General Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 1

COMMONWEALTH OF VIRGINIA Department of Environmental Quality Southwest Regional Office

STATEMENT OF LEGAL AND FACTUAL BASIS

General Shale Brick, Inc. Atkins, Virginia-Smyth County

No. SWRO10244

Title V of the 1990 Clean Air Act Amendments required each state to develop a permit program to ensure that certain facilities have federal Air Pollution Operating Permits, called Title V Operating Permits. As required by 40 CFR Part 70 and 9 VAC 5 Chapter 80, General Shale Brick, Inc. applied for a Title V Operating Permit for its brick manufacturing facility located in Atkins, Virginia. The Department issued the permit on 2/26/01. The permit renewal was issued on February 24, 2006. On July 31, 2006, General Shale Brick, Inc. submitted a request for an administrative amendment to the permit to change the name to General Shale Brick, Inc. On September 23, 2008, General Shale Brick submitted a request to modify the permit to reflect changes in fuel supplier analyses. On January 21, 2010, General Shale Brick submitted a Title V renewal application dated Janaury 19, 2010.

Engineer/Permit Contact: Date: _______________

R. A. Lowe (276)676-4863

Air Permit Manager: Date: _______________ Rob Feagins

Regional Director: ______________________________ Date: _______________

Dallas R. SizemoreGeneral Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 2

FACILITY INFORMATION

Permittee General Shale Brick, Inc.

P.O. Box 3547 Johnson City, TN 37602

Facility General Shale Brick, Inc. Route 1; Box 460 Atkins, VA 24311

AIRS ID No. 51-173-0011

SOURCE DESCRIPTION

SIC Code: 3251 - Manufacture face brick.

General Shale Products Corporation is a manuf acturer of face brick covered by Standard Industrial Classification (SIC) Code 3251. The facility is located 11 miles northeast of Marion, Virginia, on the south side of U.S. Route 11. The company's #6 plant has two small tunnel kilns (A&B) and the #28 plant has a single large kiln. Both plants are fired with natural gas and coal.

The operation at the facility consists of blending components together and the bricks are formed and stacked on kiln cars. The cars are pushed into the kilns on a regular schedule. This facility has the potential to operate 24 hours per day, 7 days per week, 52 weeks per year. This facility manufactures face brick from shale material that has been mined, processed and stockpiled. The facility is permitted to manufacture 21.9 tons of brick per hour (191,840 tons per year).

The facility is a Title V major source of hydrogen fluoride (HF), sulfur dioxide (SO 2 ), and hydrogen chloride (HCl). This source is located in an attainment area for all pollutants and is not subject to PSD.

General Shale submitted a Title V renewal application dated September 10, 2004. This permit was re-opened to incorporate minor changes and re-issue the renewal. The permit renewal was issued on February 24, 2006. On July 31, 2006, General Shale Brick, Inc. submitted a request for an administrative amendment to the permit to change the name to General Shale Brick, Inc. The administrative amendment was issued on August 4, 2006. On September 23, 2008, General Shale Brick submitted a request to modify the permit to reflect changes in requirements for fuel supplier analyses based on an NSR permit amendment dated September 4, 2007. On January 21, 2010, General Shale Brick submitted a Title V renewal application dated Janaury 19, 2010.General Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 3

COMPLIANCE STATUS

The facility is inspected at least one time each y ear. The facility was found to be in compliancewith all applicable requirements as of the inspection on June 15, 2009. Based on previous stacktesting results, the facility has demonstrated compliance for particulate emissions that are well below the NSR permit limits. A summary of historical, stack-testing PM results are shown

below.

Dec. 99 Oct. 96 Oct. 95 Oct. 93 Oct. 90 Oct. 87 Permit Limit

Kiln #6B PM, lbs/hr 2.40 0.87 4.52 3.66 4.70 4.27 7.125

Kiln #7,

Plant #28 PM, lbs/hr 2.55 7.51 13.06 11.18 7.02 11.05 19.86

Mar. 04 June 2009 Permit Limit

Kiln #6B PM, lbs/hr 4.54 --------- 7.125

Kiln #7,

Plant #28 PM, lbs/hr 4.57 5.97 19.86

By using controls as specified in the permit, the facility has maintained compliance.General Shale Brick, Inc.Registration No. 10244Statement of BasisPage 4EMISSION UNIT AND CONTROLDEVICE IDENTIFICATIONThe emission units at this facility consist of the following :Emission UnitIDStack ID Emission Unit Description Size/Rated Capacity*Pollution Control Device(PCD) DescriptionPCD IDPollutantControlledApplicable Permit DateShale Preparation/Brick Manufacturing Process02 02Shale Prep.;McClanahan Primary(1973):Stedman secondarycrusher/conveyor (2004);Tyler &Leahy Screens, other custom-1973100 tons/hr outputWheelabrator 108; Size 115w/fabric filter baghouse02 ParticulateNSR Permit dated 8/2/00(aa amended 9/4/07 and1/28/10)03 03Plant 6 Steele Brick Machine &Custom Built Texture Equipment195240 tons/hr outputCustom-Exhaust fanw/settling chamber03 ParticulateNSR Permit dated 8/2/00(aa amended 9/4/07 and1/28/10)04 04Plant 28 Steele Brick Machine &Custom Built Texture Equipment1973100 tons/hr outputWheelabrator 108; Size 90w/fabric filter baghouse04 ParticulateNSR Permit dated 8/2/00(aa amended 9/4/07 and1/28/10)05 05Plant 6 "A" Miller Dryer/Kiln-1952/19803.6 tons/hr output Internal controls 05 PM, SO2NSR Permit dated 8/2/00(aa amended 9/4/07 and1/28/10)06 06Plant 6 "B" Miller Dryer/Kiln-1952/19803.6 tons/hr output Internal controls 06 PM, SO2NSR Permit dated 8/2/00(aa amended 9/4/07 and1/28/10)Emission UnitIDStack ID Emission Unit Description Size/Rated Capacity*Pollution Control Device(PCD) DescriptionPCD IDPollutantControlledApplicable Permit Date07 07Plant 28 Harrop Dryer/Kiln-1952/198014.7 tons/hr output Internal controls 07 PM, SO2NSR Permit dated 8/2/00(aa amended 9/4/07 and1/28/10)Coal Processing08 08C-E Raymond and CustomDrying/Pulverizing System-19802.6 tons/hr outputCarter-Day 48 RF8 w/fabricfilter baghouse08 ParticulateNSR Permit dated 8/2/00(aa amended 9/4/07 and1/28/10)*The Size/Rated capacity is provided for informational purposes only, and is not an applicable requirement.General Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 5

EMISSIONS INVENTORY

The 2008 emission inventory is shown below. Emissions are also summarized in the Title V permit application.

2008 Actual Emissions

Criteria Pollutant Emission in Tons/Year

Emission

Unit VOC CO SO 2 PM 10 NO

x

02

- - - 0.27

-

03

- - - 0.05

-

04

- - - 0.2

-

05 0.3 10.1 17.44 12.7 6.5

06 0.3 10.1 17.44 12.7 6.5

07 1.2 40.4 72.6 13.6 25.7

08

- - - 0.2

-

Total 1.8 60.6 107.5 39.7 38.7

2009 Facility Hazardous Air Pollutant Emissions

Pollutant Hazardous Air Pollutant Emission in Tons/Year

Hydrogen Chloride 10.6*

Hydrogen Fluoride 17.4*

*based on engineering test of uncontrolled emissions performed on Plant 28 on 6/10/2009.

EMISSION UNIT APPLICABLE REQUIREMENTS - Brick Manufacturing Process (05,General Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 6

06, 07)

Limitations

The following applicable limitations are State BACT requirements from Conditions 3, 5, 6, 7, 8, 9, 10, 11, and 12 of the minor NSR permit issued on August 2, 2000 (as amended September 4, 2007, and January 28, 2010):

Condition 3, which states that emissions shall be controlled using internal controls, supplemental fuel, and coal with 1.1% sulfur and 6% ash content.

Condition 5, which states that the fuel used shall be coal with natural gas as supplemental fuel.

Condition 6, which states the limits on coal consumption for the dryer/kilns.

Condition 7, which states the limits on brick production for the dryer/kilns.

Condition 8, which states specifications for the coal used in the dryer/kilns.

Condition 9, which states the emission limits for dryer/kiln operations.

Condition 10, which provides visible emission limits for the dryer/kiln exhausts.

Condition 11, which states the performance testing requirements for the dryer/kiln process.

Condition 12, which states the fuel compliance requirements for the dryer/kilns.

Monitoring

The monitoring requirement in Conditions 10 and 12 of the NSR permit have been incorporated to meet Part 70 requirements.The permittee shall perform a visible emission observation on each kiln exhaust stack (I.D. Nos. 5, 6, and 7) once each week during each week when there is operation. The visible emission observation shall be performed for a brief period of time to identify the presence of visible emissions. If , during any visible emission observation, visible emissions are observed (condensed water vapor/steam is not a visible emission) which are higher than 10% opacity, a visible emissions evalua tion (VEE) shall be conducted using 40 CFR 60, Appendix A, Method 9, for six minutes. If the observed visible emissions are 10% opacity or less, no action shall be required. If the opacity average is higher than 20%, modifications and/or repairs shall be performed to correct the problem. If such correction action fails to correct theGeneral Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 7

problem, a VEE using 40 CFR Part 60, Appendix A, Method 9 shall be conducted for 18 minutes to determine compliance with the opacity limit. The visible emissions observer shall be

Method 9 certified.

Recordkeeping

The recordkeeping requirements in Conditions 5, 6, 7, 8, 9, and 12 of the NSR permit have been incorporated to meet Part 70 requirements.

a. The permittee shall maintain hourly and yearly records on coal consumption to meet NSR permit requirements, which shall include calculation of sulfur dioxide (SO 2 ) emissions by the mass balance method to demonstrate compliance. (Conditions 6 and 9)

Sulfur dioxide emissions shall be calculated in the following manner:

[% sulfur in coal (from Item c.) x (lbs coal/month)/(total kiln operating hours/month) x 2] + [(%sulfur in shale) x (lbs shale/month)/(total kiln operating hours/month) x 2] = total lbs/hr

of SO 2

.

[% sulfur in coal (from Item c.) x (tons coal/yr) x 2] + [(% sulfur in shale) x (tons shale)/yr x 2] = total tons SO 2 /yr.

b. The permittee shall maintain hourly and yearly records of brick production to meet NSR permit requirements, which shall include calculation of NOx, VOC, and CO emissions by the use of pollutant-specific emission factors to demonstrate compliance. (Conditions 7 and 9)

NOx, VOC, and CO emissions shall be calculated as follows:

[(Total tons brick/month)/(total kiln opera ting hours/month)] x AP-42 factor = lbs/hr

(Total tons brick/year) x AP-42 factor x 1 ton/2000 lbs = tons/yr

c. The permittee shall maintain records demonstrating compliance with coal specifications for sulfur and ash content and for use in calculation of sulfur dioxide emissions; including vendor-supplied records and analyses. (Conditions 8, 9, and 12)

d. There is no recordkeeping requirement for Condition 5 of the NSR permit.General Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 8

e. The permittee shall maintain records of the weekly visible emission checks on each kiln exhaust and any observations, VEE results, and corrective actions.

f. The permittee shall maintain hourly and yearly records of particulate matter emissions from brick production. Hourly and yearly particulate emissions shall be calculated each month utilizing a production-based emission factor de rived from the last performance test.

Testing

The permittee shall complete performance testing for particulate matter on each kiln exhaust as stated in Section III.A.8.of the Title V permit once every five years to demonstrate compliance with particulate emission limits. To the maximum extent possible, the requirements as sated in Section III.A.8. of the Title V permit for performance testing shall be the Title V performance test requirement and frequency; the next performance test (after the 180-day performance test for Kilns 6A or 6B) being completed in Calendar Year 2014.

The Department and EPA have authority to require testing not included in this permit if necessary to determine compliance with an emission limit or standard. Details shall be arranged with the Director, Southwest Regi onal Office. (Conditions 3, 9 (PM 10 only), and 11 of NSR Permit dated 8/200 ( as amended 9/4/07 and 1/28/10))

Streamlined Requirements

Condition 13, which states the recordkeeping requirements, has been incorporated into the recordkeeping requirements for the brick manufacturing process.

EMISSION UNIT APPLICABLE REQUIREMENTS - Shale Preparation Process (02) - Dust Collection System with Fabric Filter B aghouse; Plant 28/Brick Making and Texturing (04) - Dust Collection System with Fabric Filter Baghouse; and Coal Processing System (08) with Fabric Filter Baghouse

Limitations

The following sections of the Virginia Administrative Code that have specific emission requirements have been determined to be applicable:

9 VAC 5-50-80, Modified Source Standard for Vi sible Emissions - Units that were constructed

after March, 1972 are subject to the opacity requirement of 20%, except for one six-minute period in any one hour of not more than 30% opacity.

9 VAC 5-50-20E, Compliance - The facility, including any associated air pollution controlGeneral Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 9

equipment, shall be operated in a manner so as to minimize emissions.

9 VAC 5-40-260, Standard for Particulate Matter - 9 VAC 5-40-260A limits particulate emissions to 51.3 lbs/hr based on process weight rate of 100 tons per hour (for Units 02, 04); and particulate emissions to 7.78 lbs/hr based on pro cess weight rate of 2.6 tons per hour (for Unit 08).

Monitoring

a. The permittee shall perform a visible emission observation on each baghouse exhaust stack (I.D. Nos. 2, 4, and 8) once each week during each week when there is operation. The visible emission observation shall be performed for a brief period of time to identify the presence of visible emissions. If, during any visible emi ssion observation, visible emissions are observed (condensed water vapor/steam is not a visible emission) which are higher than 10% opacity, a visible emissions evaluation (VEE) sha ll be conducted using 40 CFR 60, Appendix A, Method 9, for six minutes. If the observed visible emissions are 10% opacity or less, no action shall be required. If the opacity average is higher than 20%, modifications and/or repairs shall be performed to correct the problem. If such correction action fails to correct the problem a VEE using 40 CFR Part 60, Appendix A, Method 9 shall be conducted for 18 minutes to determine compliance with the opacity limit. The visible emissions observer shall

be Method 9 certified.

b. The permittee shall monitor daily the pressure drop across each baghouse filter to ensure proper operation and maintenance. If a change in pressure drop occurs (outside manufacturer's specification limits), the cause should be determined and corrective action taken to maintain proper operation.

Recordkeeping

a. The permittee shall maintain records of the weekly visible emission checks on each baghouse exhaust and any observations, VEE results, and corrective actions.

b. The permittee shall maintain records of the pressure drop across each baghouse filter, including any corrective actions taken.

c. The permittee shall maintain the reporting and recordkeeping requirements of 40 CFR 60, Subpart OOO (40 CFR 60.670 (d)) for the Stedman crusher and conveyor extension.

TestingGeneral Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 10

The permit does not require source tests for this emission unit. A table of test methods has been included in the permit if testing is performed. The Department and EPA have authority to require testing not included in this permit if necessary to determine compliance with an emission

limit or standard.

GENERAL CONDITIONS

The permit contains general conditions required by 40 CFR Part 70 and 9 VAC 5-80-110, thatapply to all Federal operating permit sources. These include requirements for submitting semiannual monitoring reports and an annual compliance certification report. The permit also requires notification of deviations from perm it requirements or any excess emissions, including those caused by upsets, within four daytime business hours.

The general requirements which apply to the facility include the administrative requirements of Chapter 20 of State Regulations, which describe the authority of the DEQ and the responsibility of the company to provide accurate information pertaining to air emissions. This chapter also outlines the responsibility of the company to maintain the facility in proper operation.

Because the facility has units which were installed or modified after March 17, 1972, the compliance provisions of Chapter 50 of State Regul ations apply. An opacity standard of 20% (one 6-minute period not more than 30%) applies.

FUTURE APPLICABLE REQUIREMENTS

The facility is a major source of sulfur dioxide and a hazardous air pollutant, hydrogen fluoride. Maximum Achievable Control Technology Standard s (MACT) for brick and structural clay products manufacturing, under 40 CFR 63 (Subpart JJJJJ) and 9 VAC 5 Chapter 60, was promulgated on May 16, 2003, but vacated on June 18, 2007. The facility may be subject to those requirements.

INAPPLICABLE REQUIREMENTS

New Source Performance Standard (NSPS) Requi rements for Nonmetallic Mineral Processing Plants in 40 CFR Part 60, Subpart OOO is not applicable except for the Stedman crusher and conveyor extension. The reporting and recor dkeeping requirements of Subpart OOO, 40 CFR 60.670 (d), apply to the crusher and conveyor extension. 40 CFR 60.670(e) exempts the remaining shale preparation equipment since construction was prior to 8/31/83.

40 CFR 64, Compliance Assurance Monitoring (CAM), does not apply to the facility since the emission units do not meet the applicability requirements of Section 64.2 of 40 CFR 64.General Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 11

INSIGNIFICANT EMISSION UNITS

The insignificant emission units are presumed to be in compliance with all requirements of the Clean Air Act as may apply. Based on this presumption, no monitoring, recordkeeping or reporting shall be required for these emission units in accordance with 9 VAC 5-80-110.

Insignificant emission units include the following:

Emission

Unit No. Emission Unit Description Citation 1 Pollutant Emitted (5-80-720 B.) Rated Capacity

03 Brick Making/

Texturing; Plant

#6 5-80-720 B PM 40 Tons/hr

09 Kiln Car Vacuum Cleaner; Plant 6 5-80-720 B PM N/A

10 Oil (Lubricating) Tanks (2) 5-80-720 B VOC 3,000 gallons each

11 Diesel Fuel Tank 5-80-720 B VOC 1,000 gallons

12 Kiln Car Vacuum Cleaning System;

Plant 28 5-80-720 B PM N/A

1 The citation criteria for insignificant activities are as follows: 9 VAC 5-80-720 A - Listed Insignificant Activity, Not Included in Permit Application 9 VAC 5-80-720 B - Insignificant due to emission levels 9 VAC 5-80-720 C - Insignificant due to size or production rate

CONFIDENTIAL INFORMATION

The permittee did not submit a request for confidentiality. All portions of the Title V application are suitable for public review.

PUBLIC PARTICIPATION

A public notice regarding the draft permit for renewal was placed in the Smyth County News &General Shale Brick, Inc. Registration No. 10244

Statement of Basis Page 12

Messenger , on March 31, 2010. EPA was sent a copy of the draft permit and notified of the public notice on March 24, 2010. The affected states, including Kentucky, Maryland, North Carolina and Tennessee, were sent a copy of the public notice by e-mail, fax or letter, dated March 24, 2010. No comments were received from the public or the EPA. The public comment period closed on April 30, 2010.