**United Taconite Indurating Line #1**

**Given/A ssumed**  Flow rate (acfm) 399,586 adjusted from 285,110 dscfm @ 68 F UTac 10/25/07 BART update Flue Gas Temperature (degrees F) 280 6/18/12 USS email to EPA Uncontrolled SO2 emissions (TPY ) 1,293 EPA SO2 molar weight 64 GSA and Baghouse (@ 910,000 acfm) 11,500,000 $ calculated from EPA cost info for 910,000 acfm @ 280 F at USS 6/18/12 USS email to EPA Freight 1,074,758 $ EPA Sales taxes 6.5% UTac 10/25/07 Retrofit factor 1.0 assumed SO2 Control efficiency 95% PETC report Operating Hours per Y ear 6,599 UTac 10/25/07 Operating Hours per Shift 8 assumed Operating Shifts per Y ear 825 calculated Utilization 93% UTac 10/25/07 Operating Labor Cost ($/hr) 45.31 $ UTac 10/25/07 Maintenance Labor Cost ($/hr) 47.22 $ UTac 10/25/07 Lime molar weight 56 Chemical usage molar ratio 1.4 PETC report Chemical cost ($/ton) 125.00 $ EPA Solvent usage (gal/kacfm) 2.9 calculated from ESSAR Steel PSD application updated 5/09/11 Solvent cost ($/kgal) 0.93 $ from ESSAR Steel PSD application updated 5/09/11 CaSO4 molar weight 172 dihydrate Wa ste disposal ($/ton) 33.00 $ from ESSAR Steel PSD application updated 5/09/11 Gas Cleanaing System Electricity Cost 87,821

$ calculated from EPA cost info of 200,000 $ /yr for 910,000 acfm at USS ID Fan Power 493,994 $ calculated from EPA cost info of 1,125,000 $ /yr for 910,000 acfm at USS USS 7/19/12 Equipment Life (y r) 20 UTac 10/25/07 Interest Rate (%) 7.00% UTac 10/25/07

### United Taconite Indurating Line #1

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

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

equipment, EC A $7,018,417 six-tenths pow er law Instrumentation 0.10 A $701,842 Sales taxes 0.065 A $456,197 Freight A $1,074,758 Purchased equipment cost, PEC B= 1.18 A $9,251,214

Direct installation costs Foundations & supports 0.12 B $1,110,146 Handling & erection 0.40 B $3,700,485 Electrical 0.01 B $92,512 Piping 0.30 B $2,775,364 Insulation 0.01 B $92,512 Painting 0.01 B $92,512 Direct installation costs x 1 x 0.85 B $7,863,531

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

Total Direct Costs, DC 1.85 B+SP+Bldg $17,114,745

Indirect Costs (installation) Engineering 0.10 B $925,121 Construction and field expenses 0.10 B $925,121 Contractor fees 0.10 B $925,121 Start-up 0.01 B $92,512 Performance test 0.01 B $92,512 Contingencies 0.03 B $277,536

Total Indirect Costs, IC 0.35 B $3,237,925

Total Capital Investment = DC + IC 2.20 B+SP+Bldg $20,352,670**United Taconite Indurating Line #1**

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

Cost Item Cost Direct Annual Costs, DC

Operating labor Operator 0.5 hr/shift 18,688 $ Supervisor 15% of operator 2,803 $

Operating materials Solvent 2.9 gal/kacfm * 399,586 acfm = 1,139 gpm = 419,341 $

Chemicals 1.4 lb-mole CaO/lb-mole SO2 * 40,406 lb-moles SO2/yr = 55,446 lb-mole CaO/yr

55,446 lb-mole CaO/yr * 56 lb/lb-mole = 3,104,996 lb CaO/yr 3,104,996 lb CaO/yr/ 2,000 lb/ton * 125.00 $ / ton = 194,062 $

Wa ste Disposal 1,228 ton SO2 removed/yr = 38,386 mo le SO2 removed/yr = 38,386 mo le CaSO4-2H2O produced/yr = 38,386 mo le CaSO4-2H2O produced/yr * 172 lb/lb-mole = 3,301 tpy CaSO4-2H2O 3,301 tpy CaSO4-2H2O * 33.00 $ /ton = 108,939 $

27% of CaO is wasted = 421 tpy * 33.00 $ /ton = 13,897 $ Maintenance Labor 0.5 hr/shift 19,475 $ Material 100.00% of maintenance 19,475 $ Electricity Gas Cleanaing System Electricity Cost 87,821 $ ID Fan Power 493,994 $ Total DC 1,378,496 $

Indirect Annual Costs, IC "Ann Cost" tab

Overhead 60% of total labor and material costs 36,265 $ Administrative charges 2% of Total Capital Investment 407,053 $ Property tax exem pt in MN

- $ Insurance 1% of Total Capital Investment 203,527 $ Capital recovery 0.0944 * Total Capital Investment 1,921,148 $ Total IC 2,567,993 $

Total Annual Cost DC + IC 3,946,489 $

## United Taconite Indurating Line #1 SO2 Uncontrolled emissions (TPY) 1,293.0 Control efficiency

(%) 95% Em ission reduction (TPY) 1,228 Controlled emissions (TPY) 65 Total annualized cost ($/y r) $3,946,489 Cost/ton removed ($/T) $3,213

95%

Chemical usage molar ratio

Solvent usage (gal/kacfm))