776 Total Direct Capital Cost, DC 5,928,219 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666 Total Capital Investment (TCI) = DC + IC 16,454,216
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 390,244 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 1,839,553 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

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) 155.4 520.0

0% 520.0 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

60% 17.9 26.9 82,989

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

SV014 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.a: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment 1 (A) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 2,637,401 Instrumentation 10% of control device cost (A) 263,740 MN Sales Taxes 7% of control device cost (A) 171,431 Freight 5% of control device cost (A) 131,870 Purchased Equipment Total (B) 22% 3,204,443

Installation Foundations & supports 12% of purchased equip cost (B) 384,533 Handling & erection 40% of purchased equip cost (B) 1,281,777 Electrical 1% of purchased equip cost (B) 32,044 Piping 30% of purchased equip cost (B) 961,333 Insulation 1% of purchased equip cost (B) 32,044 Painting 1% of purchased equip cost (B) 32,044 Installation Subtotal Standard Expenses 85% 2,723,776
Total Direct Capital Cost, DC 5,928,219
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 160,222 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 160,222 Start-up 1% of purchased equip cost (B) 32,044 Performance test 1% of purchased equip cost (B) 32,044 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 96,133 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666
Total Capital Investment (TCI) = DC + IC 6,408,885 Retrofit multiplier 5 60% of TCI 3,845,331
Sitework and foundations Site Specific 1,400,000 Structural steel Site Specific 4,800,000 Site Specific - Other Site Specific 0 Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,25 7 Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667 WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr , 93% utilization 116,897 Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40, 364 Total Annual Direct Operating Costs 390,244
Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 128,178 Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089 Insurance (1% total capital costs) 1% of total capital cos ts (TCI) 64,089 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 1,553,162 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

See Summary page for notes and assumptions

SV014 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.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 205,478 8.55 0.7

- 293.6 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 7,808 gpm 1 60 0.7

- 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 422.6

Reagent Use & Other Operating Costs Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 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 7,808 gpm Water Makeup Rate/WW Disch 3 = 2.0% of circulating water rate + evap. loss = 193 gpm Evaporation Loss 4 = 36.64 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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 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

SV014 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.a: SO 2 

## Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 2,637,401 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776 Installation - Site Specific Costs 6,200,000 Installation Total 2,723,776 Total Direct Capital Cost, DC 5,928,219 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666 Total Capital Investment (TCI) = DC + IC 16,454,216
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 390,244 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 1,839,553 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

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) 200.0 669.0

0% 669.0 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

60% 17.9 26.9 82,989

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

SV015 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.a: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 2,637,401 Instrumentation 10% of control device cost (A) 263,740 MN Sales Taxes 7% of control device cost (A) 171,431 Freight 5% of control device cost (A) 131,870 Purchased Equipment Total (B) 22% 3,204,443

Installation Foundations & supports 12% of purchased equip cost (B) 384,533 Handling & erection 40% of purchased equip cost (B) 1,281,777 Electrical 1% of purchased equip cost (B) 32,044 Piping 30% of purchased equip cost (B) 961,333 Insulation 1% of purchased equip cost (B) 32,044 Painting 1% of purchased equip cost (B) 32,044 Installation Subtotal Standard Expenses 85% 2,723,776
Total Direct Capital Cost, DC 5,928,219
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 160,222 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 160,222 Start-up 1% of purchased equip cost (B) 32,044 Performance test 1% of purchased equip cost (B) 32,044 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 96,133 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666
Total Capital Investment (TCI) = DC + IC 6,408,885 Retrofit multiplier 5 60% of TCI 3,845,331
Sitework and foundations Site Specific 1,400,000 Structural steel Site Specific 4,800,000 Site Specific - Other Site Specific 0 Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,25 7 Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667 WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr , 93% utilization 116,897 Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40, 364 Total Annual Direct Operating Costs 390,244
Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 128,178 Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089 Insurance (1% total capital costs) 1% of total capital cos ts (TCI) 64,089 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 1,553,162 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

See Summary page for notes and assumptions

SV015 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.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 205,478 8.55 0.7

- 293.6 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 7,808 gpm 1 60 0.7

- 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 422.6

Reagent Use & Other Operating Costs Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 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 7,808 gpm Water Makeup Rate/WW Disch 3 = 2.0% of circulating water rate + evap. loss = 193 gpm Evaporation Loss 4 = 36.64 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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 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

SV015 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.c: SO2 Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 2,637,401 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776 Installation - Site Specific Costs 6,200,000 Installation Total 2,723,776 Total Direct Capital Cost, DC 5,928,219 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666 Total Capital Investment (TCI) = DC + IC 16,454,216
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 390,244 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 1,839,553 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

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) 308.3 1,031.1

0% 1031.1 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

60% 17.9 26.9 82,989

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

SV016 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.c: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 2,637,401 Instrumentation 10% of control device cost (A) 263,740 MN Sales Taxes 7% of control device cost (A) 171,431 Freight 5% of control device cost (A) 131,870 Purchased Equipment Total (B) 22% 3,204,443

Installation Foundations & supports 12% of purchased equip cost (B) 384,533 Handling & erection 40% of purchased equip cost (B) 1,281,777 Electrical 1% of purchased equip cost (B) 32,044 Piping 30% of purchased equip cost (B) 961,333 Insulation 1% of purchased equip cost (B) 32,044 Painting 1% of purchased equip cost (B) 32,044 Installation Subtotal Standard Expenses 85% 2,723,776
Total Direct Capital Cost, DC 5,928,219
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 160,222 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 160,222 Start-up 1% of purchased equip cost (B) 32,044 Performance test 1% of purchased equip cost (B) 32,044 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 96,133 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666
Total Capital Investment (TCI) = DC + IC 6,408,885 Retrofit multiplier 5 60% of TCI 3,845,331
Sitework and foundations Site Specific 1,400,000 Structural steel Site Specific 4,800,000 Site Specific - Other Site Specific 0 Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,25 7 Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667 WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr , 93% utilization 116,897 Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40, 364 Total Annual Direct Operating Costs 390,244
Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 128,178 Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089 Insurance (1% total capital costs) 1% of total capital cos ts (TCI) 64,089 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 1,553,162 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

See Summary page for notes and assumptions

SV016 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.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 205,478 8.55 0.7

- 293.6 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 7,808 gpm 1 60 0.7

- 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 422.6

Reagent Use & Other Operating Costs Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 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 7,808 gpm Water Makeup Rate/WW Disch 3 = 2.0% of circulating water rate + evap. loss = 193 gpm Evaporation Loss 4 = 36.64 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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 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

SV016 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.d: SO2 Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017 Standardized Flow Rate 173,108 scfm @ 32o F Expected Utilization Rate 93% Temperature 124 Deg F Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 2,637,401 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776 Installation - Site Specific Costs 6,200,000 Installation Total 2,723,776 Total Direct Capital Cost, DC 5,928,219 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666 Total Capital Investment (TCI) = DC + IC 16,454,216
Operating Costs Total Annual Direct Operating Costs Labor, supervis ion, materials, replacement parts, utilities, etc. 390,244 Total Annual Indirect Operating Costs Sum indirect o per costs + capital recovery cost 1,839,553 Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

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) 424.3 1,419.2

0% 1419.2 - NA Sulfur Dioxide (SO 2 ) 125.0 44.8

60% 17.9 26.9 82,989

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

SV017 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.d: SO2 Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + a uxiliary equipment, EC 2,637,401 Instrumentation 10% of control device cost (A) 263,740 MN Sales Taxes 7% of control device cost (A) 171,431 Freight 5% of control device cost (A) 131,870 Purchased Equipment Total (B) 22% 3,204,443

Installation Foundations & supports 12% of purchased equip cost (B) 384,533 Handling & erection 40% of purchased equip cost (B) 1,281,777 Electrical 1% of purchased equip cost (B) 32,044 Piping 30% of purchased equip cost (B) 961,333 Insulation 1% of purchased equip cost (B) 32,044 Painting 1% of purchased equip cost (B) 32,044 Installation Subtotal Standard Expenses 85% 2,723,776
Total Direct Capital Cost, DC 5,928,219
Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B ) 160,222 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 160,222 Start-up 1% of purchased equip cost (B) 32,044 Performance test 1% of purchased equip cost (B) 32,044 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 96,133 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666
Total Capital Investment (TCI) = DC + IC 6,408,885 Retrofit multiplier 5 60% of TCI 3,845,331
Sitework and foundations Site Specific 1,400,000 Structural steel Site Specific 4,800,000 Site Specific - Other Site Specific 0 Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216



### OPERATING COSTS Direct Annual Operating Costs, DC
Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Supervisor 15% 15% of Operator Costs 2,384 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892 Maintenance Materials 100% of maintenance labor costs 15,892 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,25 7 Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667 WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr , 93% utilization 116,897 Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40, 364 Total Annual Direct Operating Costs 390,244
Indirect Operating Costs Overhead 60% of total labor and material costs 30,036 Administration (2% total capital costs) 2% of total capi tal costs (TCI) 128,178 Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089 Insurance (1% total capital costs) 1% of total capital cos ts (TCI) 64,089 Capital Recovery 0.0944 for a 20- year equipment life a nd a 7% interest rate 1,553,162 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operati ng Cost) 2,229,797

See Summary page for notes and assumptions

SV017 Wet Scrubber

## Ispat Inland Mining Company BART Report - Attachment A: Emission Control Cost A nalysis Table A.5.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 205,478 8.55 0.7

- 293.6 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 7,808 gpm 1 60 0.7

- 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 E q 1.49 H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49 Other Total 422.6

Reagent Use & Other Operating Costs Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 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 7,808 gpm Water Makeup Rate/WW Disch 3 = 2.0% of circulating water rate + evap. loss = 193 gpm Evaporation Loss 4 = 36.64 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 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0. 5 hr/8 hr shift, 7946 hr/yr Supervisor 15% of Op. NA 2,384 15% of Operator Costs Maintenance Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of M aintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 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

SV017 Wet Scrubber