AIR POLLUTION CONTROL

MINOR SOURCE

PERMIT TO OPERATE

Pursuant to Chapter 23

- 25 of the North Dakota Century Code, and the Air Pollution Control Rules of the State of North Dakota, and in reliance on statements and representations heretofore made by the owner designated below, a Permit to Operate is hereby issued authorizing such owner to operate the source unit(s) at the location designated below. This Permit to Operate is subject to all applicable rules and orders now or hereafter in effect of the North Dakota Department of Health and to any conditions specified below:

1. Permittee :

A. Name : Dakota Gasification Co.

B. Address : 420 County Road 26 Beulah, ND 58523

- 0400 2. A. Permit Number : O06003

Renewal No.: 1

Revision No.: 0

B. Permit Description : True Minor Source:

NDAC 33

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- 14

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3. Installation Location : SW 1⁄4 , Sec. 35, T157N, R95W Williams County, North Dakota 4. Installation :

Flare

- Pipeline Pumping Station

5. Expiration Date : June 12, 201 6

6. Source Unit(s) :

Emission Unit Description Emission Unit (EU) Emission Point (EP) Air Pollution Control Equipment Stationary enclosed flare rated at a maximum capacity of 3,000 sc f h 1 1 None

CONDITIONS

7. A. Emission Limits : Emission limits from the operation of the major source unit(s) identified in Item 6 of this Permit to Operate (hereafter referred to as "permit") are as follows. Minor sourcePage 2 of 4

P TO No. O06003

units not listed are subject to the applicable emission limits specified in the North Dakota Air

Pollution Control Ru les.

Emission Unit Description EU EP Pollutant/Parameter Emission Limit Stationary Enclosed Flare (20 feet) 1 1 SO 2 Opacity 10.0 lb/hr 20% (40%*)

* Permissible for not more than one six

- minute period per hour

.

B. Fuel Restrictions : EU1 fuel gas is restricted to natural gas containing no more than 2 grains of sulfur per 100 standard cubic feet or commercial propane as defined by the Gas Processors

Association

.

C. Fugitive Emissions : The release of fugitive emissions shall comply with the applicable requirements in NDAC 33

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- 17.

D

. Odor Restrictions : The owner/operator shall not discharge into the ambient air any objectionable odorous air contaminant which is in excess of the limits established in NDAC

33

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- 16.

The owner/operator shall not discharge into the ambient air hydrogen sulfide (H 2 S) in concentrations that would be objectionable on land owned or leased by the complainant or in areas normally accessed by the general public. For the purpose of complaint resolution, two samples

with c oncentrations greater than 0.05 parts per million (50 parts per billion) sampled at least 15 minutes apart within a 60

- minute period and measured in accordance with Section 33

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constitute a violation.

E

. Waste Gas and Temperature Recording : The H 2 S content of the waste gas shall not exceed

2.0%. The combustio n zone temperature shall be 1200o F or higher and monitored at all times during the combustion of waste gas. A lower combustion zone temperature may be established, provided it is demonstrated that a 99% destruction efficiency is achieved at the lower combustion zone temperature. Records shall be maintained of the H 2 S content of the waste gas and the combustion zone temperature. These records shall be kept for at least five years and shall be made available to the Department upon request.

F

. Operation of Flare : The flare must be equipped and operated with an automatic ignitor or a continuous burning pilot which must be maintained in good working order. This is required even

if the flare is used for emergency purposes only. A continuous burning pilot is required if the department determines that an automatic ignition system is ineffective due to production characteristics. The flare stack must be of sufficient height to allow for adequate d ispersion of sulfur dioxide (SO 2 ) necessary to meet the requirements of Chapter 33

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- 02.

G

. Annual Emission Inventory/Annual Production Reports : The owner/operator shall submit an annual emission inventory report or an annual production report, upon requ est, on forms supplied or approved by the Department.Page 3 of 4

P TO No. O06003

H

. Source Operations : Operations at the installation shall be in accordance with statements, representations, procedures and supporting data contained in the initial application, and any supplemental information or renewal application(s) submitted thereafter. Any operations not listed in this permit are subject to all applicable North Dakota Air Pollution Control Rules.

I

. Alterations, Modifications or Changes : Any alteration, repairing, expansion, or change in the method of operation of the source which results in the emi ssion of an additional type or greater

am ount of air contaminants or which results in an increase in the ambient concentration of any air contaminant, must be reviewed and approved by the Department prior to the start of such alteration, repairing, expansi on or change in the method of operation.

J

. Recordkeeping : The owner/operator shall maintain any compliance monitoring records required by this permit or applicable requirements. The owner/operator shall retain records of all required monitoring data and support information for a period of at least five years from the date of the monitoring sample, measurement, report or application. Support information may include all calibration and maintenance records and all original strip

- chart recordings/computer pr intouts for continuous monitoring instrumentation, and copies of all reports required by the permit.

K. Air Pollution from Internal Combustion Engines : The permittee shall comply with all applicable requirements of NDAC 33

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- 08

- 01

– Internal Combustion Engine Emissions

Restricted.

L

. Organic Compounds Emissions : The stationary enclosed flare shall comply with the requirements of NDAC 33

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- 07, Control of Organic Compounds Emissions.

M

. Nuisance or Danger : This permit shall in no way authorize the maintenance of a nuisance or a danger to public health or safety.

N

. Malfunction Notification : The owner/operator shall notify the Department as soon as possible during normal working hours of any malfunction which can be expected to last longer than

twe nty

- four hours and can cause the emission of air contaminants in violation of applicable rules and regulations. Immediate notification to the Department is required for any malfunction that would threaten health or welfare, or pose an imminent danger

O

. Permit Renewal and Invalidation : This permit shall be effective from the date of its issuance until the date specified in Item 5 unless sooner suspended, revoked or surrendered. Application for renewal of this permit shall be submitted ninety days prior to such expiration date. The Department shall approve or disapprove the renewal of the permit within ninety days of receipt of the renewal application.

P

. Change of Ownership : This permit may not be transferred without prior approval from the Department

.

Q

. Right of Entry : Any duly authorized officer, employee or agent of the North Dakota Department of Health may enter and inspect any property, premise or place at which the source listed in Item 3Page 4 of 4

P TO No. O06003

of this permit is located at any time for the purpose o f ascertaining the state of compliance with the North Dakota Air Pollution Control Rules. The Department may conduct tests and take samples of air contaminants, fuel, processing material, and other materials which affect or may affect

em issions of air con taminants from any source. The Department shall have the right to access and copy any records required by the Department's rules and to inspect monitoring equipment located on the premises.

R

. Other Regulations : The owner/operator of the source unit(s) d escribed in Item 6 of this permit

s hall comply with all State and Federal environmental laws and rules. In addition, the

owner/operator shall comply with all local burning, fire, zoning, and other applicable ordinances, codes, rules and regulations.

S

. Permit Issuance : This permit is issued in reliance upon the accuracy and completeness of the information set forth in the applica tion. The conditions of this permit herein become, upon the effective date of this permit, enforceable by the Department p ursuant to any remedies it now has, or may in the future have, under the North Dakota Air Pollution Control Law, NDCC Chapter

23

- 25. Each and every condition of this permit is a material part thereof, and is not severable.

T

. Sampling and Testing : The De partment may require the owner/operator to conduct tests to determine the emission rate of air contaminants from the source. The Department may observe the testing and may specify testing methods to be used. A signed copy of the test results shall be

fur nished to the Department within 60 days of the test date. The basis for this condition is NDAC

33

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- 12 which is hereby incorporated into this permit by reference. To facilitate preparing for and conducting such tests, and to facilitate reporting the test results to the Department, the owner/operator shall follow the procedures and formats in the Department ’ s Emission Testing

Guideline.

FOR THE NORTH DAKOTA

DEPARTMEN T OF HEALTH

Date By Terry L. O ’ Clair, P.E.

Director

Division of Air Quality