From: Aagenes, Jason D.

To: "Fenske, Mary Jean"

Cc: Skolasinski, Dave Z.

Subject: United Taconite BART Analysis Spreadsheet

Date: Wednesday, January 31, 2007 11:46:51 AM

Attachments: United Taconite Control Costs (2007-01-25).xls

Mary Jean,

Please find attached the updated BART Analysis spreadsheet that Barr prepared for United Taconite.

Please note, some of the values may be slightly different than the hard copy which you received

previously. Barr noticed some minor items that needed correction. These items were described by

Barr as follows,

“In addition to removing the double counted 15% scale up factor, we found a couple of additional small

items that we felt were necessary to correct. We noticed we had forgotten to update the catalyst

replacement costs for the SCRs. The original basis was from the EPA manual, but we later obtained a

bid from a vendor, that we thought was a better approach. In addition, for some equipment we had

forgotten to include the correct 6.5% MN sales tax. The overall impact of these changes is very minor

(less than 5% on the average), and would not change the conclusions of the report. The attached

calculations represent a more accurate result. ”

Please forward this information as appropriate and contact me if you have any questions or need

additional information.

Regards,

Jason Aagenes

Section Manager - Environmental Affairs

Cleveland-Cliffs United Taconite LLC

P.O. Box 180

Eveleth, MN 55734

Office (218) 744-7803

Mobile (218) 290 -5936

Fax (218) 744-7647

jdaagenes@cleveland-cliffs.com
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Cost Summary 5/4/2012 Page 1 of 1

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 1 >: Cost Summary

NOx Control Cost Summary 

Control Technology Control 

Eff %

Controlled 

Emissions T/y

Emission 

Reduction T/yr

Installed Capital 

Cost $

Total Annual Cost 

$/yr

Pollution Control 

Cost $/ton

Incremental 

Control Cost 

$/ton

Selective Catalytic Reduction (SCR) + Reheat

Line 1 Pellet Induration 80% 399.7 1751.5 $44,591,384 $22,183,231 $12,665 NA

Line 2 Pellet Induration 80% 35.0 1598.3 $70,838,846 $33,856,894 $21,183 NA

Line 2 Pellet Induration NG 80% 188.7 7975.8 $72,298,312 $36,202,334 $4,539 NA

SO2 Control Cost Summary 

Control Technology Control 

Eff %

Controlled 

Emissions T/y

Emission 

Reduction T/yr

Installed Capital 

Cost $

Total Annual Cost 

$/yr

Pollution Control 

Cost $/ton

Incremental 

Control Cost 

$/ton

Wet Walled Electrostatic Precipitator (WWESP)

Line 1 Pellet Induration 80% 2.8 11.1 $29,805,809 $7,441,650 $671,145 NA

Line 2 Pellet Induration 80% 549.9 2199.7 $41,621,612 $17,974,280 $8,171 $23,042

Wet Scrubber (Additional)

Line 1 Pellet Induration 60% 5.5 8.3 $19,419,261 $3,035,033 $364,963 NA

Line 2 Pellet Induration 60% 1099.9 1649.8 $26,036,114 $5,302,902 $3,214 NA
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Utility Chem$ Data 5/4/2012 Page 1 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 2>: - Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 1 Pellet Induration Study Year 2006

Emission Unit Number EU 040

Stack/Vent Number SV 046

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042

Stack/Vent Number SV 048 & 049

Line 1 furnace mmbtu 190

Line 2 furnace mmbtu 400

Reference

Item Unit Cost Units Cost Year Data Source Notes

Operating Labor 45.31 $/hr 2006 Site Specific - United Taconite.

Maintenance Labor 47.22 $/hr 2006 Site Specific - United Taconite. Construction Labor Rate.

Electricity 0.04 $/kwh 2006 Site Specific - United Taconite. Purchased Cost.

Natural Gas 12.81 $/mscf 2006 Site Specific - United Taconite. $12.02/MMBtu @ 1066 Btu/scf.

Water 2.07 $/mgal 2006 Site Specific - United Taconite. Purchased Cost.

Cooling Water 0.28 $/mgal 0.23 1999

EPA Air Pollution Control Cost Manual, 6th 

ed. Section 3.1 Ch 1.

Ch 1 Carbon Absorbers, 1999 $0.15 - $0.30 Avg of 22.5 and 7 yrs and 

3% inflation.

Compressed Air 0.32 $/mscf 0.25 1998

EPA Air Pollution Control Cost Manual 6th 

Ed 2002, Section 6 Chapter 1 .

Example problem; Dried & Filtered, Ch 1.6 '98 cost adjusted for 3% 

inflation.

Wastewater Disposal Neutralization 3.13 $/mgal 2006 Site Specific - United Taconite. Purchased Cost.

Chemicals & Supplies

Lime 88.98 $/ton 88.98 2006

Ammonia (29% aqua.) 0.12 $/lb 0.101 2000

EPA Air Pollution Control Cost Manual 6th 

Ed 2002, Section 5 Chapter 2, page 2-50.

Annual costs for a retrofit SCR system example problem. '00 costs 

adjusted for 3% inflation.

Caustic 484.56 $/ton 280 2003 United Taconite 2006 cost

SCR Catalyst 141.00 $/ft3 Cormetech, Inc.

Other

Sales Tax 6.5% %

Interest Rate 7.00% %

EPA Air Pollution Control Cost Manual 

Introduction, Chapter 2, section 2.4.2. Social (discount) rate used as a default.

Operating Information

Annual Op. Hrs EU040 6599 Hours BART spreadsheet. Maximum hours of operation 2004-2005 with a 10% safety factor.

Annual Op. Hrs EU042 8688 Hours BART spreadsheet. Maximum hours of operation 2004-2005 with a 10% safety factor.

Utilization Rate 93%

Equipment Life 20 yrs

Standardized Flow Rate

SV 046 308,345 scfm @ 32o F Calculated.

SV 048 & 049 615,086 scfm @ 32o F Calculated.
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Utility Chem$ Data 5/4/2012 Page 2 of 3

Reference

Item Unit Cost Units Cost Year Data Source Notes

Temperature

SV 046 129 Deg F BART spreadsheet.

SV 048 & 049 121 Deg F BART spreadsheet. Weighted average.

Moisture Content

SV 046 13.8% 2005

Y:\23\69\948 United Taconite Post EERP 

Testing\Data\Waste Gas Stack. Average from test results in : Line 1 WG pm 5-2-05.

SV 048 & 049 13.8% 2005 Y:\23\69\872 United Tac\Data. Weighted average from test results in: SV049 2BPM and SV048 2APM.

Y:\23\69\872 United Tac\Data\SV048 2APM

Actual Flow Rate

SV 046 369,137 acfm BART spreadsheet.

SV 048 & 049 726,000 acfm BART spreadsheet.

Standardized Flow Rate

SV 046 330,907 scfm @ 68o F Calculated.

SV 048 & 049 660,092 scfm @ 68o F Calculated.

Dry Std Flow Rate
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Utility Chem$ Data 5/4/2012 Page 3 of 3

Reference

Item Unit Cost Units Cost Year Data Source Notes

SV 046 285,110 dscfm @ 68o F Calculated.

SV 048 & 049 568,896 dscfm @ 68o F Calculated.

Max Emis Actual Emissions lb/hr ton/year

Pollutant Lb/Hr Ton/year ('04&'05 Max) ppmv ppmv lb/mmbtu

Nitrous Oxides (NOx)

SV 046 651.3 2,151.2 319 240.2 3.428070175 2005 plus 10%

SV 048 & 049 375.2 1,633.3 92 91.4 8.279997057 2004 plus 10%

SV 048 & 049 with NG only 2021.0 8,164.5 495 457.0

Sulfur Dioxides (SO2)

SV 046 4.2 13.9 1 1.1 2004 plus 10%

SV 048 & 049 632.2 2,749.7 111 110.5 2004 plus 10%
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EU040 WWESP 5/4/2012 Page 1 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 3>: SO2 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Line 1 Pellet Induration

Emission Unit Number EU 040 Stack/Vent Number SV 046

Standardized Flow Rate 308,345 scfm @ 32o F

Expected Utilization Rate 93% Temperature 129 Deg F

Expected Annual Hours of Operation 6,599 Hours Moisture Content 13.8%

Annual Interest Rate 7.0% Actual Flow Rate 369,137 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 330,907 scfm @ 68o F

Dry Std Flow Rate 285,110 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 5,420,940

 Purchased Equipment Total (B) 22% of control device cost (A) 6,586,442

 Installation - Standard Costs 67% of purchased equip cost (B) 4,412,916

 Installation - Site Specific Costs 6,200,000

 Installation Total 4,412,916

 Total Direct Capital Cost, DC 10,999,359

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 3,754,272

Total Capital Investment (TCI) = DC + IC 29,805,809

Operating Costs 364963.028

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 3,935,246

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,506,404

Total Annual Cost (Annualized Capital Cost + Operating Cost) 7,441,650

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 651.3 2,151.2 0% 2151.2 - NA

Sulfur Dioxide (SO2) 4.2 13.9 80% 2.8 11.1 671,145

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm.

3 CUECost Workbook Version 1.0, USEPA Document Page 2.
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EU040 WWESP 5/4/2012 Page 2 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 3>: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 5,420,940

Instrumentation 10% of control device cost (A) 542,094

MN Sales Taxes 6.5% of control device cost (A) 352,361

Freight 5% of control device cost (A) 271,047

Purchased Equipment Total (B) 22% 6,586,442

Installation

Foundations & supports 4% of purchased equip cost (B) 263,458

Handling & erection 50% of purchased equip cost (B) 3,293,221

Electrical 8% of purchased equip cost (B) 526,915

Piping 1% of purchased equip cost (B) 65,864

Insulation 2% of purchased equip cost (B) 131,729

Painting 2% of purchased equip cost (B) 131,729

Installation Subtotal Standard Expenses 67% 4,412,916

Total Direct Capital Cost, DC 10,999,359

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 1,317,288

Construction & field expenses 20% of purchased equip cost (B) 1,317,288

Contractor fees 10% of purchased equip cost (B) 658,644

Start-up 1% of purchased equip cost (B) 65,864

Performance test 1% of purchased equip cost (B) 65,864

Model Studies 2% of purchased equip cost (B) 131,729

Contingencies 3% of purchased equip cost (B) 197,593

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 3,754,272

Total Capital Investment (TCI) = DC + IC 14,753,631

Retrofit multiplier3 60% of TCI 8,852,178

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 29,805,809

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 45.31 $/Hr, 2.0 hr/8 hr shift, Annual Operating Hours 74,749

Supervisor 15% 15% of Operator Costs 11,212

Maintenance

Maintenance Labor 47.22 $/Hr, 15.0 hr/wk, Annual Operating Hours 31,165

Maintenance Materials 1.00 % of Maintenance Labor 54,209

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 872 kW-hr, annual operating hours, 93% utilization 214,127

Water 2.07 $/mgal, 1,846 gpm, annual operating hours, 93% utilization 1,406,804

WW Treat Neutralization 3.13 $/mgal, 1,846 gpm, annual operating hours, 93% utilization 2,127,197

Caustic 484.56 $/ton, 11 lb/hr, 6598.9 hr/yr, 93% utilization 15,782

Total Annual Direct Operating Costs 3,935,246

Indirect Operating Costs

Overhead 60% of total labor and material costs 102,802

Administration (2% total capital costs) 2% of total capital costs (TCI) 295,073

Property tax (1% total capital costs) 1% of total capital costs (TCI) 147,536

Insurance (1% total capital costs) 1% of total capital costs (TCI) 147,536

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,813,458

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,506,404

Total Annual Cost (Annualized Capital Cost + Operating Cost) 7,441,650

See summary page for notes and assumptions
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EU040 WWESP 5/4/2012 Page 3 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 3>: 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 369,137 10 668.1 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 34.8 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 87,305 169.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 872.3

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 1845.69 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 10.61 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 6,599

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 2.0 hr/8 hr shift 1,650 74,749 $/Hr, 2.0 hr/8 hr shift, Annual Operating Hours 

Supervisor 15% of Op. NA 11,212 15% of Operator Costs

Maintenance

Maint Labor 47.22 $/Hr 15.0 hr/wk 660 31,165 $/Hr, 15.0 hr/wk, Annual Operating Hours

Maint Mtls 1 % of Purchase Cost NA 54,209 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 872.3 kW-hr 5,353,163 214,127 $/kwh, 872 kW-hr, annual operating hours, 93% utilization

Water 2.07 $/mgal 1,845.7 gpm 679,616 1,406,804 $/mgal, 1,846 gpm, annual operating hours, 93% utilization

WW Treat Neutralizatio 3.13 $/mgal 1,845.7 gpm 679,616 2,127,197 $/mgal, 1,846 gpm, annual operating hours, 93% utilization

Caustic 484.56 $/ton 10.6 lb/hr 33 15,782 $/ton, 11 lb/hr, 6598.9 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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EU042 WWESP 5/4/2012 Page 1 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 4>: SO2 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042 Stack/Vent Number SV 048 & 049

Standardized Flow Rate 615,086 scfm @ 32o F

Expected Utilization Rate 93% Temperature 121 Deg F

Expected Annual Hours of Operation 8,688 Hours Moisture Content 13.8%

Annual Interest Rate 7.0% Actual Flow Rate 726,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 660,092 scfm @ 68o F

Dry Std Flow Rate 568,896 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 8,134,372

 Purchased Equipment Total (B) 22% of control device cost (A) 9,883,262

 Installation - Standard Costs 67% of purchased equip cost (B) 6,621,786

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,621,786

 Total Direct Capital Cost, DC 16,505,048

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,633,459

Total Capital Investment (TCI) = DC + IC 41,621,612

Operating Costs 364963.028

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 13,024,545

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 4,949,735

Total Annual Cost (Annualized Capital Cost + Operating Cost) 17,974,280

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 375.2 1,633.3 0% 1633.3 - NA

Sulfur Dioxide (SO2) 632.2 2,749.7 80% 549.9 2,199.7 8,171

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm.

3 CUECost Workbook Version 1.0, USEPA Document Page 2.
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EU042 WWESP 5/4/2012 Page 2 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 4>: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 8,134,372

Instrumentation 10% of control device cost (A) 813,437

MN Sales Taxes 6.5% of control device cost (A) 528,734

Freight 5% of control device cost (A) 406,719

Purchased Equipment Total (B) 22% 9,883,262

Installation

Foundations & supports 4% of purchased equip cost (B) 395,330

Handling & erection 50% of purchased equip cost (B) 4,941,631

Electrical 8% of purchased equip cost (B) 790,661

Piping 1% of purchased equip cost (B) 98,833

Insulation 2% of purchased equip cost (B) 197,665

Painting 2% of purchased equip cost (B) 197,665

Installation Subtotal Standard Expenses 67% 6,621,786

Total Direct Capital Cost, DC 16,505,048

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 1,976,652

Construction & field expenses 20% of purchased equip cost (B) 1,976,652

Contractor fees 10% of purchased equip cost (B) 988,326

Start-up 1% of purchased equip cost (B) 98,833

Performance test 1% of purchased equip cost (B) 98,833

Model Studies 2% of purchased equip cost (B) 197,665

Contingencies 3% of purchased equip cost (B) 296,498

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 5,633,459

Total Capital Investment (TCI) = DC + IC 22,138,507

Retrofit multiplier3 60% of TCI 13,283,104

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 41,621,612

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 45.31 $/Hr, 2.0 hr/8 hr shift, Annual Operating Hours 98,411

Supervisor 15% 15% of Operator Costs 14,762

Maintenance

Maintenance Labor 47.22 $/Hr, 15.0 hr/wk, Annual Operating Hours 31,165

Maintenance Materials 1.00 % of Maintenance Labor 81,344

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 1,716 kW-hr, annual operating hours, 93% utilization 554,444

Water 2.07 $/mgal, 3,630 gpm, annual operating hours, 93% utilization 3,642,680

WW Treat Neutralization 3.13 $/mgal, 3,630 gpm, annual operating hours, 93% utilization 5,508,013

Caustic 484.56 $/ton, 1,580 lb/hr, 8687.8 hr/yr, 93% utilization 3,093,727

Total Annual Direct Operating Costs 13,024,545

Indirect Operating Costs

Overhead 60% of total labor and material costs 135,409

Administration (2% total capital costs) 2% of total capital costs (TCI) 442,770

Property tax (1% total capital costs) 1% of total capital costs (TCI) 221,385

Insurance (1% total capital costs) 1% of total capital costs (TCI) 221,385

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,928,786

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 4,949,735

Total Annual Cost (Annualized Capital Cost + Operating Cost) 17,974,280

See summary page for notes and assumptions
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EU042 WWESP 5/4/2012 Page 3 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 4>: 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 726,000 10 1,314.1 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 68.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 171,708 333.1 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 1,715.6

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 3630.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 1580.42 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 8,688

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 2.0 hr/8 hr shift 2,172 98,411 $/Hr, 2.0 hr/8 hr shift, Annual Operating Hours 

Supervisor 15% of Op. NA 14,762 15% of Operator Costs

Maintenance

Maint Labor 47.22 $/Hr 15.0 hr/wk 660 31,165 $/Hr, 15.0 hr/wk, Annual Operating Hours

Maint Mtls 1 % of Purchase Cost NA 81,344 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 1715.6 kW-hr 13,861,102 554,444 $/kwh, 1,716 kW-hr, annual operating hours, 93% utilization

Water 2.07 $/mgal 3,630.0 gpm 1,759,749 3,642,680 $/mgal, 3,630 gpm, annual operating hours, 93% utilization

WW Treat Neutralizatio 3.13 $/mgal 3,630.0 gpm 1,759,749 5,508,013 $/mgal, 3,630 gpm, annual operating hours, 93% utilization

Caustic 484.56 $/ton 1,580.4 lb/hr 6,385 3,093,727 $/ton, 1,580 lb/hr, 8687.8 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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EU040 Wet Scrubber 5/4/2012 Page 1 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 5>: SOx Control - Wet Scrubber

Operating Unit: Line 1 Pellet Induration

Emission Unit Number EU 040 Stack/Vent Number SV 046

Standardized Flow Rate 308,345 scfm @ 32o F

Expected Utilization Rate 93% Temperature 129 Deg F

Expected Annual Hours of Operation 6,599 Hours Moisture Content 13.8%

Annual Interest Rate 7.0% Actual Flow Rate 369,137 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 330,907 scfm @ 68o F

Dry Std Flow Rate 285,110 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 3,400,016

 Purchased Equipment Total (B) 22% of control device cost (A) 4,131,019

 Installation - Standard Costs 85% of purchased equip cost (B) 3,511,366

 Installation - Site Specific Costs 6,200,000

 Installation Total 3,511,366

 Total Direct Capital Cost, DC 7,642,385

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 619,653

Total Capital Investment (TCI) = DC + IC 19,419,261

Operating Costs 364,963

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 835,246

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,199,787

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,035,033

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 651.3 2,151.2 0% 2151.2 - NA

Sulfur Dioxide (SO2) 4.2 13.9 60% 5.5 8.3 364,963

Notes & Assumptions

1 Original estimate from STS Consultants. Use 0.6 Power 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 circulating water rate.

4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Third Edition.

5 CUECost Workbook Version 1.0, USEPA Document Page 2.
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EU040 Wet Scrubber 5/4/2012 Page 2 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 5>: SOx Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 3,400,016

Instrumentation 10% of control device cost (A) 340,002

MN Sales Taxes 7% of control device cost (A) 221,001

Freight 5% of control device cost (A) 170,001

Purchased Equipment Total (B) 22% 4,131,019

Installation

Foundations & supports 12% of purchased equip cost (B) 495,722

Handling & erection 40% of purchased equip cost (B) 1,652,408

Electrical 1% of purchased equip cost (B) 41,310

Piping 30% of purchased equip cost (B) 1,239,306

Insulation 1% of purchased equip cost (B) 41,310

Painting 1% of purchased equip cost (B) 41,310

Installation Subtotal Standard Expenses 85% 3,511,366

Total Direct Capital Cost, DC 7,642,385

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 206,551

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 206,551

Start-up 1% of purchased equip cost (B) 41,310

Performance test 1% of purchased equip cost (B) 41,310

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 123,931

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 619,653

Total Capital Investment (TCI) = DC + IC 8,262,038

Retrofit multiplier5 60% of TCI 4,957,223

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 19,419,261
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BART Report - <Appendix A> Emission Control Cost Analysis

<Table 5>: SOx Control - Wet Scrubber

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours 18,687

Supervisor 15% 15% of Operator Costs 2,803

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours 19,475

Maintenance Materials 100% of maintenance labor costs 19,475

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 759 kW-hr, annual operating hours, 93% utilization 186,351

Water 2.07 $/kgal, 346 gpm, annual operating hours, 93% utilization 264,005

WW Treat Neutralization 3.13 $/kgal, 281 gpm, annual operating hours, 93% utilization 323,334

Lime 88.98 $/ton, 4 lb/hr, annual operating hours, 93% utilization 1,116

Total Annual Direct Operating Costs 835,246

Indirect Operating Costs

Overhead 60% of total labor and material costs 36,264

Administration (2% total capital costs) 2% of total capital costs (TCI) 165,241

Property tax (1% total capital costs) 1% of total capital costs (TCI) 82,620

Insurance (1% total capital costs) 1% of total capital costs (TCI) 82,620

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,833,041

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,199,787

Total Annual Cost (Annualized Capital Cost + Operating Cost) 3,035,033

See Summary page for notes and assumptions
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EU040 Wet Scrubber 5/4/2012 Page 4 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 5>: SOx 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 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (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 & sales 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 bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm Δ P in H2O Efficiency Hp kW

Blower, Scrubber 369,137 8.55 0.7 - 527.5 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48

Flow Liquid SPGR Δ P ft H2O Efficiency Hp kW

Circ Pump 14,027 gpm 1 60 0.7 - 226.0 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 346 gpm 1 60 0.7 - 5.6 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 759.1

Reagent Use & Other Operating Costs

Caustic Use 4.25 lb/hr SO2 2.50 lb NaOH/lb SO2 10.61 lb/hr Caustic

Lime Use 4.25 lb/hr SO2 0.96 lb Lime/lb SO2 4.09 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio2 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate 14,027 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 346 gpm

Evaporation Loss4 = 65.82 gpm
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EU040 Wet Scrubber 5/4/2012 Page 5 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 5>: SOx Control - Wet Scrubber

Operating Cost Calculations Annual hours of operation: 6,599

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 0.5 hr/8 hr shift 412 18,687 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours

Supervisor 15% of Op. NA 2,803 15% of Operator Costs

Maintenance

Maint Labor 47.22 $/Hr 0.5 hr/8 hr shift 412 19,475 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours

Maint Mtls 100 % of Maintenance Labor NA 19,475 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 759.1 kW-hr 4,658,783 186,351 $/kwh, 759 kW-hr, annual operating hours, 93% utilization

Water 2.07 $/kgal 346.4 gpm 127,538 264,005 $/kgal, 346 gpm, annual operating hours, 93% utilization

WW Treat Neutralizatio 3.13 $/kgal 280.5 gpm 103,302 323,334 $/kgal, 281 gpm, annual operating hours, 93% utilization

Lime 89.0 $/ton 4.1 lb/hr 13 1,116 $/ton, 4 lb/hr, annual operating hours, 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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EU042 Wet Scrubber 5/4/2012 Page 1 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 6>: SOx Control - Wet Scrubber

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042 Stack/Vent Number SV 048 & 049

Standardized Flow Rate 615,086 scfm @ 32o F

Expected Utilization Rate 93% Temperature 121 Deg F

Expected Annual Hours of Operation 8,688 Hours Moisture Content 13.8%

Annual Interest Rate 7.0% Actual Flow Rate 726,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 660,092 scfm @ 68o F

Dry Std Flow Rate 568,896 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 5,101,881

 Purchased Equipment Total (B) 22% of control device cost (A) 6,198,786

 Installation - Standard Costs 85% of purchased equip cost (B) 5,268,968

 Installation - Site Specific Costs 6,200,000

 Installation Total 5,268,968

 Total Direct Capital Cost, DC 11,467,753

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 929,818

Total Capital Investment (TCI) = DC + IC 26,036,114

Operating Costs 364963.028

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 2,301,630

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,001,272

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,302,902

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 375.2 1,633.3 0% 1633.3 - NA

Sulfur Dioxide (SO2) 632.2 2,749.7 60% 1099.9 1,649.8 3,214

Notes & Assumptions

1 Original estimate from STS Consultants. Use 0.6 Power 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 circulating water rate.

4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Third Edition.

5 CUECost Workbook Version 1.0, USEPA Document Page 2.
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EU042 Wet Scrubber 5/4/2012 Page 2 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 6>: SOx Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 5,101,881

Instrumentation 10% of control device cost (A) 510,188

MN Sales Taxes 7% of control device cost (A) 331,622

Freight 5% of control device cost (A) 255,094

Purchased Equipment Total (B) 22% 6,198,786

Installation

Foundations & supports 12% of purchased equip cost (B) 743,854

Handling & erection 40% of purchased equip cost (B) 2,479,514

Electrical 1% of purchased equip cost (B) 61,988

Piping 30% of purchased equip cost (B) 1,859,636

Insulation 1% of purchased equip cost (B) 61,988

Painting 1% of purchased equip cost (B) 61,988

Installation Subtotal Standard Expenses 85% 5,268,968

Total Direct Capital Cost, DC 11,467,753

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 309,939

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 309,939

Start-up 1% of purchased equip cost (B) 61,988

Performance test 1% of purchased equip cost (B) 61,988

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 185,964

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 929,818

Total Capital Investment (TCI) = DC + IC 12,397,571

Retrofit multiplier5 60% of TCI 7,438,543

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 26,036,114
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EU042 Wet Scrubber 5/4/2012 Page 3 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 6>: SOx Control - Wet Scrubber

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours 24,603

Supervisor 15% 15% of Operator Costs 3,690

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours 25,640

Maintenance Materials 100% of maintenance labor costs 25,640

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 1,493 kW-hr, annual operating hours, 93% utilization 482,525

Water 2.07 $/kgal, 681 gpm, annual operating hours, 93% utilization 683,595

WW Treat Neutralization 3.13 $/kgal, 552 gpm, annual operating hours, 93% utilization 837,218

Lime 88.98 $/ton, 608 lb/hr, annual operating hours, 93% utilization 218,719

Total Annual Direct Operating Costs 2,301,630

Indirect Operating Costs

Overhead 60% of total labor and material costs 47,744

Administration (2% total capital costs) 2% of total capital costs (TCI) 247,951

Property tax (1% total capital costs) 1% of total capital costs (TCI) 123,976

Insurance (1% total capital costs) 1% of total capital costs (TCI) 123,976

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,457,625

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,001,272

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,302,902

See Summary page for notes and assumptions
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EU042 Wet Scrubber 5/4/2012 Page 4 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 6>: SOx 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 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (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 & sales 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 bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm Δ P in H2O Efficiency Hp kW

Blower, Scrubber 726,000 8.55 0.7 - 1,037.5 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48

Flow Liquid SPGR Δ P ft H2O Efficiency Hp kW

Circ Pump 27,588 gpm 1 60 0.7 - 444.5 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 681 gpm 1 60 0.7 - 11.0 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 1493.0

Reagent Use & Other Operating Costs

Caustic Use 632.17 lb/hr SO2 2.50 lb NaOH/lb SO2 1580.42 lb/hr Caustic

Lime Use 632.17 lb/hr SO2 0.96 lb Lime/lb SO2 608.46 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio2 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate 27,588 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 681 gpm

Evaporation Loss4 = 129.46 gpm
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EU042 Wet Scrubber 5/4/2012 Page 5 of 5

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 6>: SOx Control - Wet Scrubber

Operating Cost Calculations Annual hours of operation: 8,688

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 0.5 hr/8 hr shift 543 24,603 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours 

Supervisor 15% of Op. NA 3,690 15% of Operator Costs

Maintenance

Maint Labor 47.22 $/Hr 0.5 hr/8 hr shift 543 25,640 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours

Maint Mtls 100 % of Maintenance Labor NA 25,640 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 1493.0 kW-hr 12,063,123 482,525 $/kwh, 1,493 kW-hr, annual operating hours, 93% utilization

Water 2.07 $/kgal 681.2 gpm 330,239 683,595 $/kgal, 681 gpm, annual operating hours, 93% utilization

WW Treat Neutralization 3.13 $/kgal 551.8 gpm 267,482 837,218 $/kgal, 552 gpm, annual operating hours, 93% utilization

Lime 89.0 $/ton 608.5 lb/hr 2,458 218,719 $/ton, 608 lb/hr, annual operating hours, 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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EU040 SCR EU040 SCR 1 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 7: -Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 1 Pellet Induration

Emission Unit Number EU 040 Stack/Vent Number SV 046

Desgin Capacity 190 MMBtu/hr Standardized Flow Rate 308,345 scfm @ 32o F

Expected Utiliztion Rate 93% Temperature 129 Deg F

Expected Annual Hours of Operation 6,599 Hours Moisture Content 13.8%

Annual Interest Rate 7.0% Actual Flow Rate 369,137 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 330,907 scfm @ 68o F

Dry Std Flow Rate 285,110 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment (A) 15,894,553

 Purchased Equipment Total (B) SCR Only 16,927,699

SCR + Reheat 17,670,295

Total Capital Investment (TCI) = DC + IC SCR + Reheat 44,591,384

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 16,649,195

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 5,534,036

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 22,183,231

Emission Control Cost Calculation

Baseline Predicted Limit Cont. Emis. Cont Emis Reduction Cont Cost

Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 2,151.2 130.3 0.69 399.7 1,751.5 12,665

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

2 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 

3 CUECost Workbook Version 1.0, USEPA Document Page 2.

4 Catalyst replacement every three years. This requires an additional 2 week outage per 3 year outage cycle, annualized to 4.7 days.
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EU040 SCR EU040 SCR 2 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 7: -Summary of Utility, Chemical and Supply Costs

CAPITAL COSTS (1)

Direct Capital Costs

Purchased Equipment (A) (2)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 15,894,553

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 1,033,146

Freight 5% of control device cost (A) NA

Purchased Equipment Total (A) 16,927,699

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 16% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 16% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,935,740

Total Plant Cost (D) A + B + C 22,507,337

Allowance for Funds During Construction (E)

Pre Production Costs (G) 2% of (D+E)) 450,147

Inventory Capital Reagent Vol * $/gal 289,894

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 23,247,378

Retrofit multiplier3 60% of TCI 13,948,427

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost NA

Total Retrofit Capital 37,195,804

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 45.31 $/Hr, 2.0 hr/8 hr shift, 6598.9 hr/yr 74,749

Supervisor 15% 15% of Operator Costs 11,212

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 348,711

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 1,222 kW-hr, 6598.9 hr/yr, 93% utilization 299,931

SCR Catalyst 141.00 Catalyst Replacement 160,777

Ammonia (29% aqua.) 0.12 $/lb, 8,542 lb/hr, 6598.9 hr/yr, 93% utilization 6,322,342

Total Annual Direct Operating Costs 7,217,722

Indirect Operating Costs

Overhead 60% fixed O&M 62,942

Administration (2% total capital costs) 2% of total capital costs (TCI) 464,948

Property tax (1% total capital costs) 1% of total capital costs (TCI) 232,474

Insurance (1% total capital costs) 1% of total capital costs (TCI) 232,474

Capital Recovery 9.44% for a 20- year equipment life and a 7% interest rate 3,511,021

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 4,503,858

Total Annual Cost (Annualized Capital Cost + Operating Cost) 11,721,580

See Summary page for notes and assumptions
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EU040 SCR EU040 SCR 3 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 7: -Summary of Utility, Chemical and Supply Costs

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Equivalent Duty 1,859 Plant Cap kW A 190,728

Est power platn eff 35% Unc Nox lb/mmBtu B 3.43 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 190,728 Capital Cost $/kW D $83.34 $15,894,552.62 Total SCR Equipment

Uncontrolled Nox t/y 2,151.2 Fixed O&M E $104,904.05

Annual Operating Hrs 8000 Variable O&M F $423,896.63

Uncontrolled Nox lb/mm 3.428 Ann Cap Factor G 0.82

Heat Input mmBtu/ H 6,000

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3 Cormetech, Inc.

FCW 0.2252 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 330,907 scfm

Vol #2 5062.7 ft3

Amount Required 5,063 ft3

Catalyst Cost $713,840

Y catalyst life factor 4 Years

Annualized Cost 160,777

Electrical Use

Duty 1,859 MMBtu/hr kW

NOx Cont Eff 80% (as faction) Power 1,221.8

NOx in 3.43 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1221.8

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

2477 lb/hr Neat 1141.2 gal/hr

29% solution Volume 14 day inventory 383,433 gal $289,894 Inventory Cost

8542 lb/hr

Design Basis Baseline Em Baseline Emi Max Emis. (Model) Control Eff (%) Cont. Emis (lb/MMBtu)

T/yr lb/mmbtu lb/hr 80% 0.69

Nitrous Oxide 2,151.2 3.428 651.33

Actual 90,035 dscf/MMBtu

Method 19 Factor 9,200 dscf/MMBtu

Adjusted Duty 1,859 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 6,599

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 2.0 hr/8 hr shift 1,650 74,749 $/Hr, 2.0 hr/8 hr shift, 6598.9 hr/yr

Supervisor 15% of Op. NA 11,212 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 348,711 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 1221.8 kW-hr 7,498,281 299,931 $/kwh, 1,222 kW-hr, 6598.9 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 $160,777 Catalyst Replacement

Ammonia (29% aqua.) 0.12 $/lb 8542 lb/hr 52,424,372 6,322,342 $/lb, 8,542 lb/hr, 6598.9 hr/yr, 93% utilization

** Std Air use is 2 scfm/kacfm *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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EU040 Reheat EU040 Reheat 1 of 4

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

<Table 8>: - Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 1 Pellet Induration

Emission Unit Number EU 040 Stack/Vent Number SV 046 Chemical Engineering

Desgin Capacity 190 MMBtu/hr Standardized Flow Rate 308,345 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 129 Deg F 1998/1999 390

Expected Annual Hours of Operation 6,599 Hours Moisture Content 13.8% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 369,137 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 330,907 scfm @ 68o F

Dry Std Flow Rate 285,110 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 611,190

 Purchased Equipment Total (B) 22% of control device cost (A) 742,596

 Installation - Standard Costs 30% of purchased equip cost (B) 222,779

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,422,779

 Total Direct Capital Cost, DC 7,165,375

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 230,205

Total Capital Investment (TCI) = DC + IC 7,395,580

Operating Costs 364963.028

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 9,431,473

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,030,178

Total Annual Cost (Annualized Capital Cost + Operating Cost) 10,461,651

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 
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<Table 8>: - Summary of Utility, Chemical and Supply Costs

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 611,190

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 61,119

MN Sales Taxes 6.5% of control device cost (A) 39,727

Freight 5% of control device cost (A) 30,560

Purchased Equipment Total (B) 22% 742,596

Installation

Foundations & supports 8% of purchased equip cost (B) 59,408

Handling & erection 14% of purchased equip cost (B) 103,963

Electrical 4% of purchased equip cost (B) 29,704

Piping 2% of purchased equip cost (B) 14,852

Insulation 1% of purchased equip cost (B) 7,426

Painting 1% of purchased equip cost (B) 7,426

Installation Subtotal Standard Expenses 30% 222,779

Site Preparation, as required Site Specific 1,400,000

Buildings, as required Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Installation Total 6,422,779

Total Direct Capital Cost, DC 7,165,375

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 74,260

Construction & field expenses 5% of purchased equip cost (B) 37,130

Contractor fees 10% of purchased equip cost (B) 74,260

Start-up 2% of purchased equip cost (B) 14,852

Performance test 1% of purchased equip cost (B) 7,426

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 22,278

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 230,205

Total Capital Investment (TCI) = DC + IC 7,395,580

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 7,395,580

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 45.31 $/Hr, 0.5 hr/8 hr shift, 6598.9 hr/yr 18,687

Supervisor 15% 15% of Operator Costs 2,803

Maintenance

Maintenance Labor 47.22 $/Hr, 0.5 hr/8 hr shift, 6598.9 hr/yr 19,475

Maintenance Materials 100% of maintenance labor costs 19,475

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 1,368 kW-hr, 6598.9 hr/yr, 93% utilization 335,730

Natural Gas 12.81 $/mscf, 1,915 scfm, 6598.9 hr/yr, 93% utilization 9,035,303

Total Annual Direct Operating Costs 9,431,473

Indirect Operating Costs

Overhead 60% of total labor and material costs 36,264

Administration (2% total capital costs) 2% of total capital costs (TCI) 147,912

Property tax (1% total capital costs) 1% of total capital costs (TCI) 73,956

Insurance (1% total capital costs) 1% of total capital costs (TCI) 73,956

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 698,090

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,030,178

Total Annual Cost (Annualized Capital Cost + Operating Cost) 10,461,651

See Summary page for notes and assumptions
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Table 4: -Summary of Utility, Chemical ans Supply Costs

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 #REF! $/ft3

Amount Required 39 ft3

Catalyst Cost #REF! Cost adjusted for freight & sales tax

Installation Labor #REF! Assume Labor = 15% of catalyst cost (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 & sales 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 bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm Δ P in H2O Efficiency Hp kW

Blower, Thermal 369,137 19 0.6 1,367.7 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 369,137 23 0.6 1,655.6 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 1367.7

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 6,599

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 0.5 hr/8 hr shift 412 18,687 $/Hr, 0.5 hr/8 hr shift, 6598.9 hr/yr

Supervisor 15% of Op. NA 2,803 15% of Operator Costs

Maintenance

Maint Labor 47.22 $/Hr 0.5 hr/8 hr shift 412 19,475 $/Hr, 0.5 hr/8 hr shift, 6598.9 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 19,475 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 1367.7 kW-hr 8,393,252 335,730 $/kwh, 1,368 kW-hr, 6598.9 hr/yr, 93% utilization

Natural Gas 12.81 $/mscf 1,915 scfm 705,149 9,035,303 $/mscf, 1,915 scfm, 6598.9 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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BART Report - <Appendix A> Emission Control Cost Analysis

<Table 8>: - Summary of Utility, Chemical and Supply Costs

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

Auxiliary Fuel Use Equation 3.19 

Twi 129 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 564 Deg F - Temperature of waste gas out of heat recovery

Tfo 315 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 330,907 scfm - Flow of waste gas 

Qaf 1,915 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 332,822 scfm Flue Gas Cost in 1989 $'s $512,611

Current Cost Using CHE Plant Cost Index $611,190

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 Composition

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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BART Report - <Appendix A> Emission Control Cost Analysis

Table 9: -Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042 Stack/Vent Number SV 048 & 049

Desgin Capacity 400 mmbtu/hr Standardized Flow Rate 615,086 scfm @ 32o F

Expected Utiliztion Rate 93% Temperature 121 Deg F

Expected Annual Hours of Operation 8,688 Hours Moisture Content 13.8%

Annual Interest Rate 7.0% Actual Flow Rate 726,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 660,092 scfm @ 68o F

Dry Std Flow Rate 568,896 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment (A) 22,410,519

 Purchased Equipment Total (B) SCR Only 23,867,203

SCR + Reheat 24,749,741

Total Capital Investment (TCI) = DC + IC SCR + Reheat 70,838,846

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 26,832,859

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 7,024,035

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 33,856,894

Emission Control Cost Calculation

Baseline Predicted Limit Cont. Emis. Cont Emis Reduction Cont Cost

Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 1,633.3 8.7 0.02 35.0 1,598.3 21,183

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

2 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 

3 CUECost Workbook Version 1.0, USEPA Document Page 2.

4 Catalyst replacement every three years. This requires an additional 2 week outage per 3 year outage cycle, annualized to 4.7 days.
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Table 9: -Summary of Utility, Chemical and Supply Costs

CAPITAL COSTS (1)

Direct Capital Costs

Purchased Equipment (A) (2)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 22,410,519

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 1,456,684

Freight 5% of control device cost (A) NA

Purchased Equipment Total (A) 23,867,203

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 11% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 11% of purchased equip cost (A) 2,643,899

Project Contingeny ( C) 15% of (A + B) 3,976,665

Total Plant Cost D A + B + C 30,487,767

Allowance for Funds During Construction (E) Additional 10 week outage for installation 8,232,000

Pre Production Costs (G) 2% of (D+E)) 774,395

Inventory Capital Reagent Vol * $/gal 17,062

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 39,511,225

Retrofit multiplier3 60% of TCI 23,706,735

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost NA

Total Retrofit Capital 63,217,960

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator NA - 

Supervisor NA - 

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 592,668

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 1,307 kW-hr, 8687.8 hr/yr, 93% utilization 422,407

SCR Catalyst 141.00 Catalyst Replacement 442,926

Ammonia (29% aqua.) 0.12 $/lb, 503 lb/hr, 8687.8 hr/yr, 93% utilization 489,909

Total Annual Direct Operating Costs 1,947,911

Indirect Operating Costs

Overhead NA of total labor and material costs NA

Administration (2% total capital costs) NA of total capital costs (TCI) NA

Property tax (1% total capital costs) NA of total capital costs (TCI) NA

Insurance (1% total capital costs) NA of total capital costs (TCI) NA

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 5,967,328

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 5,967,328

Total Annual Cost (Annualized Capital Cost + Operating Cost) 7,915,239

See Summary page for notes and assumptions
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Table 9: -Summary of Utility, Chemical and Supply Costs

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Equivalent Duty 3,462 Plant Cap kW A 355,097

Est power platn eff 35% Unc Nox lb/mmB B 0.11 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 355,097 Capital Cost $/k D $63.11 $22,410,519.46 Total SCR Equipment

Uncontrolled Nox t/y 1,633.3 Fixed O&M E $147,909.43

Annual Operating Hrs 8000 Variable O&M F $598,961.39

Uncontrolled Nox lb/mm 0.108 Ann Cap Factor G 0.82

Heat Input mmB H 6,000

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3 Cormetech, Inc.

FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 660,092 scfm

Vol #2 10099.0 ft3

Amount Required 10,099 ft3

Catalyst Cost $1,423,964

Y catalyst life factor 3 Years

Annualized Cost 442,926

Electrical Use

Duty 3,462 MMBtu/hr kW

NOx Cont Eff 80% (as faction) Power 1,307.0

NOx in 0.11 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1307.0

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

146 lb/hr Neat 67.2 gal/hr

29% solution Volume 14 day inventory 22,568 gal $17,062 Inventory Cost

503 lb/hr

Design Basis Baseline Em Baseline EmisMax Emis. (Model) Control Eff (%) Cont. Emis (lb/MMBtu)

T/yr lb/MMBtu lb/hr 80% 0.02

Nitrous Oxide 1633.31 0.108 375.17

Actual 85,334 dscf/MMBtu

Method 19 Factor 9,860 dscf/MMBtu

Adjusted Duty 3,462 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,688

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 0.0 hr/8 hr shift 0 0 $/Hr, 0.0 hr/8 hr shift, 8687.8 hr/yr

Supervisor 15% of Op. NA - 15% of Operator Costs

Maintenance 0.00

Maintenance Total 1.5 % of Total Capital Investment 592,668 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 1307.0 kW-hr 10,560,183 422,407 $/kwh, 1,307 kW-hr, 8687.8 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 442,926 Catalyst Replacement

Ammonia (29% aqua.) 0.12 $/lb 503 lb/hr 4,062,288 489,909 $/lb, 503 lb/hr, 8687.8 hr/yr, 93% utilization

** Std Air use is 2 scfm/kacfm *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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BART Report - <Appendix A> Emission Control Cost Analysis

Table 10: -Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042 Stack/Vent Number SV 048 & 049 Chemical Engineering

Desgin Capacity 400 MMBtu/hr Standardized Flow Rate 615,086 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 121 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,688 Hours Moisture Content 13.8% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 726,000 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 660,092 scfm @ 68o F

Dry Std Flow Rate 568,896 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 726,369

 Purchased Equipment Total (B) 22% of control device cost (A) 882,538

 Installation - Standard Costs 30% of purchased equip cost (B) 264,761

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,464,761

 Total Direct Capital Cost, DC 7,347,300

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 273,587

Total Capital Investment (TCI) = DC + IC 7,620,886

Operating Costs 364963.028

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 24,884,948

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,056,707

Total Annual Cost (Annualized Capital Cost + Operating Cost) 25,941,655

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 
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BART Report - <Appendix A> Emission Control Cost Analysis

Table 10: -Summary of Utility, Chemical and Supply Costs

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 726,369

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 72,637

MN Sales Taxes 6.5% of control device cost (A) 47,214

Freight 5% of control device cost (A) 36,318

Purchased Equipment Total (B) 22% 882,538

Installation

Foundations & supports 8% of purchased equip cost (B) 70,603

Handling & erection 14% of purchased equip cost (B) 123,555

Electrical 4% of purchased equip cost (B) 35,302

Piping 2% of purchased equip cost (B) 17,651

Insulation 1% of purchased equip cost (B) 8,825

Painting 1% of purchased equip cost (B) 8,825

Installation Subtotal Standard Expenses 30% 264,761

Site Preparation, as required Site Specific 1,400,000

Buildings, as required Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Installation Total 6,464,761

Total Direct Capital Cost, DC 7,347,300

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 88,254

Construction & field expenses 5% of purchased equip cost (B) 44,127

Contractor fees 10% of purchased equip cost (B) 88,254

Start-up 2% of purchased equip cost (B) 17,651

Performance test 1% of purchased equip cost (B) 8,825

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 26,476

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 273,587

Total Capital Investment (TCI) = DC + IC 7,620,886

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 7,620,886

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 45.31 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr 24,603

Supervisor 15% 15% of Operator Costs 3,690

Maintenance

Maintenance Labor 47.22 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr 25,640

Maintenance Materials 100% of maintenance labor costs 256

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 2,690 kW-hr, 8687.8 hr/yr, 93% utilization 869,316

Natural Gas 12.81 $/mscf, 3,858 scfm, 8687.8 hr/yr, 93% utilization 23,961,443

Total Annual Direct Operating Costs 24,884,948

Indirect Operating Costs

Overhead 60% of total labor and material costs 32,514

Administration (2% total capital costs) 2% of total capital costs (TCI) 152,418

Property tax (1% total capital costs) 1% of total capital costs (TCI) 76,209

Insurance (1% total capital costs) 1% of total capital costs (TCI) 76,209

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 719,358

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,056,707

Total Annual Cost (Annualized Capital Cost + Operating Cost) 25,941,655

See Summary page for notes and assumptions
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BART Report - <Appendix A> Emission Control Cost Analysis

Table 10: -Summary of Utility, Chemical and Supply Costs

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 #REF! $/ft3

Amount Required 39 ft3

Catalyst Cost #REF! Cost adjusted for freight & sales tax

Installation Labor #REF! Assume Labor = 15% of catalyst cost (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 & sales 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 bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm Δ P in H2O Efficiency Hp kW

Blower, Thermal 726,000 19 0.6 2,689.8 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 726,000 23 0.6 3,256.1 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 2689.8

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 8,688

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 0.5 hr/8 hr shift 543 24,603 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr

Supervisor 15% of Op. NA 3,690 15% of Operator Costs

Maintenance 0%

Maint Labor 47.22 $/Hr 0.5 hr/8 hr shift 543 25,640 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr

Maint Mtls 100% % of Maintenance Labor NA 256 1% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh 2689.8 kW-hr 21,732,896 869,316 $/kwh, 2,690 kW-hr, 8687.8 hr/yr, 93% utilization

Natural Gas 12.81 $/mscf 3,858 scfm 1,870,042 23,961,443 $/mscf, 3,858 scfm, 8687.8 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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BART Report - <Appendix A> Emission Control Cost Analysis

Table 10: -Summary of Utility, Chemical and Supply Costs

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

Auxiliary Fuel Use Equation 3.19 

Twi 121 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 561 Deg F - Temperature of waste gas out of heat recovery

Tfo 310 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 660,092 scfm - Flow of waste gas 

Qaf 3,858 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 663,950 scfm Flue Gas Cost in 1989 $'s $609,213

Current Cost Using CHE Plant Cost Index $726,369

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 Composition

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)
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

EU042 SCR NG EU042 SCR NG 1 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 11: -Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042 Stack/Vent Number SV 048 & 049

Desgin Capacity 400 MMBtu/hr Standardized Flow Rate 615,086 scfm @ 32o F

Expected Utiliztion Rate 93% Temperature 121 Deg F

Expected Annual Hours of Operation 8,688 Hours Moisture Content 13.8%

Annual Interest Rate 7.0% Actual Flow Rate 726,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 660,092 scfm @ 68o F

Dry Std Flow Rate 568,896 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment (A) 23,080,776

 Purchased Equipment Total (B) SCR Only 24,581,027

SCR + Reheat 25,463,565

Total Capital Investment (TCI) = DC + IC SCR + Reheat 72,298,312

Operating Costs 364963.028

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 29,040,535

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 7,161,798

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 36,202,334

Emission Control Cost Calculation

Baseline Predicted Limit Cont. Emis. Cont Emis Reduction Cont Cost

Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 8,164.5 46.7 0.12 188.7 7,975.8 4,539

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

2 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2. 

3 CUECost Workbook Version 1.0, USEPA Document Page 2.

4 Catalyst replacement every three years. This requires an additional 2 week outage per 3 year outage cycle, annualized to 4.7 days.
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

EU042 SCR NG EU042 SCR NG 2 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 11: -Summary of Utility, Chemical and Supply Costs

CAPITAL COSTS (1)

Direct Capital Costs

Purchased Equipment (A) (2)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 23,080,776

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 1,500,250

Freight 5% of control device cost (A) NA

Purchased Equipment Total (A) 24,581,027

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 11% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 11% of purchased equip cost (A) 2,643,899

Project Contingeny ( C) 15% of (A + B) 4,083,739

Total Plant Cost D A + B + C 31,308,664

Allowance for Funds During Construction (E) Additional 10 week outage for installation 8,232,000

Pre Production Costs (G) 2% of (D+E)) 790,813

Inventory Capital Reagent Vol * $/gal 91,914

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 40,423,391

Retrofit multiplier3 60% of TCI 24,254,035

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost NA

Total Retrofit Capital 64,677,426

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator NA - 

Supervisor NA - 

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 606,351

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 1,446 kW-hr, 8687.8 hr/yr, 93% utilization 467,200

SCR Catalyst 141.00 Catalyst Replacement 442,926

Ammonia (29% aqua.) 0.12 $/lb, 2,708 lb/hr, 8687.8 hr/yr, 93% utilization 2,639,110

Total Annual Direct Operating Costs 4,155,587

Indirect Operating Costs

Overhead NA of total labor and material costs NA

Administration (2% total capital costs) NA of total capital costs (TCI) NA

Property tax (1% total capital costs) NA of total capital costs (TCI) NA

Insurance (1% total capital costs) NA of total capital costs (TCI) NA

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 6,105,091

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 6,105,091

Total Annual Cost (Annualized Capital Cost + Operating Cost) 10,260,679

See Summary page for notes and assumptions
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

EU042 SCR NG EU042 SCR NG 3 of 3

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 11: -Summary of Utility, Chemical and Supply Costs

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Equivalent Duty 3,462 Plant Cap kW A 355,097

Est power platn eff 35% Unc Nox lb/mmB B 0.58 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 355,097 Capital Cost $/k D $65.00 $23,080,776.17 Total SCR Equipment

Uncontrolled Nox t/y 8,164.5 Fixed O&M E $152,333.12

Annual Operating Hrs 8000 Variable O&M F $626,908.01

Uncontrolled Nox lb/mm 0.584 Ann Cap Factor G 0.82

Heat Input mmB H 6,000

SCR Capital Cost

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3 Cormetech, Inc.

FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 660,092 scfm

Vol #2 10099.0 ft3

Amount Required 10,099 ft3

Catalyst Cost $1,423,964

Y catalyst life factor 3 Years

Annualized Cost 442,926

Electrical Use

Duty 3,462 MMBtu/hr kW

NOx Cont Eff 80% (as faction) Power 1,445.6

NOx in 0.58 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1445.6

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

785 lb/hr Neat 361.8 gal/hr

29% solution Volume 14 day inventory 121,571 gal $91,914 Inventory Cost

2708 lb/hr

Design Basis Baseline Em Baseline EmisMax Emis. (Model) Control Eff (%) Cont. Emis (lb/MMBtu)

T/yr lb/MMBtu lb/hr 80% 0.12

Nitrous Oxide 1633.31 0.584 375.17

Actual 85,334 dscf/MMBtu

Method 19 Factor 9,860 dscf/MMBtu

Adjusted Duty 3,462 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,688

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 0.0 hr/8 hr shift 0 0 $/Hr, 0.0 hr/8 hr shift, 8687.8 hr/yr

Supervisor 15% of Op. NA - 15% of Operator Costs

Maintenance 0.00

Maintenance Total 1.5 % of Total Capital Investment 606,351 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.040 $/kwh 1445.6 kW-hr 11,679,995 467,200 $/kwh, 1,446 kW-hr, 8687.8 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 442,926 Catalyst Replacement

Ammonia (29% aqua.) 0.12 $/lb 2708 lb/hr 21,883,299 2,639,110 $/lb, 2,708 lb/hr, 8687.8 hr/yr, 93% utilization

** Std Air use is 2 scfm/kacfm *annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

EU042 Reheat NG EU042 Reheat NG 1 of 4

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 12: -Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042 Stack/Vent Number SV 048 & 049 Chemical Engineering

Desgin Capacity 400 MMBtu/hr Standardized Flow Rate 615,086 scfm @ 32o F Chemical Plant Cost Index

Expected Utiliztion Rate 93% Temperature 121 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,688 Hours Moisture Content 13.8% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 726,000 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 660,092 scfm @ 68o F

Dry Std Flow Rate 568,896 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 726,369

 Purchased Equipment Total (B) 22% of control device cost (A) 882,538

 Installation - Standard Costs 30% of purchased equip cost (B) 264,761

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,464,761

 Total Direct Capital Cost, DC 7,347,300

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 273,587

Total Capital Investment (TCI) = DC + IC 7,620,886

Operating Costs 364963.028

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 24,884,948

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,056,707

Total Annual Cost (Annualized Capital Cost + Operating Cost) 25,941,655

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

2 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

EU042 Reheat NG EU042 Reheat NG 2 of 4

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 12: -Summary of Utility, Chemical and Supply Costs

CAPITAL COSTS (1)

Direct Capital Costs

Purchased Equipment (A) (2) 726,369

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 72,637

MN Sales Taxes 6.5% of control device cost (A) 47,214

Freight 5% of control device cost (A) 36,318

Purchased Equipment Total (B) 22% 882,538

Installation

Foundations & supports 8% of purchased equip cost (B) 70,603

Handling & erection 14% of purchased equip cost (B) 123,555

Electrical 4% of purchased equip cost (B) 35,302

Piping 2% of purchased equip cost (B) 17,651

Insulation 1% of purchased equip cost (B) 8,825

Painting 1% of purchased equip cost (B) 8,825

Installation Subtotal Standard Expenses 30% 264,761

Site Preparation, as required Site Specific 1,400,000

Buildings, as required Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Installation Total 6,464,761

Total Direct Capital Cost, DC 7,347,300

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 88,254

Construction & field expenses 5% of purchased equip cost (B) 44,127

Contractor fees 10% of purchased equip cost (B) 88,254

Start-up 2% of purchased equip cost (B) 17,651

Performance test 1% of purchased equip cost (B) 8,825

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 26,476

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 273,587

Total Capital Investment (TCI) = DC + IC 7,620,886

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 7,620,886

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 45.31 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr 24,603

Supervisor 15% 15% of Operator Costs 3,690

Maintenance

Maintenance Labor 47.22 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr 25,640

Maintenance Materials 100% of maintenance labor costs 256

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 2,690 kW-hr, 8687.8 hr/yr, 93% utilization 869,316

Natural Gas 12.81 $/mscf, 3,858 scfm, 8687.8 hr/yr, 93% utilization 23,961,443

Total Annual Direct Operating Costs 24,884,948

Indirect Operating Costs

Overhead 60% of total labor and material costs 32,514

Administration (2% total capital costs) 2% of total capital costs (TCI) 152,418

Property tax (1% total capital costs) 1% of total capital costs (TCI) 76,209

Insurance (1% total capital costs) 1% of total capital costs (TCI) 76,209

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 719,358

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,056,707

Total Annual Cost (Annualized Capital Cost + Operating Cost) 25,941,655

See Summary page for notes and assumptions
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

EU042 Reheat NG EU042 Reheat NG 3 of 4

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 12: -Summary of Utility, Chemical and Supply Costs

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 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (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 & sales 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 bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm Δ P in H2O Efficiency Hp kW

Blower, Thermal 726,000 19 0.6 2,689.8 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 726,000 23 0.6 3,256.1 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 2689.8

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 8,688

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 45.31 $/Hr 0.5 hr/8 hr shift 543 24,603 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr

Supervisor 15% of Op. NA 3,690 15% of Operator Costs

Maintenance 0%

Maint Labor 47.22 $/Hr 0.5 hr/8 hr shift 543 25,640 $/Hr, 0.5 hr/8 hr shift, 8687.8 hr/yr

Maint Mtls 100% % of Maintenance Labor NA 256 1% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh 2689.8 kW-hr 21,732,896 869,316 $/kwh, 2,690 kW-hr, 8687.8 hr/yr, 93% utilization

Natural Gas 12.81 $/mscf 3,858 scfm 1,870,042 23,961,443 $/mscf, 3,858 scfm, 8687.8 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
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

EU042 Reheat NG EU042 Reheat NG 4 of 4

Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis

Table 12: -Summary of Utility, Chemical and Supply Costs

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

Auxiliary Fuel Use Equation 3.19 

Twi 121 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 561 Deg F - Temperature of waste gas out of heat recovery

Tfo 310 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 660,092 scfm - Flow of waste gas 

Qaf 3,858 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 663,950 scfm Flue Gas Cost in 1989 $'s $609,213

Current Cost Using CHE Plant Cost Index $726,369

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 Composition

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)
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

Actual Emissions 5/4/2012 Page 1 of 1

United Taconite - Actual Emissions1

2004 2005

SO2 NOx SO2 NOx

EU 040 SV 046 Line 1 Pellet Induration 1.738 244.651 13.86 2151.237

EU 042 SV 048 & 049 Line 2 Pellet Induration 2749.681 1633.313 2699.906 1603.734

1) United Taconite Air Pollutant Emissions Inventory for Years 2004 and 2005 with 10% safety factor.

Note: Tons/yr
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

WWESP Scale 5/4/2012 Page 1 of 1

Inputs

Calculated or scaled values

Estimated value

1 2 3 4 5 6 7 8 9

Stack No Facility Name Flow Rate

at Exit

Specific 

Collection Area 

(SCA)1 

Surface 

Collection Area2

Pressure 

Drop3 Cost4

acfm ft2

/kacfm ft2 in. H20 $

BASE N/A 291,000 198 68,825 5 4,700,000

SV 046 UTAC Line 1 Pellet Induration 369,137 198 87,305 10 5,420,940

SV 048 & 049 UTAC Line 2 Pellet Induration 726,000 198 171,708 10 8,134,372

1) Estimated value from Durr. Value indpendent of stack flow.

2) Original estimate from Durr. Scaled linearly using stack flow rates.

3) Pressure drop is not a design driving factor, but must be maintained at an acceptably low value. 10" H2O is used as a maximum value.

4) Capital price back calculated using reverse of EPA control cost manual factors from installed price estimate provided from DURR. 

Used 0.6 power law factor to adjust price to each stack's acfm from bid basis of 291,000 acfm.
C:\Users\jwiseman\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\BY708G8J\United Taconite Control Costs (2007-01-25).xls

SO2 Scrubber Scale 5/4/2012 Page 1 of 1

Inputs

Calculated or scaled values

1 2 3 4 5 6

Stack No Facility Name

Actual Flow 

Rate

at Exit

Design 

Flow Rate 

at Exit1

Cost2

acfm $

BASE N/A N/A 500,000 3,700,000

SV 046 UTAC Line 1 Pellet Induration 369,137 434,279 3,400,016

SV 048 & 049 UTAC Line 2 Pellet Induration 726,000 854,118 5,101,881

1) Scrubber is designed for 15% more flow than the actual flow rate.

2) Capital cost ratioed off of original estimate from STS Consultants to account for different flow rate. Used 0.6 power law factor 

to adjust price to stack acfm from bid basis of 500,000 acfm.