STATE OF CO NECTICUT

DEPARTMENT Of ENVIRONMENTAL PROTECTION

The State of COI"lJ"lecticui and

Sprague Paperboard, Inc.

)

)

j

Trading Agreement

and Order :-;0.8117

.,

I

Whereas, the Commissioner of Environmental Protection ("Commissioner") and Sprague

Paperboard, Inc. ("Sprague") a,gree that it is in the public interest that they work

cooperatively to improve the all ~ualiry within the State of Connecticut and that the use of

discrete emissions reduction credit ("DERe") trading to reduce nitrogen oxide (''NOx'')

emissions will achieve this result in a timely and cost-effectjv~ manner:

A. At the request and with the agreement of Sprague, the Conunissioner finds the following:

1. Sprague Paperboard, Inc. is a corporation which on April 8, 1999, purchased from

International Paper Company, and now owns and operates the manufacturing facility

at 130 Inland Road, Versailles, Connecticut ("facility").

2. At the facility, Spra~e operates two (2) Babcock and Wilcox oil/gas-fired steam

boilers ("boilers"). une is a 288 MMBtulhr PH boiler and the other is a 70.1

MMBtulhr FM boiler rhereinafter PFI boiler and FM boiler) which are subject to

Section 22a-174·22 o(the Re\?:ulations of Connecticut State A\?:encies

("Regulations"). A continuous emissions monilor ("CEM"), cenified to 40 Code of

Federal Regulations Pan 60, measures actual NOx emissions from the PFI boiler.

Depanrnent ofEnvironmental Protection ("DEP") witnessed stack testing is used to

detennine the NOx emission rate from the FM boiler.

3. Section 2220-174·22, Table 22·1 of the Regulations sets allowable emission rate

limits of 0.25 IbsIM?vfBtu for these boilers when burning #6 fuel oil and 0.20

IbslMMBtu when burn~g natural gas.

4. The PFI boiler operates on either #6 fuel oil, or natural gas. The CEM data supplied

by Sprague shows that the PFI boiler NOx emissions are above the allowable

emission rate of 0.25 Ibs/MMBtu when operating on ~6 fuel oil una above the

allowable emission rate ofO.20 IbsMlvfBru when operating on natural gas.

5. By virtue ofthe above, the NOx emission rate from the PFI boiler is in violation of

Section 22a-174-22, Table 22·1 of the Regulations allowable emission rate limits.

6. Prior to Sprague's purchase of the plant, the FM boiler DEP witnessed stack testing

(conducted February 16,1996) showed that the NOx emissions are 0.3971bslMMBtu

"':hich is above the allowable emission rate of 0.25 Ibs/MMBru when burning ;:::'6 fuel

oil. -

I. By virtue of the above, the NOx emission rate from the FM boiler \\·hen burning;;,6

fu~J oil is in violation of Section 222.·174·22. Table 22-1 of the Re!!ul:ltions

allowable emisslon rale limit. . -

s. To eliminate excess NOx emissions from the FM boiler when burning;:6 fuel oil,

Sprague proposed tl--jat on and after April 10,2001, #6 fuel oil will no longer be

bumed in the FM boiler. Sprague will burn only natural gas in the F!v1 boiler.

(Pnn,~ 0:"1 Recycle<: ?a:>ef)

7~ =Im Saee! . Hamare. CT 06106-5127

An EEQv.i OPPOrTvrll/y EEmplOy" • fI!,pllrj'PSI.r6 C: vs

Celebrating a Ce.nrury of Forest Conservation Leadership

1901 2001
SOi3gUe P':!Derboard. Inc. Trading Agreement and Order No. 811 i

.• /

9. Subsection 22a-174-22(j) of the Regulations allows the O\\'Tler or operator of a source

to use emission reduction trading to offset excess NOx emissions. Such reductions

sha!l be, at a miniml:lm, eguivaJent t~ those e!1?is~ion r~di.!cti::ms i.!lat would be

achieved by complYIng wnh all apphcable emISSions hrmtatlons In subsection (e) of

Section 22a-174-21 ofthe Regulauons.

10. Pursuant to Section 22a-174-12o) of the Regulations, Spraguerroposes to acquire

and use approved DER~s monthly, as specihed in Section C 0 this Trading

Agreement and Order, on an as-needed basis to compensate for excess NOx

emissions, as dete~ed by:

, a) For the PFl boiler. actual NOx emissions based OD CEM data from the PFl

boiler whenever the 24-hour average exceeds the NOx emissions rate of

Section 22a-174-22(e) ofthe Regulations; and,

b) Sprague had in its inventory 35.97 tons approved ozone and 15.361 tons of

approved non-ozone DERCs as clant assets from the purchase of the faciliry

from International Paper Company on April 8, 1999, to compensate for the

anticipated excess NOx emissions from the PFI boiler.

11. During the month ofJune 1999, Sprague's NOx emission spreadsheets show that

Sprague did not have sufficient DERCs on hand prior to use to offset 21 tons excess

NOx emissions during the ozone season as shown in spreadsheets anached hereto and

incorporated by reference into this Trading Agreement and Order as Exhibit I.

12. On July 1, 1999, Sprague purchased 103 tons of ozone and 72 tons of non-ozone

approved DERCs, to correct the insufficiency ofDERCs and to have additional

DERCs on hand for excess emissions. On November 11, 1999 Sprague purchased

125 tons non-ozone DERCs and on February 22, 2000 purchased 40 tons of ozone

DERCs for use to offset excess NOx emissions as shown in spreadsheets anached

hereto and incorporated by reference into this Trading Agreement and Order as

Exhibit 2.

13. On July 1, 1999, in accordance with the requirements contained in paragraph C.l of

this Trading Agreement and Order, Sprague immediately retired two times (2x) the

DERC shortfall described in paragraph A.l1, for a total of 42 tons. (The first 21 tons

ofDERCs to offset the excess NOx emissions, plus another 21 tons for the 100%

premium required for not having sufficient DERCs on hand prior to use, for a total

penalty of 42 tons of approved ozone DERCs).

14. In .1996, a natural gas supply pipeline was installed. to the facility and new 10w-NOx

firing systems were installed In the PFI and FM bOIlers. The 10w·NOx burners

reduced the FM boiler's NOx emission rates below its permined, allowed and actual

1990 emission rates when burning natural gas. DEP wltnessed emissions testing

conducted April 10,2001, confinned that Sprague's FM boiler NOx emissions were

0.1 Jlbsf.M:N1Btu which is below the 0.20 IbsJM:MBtu emission limitation specified in

Section 12a·l i4-22(e) of the Regulations when burning natural gas to generate

emission reduction credits.

15. Pursuant to Section 22a-174-220) of the Regulations, Sprague intends to generate

ap~ro:,ed DERCs using the FM boiler when burning natural gas using a full load

emISSIon rate (FLER) of9.13 jbs/M~\.1Bru.

16. ~~en properly documented by Sprague, and approved by the Commissioner, the

ernlssion reductions identified above, 2..I.Jd as computed in accordance with the terms

of this Trading Agreement and Order, will conform to the requirements of Seclion

12a-174-12(j) of the Regulations. Specifically, the reductions wi Il be:
Sor22ue Paoerboard. lnc. Trading Agree:-nem and Order !\o. SII i

.

'~J'".

'-

Real because they result in a reduction of actual emissions released into the air, net of

any consequential increase in actual emissions resulting from shifting demand. The

emission reductions are properly measured, recorded and reponed.

Quantifiable because they are based on stack testing data obtained every five years.

Surplus because they are not required by any Connecticut statute or regulation

mandated by a c~ent State Implementation Plan ("SIP"), and are not currently relied

upon in any ap'plicable anainment plan, any reasonable funber progress plan or

milestone demonstration.

Permanent because the advanced control system is in place and operating, and an

appropriate tracking system is in place to monitor all data required to verify and

quantify the creation ofDERCs.

Enforceable because the DERCs are approved by the Commissioner retrospectively

after the submission by Sprague of the seasonal or annual repon that will document

their creation.

17. Based on the FLER of 0.13 IbsIMMBtu the DERCs generated by the FM boiler are as

shown in Table 1 below:

Table I

Sprague

DERCs Generared using a fLER of 0.13 IbslMMBru

Year Ozone senson Tol"o$ Non-ozone season Tons Total

1999 5.4624 4.J649 9.62i3

2000 0.6506 6.3134 6.9640

2001 0.0581 2.5586 2.6167

Total I 6.1711 13.0369 19.2080

1B. DERCs generated above by Sprague have been reduced by permanently retiring len (10)

percent for the benefit oftbe environment (0.68 ozone season a.J1d 1.46 non-ozone

season), and an additional ten (10) percent of these DERCs (0.76 ozone season and 1.61

non-ozone season) to address uncertainty from using stack testing rates obrained once

every 5 years in lieu of CEM results daily.

19. As documented in Exhibit 3, the total available DERCs generaled by the FYi boiler

between April 8, 1999 and Dec 31,2001, after adjusting downwardly as described in

parag;aph A. 19 above and rounding down to the nearest whole number for annu31 serial

number assignment purposes. is shown in Table 2 a.l"Jd Table 3 below;

3
SOr22:Ue Paoerboard. LllC. Trading Agreement and Order >':0. S11 i

I Table 2

Sprague

DERCs Generated I (after subtracting discounts and rounding down to tbe nearest whole ton each year)

Year Ozone season Ozone se~son Tons !'ion-ozone season Nan-aza", sozsan ITalal,fi"

Tons (after rounding Tons Tons (after roundm£

down) roundine. down) do\lo'Tl.} ,

1999 5.4624 5 4.1649 , 9

2000 0.6506 , 0 6.3134 6 6

200} 0.0581, 0 2.5586 2 2

Total 6.1711 5 13.0369 12 17

20. Approved DERCs are defined for purposes of this Trading Agreement and Order as those

for which the Commissioner has provided written authorization for use in compliance with

Section 22a-174-22 ofthe Regulations.

21. By agreeing to the issuance of this consent order, Sprague makes no admission of fact or

law with respect to the matters addressed herein other than the facts asserted in paragraphs

A.!., A.2. and A.3.

: B.l. The Commissioner, in accordance with the provisions of this Trading Agreement and Order., .

and pursuant to Section 22a-174-22(d)(3) afthe Regulations, hereby allows Sprague to

comply with Section 22a-174-22 of the Regulations through use of DERC trading referenced

in Section A of this Trading Agreement and Order, to achieve a portion ofIhe NOx emission

reductions required by Section 22a-174-22(d) of the Regulations.

B.2. The Commissioner, in accordance with the provisions of this Trading Agreement and Order,

pursuant to Section 22a-174-22(d)(3) of the Regulations hereby allows Sprague and approved

sources within Connecticut to use 17 tons ofNOx DERCs (5 tons ozone and 12 tons nonozone season) as shown in Table 3 below. These DERCs may be used for the purposes of

compliance under Section 22a-174.22(j) of the Regulations, to achieve a ponion of the

nitrogen oxide emission reductions required.

Table 3

Sprague

Approved DERCs Generated in 1999 through 1001

Ye:lr I Ozone season I Tons Non-ozone season I Tons

1999' CT99/81I7(DC)Na,az(1-5) '5 CT99/8!17(DC1Nal<noz(1-4) I , 1000 I N/,4,. I 0 I CTOD/81 1;IDC)Noxnoz(1·6) I 6

2001 I N/A lot CTOl/8117(DC}Noxnoz(l.2) I 2

I Total I 5 I Total I 11

I Expiration Date

I 11131/04

I 12131/05

I 12i31/06

. .../ B.3. Upon sufficient documentation as prescribed belo\\", the Commissioner may prOVide \\ iJllen

approval of additional DERCs generated by Sprague retTospecti\·ely. Approved DERCs may

be held, used or transferred by Sprague to other persons. Such DERCs shall remain \'alid untiJ

used or until April 30, 200i, whichever occurs first.
Sora£!ue Paoerboard. Inc. Trading Agreement and Order No. SIll

C. With the agreement of Sprague, the Commissioner, acting under COIU1ecticut General StaiUteS

Sections 22a-6, 22a-1I1, 22a-174, 22a-1I6, and 22a-III, orders Sprague as follows:

1, Penalty Premium. For not having sufficient DERCs on hand prior to use to offset excess

NOx emissions for the month ofJune 1999 as described in paragraph A.II. above, Sprague

shall upon issuance of this Trading Agreement and Order have obtained and immediately

retired, in accordance with paragraph A.13, fWO times (2x) the DERC shortfall for a total

of 42 tons. (The first 21 tons of DERCs to restore environmental balance for the excess

NOx emissions, pl~s another 21 tons for the 100% premium required for not having

sufficient DERCs on hand prior to use, for a total penalty of 42 tons of approved Ozone

DERCs).

2. Sprague agrees as of April 10,2001 to cease burning #6 fuel oil in the FM boiler and burn

only natural gas.

DERC generation for the FM boiler For purposes of generating DERCs from the FM

boiler when burning natural gas at the facility, Sprague shall use the appropriare baseline

emission rate(s) ofthis Trading Agreement and Order as described below. When

calculating such DERCs, Sprague shall use the acrual fuel usage data for the boiler in

M1vfBru per hour or day when detennining heat input.

a) For the FM boiler when bumin~ natural eas onlv, DERCs (tons) generated by Sprague

shall be calculated monthly using a FLER of 0.13 IbsJM:MBru as follows:

DERCs (tons) Generated = {[(FM boiler natural gas heat input in MMBru) x

(RACT limit 0.20 IbsIMMBru - FLER limit ofO.13IbslMMBtu)].;- 2000 lbs/ton) x

(0.90) x (0.90)

b) Sprague shall comply with a full load emission rate (FLER) of 0.13 IbslMMBru of

heat input averaged over a 24-hour basis when burning narural gas. The FLER may be

adjusted upon satisfactory demonstration to the DEP and v.,-rinen approval by the

Commissioner.

c) Spreadsheets showing the new balances resulting from these calculations referenced in

paragraph C.3.a. are attached hereto and incorporated by reference into this Trading

Agreement and Order as Exhibit 3.

d) After full program review, and if the Cornmissioner deems it appropriate, the

Commissioner may allow the survival and use of the DERCs generated by the issuance

of this Trading Agreement and Order beyond April 30, 2007.

e) Sprague shall maintain records for the boiler showing daily NOx mass emissions. and

actual NOx emission rates (2.:1-hour average). Sprague shall also maintain records

showing a monthly total of all DERCs generaled nel of Ihe applicable en\'lronment::d

and potemial uncertain:y discounts.
. Sora~!Ue Paoerboard. Inc. Trading Agreement and Order No. S117

4.

f) In requesting DERC approval for credits generated, Sprague soa11 provide

documentation containing a sample spreadsheet with calculation fonnulas used to

determine reponed numbers, monthly operating reports of daily actual fuel usage

including the BTU content and the number of cubic feet used in MMB!u and actual

heat inpU! based on daily actual NOx mass emissions and NOx emission Tales (2~­

hour average), number of operating hours per day, and DERCs generated using the

baseline emission rate(s) referenced in paragraph C.3. afthis Trading Agreement and

Order, net ofthe applicable environmental and potential uncertainty discounts.

,

g) Upon sufficient docwnentation that $pragne has met the requirements ofparagraphs

C.l., C-2., and C.3., ofthis Trading Agreement and Order, the Commissioner may

provide wrinen approval ofDERCs created by Sprague retrospectively, in addition to

the 17 tons DERCs (5 tons ozone and 12 tons non~6zone season) approved in

paragraph B. of this Trading Agreement and Order. Requests for approval of all

subsequent DERCs created shall be submitted in writing to the Commissioner.

Approved DERCs created by Sprague may be held or transferred to other persons.

Such DERCs shall remain valid until they are used or until April 30, 2007, whichever

occurs first.

h) Should Sprague choose to generate additional DERCs, repom documenting these

DERCs shall be submined to the Commissioner on an ozone season, non-alone season

(January through April and and/or October through December), or aruma] basis. Such

repom shall be compiled on a monthly basis and shall be submined at least on an

annual basis.

i) Pursuant to Section 22a·174-22(k) ofthe Regulations, Sprague shall conduct NOx

emission tests ofthe FM boiler at least once every five years cOImnencmg from the

date of the most recent emissions test for the FM boiler.

DERC Use. Approved DERCs shall be acquired for the period beginning April 8,

1999, and continuing until the Sprague PFI emissions achieve permanent compliance

with the emission standards in Section 22a-1 ~4~22(e) of the Regulations or until April

30, 2007, whichever occurs first. Except as directed in paragraph C.1. above, Sprague,

W1til April 30, 2007, shall acquire approved DERCs, and document and record the

amounts of NOx emissions and DERCs used by the PFI boiler each month in

accordance with the appropriate emission rates and limits in Table 4 below, and shall

maintain and provide such records in accordance with the following and Section 22a·

174-4 of the Regulations:

Table 4

Snraeue - NOx Allowable Emission Rates (IbA1MBtu)

. , .~

IUnit IPFI Boiler

IFuel I FUR I

I

#6 fuel oil I CEM based on a I

N:uural Gas 24-hr A\le~ge

l'Ox

Allo\\':lble Limit

0.25

0.20
Sora2ue PaDerboard. Inc. Trading Agreemem and Order No. S11 i

c.

J

a. Estimated DERCs required each month· Before the first day of each

month. Sprague shall calculate the projected (estimated) worst case

DERCs required for the same calendar month as follows:

(1) For the PFI boiler when bumin. natural .as or #6 fuel oil the DERCs

(tons) estimated {[(estimated ""'"orst case CEM 24-hour average NOx

emission rate for the PFI boiler in IbslM!vlBtu) - (0.95) x (l'Ox

allowable limit in IbsIMMBru»] x (estimated fuel use in M.lvlBru)} +

2000 pOUIlds.

(2) AcqJire sufficient approved DERCs no later than the first of each

month to assure compliance for, at a minimwn, that calendar month.

Excess DERCs from previous months ca.Tl be applied to subsequent

months.

b. Actual DERCs reauired each month· No later than the twentieth day of

each month SDrasrue shall calculate the actual DERCs used in the

preceding calendar month, as follows:

(1) For the PFI boiler. when burning #6 fuel oil or natural gas on each day,

detennine whether the 24-hour average NOx emission rate is less than

or greater than the appropriate NOx allowable limit.

When the PFI boiler daily NOx emission rate (24·hour average)

exceeds the NOx allowable limit, calculate the amount ofDERCs

used, as follows:

PFI boiler DERCs tons acrual = {[(CEM - recorded NOx 24·hour average

emission rate in IbsIM.lvfBru for #6 fuel oil or natural gas for the PFI boiler)

- «0.95) x (appropriate NOx allowable limit in IbsIMMBru»] x (acrual

fuel use in MMBtu») + 2000 pounds.

For the PFI boiler DERC use, Spr~~e shall use CEM data averaged on a 24-

hour basis to determine the actual NOx emission i2.tes and calculate reauired

DERCs when·burning #6 fuel oil or natural gas. .

d.

e.

f.

Sprague shall have sufficient DERCs on hand at the beginning of every month.

IfSprague does not have sufficient DERCs in its possession prior to use, the

DERCs shortfall shall be adjusted upwards, at a minimum, by rwo times (2x).

The ERC shortfall is the difference between r.J.:Je approved DERCs on hand and

the excess actual. 'Ox emissions calculated in paragraph C.4.b.

Sprague shall document and record daily and monthly totals of all fuel

consump.tion and DERCs on hand and used, daily NOx mass emissions for

each boller, and actual CEM NOx emission rates (24-hour average) for the PFI

boiler.

No later than March 1 of every year after issuance of this Trading Agreement

and Order, Sorague shall include with the AnJIual Emission Statement .

provided to the Com..-nissioner, a record of each sale or other tT2.:1sfer, and use

of any and all of the DERCs approved witl-}in 2lld subsequent to issuance of

this Tradin2 A2Teement and Order until all such DERCs have been used.

Sprague shall ilso include actual NOx emissions from each boiler, and the

amount of all DERCs used (includine: serial numbers, if assi !ffied and aDO roved

DERCs e:enerated andlor purchased rrom other facilities), 2:enerated and/or

approved for L1'le previous calendar year. Tnese repol1s shan be on a form

prescribed by the Commissioner. Should Sprague choose to discontinue the

7
SorJ!:!ue P;).oerboard. Inc. Trading Agreemem and Order ~o. 81 J 7

g.

lleneration ofDERCs, Sprague will notify the Commissioner upon

aiscontinuance.

Sprague shall maintain documentation regarding the number ofDERCs in its

possession, created, purchased and used (by senal number if assi2ned) each

month, as well as documentation anesting to the fact that aooroved DERCs

used in the ozone season were created during the ozone season. Generator

certification shall be sufficient. The ozone season is May 1 to Seotember 30 in

any calendar year. All records shall be maintained in accordance 'with Seclion

22a-174-4 and 22a-174-22 ofthe Regulations and shall be provided to the

Commissioner within thirty (30) days ofreceipt of a VvTinen request from the

Commissioner.

5. !fan established FLER is exceeded Sprague shall purchase and retire DERCs

equivalent to the amount ofthe excess of emissions, plus a 100% premium penalty.

Such DERCs shall be equal to the FLER exceedance in LbsIMMBru, multiplied by the

total heat input during the period of non-compliance divided by 2000 lbs/ton. If the

period of non-compliance is not known, the time period from the completion of the

last/previous DEP witnessed stack test until the date'ofcompliance with the FLER is

achieved as approved by the Commissioner shall be used. The DEP may require

additional upward adjusonent of the 100% premium penalty.

6. Allowances. Pursuant to Section 22a-174-22(d)(3) of the Regulations, Sprague may

use NOx allowances, pursuant to Section 22a-174-220) of the Regulations to achieve

all or a portion of the reductions required by Section 22a-174-22 of the Regulations,[C?r

the PFI boiler..Any allowances used for compliance with Section 22a-174-22(e) of the

Regulations for the PFI boiler shall be subject to all resnictions arld/or requirements

applicable to DERCs contained in this Trading Agreement and Order.

7. Each allowance used for compliance with Section 22a-174-22 of the Regulations shall

be equivalent to one discrete emission reduction credit and shall be deducted from

Sprague's NOx Budget Program compliance account upon such use. Allowances shall

be considered used for Section 22a-174-22 of the Regulations when they are

transferred from the facility's compliance account or overdraft account to a State of

Connecticut NOx allowance retirement account (Account ID CT0000000300 in

NATs).

8. Vinta2e Restriction. For the purposes of compliance with Section 22a-174-22 of the

Regulations, DERCsiallowances shall only remain valid for five (5) calendar years

from the year of the generation/allocation ofsuch DERCsfallow2,.Tlces.

DERCs/alJowances older than five (5) calendar years from their creation/allocation are

not valid for llse for compliance with Section 22a-174-22 of the Regulations.

Norwithstanding the above, DERCs/allowances generated/allocated prior to calendar

year 2000 are valid for use for compliance with Section 22a-174-22 of the Regulations

up to and including December 31, 2004.

9. However, ifat any time after April 10, 2001 and during the period while this Trading

Agreement and Order remains in effect, Sprague has reason to believe it may be

exceeding the FLER limit shown above in paragraph (,3., Sprague shall conducl NOx

emissions testing of the FM Boiler on or before sixty (60) days after the exceedance of

the above limitS in accordance with [he following:

8
Sora2ue Paoerboard. LTlc. Trading Agreemen! and Order 1\0. 8J 17

10.

I. Sprague shall submit to the Commissioner for his review and wrinen

approval an Intent-To-Test em") protocol not Jess than thinv (30) davs

pnor to the emissions testing required pursuant to this paragraph and "'

paragraph C.3.i of this Trading Agreement and Order. The ITT protocol

shall include at least:

a. The Deparonent ofEnvironmental Protection's Bureau oLA...ir Management

Test Fonn No.1, "Intent to Test";

b. Systettl 6perating parameters indicative ofthe highest opera.ting. rate since the

April 10, 2001 stack test, including, but not limited to: steam output rate,

temperature and pressure, fuel firing rate, and NOx emissions rate.

ll. The ITT protocol shall provide that Sprague shall perform testing as specified

in Sections 2220-174-5 and 22a-174-22 of the Regulations, including

operating the FM boiler at not less than ninery percent (90%) of its maximwn

rated cap~city limit or highest operating rate since its last/previous emissions

test., whichever is higher.

Ill. Sprague shall perform all testing required by paragraph C.3.i in accordance

with the approved ITT protocol.

IV. In conducting and perfonning the testing required by paragraph C.3.i and in

analyzing the results ofsuch testing, Sprague shall adhere to methods

specified in Sections 22a-174-5 and 22a-174-22 of the Regulations and as

approved by the United States Environmental Protection Agency (HEPA")

and the Commissioner.

v. Sorague shall schedule all emissions testing so as to allow the Commissioner

to be present during such testing and to independently verify facility

operations, air pollution control equipment parameters, and testing

procedures.

v}. Within 30 days after completing any emissions testing required by this

Trading Agreement and Order, Sprague shall submit to the Commissioner a

wrinen report providing the results ofsuch testing; within 15 days of a notice

from the Commissioner indicating any deficiencies in such report, Sprague

shall suomit a revised repor!.

Aoprovals. Sprague shall use best efforts to submit to the Conunissioner all

documents required by this Trading Agreement and Order in a complete and

approvable form. Ifthe Commissioner notifies Sprague that any document or other

action is deficient, and does not approve it with conditions or modifications, it is

deemed disapproved, and Sprague shall correct the deficiencies a..T1d resubmit it within

the time specified by the Commissioner or, ifno time is specified by the

CommiSSIOner, within 30 days of the Comrnissioner's noUce of deficiencies. In

approving any document or other action under this Trading Agreement and Order, the

Comrnissioner may approve the document or other action as submined or performed

or with such conditions or modifications as the Commissioner deems necessary to

cany OUt the purposes of this Tra~ing Agreement and Order. Nothing in this

paragraph shall excuse noncomph2..l,ce or delay.

11. Definitions. As used in this Trading Agreement and Order, "Commissioner" means

the Commissioner or a representative of the Commissioner; ··Ozone season'· means the

period from May 1 through Seplernber 30 10 any given calendar year. The date of

9
Soraf.?Ue Paoerboard. Inc. Trading Agreement and Order !'io. 8117

11.

13.

14.

15.

16.

17.

"issuance" of this Trading Agreement and Order is the date the Trading Agreement

and Order is deposited in the U.S. mail or personally delivered, whichever is earlier.

Dates. The date ofsubmission to the Commissioner of any document required by this

Trading Agreement and Order shall be the date such document is received by the

Conul11ssioner. The date of any notice by the Commissioner under this Trading

Agreement and Order, including but not limited to notice of approval or disapproval of

any document or other action, shall be the date such notice is deposited in the U.S.

mail or is personally delivered, whichever is earlier. Except as otherwise specified in

this Trading Agreement and Order, the word "day" as used in this Trading A.,.eernent

and Order meanS calendar day. A:Dy document or action which is required by this

Trading Agreement and Order to be submitted or perfoI1I1ed by a date which falls on a

Saturday, Stu1day or a Connecticut or federal holiday shall be submined or perfonned

by the next day which is not a Saturday, Sunday or Connecticut or federal holiday.

Certification of documents. Any document, including but not limited to any norice,

which is required to be submined to the Commissioner under this Trading Agreement

and Order shall be signed Sprague's chief executive officer or a duly authorized

representative ofsuch officer, as those terms are defined in §22a-430·3(b)(2) of the

Regulations of Connecticut State Agencies, and by the individual(s) responsible for

actually prepa..;ng such docwnent, and Sprague's chief executive officer and each such

individual shall certify in writing as follows:

"I have personally examined and am familiar with the information submitted in this

document an.d all anachments thereto, and I certify, based on reasonable investigation,

including my inquiry ofthose individuals responsible for obtaining the information,

that the submined information is true, accurate and complete to the best of my . knowled$e and belief. I understand that any false statement made in the submitted

informatIOn is punishable as a criminal offense under §53a-157b ofthe Connecticut

General Statutes and any other applicable law."

Noncompliance. This Trading Agreement and Order is a final order ofIhe

Conunissioner with respect to the matters addressed herein, and is nonappealable and

immediately enforceable. Failure to comply with this Trading Agreement and Order

may subject Sprague .to an injunction and penalties.

False statements. Any false statement in any information submined ptLrsuant to this

Trading Agreement and Order is punishable as a criminal offense under §53a·157b of

the Connecticut General Statutes and any other applicable law.

Notice of transfer: JiabiJirv of Sora!ZUe. Until Sprague has fully complied with this

Trading Ag;reement a."d Order, Sprague shall notify the Commissioner in writing no

later than 15 days after transferring all or any portion of the facility, the operations, the

site or the business which is the subject of this Trading Agreement and Order or after

obtaining a new mailing or location address. Sprague's obligations under this Trading

Agreement and Order shall not be affected by the passage of title to any propeny to

any other person or mun.icipality.

Commissioner'S Dowers. Nothing in this Trading Agreement and Order shall affect the

Commissioner's authority to instltute any proceeding or take a."y other action to

prevent or abate violations oflaw, prevent or abate pollution, recover costs and natural

resource damages, and to impose penalties for past. present, or future violations of

law. If at any time the Commissioner determines that the actions taken by Sprague

pursuant to this Trading Agreement and Order have not successfully corrected all

violations, fully characteriz.ed the extent or degree of any pollution, or successful]y

abated or prevented pollution, the Commissioner may institute any proceeding to

require Sprague to undertake further investigation or further action 10 prevent or abate

violations or pollution.

10
Sora~ue Paoerboard. Inc. Trading Agreement and Order No. 811 i

18.

19.

20.

21.

22.

14.

,--,.

Spra2Ue's obli2ations under law. Nothing in this Trading Agreement and Order shall

relieve Sprague of other obligations under applicable federal, state and local Jaw.

No assurance bv Commissioner. No provision ofmis Trading Agreement and Order

and no actipn or inaction by the Commissioner shall be construed to constilUle an

assurance by the Commissioner that the actions taken by Sprague pursuant to Ibis

Trading Agreement and Order will result in compliance or prevent or abate pollution.

Access to facility. Any representative ofthe Deparnnent ofEnvironmental Protection

may enter the facility without prior notice for the purposes ofmonitoring and

enforcing the actions required or allowed by this Trading Agreement and Order.

No effect on ri2:hts of other persons. This Trading A~eement and Order neither

creates nor affects any ri!tilts of persons or municipalities that are nOt panies to this

Trading Agreement and Order.

No Creation ofProoerrv R.i2hts. This Trading Agreement and Order does not create

any property rights with respect to these DERCs.

Notice to Commissioner of changes. Within 15 days ofthe date Sprague becomes

aware of a change in any information submitted to the Commissioner under this

Trading Agreement and Order, or that any such information was inaccurate or

misleading or thaI any relevant information was omined, Sprague shall submit the

correct or omined information to the Commissioner.

Notification ofnoncomoliance. In the event that Sprague becomes aware that it did

not or may not comply, or did not or may not comply on ti~e, with any requirement of

this Trading Agreement and Order or of any document requlTed hereunder, Sprague

shall immediately notify by telephone the individual identlfied in the next paragraph

and shall take all reasonable steps to ensure that any noncompliance or delay is

avoided or, if unavoidable, is mlnimized to the greatest extent possible. Within five

(5) days of the initial notice, Sprague shall submit in writing the date, time, and

duration ofthe noncomoliance and the reasons for the noncompliance or delay and

propose, for the review'and wrinen approval ofme Commissioner, dates by which

compliance will be achieved, and Sprague shall comply with a.l"ly dates which may be

approved in writing by the Commissioner. Notifica!lon by Sprague shall not excuse

noncompliance or delay, and the Commissioner's approval of any compliance dates

proposea shall Dot excuse noncompliance or delay unless specifically so stated by the

Commissioner in writing.

Submission of documents. Any document required to be submined to the

Conunissioner under this Trading Agreement and Order shall, unless otherwise

specified in this Trading Agreement and Order or in writing by the Commissioner, be

directed to:

Mr. Roland L. Severance Jr., PE

Department of Environmental Protection

Bureau ofAir Management

Emissions and Credit Trading Section

79 Elm Street

Haniord, Connecticut 06106-5127

.

11,
SorJ.l::ue Paoerboard. Inc. Trading Agreement and Order No. Sl17

The undersigned certifies thai he/she is fully authorized to enter into this Trading Agreement and

Order and iO legally bind Sprague to the terms and conditions of the Trading Agreement and Order.

By: Signature:

I

Type Name:

Type Title:

spr~erboard' lac.

L~r:f 81?JGf?,r:

Date: ~/,<;~,£A--,2",5::..h,--"o,-,,,-==- _

Eniered as a final Consent Order oftb~issione

Protection numbered 8117 this rP'\' d~ f

ep~ent ofEnvironmental

=A4=:r?002.

TOW?, OF SPR.'\GUE L"ND RECORDS

!vL"JLED CERTIFIED M."JL, RETUR.N RECEIPT REQUESTED

CeI1ified Document No.

'.\D~?:>'.5 YS~"USERSiRSE VER....N,·iR.'" DING-RLS·-iR.... DINGOROER.S'.5PR.A GU~.s I I:-Sp;;!~l"teORDcred Ilfi!;){I 1.1 6-02).dlX

12