Northshore Process BoilerBART Report - Appendix A Emission Control Cost AnalysisTable 19: Cost Summary - Natural gas boilerNOxControl Cost Summarybaseline: 0.17 lb/mmBtu 11.625 lb/hrControl TechnologyControlEff %ControlledEmissions T/yEmissionReduction T/yrInstalled CapitalCost $Total Annual Cost$/yrPollution ControlCost $/tonIncrementalCost $/tonSelective Catalytic Reduction(SCR)90% 4.1 37.1 $5,563,529 $1,119,307 $30,139Low NOx Burner / Flue GasRecirculation75% 10.3 30.9 $547,722 $77,510 $2,505 $30,626Low Nox Burner/Over Fire Air68% 13.4 27.9 $1,091,532 $387,372 $13,908Low NOx Burner50%20.620.6$95,851$16,766$813Selective Non-CatalyticReduction (SNCR)50% 20.6 20.6 $925,876 $250,181 $12,126SO2Control Cost Summarybaseline 0.24 lb/mmBtu 16.75 lb/hrControl TechnologyControlEff %ControlledEmissions T/yEmissionReduction T/yrInstalled CapitalCost $Total Annual Cost$/yrPollution ControlCost $/tonWet ESPProcess Boiler 1 & 280%11.961.5$11,808,857$2,247,725$36,558SO2 AbsorberProcess Boiler 1 & 280%11.961.5$3,935,118$1,118,879$18,198Spray Dryer and BaghouseProcess Boiler 1 & 29011.961.5$16,134,577$2,754,704$44,804DSI BaghouseProcess Boiler 1 & 25511.961.5$4,890,063$1,412,189$22,969Wet ScrubberProcess Boiler 1 & 280%14.6858.72$13,618,522$1,869,933$31,845Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Process Boiler Control Cost.xlsCost Summary9/6/2006Page 1 of 42Northshore Process BoilerBART Report - Appendix A Emission Control Cost AnalysisTable 20: - Summary of Utility, Chemical and Supply CostsOperating Unit:Process Boiler 1 & 2Study Year2006Emission Unit Number 003 & 004Stack/Vent Number 003ReferenceItem Unit Cost Units Cost Year Data Source NotesOperating Labor50.00 $/hrEstimated industry averageMaintenance Labor60.00 $/hrEstimated industry averageElectricity0.052 $/kwh 0.049 2004DOE Average Retail Price of IndustrialElectricity, 2004http://www.eia.doe.gov/emeu/aer/txt/ptb0810.htmlNatural Gas2.31 $/mscf 2005Average natural gas spot price July 04 - June05, Henry La Hub.,WTRG Economics, WWW.wtrg.com/daily/small/ngspot.gigWater0.40 $/mgal 0.76 2004Estimated industrial costcost adjusted for 3% inflationCooling Water0.28 $/mgal 0.23 1999EPA Air Pollution Control Cost Manual, 6thed. Section 3.1 Ch 1Ch 1 Carbon Absorbers, 1999 $0.15 - $0.30 Avg of22.5 and 7 yrs and3% inflationCompressed Air0.32 $/mscf 0.25 1998EPA Air Pollution Control Cost Manual 6th Ed2002, Section 6 Chapter 1Example problem; Dried & Filtered, Ch 1.6 '98 costadjusted for 3%inflationWastewater Disposal Neutralization3.80 $/mgal 1.50 2002EPA Air Pollution Control Cost Manual 6th Ed2002, Section 2 Chapter 2.5.5.5Section 2 lists $1- $2/1000 gal. Cost adjusted for3% inflation Sec 6 Ch3 lists $1.30 - $2.15/1,000 galWastewater Disposal Bio-Treat4.28 $/mgal 3.80 2002EPA Air Pollution Control Cost Manual 6th Ed2002, Section 5.2 Chapter 1Ch 1lists $1.00 - $6.00 for municipal treatment, $3.80 is average. Costadjusted for 3% inflationSolid Waste Disposal11.48 $/ton 25.00 2002EPA Air Pollution Control Cost Manual 6th Ed2002, Section 2 Chapter 2.5.5.5Section 2 lists $20 - $30/ton Used $25/ton. Cost adjusted for 3%inflationHazardous Waste Disposal281.38 $/ton 250.00 2002EPA Air Pollution Control Cost Manual 6th Ed2002, Section 2 Chapter 2.5.5.5Section 2 lists $200 - $300/ton Used $250/ton. Cost adjusted for 3%inflationWaste Transport0.56 $/ton-mi 0.50 2002EPA Air Pollution Control Cost Manual 6th Ed2002, Section 6 Chapter 3 Example problem. Cost adjusted for 3% inflationInternal Waste Recycle1 $/ton 1.00 2000Estimated waste costUsed $1/ton to cover cost of materials movementChemicals & SuppliesLime90.00 $/tonInfo provided by Sonnek EngineeingCaustic305.21 $/ton 2005Hawkins Chemical50% solution (50 Deg Be) includes deliveryUrea405 $/ton 2005Hawkins Chemical50% solution of urea in water, includes deliverySoda Ash$/tonOxygen1.49 Mscf 1.40 2004Industry estimatecost adjusted for 3% inflationEPA Urea179.1 $/tonAmmonia0.92 $/lbReagent #80.00 $/tonCatalyst & Replacement PartsSCR Catalyst500$/ft3Cormetech, Inc., 1/2006 bidCO Catalyst650$/ft3Vendor quote if neededCatalyst #3Catalyst #4Catalyst #5Filter Bags37.94 $/bag 33.71 2002EPA Air Pollution Control Cost Manual 6th Ed2002, Section 6, Chapter 1 Example problem cost for10 ft bags. Cost adjusted for 3% inflationTower Packing100$/ft3Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Process Boiler Control Cost.xlsUtility Chem$ Data9/6/2006Page 2 of 42Replacement PartsReplacement PartsReplacement PartsOtherSales Tax6.5% %Interest Rate7.00% %EPA Air Pollution Control Cost ManualIntroduction, Chapter 2, section 2.4.2.Social (discount) rate used as a default.Operating InformationAnnual Op. Hrs7,650 HoursEngineering EstimateUtilization Rate93%Equipment Life20 yrsEngineering EstimateDesign Capacity 70 MMBtu/hrStandardized Flow Rate64,771scfm @ 32o FTemperature450Deg FMoisture Content13.3%Actual Flow Rate119,800acfmStandardized Flow Rate69,510scfm @ 68o FBased on Table 19.2 of 40 CFR 60, Appendix A, Method 19 F factor for nDry Std Flow Rate60,265dscfm @ 68o FMax EmisPollutant Lb/HrPM101.90Total Particulates 1.90Nitrous Oxides (NOx) 11.60Sulfur Dioxide (SO2)16.800Sulfuric Acid MistFluoridesVolatile Organic Compounds (VOC) 0.99Carbon Monoxide (CO) 0.00Lead (Pb)Enter this data for each emission unitEnter data for this study (applies to all units)Y:\23\00 MN Taconite BART (2006)\Facility BART Reports\NMC\NMC Furnace-Process Boiler\Appendices\Appendix A - NMC Process Boiler Control Cost.xlsUtility Chem$ Data9/6/2006Page 3 of 42

## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 21: NOx Control - Low NOx Burner

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,650 Hours Moisture Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 69,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 49,000 Purchased Equipment Total (B) 22% of control device cost (A) 59,535

Installation - Standard Costs 30% of purchased equi p cost (B) 17,861 Installation - Site Specific Costs NA Installation Total 17,861 Total Direct Capital Cost, DC 77,396 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 18,456 Total Capital Investment (TCI) = DC + IC 95,851

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 2,866 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 13,900 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 16,766



### Emission Control Cost Calculation Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem PM10 1.9 6.8 6.8 - NA Total Particulates 1.9 6.8 6.8

- NA Nitrous Oxides (NOx) 11.6 41.3

50% 20.6 20.6 813 Sulfur Dioxide (SO 2 ) 16.8 59.8 59.8 - NA Sulfuric Acid Mist

- - 0.0 - NA Fluorides

- - 0.0 - NA Volatile Organic Compounds (VOC) 1.0 3.5 3.5 - NA Carbon Monoxide (CO) - - 0.0 - NA Lead (Pb)

- - 0.0

- NA

Notes & Assumptions 1 Burner cost scaled from MacTec Burner Estimate, Ma rch 2005 cost estimate 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 3.2 Chapter 2 Thermal Oxidizer cost factor used because it has th e lowest multipiler for installation cost

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 21: NOx Control - Low NOx Burner

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 49,000 Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC Instrumentation 10% of control device cost (A) 4,900 Mn Sales Taxes 6.5% of control device cost (A) 3,185 Freight 5% of control device cost (A) 2,450 Purchased Equipment Total (B) 22% 59,535

Installation Foundations & supports 8% of purchased equip cost (B) 4,763 Handling & erection 14% of purchased equip cost (B) 8,335 Electrical 4% of purchased equip cost (B) 2,381 Piping 2% of purchased equip cost (B) 1,191 Insulation 1% of purchased equip cost (B) 595 Painting 1% of purchased equip cost (B) 595 Installation Subtotal Standard Expenses 30% 17,861

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 17,861 Total Direct Capital Cost, DC 77,396

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 5,954 Construction & field expenses 5% of purchased equip cost (B) 2,977 Contractor fees 10% of purchased equip cost (B) 5,954 Start-up 2% of purchased equip cost (B) 1,191 Performance test 1% of purchased equip cost (B) 595 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 1,786 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 18,456

Total Capital Investment (TCI) = DC + IC 95,851

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 95,851



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 50.00 $/Hr, 0.0 hr/8 hr shift, 7650 hr/yr 478 Supervisor 15% 15% of Operator Costs 72 Maintenance Maintenance Labor 60.00 $/Hr, 0.0 hr/8 hr shift, 765 0 hr/yr 574 Maintenance Materials 100% of maintenance labor costs 574 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 3 kW-hr, 7650 hr/yr, 93% utilization 1,168 NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - Total Annual Direct Operating Costs 2,866

Indirect Operating Costs Overhead 60% of total labor and material costs 1,018 Administration (2% total capital costs) 2% of total c apital costs (TCI) 1,917 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 959 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 959 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 9,048 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 13,900

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 16,766

See Summary page for notes and assumptions

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 21: NOx Control - Low NOx Burner

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 2 years CRF 0.5531 Rep part cost per unit 650 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 28,265 Cost adjusted for freight & sale s tax Installation Labor 4,240 Assume Labor = 15% of catalyst cost (basis labor fo r 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 37.940902 $ each Amount Required 0 Number Total Rep Parts Cost 0 Cost adjusted for freight & sa les 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 ba g. Total Installed Cost 0 Zero out if no replacement parts needed Annualized Cost 0

Electrical Use
Flow acfm D P in H2O Efficiency Hp kW Blower, Thermal 3,239 5 0.6 3.2 EPA Cont Cost Manual 6th ed - Oxidizers Chapter 2. 5.2.1 Blower, Catalytic 0 23 0.6 0.0 EPA Cont Cost Manual 6th ed - Oxidizers Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 3.2

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,650 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50 $/Hr 0.01 hr/8 hr shift 10 478 $/Hr, 0.0 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA 72 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 0.01 hr/8 hr shift 10 574 $/Hr, 0. 0 hr/8 hr shift, 7650 hr/yr Maint Mtls 100 % of Maintenance Labor NA 574 100% of Mai ntenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 3.2 kW-hr 22,465 1,168 $/kwh, 3 k W-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0 scfm 0 0 $/mscf, 0 scfm, 7650 h r/yr, 93% utilization Water 0.40 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 0 Mscfm 0 0 $/mscf, 0 Mscfm, 7650 hr/ yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 76 50 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization Waste Recycle 1.00 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization 1 Lime 90 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr/yr, 93% utilization 2 Caustic 305.21 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 h r/yr, 93% utilization 5 Oxygen 1.49 Mscf 0.0 Mscf/hr 0 0 Mscf, 0 Mscf/hr, 7650 hr /yr, 93% utilization 2 CO Catalyst 650 $/ft3 0 ft 3 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization 1 Filter Bags 37.94 $/bag 0 bags 0 0 $/bag, 0 bags, 7650 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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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 22: NOx Control - Low NOx Burner with Flue Ga s Recirculation/Advanced Controls

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,650 Hours Moisture Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 69,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) 280,000 Purchased Equipment Total (B) 22% of control device cost (A) 340,200

Installation - Standard Costs 30% of purchased equi p cost (B) 102,060 Installation - Site Specific Costs NA Installation Total 102,060 Total Direct Capital Cost, DC 442,260 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 105,462 Total Capital Investment (TCI) = DC + IC 547,722

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 2,881 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 74,628 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 77,510



### Emission Control Cost Calculation Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem PM10 1.9 6.8 6.8 - NA Total Particulates 1.9 6.8 6.8

- NA Nitrous Oxides (NOx) 11.6 41.3

75% 10.3 30.9 2,505 Sulfur Dioxide (SO 2 ) 16.8 59.8 59.8 - NA Sulfuric Acid Mist

- - 0.0 - NA Fluorides

- - 0.0 - NA Volatile Organic Compounds (VOC) 1.0 3.5 3.5 - NA Carbon Monoxide (CO) - - 0.0 - NA Lead (Pb)

- - 0.0

- NA

Notes & Assumptions

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

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 22: NOx Control - Low NOx Burner with Flue Ga s Recirculation/Advanced Controls

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 280,000 Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC Instrumentation 10% of control device cost (A) 28,000 MN Sales Taxes 6.5% of control device cost (A) 18,200 Freight 5% of control device cost (A) 14,000 Purchased Equipment Total (B) 22% 340,200

Installation Foundations & supports 8% of purchased equip cost (B) 27,216 Handling & erection 14% of purchased equip cost (B) 47,628 Electrical 4% of purchased equip cost (B) 13,608 Piping 2% of purchased equip cost (B) 6,804 Insulation 1% of purchased equip cost (B) 3,402 Painting 1% of purchased equip cost (B) 3,402 Installation Subtotal Standard Expenses 30% 102,060

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 102,060 Total Direct Capital Cost, DC 442,260

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 34,020 Construction & field expenses 5% of purchased equip cost (B) 17,010 Contractor fees 10% of purchased equip cost (B) 34,020 Start-up 2% of purchased equip cost (B) 6,804 Performance test 1% of purchased equip cost (B) 3,402 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 10,206 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 105,462

Total Capital Investment (TCI) = DC + IC 547,722

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 547,722



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 50.00 $/Hr, 0.0 hr/8 hr shift, 7650 hr/yr 478 Supervisor 15% 15% of Operator Costs 72 Maintenance Maintenance Labor 60.00 $/Hr, 0.0 hr/8 hr shift, 765 0 hr/yr 574 Maintenance Materials 100% of maintenance labor costs 574 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 3 kW-hr, 7650 hr/yr, 93% utilization 1,184 NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - Total Annual Direct Operating Costs 2,881

Indirect Operating Costs Overhead 60% of total labor and material costs 1,018 Administration (2% total capital costs) 2% of total c apital costs (TCI) 10,954 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 5,477 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 5,477 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 51,701 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 74,628

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 77,510

See Summary page for notes and assumptions

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 22: NOx Control - Low NOx Burner with Flue Ga s Recirculation/Advanced Controls

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 2 years CRF 0.5531 Rep part cost per unit 650 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 28,265 Cost adjusted for freight & sale s tax Installation Labor 4,240 Assume Labor = 15% of catalyst cost (basis labor fo r 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 37.940902 $ each Amount Required 0 Number Total Rep Parts Cost 0 Cost adjusted for freight & sa les 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 ba g. Total Installed Cost 0 Zero out if no replacement parts needed Annualized Cost 0

Electrical Use
Flow acfm D P in H2O Efficiency Hp kW Blower, Thermal 3,239 5 0.6 3.2 EPA Cont Cost Manual 6th ed - Oxidizers Chapter 2. 5.2.1 Blower, Catalytic 0 23 0.6 0.0 EPA Cont Cost Manual 6th ed - Oxidizers Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 3.2

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,650 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50 $/Hr 0.01 hr/8 hr shift 10 478 $/Hr, 0.0 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA 72 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 0.01 hr/8 hr shift 10 574 $/Hr, 0. 0 hr/8 hr shift, 7650 hr/yr Maint Mtls 100 % of Maintenance Labor NA 574 100% of Mai ntenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 3.2 kW-hr 22,766 1,184 $/kwh, 3 k W-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0 scfm 0 0 $/mscf, 0 scfm, 7650 h r/yr, 93% utilization Water 0.40 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 0 Mscfm 0 0 $/mscf, 0 Mscfm, 7650 hr/ yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 76 50 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization Waste Recycle 1.00 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization 1 Lime 90 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr/yr, 93% utilization 2 Caustic 305.21 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 h r/yr, 93% utilization 5 Oxygen 1.48526 Mscf 0.0 Mscf/hr 0 0 Mscf, 0 Mscf/hr, 7650 hr/yr, 93% utilization 2 CO Catalyst 650 $/ft3 0 ft 3 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization 1 Filter Bags 37.940902 $/bag 0 bags 0 0 $/bag, 0 bags, 765 0 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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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 23: NOx Control - Low NOx Burner with Overfir e Air

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,650 Hours Moisture Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 69,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs [2] Direct Capital Costs 468000 Purchased Equipment (A) 558,000 Purchased Equipment Total (B) 22% of control device cost (A) 677,970

Installation - Standard Costs 30% of purchased equi p cost (B) 203,391 Installation - Site Specific Costs NA Installation Total 203,391 Total Direct Capital Cost, DC 881,361 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 210,171 Total Capital Investment (TCI) = DC + IC 1,091,532

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 174,008 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 213,364 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 387,372



### Emission Control Cost Calculation Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem PM10 1.9 6.8 6.8 - NA Total Particulates 1.9 6.8 6.8

- NA Nitrous Oxides (NOx) 11.6 41.3

68% 13.4 27.9 13,908 Sulfur Dioxide (SO 2 ) 16.8 59.8 59.8 - NA Sulfuric Acid Mist

- - 0.0 - NA Fluorides

- - 0.0 - NA Volatile Organic Compounds (VOC) 1.0 3.5 3.5 - NA Carbon Monoxide (CO) - - 0.0 - NA Lead (Pb)

- - 0.0

- NA

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 3.2 Chapter 2 2 Cost based upon Analyzing Electric Power Gneration Under the CAAA.

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 23: NOx Control - Low NOx Burner with Overfir e Air

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 558,000 Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC Instrumentation 10% of control device cost (A) 55,800 MN Sales Taxes 6.5% of control device cost (A) 36,270 Freight 5% of control device cost (A) 27,900 Purchased Equipment Total (B) 22% 677,970

Installation Foundations & supports 8% of purchased equip cost (B) 54,238 Handling & erection 14% of purchased equip cost (B) 94,916 Electrical 4% of purchased equip cost (B) 27,119 Piping 2% of purchased equip cost (B) 13,559 Insulation 1% of purchased equip cost (B) 6,780 Painting 1% of purchased equip cost (B) 6,780 Installation Subtotal Standard Expenses 30% 203,391

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total 203,391 Total Direct Capital Cost, DC 881,361

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) 67,797 Construction & field expenses 5% of purchased equip cost (B) 33,899 Contractor fees 10% of purchased equip cost (B) 67,797 Start-up 2% of purchased equip cost (B) 13,559 Performance test 1% of purchased equip cost (B) 6,780 Model Studies of purchased equip cost (B) 0 Contingencies 3% of purchased equip cost (B) 20,339 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 210,171

Total Capital Investment (TCI) = DC + IC 1,091,532

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 1,091,532



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 7650 hr/yr 95,625 Supervisor 15% 15% of Operator Costs 14,344 Maintenance Maintenance Labor 60.00 $/Hr, 0.0 hr/8 hr shift, 765 0 hr/yr 574 Maintenance Materials 100% of maintenance labor costs 574 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 170 kW-hr, 7650 hr/yr, 93% utilization 62,892 NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - Total Annual Direct Operating Costs 174,008

Indirect Operating Costs Overhead 60% of total labor and material costs 66,670 Administration (2% total capital costs) 2% of total c apital costs (TCI) 21,831 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 10,915 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 10,915 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 103,033 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 213,364

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 387,372

See Summary page for notes and assumptions

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 23: NOx Control - Low NOx Burner with Overfir e Air

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Equipment Life 2 years CRF 0.5531 Rep part cost per unit 650 $/ft 3 Amount Required 39 ft 3 Catalyst Cost 28,265 Cost adjusted for freight & sale s tax Installation Labor 4,240 Assume Labor = 15% of catalyst cost (basis labor fo r 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 37.940902 $ each Amount Required 0 Number Total Rep Parts Cost 0 Cost adjusted for freight & sa les 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 ba g. Total Installed Cost 0 Zero out if no replacement parts needed Annualized Cost 0

Electrical Use
Flow acfm D P in H2O Efficiency Hp kW Blower, Thermal 0 19 0.6 0.0 EPA Cont Cost Manual 6th ed - Oxidizers Chapter 2. 5.2.1 Blower, Catalytic 0 23 0.6 0.0 EPA Cont Cost Manual 6th ed - Oxidizers Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 0.0

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,650 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50 $/Hr 2.00 hr/8 hr shift 1,913 95,625 $/Hr, 2. 0 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA 14,344 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 0.01 hr/8 hr shift 10 574 $/Hr, 0. 0 hr/8 hr shift, 7650 hr/yr Maint Mtls 100 % of Maintenance Labor NA 574 100% of Mai ntenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 170.0 kW-hr 1,209,465 62,892 $/kw h, 170 kW-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0 scfm 0 0 $/mscf, 0 scfm, 7650 h r/yr, 93% utilization Water 0.40 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 0 Mscfm 0 0 $/mscf, 0 Mscfm, 7650 hr/ yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 76 50 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization Waste Recycle 1.00 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization 1 Lime 90 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr/yr, 93% utilization 2 Caustic 305.21 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 h r/yr, 93% utilization 5 Oxygen 1.48526 Mscf 0.0 Mscf/hr 0 0 Mscf, 0 Mscf/hr, 7650 hr/yr, 93% utilization 2 CO Catalyst 650 $/ft3 0 ft 3 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization 1 Filter Bags 37.940902 $/bag 0 bags 0 0 $/bag, 0 bags, 765 0 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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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 23: Selective Catalytic Reduction - Basis Pow er Plant Installed Cost

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Expected Utilization Rate 93% Temperature 450 Deg F Expected Annual Hours of Operation 7,650 Hours Moisture Content 13.3% Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Expected Equipment Life 20 yrs Standardized Flow Rate 6 9,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs Purchased Equipment (A) NA Purchased Equipment Total (B) 22% of control device cost (A) NA

Installation - Standard Costs 30% of purchased equi p cost (B) NA Installation - Site Specific Costs NA Installation Total NA Total Direct Capital Cost, DC NA Total Indirect Capital Costs, IC 31% of purchased equip cost (B) NA Total Capital Investment (TCI) = DC + IC 5,563,529

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 362,636 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 756,672 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,119,307



### Emission Control Cost Calculation Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem PM10 1.9 6.8 6.8 - NA Total Particulates 1.9 6.8 6.8

- NA Nitrous Oxides (NOx) 11.6 41.3

90% 4.1 37.1 30,139 Sulfur Dioxide (SO 2 ) 16.8 59.8 59.8 - NA Sulfuric Acid Mist

- - 0.0 - NA Fluorides

- - 0.0 - NA Volatile Organic Compounds (VOC) 1.0 3.5 3.5 - NA Carbon Monoxide (CO) - - 0.0 - NA Lead (Pb)

- - 0.0

- NA

Notes & Assumptions Basis for SCR control cost: 1 The SCR capital investment is from vendor estimates (Babcok Power Inc, 2005). 2 SCR catalyst quote based on information obtained fr om Cormetech, Inc. It is used for catalyst replace ment costs. 3 The total direct and indirect operating costs are b ased on operation and maintenance costs in the "Pwr Plt SCR $" tab per EPA correlation of SCR cos ts for power plants.

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 23: Selective Catalytic Reduction - Basis Pow er Plant Installed Cost

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) NA Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) NA Freight 5% of control device cost (A) NA Purchased Equipment Total (B) 22% NA

Installation Foundations & supports 8% of purchased equip cost (B) NA Handling & erection 14% of purchased equip cost (B) NA Electrical 4% of purchased equip cost (B) NA Piping 2% of purchased equip cost (B) NA Insulation 1% of purchased equip cost (B) NA Painting 1% of purchased equip cost (B) NA Installation Subtotal Standard Expenses 30% NA

Site Preparation, as required Site Specific NA Buildings, as required Site Specific NA Site Specific - Other Site Specific NA Total Site Specific Costs NA Installation Total NA Total Direct Capital Cost, DC NA

Indirect Capital Costs Engineering, supervision 10% of purchased equip cost (B) NA Construction & field expenses 5% of purchased equip cost (B) NA Contractor fees 10% of purchased equip cost (B) NA Start-up 2% of purchased equip cost (B) NA Performance test 1% of purchased equip cost (B) NA Model Studies of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) NA Total Indirect Capital Costs, IC 31% of purchased equip cost (B) NA

Total Capital Investment (TCI) = DC + IC 5,563,529

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 5,425,183



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator NA - Supervisor NA - Maintenance Maintenance Labor NA - Maintenance Materials 100% of maintenance labor costs - Utilities, Supplies, Replacements & Waste Managemen t NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - CO Catalyst 650.00 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization 52,7 17 NA NA - Total Annual Direct Operating Costs 362,636

Indirect Operating Costs Overhead 60% of total labor and material costs 22,032 Administration (2% total capital costs) 2% of total c apital costs (TCI) 111,271 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 55,635 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 55,635 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 512,099 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 756,672

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,119,307

See Summary page for notes and assumptions

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 23: Selective Catalytic Reduction - Basis Pow er Plant Installed Cost

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Catalyst Estimate amount of catalyst required Equipment Life 3 years Vol. #1 5000 ft3 CRF 0.3811 Flow #1 359,256 acfm Basis SCR Bids for proposed 2001 Taconite Plant Rep part cost per unit 65 $/ft 3 Flow #2 119,800 acfm Amount Required 1667.3 ft 3 Vol #2 1667.3 ft3 Catalyst Cost 120,301 Cost adjusted for freight & sal es tax Installation Labor 18,045 Assume Labor = 15% of catalyst cost (basis labor fo r baghouse replacement) Total Installed Cost 138,346 Zero out if no replacement parts needed Annualized Cost 52,717

Replacement Parts & Equipment: Equipment Life 3 CRF 0.3811 Rep part cost per unit 37.940902 $ each Amount Required 0 Number Total Rep Parts Cost 0 Cost adjusted for freight & sa les tax Installation Labor 0 10 min per bag (13 hr total) Lab or 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 D P in H2O Efficiency Hp kW Blower, Thermal 119,800 19 0.6 443.9 EPA Cont Cost Manual 6th ed - Oxidizers Chapter 2. 5.2.1 Blower, Catalytic 119,800 23 0.6 537.3 EPA Cont Cost Man ual 6th ed - Oxidizers Chapter 2.5.2.1

Oxidizer Type Catalytic (catalytic or thermal) 537.3

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,650 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50 $/Hr 0.5 hr/8 hr shift 0 0 $/Hr, 0.5 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA - 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 0 0 $/Hr, 0.5 hr /8 hr shift, 7650 hr/yr Maint Mtls 100 % of Maintenance Labor NA 0 100% of Maint enance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 537.3 kW-hr 0 0 $/kwh, 537 kW-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 14676 scfm 0 0 $/mscf, 14,676 scf m, 7650 hr/yr, 93% utilization Water 0.40 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 0 Mscfm 0 0 $/mscf, 0 Mscfm, 7650 hr/ yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 76 50 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization Waste Recycle 1.00 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization 1 Lime 90 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr/yr, 93% utilization 2 Caustic 305.21 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 h r/yr, 93% utilization 5 Oxygen 1.48526 Mscf 0.0 Mscf/hr 0 0 Mscf, 0 Mscf/hr, 7650 hr/yr, 93% utilization 2 CO Catalyst 650 $/ft3 0 ft 3 0 52,717 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization 1 Filter Bags 37.940902 $/bag 0 bags 0 0 $/bag, 0 bags, 765 0 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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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 23: Selective Catalytic Reduction - Basis Pow er Plant Installed Cost

EPA SCR Cost Worksheet for Coal Fired Power Plants

Determine Comparable Boiler Size Based on Flue Gas Exhaust Rate stack exhaust flow scfm 69,510 Moisture Content 10% Stack exhaust flow dcfm 60,265 Coal F Factor dscf/MMBtu 10,000 Equivalent Duty MMBtu/hr 362 Est. Power Plant Efficiency 35% Watt per Btu/hr 0.29307 Equivalent Power Plant kW 37,090 Uncontrolled NOx t/yr 41 Annual Operating Hours 8,000 Uncontrolled NOx lb/MMBtu 0.029

Plant Capacity kW A 37,090 Uncontrolled NOx lb/MMBtu B 0.029 NOx Reduction Efficiency C 90 Capital Cost $/kW D $150.00 Total Capital Cost $5,563,5 29

D= 75*(300,000((B/1.5)^0.05*(C/100)^0.04/A)^0.35

Plant Capacity kW A 37,090 Capital Cost $/kW D $150.00 Fixed O&M Cost, $/yr E $36,719

E = D*A*0.0066

Plant Capacity kW A 37,090 Uncontrolled NOx lb/MMBtu B 0.03 NOx Reduction Efficiency C 90 Capital Cost $/kW D $150.00 Annual Capacity Factor G 0.82 Heat Input MMBtu/hr H 6000 Variable O&M Cost $/yr F $362,636

F = G*(225(0.37*B*H*C/100*8760/2000)*1.005+0.075*D* A*((B/1.5)^0.05*(c/100)^.4)+1.45*A) Note: used worst case factor for catalyst replaceme nt Note: Capital Cost kW is estimate from Tom Robinson @ Babcock Power Inc.

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 25: Selective Non-Catalytic Reduction SNCR

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998/1999 390 Expected Annual Hours of Operation 7,650 Hours Moisture Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 69,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Control Eff NOx in lb/MMBtu Year Direct Capital Costs EPRI Correlation, 1998 $'s 50% 0.17 1998 551,300 Purchased Equipment (A) 2005 657,319 Purchased Equipment Total (B) 0% of control device cost (A) 657,319

Installation - Standard Costs 15% of purchased equi p cost (B) 118,317 Installation - Site Specific Costs 0 Installation Total 0 Total Direct Capital Cost, DC 0 Total Indirect Capital Costs, IC 0% of purchased equip cost (B) 0 Total Capital Investment (TCI) = DC + IC 925,876

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 153,526 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 96,655 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 250,181



### Emission Control Cost Calculation
Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction C ont Cost Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem PM10 1.9 6.8 6.8 - NA Total Particulates 1.9 6.8 6.8

- NA Nitrous Oxides (NOx) 11.6 41.3 50% 20.6 20.6 12,126 Sulfur Dioxide (SO 2 ) 16.8 59.8 59.8 - NA Sulfuric Acid Mist - - 0.0 - NA Fluorides

- - 0.0 - NA Volatile Organic Compounds (VOC) 1.0 3.5 3.5 - NA Carbon Monoxide (CO) - - 0.0 - NA Lead (Pb)

- - 0.0

- NA

Notes & Assumptions 1 Cost Estimate from EPA Air Pollution Control Cost M anual 6th Ed 2002, Section 4.2 Chapter 1 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 1 3 Capital Cost per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 4.2 Chapter 1 Eq 1.19 4 Reagent Use per EPA Air Pollution Control Cost Manu al 6th Ed 2002, Section 4.2 Chapter 1 Eq 1.22 5 Water use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 1 Eq 1.25 6 Additional Fuel Use per EPA Air Pollution Control C ost Manual 6th Ed 2002, Section 4.2 Chapter 1 Eq 1. 29 7 SNCR Electrical Demand per EPA Air Pollution Contro l Cost Manual 6th Ed 2002, Section 4.2 Chapter 1 Eq 1.23 8 SNCR Maintenance Costs EPA Air Pollution Control Co st Manual 6th Ed 2002, Section 4.2 Chapter 1 Eq 1.2 1 9 No coal ash disposal cost; fuel is natural gas

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 25: Selective Non-Catalytic Reduction SNCR

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 657,319 Instrumentation 10% of control device cost (A) NA MN Sales Taxes 6.5% of control device cost (A) NA Freight 5% of control device cost (A) NA Purchased Equipment Total (A) 657,319

Indirect Installation General Facilities 5% of purchased equip cost (A) 32,866 Engineering & Home Office 10% of purchased equip cost (A) 65,732 Process Contingency 5% of purchased equip cost (A) 32,866

Total Indirect Installation Costs (B) 20% of purchased equip cost (A) 131,464

Project Contingency ( C) 15% of (A + B) 118,317

Total Plant Cost D A + B + C 907,100

Allowance for Funds During Construction (E) 0 for SNCR 0

Royalty Allowance (F) 0 for SNCR 0

Pre Production Costs (G) 2% of (D+E)) 18,142

Inventory Capital Reagent Vol * $/gal 634

Initial Catalyst and Chemicals 0 for SNCR 0

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 925,876

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 925,876



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator NA - Supervisor NA - Maintenance Maintenance Total 15.00 % of Total Capital Investment 138,881 Maintenance Materials NA % of Maintenance Labor - Utilities, Supplies, Replacements & Waste Managemen t NA NA - Natural Gas 2.31 $/mscf, 0 scfh, 7650 hr/yr, 93% utilization 1,21 5 Water 0.40 $/mgal, 4 gph, 7650 hr/yr, 93% utilization 13 NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - NA NA - Urea 405.00 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization 1 3,416 NA NA - NA NA - NA NA - Total Annual Direct Operating Costs 153,526

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) 0 of total capital costs (TCI) 9,259 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 87,396 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 96,655

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 250,181

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## Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 25: Selective Non-Catalytic Reduction SNCR

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst <- Enter Equipment Name to Get Cost Equipment Life 5 years CRF 0.2439 Rep part cost per unit 500 $/ft 3 Amount Required 12 ft 3 Packing Cost 6,690 Cost adjusted for freight & sales tax Installation Labor 1,004 Assume Labor = 15% of catalyst cost (basis labor fo r baghouse replacement) Total Installed Cost 0 Zero out if no replacement parts needed Annualized Cost 0

Replacement Parts & Equipment: <- Enter Equipment Name to Get Cost Equipment Life 2 years CRF 0.0000 Rep part cost per unit 38 $/ft 3 Amount Required 0 Cages Total Rep Parts Cost 0 Cost adjusted for freight & sa les tax See Control Cost Manual Sec 6 Ch 1 Table 1.8 for bag costs Installation Labor 0 10 min per bag, Labor + Overhead (68% = $29.65/hr) Total Installed Cost 0 Zero out if no replacement parts needed EPA CCM list replacement times from 5 - 20 min per bag. Annualized Cost 0

Electrical Use NOx in 0.17 lb/MMBtu kW NSR 1.12 Power 0.0

Total 0.0

Reagent Use & Other Operating Costs Urea Use NOx in 0.17 lb/MMBtu 5 lb/hr Neat Efficiency 50% 50% solution 71.0 lb/ft 3 Density 50% Solution Duty 70 MMBtu/hr 9 lb/hr 1.0 gal/hr Volume 14 day inventory 330 gal $634 Inventory Cost

Water Use 4 gal/hr Inject at 10% solution

Fuel Use 0.1 MMBtu/hr 0.1 mscfh natural gas

Ash Generation 0.6 lb/hr

Operating Cost Calculations Annual hours of operatio n: 7,650 Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50 $/Hr 0.0 hr/8 hr shift 0 0 $/Hr, 0.0 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA - 15% of Operator Costs Maintenance Maintenance Total 15 % of Total Capital Investment 138 ,881 % of Total Capital Investment Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenan ce Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 0.0 kW-hr 0 0 $/kwh, 0 kW-hr, 765 0 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0.1 scfh 526 1,215 $/mscf, 0 scfh , 7650 hr/yr, 93% utilization Water 0.40 $/mgal 4.5 gph 32 13 $/mgal, 4 gph, 7650 hr/yr , 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 0.0 scfm/kacfm** 0 0 $/mscf, 0 scfm/kacfm**, 7650 hr/yr, 93% utilizati on WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 76 50 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization Waste Recycle 1.00 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization 1 Lime 90 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr/yr, 93% utilization 3 Urea 405 $/ton 0.0047 ton/hr 33 13,416 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization 5 Oxygen 1.48526 Mscf 0.0 Mscf/hr 0 0 Mscf, 0 Mscf/hr, 7650 hr/yr, 93% utilization 1 SCR Catalyst 500 $/ft3 0 ft 3 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization 1 Filter Bags 37.940902 $/bag 0 bags 0 0 $/bag, 0 bags, 765 0 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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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 26: SO2 Control - Wet ESP

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998 /1999 390 Expected Annual Hours of Operation 7,650 Hours Moistur e Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 6 9,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Year Direct Capital Costs (1) Purchased Equipment (A) 2005 5,519,073 2,687,838 Purchased Equipment Total (B) 22% of control device cost (A) 3,265,724

Installation - Standard Costs 69% of purchased equi p cost (B) 2,253,349 Installation - Site Specific Costs 0 Installation Total 2,253,349 Total Direct Capital Cost, DC 5,519,073 Total Indirect Capital Costs, IC 57% of purchased e quip cost (B) 1,861,462 Total Capital Investment (TCI) = DC + IC 11,808,857

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 742,986 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,504,739 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 2,247,725



### Emission Control Cost Calculation
Baseline Predicted Limit Cont. Emis. Cont Emis Reduct ion Cont Cost (5) Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem PM10 8.3 1.5

0.021

5.3 3.0 758,310 Total Particulates 8.3 1.5

0.021

5.3 3.0 758,310 Nitrous Oxides (NOx) 50.9 -

50.9 - NA Sulfur Dioxide (SO 2 

### ) 73.4 3.4

0.048

11.9 61.5 36,558

Notes & Assumptions 1 Total Direct Capital Cost Cost Estimated, 19% as co mpared to dry ESP cost. 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 3 3 ESP Maintenance costs Eq 3.45 EPA Cont Cost Manual Section 6 Chapter 3 4 ESP Maintenance Materials Eq 3.45 EPA Cont Cost Ma nual Section 6 Chapter 3 5 High control cost is due to the small additional de crease in emissions as compared to existing control s. 6 CUECost Workbook Version 1.0, USEPA Document Page 2

.

Notes to User 1) Enter Data in Blue Highlighted Cells Throughout Worksheet 2) Control cost basis calculated by % control effic iency or concentration. Enter valued in appropriat e yellow highlighted cell 2a) If using % control efficiency, enter data only in coluND F, do not enter concentration units in co luND H 2b) If using concentration, enter concentration dat a in coluND Fand units in coluND H 3) If not data entered in colums F and G; control c ost will show NA. This was done to prevent divide b y zero errors

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### 4) See comments in cell V88 regarding selection of reagents, catalysts and supplies

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 26: SO2 Control - Wet ESP

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 2,687,838 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 268,784 MN Sales Taxes 6.5% of control device cost (A) 174,709 Freight 5% of control device cost (A) 134,392 Purchased Equipment Total (B) 22% 3,265,724

Installation Foundations & supports 4% of purchased equip cost (B) 130,629 Handling & erection 50% of purchased equip cost (B) 1,632,862 Electrical 8% of purchased equip cost (B) 261,258 Piping 3% of purchased equip cost (B) 97,972 Insulation 2% of purchased equip cost (B) 65,314 Painting 2% of purchased equip cost (B) 65,314 Installation Subtotal Standard Expenses 69% 2,253,349

Installation Total 2,253,349 Total Direct Capital Cost, DC 5,519,073

Indirect Capital Costs Engineering, supervision 20% of purchased equip cost (B) 653,145 Construction & field expenses 20% of purchased equip cost (B) 653,145 Contractor fees 10% of purchased equip cost (B) 326,572 Start-up 1% of purchased equip cost (B) 32,657 Performance test 1% of purchased equip cost (B) 32,657 Model Studies 2% of purchased equip cost (B) 65,314 Contingencies 3% of purchased equip cost (B) 97,972 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 1,861,462

7,380,535 Retrofit TCI (TCI*1.6) (6) 11,808,857

Total Capital Investment (TCI) = DC + IC Site Preparation, as required site preparation and f oundations 0 Buildings, as required structural steel 0 Site Specific - Other Replacement Power - One 14 day outage [8] 0 Total Site Specific Costs 0 Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 11,808,857



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor

Operator 50.00 $/Hr, 1.0 hr/8 hr shift, 7650 hr/yr 47,813 Supervisor 48% % of Operator Costs. 22,950 Maintenance Maintenance Labor (3) 66,249 ft2 grid area, 0.8 $/ft2 of grid area 54,656 Maintenance Materials (4) 1 1% of purchased equipment cost 32,657 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 228 kW-hr, 7650 hr/yr, 93% utilization 84 ,287 NA NA - Water 0.40 $/mgal, 24 gpm, 7650 hr/yr, 93% utilization 4,09 1 NA NA - NA NA - NA NA - NA NA - SW Disposal 11.48 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization 77 NA NA - NA NA - NA NA - NA NA - Caustic 305.21 $/ton, 227 lb/hr, 7650 hr/yr, 93% utilization 246,456 NA NA - Lost Revenue - Fly Ash NA 250,000 NA NA - Total Annual Direct Operating Costs 742,986 Indirect Operating Costs

Overhead 60% of total labor and material costs 94,845 Administration (2% total capital costs) 2% of total c apital costs (TCI) 147,611 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 73,805 1 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 73,805 2 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,114,673 5 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,504,739 1 1

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 2,247,725

See Summary page for notes and assumptions

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### Y:\23\00 MN Taconite BART (2006)\Facility BART Repo rts\NMC\NMC Furnace-Process Boiler\Appendices\Appen dix A - NMC Process Boiler Control Cost.xls

SO2 WESP 9/6/2006 Page 23 of 42

# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 26: SO2 Control - Wet ESP

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Equipment Life 5 years CRF 0.0000 Rep part cost per unit 500 $/ft 3 

### Amount Required 0 ft 3 

### Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (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 37.94090199 $ each Amount Required 0 Number Total Rep Parts Cost 0 Cost adjusted for freight & sa les tax Installation Labor 0 10 min per bag (13 hr total) Lab or 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 **∆** P in H2O 

### Efficiency Hp kW Blower Baghouse & ESP 

### 119,800 4.48 97.1 EPA Cost Cont Manual 6th ed Section 6 Chapter 3 Eq 3.46 Liq flow Liquid SPGR **∆** P ft H2O 

### Efficiency Hp kW WESP Pump 120 gpm 1.000 40 0.5 1.8 EPA Cost Cont Manual 6 th ed Section 6 Chapter 3 Eq 3.47
WESP H2O WW Disch 

### 24 gpm 1.000 40 0.5 0.4 EPA Cost Cont Manual 6th ed Sect ion 6 Chapter 3 Eq 3.47

SCA Factor 553 ft 2 

### /1000 acfm
ESP Grid 66,249 ft 2 

### 1.94E-03 kW/ft 2 

### 128.5 EPA Cost Cont Manual 6th ed Section 6 Chapter 3 Eq 3.48

Total 227.8

Reagent Use & Other Operating Costs WESP Pump 23,960 acfm 5 gpm/kacfm 120 gpm EPA Cost Cont Ma nual 6th ed Section 6 Chapter 3.4.1.9 WESP Water Makeup Rate/WW Disch 

### 20% of circulating water rate = 24 gpm

Operating Cost Calculations Annual hours of operatio n: 7,650 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50.00 $/Hr 1.0 hr/8 hr shift 956 47,813 $/Hr, 1. 0 hr/8 hr shift, 7650 hr/yr Supervisor 48% of Operator Costs. NA 22,950 % of Operat or Costs. Maintenance Maint Labor 66,249 ft2 grid area 0.825 $/ft 2 

### of grid area 54,656 ft2 grid area, 0.8 $/ft2 of grid area Maint Mtls 1 % of purchased equipment cost NA 32,657 1% of purchased equipment cost Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 227.8 kW-hr 1,620,903 84,287 $/kw h, 228 kW-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0 scfm 0 0 $/mscf, 0 scfm, 7650 h r/yr, 93% utilization Water 0.40 $/mgal 24.0 gpm 10,228 4,091 $/mgal, 24 gpm, 7 650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 0 kscfm 0 0 $/mscf, 0 kscfm, 7650 hr/ yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 g pm, 7650 hr/yr, 93% utilization SW Disposal 11.48 $/ton 0.0 ton/hr 7 77 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 Mi 0 0 $/ton-mi, 0 Mi, 7 650 hr/yr, 93% utilization PRB Coal 1 $/ton 0.0 ton/hr 0 0 $/ton, $5.1MM/yr extra for PRB - $1MM/yr Lower O&M Cost Lime 90.0 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr/yr, 93% utilization Caustic 305.21 $/ton 227.0 lb/hr 807 246,456 $/ton, 227 lb /hr, 7650 hr/yr, 93% utilization Oxygen 1.48526 Mscf 0.0 kscf/hr 0 0 Mscf, 0 kscf/hr, 7650 hr/yr, 93% utilization SCR Catalyst 500 $/ft3 0 ft 3 

### 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization Filter Bags 37.94 $/bag 0 bags 0 0 $/bag, 0 bags, 7650 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

Note: Select reagent, catayst and repacement parts by entering number in coluND U. Unhide Col U to en ter choice.

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 27: SO2 Absorber

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998 /1999 390 Expected Annual Hours of Operation 7,650 Hours Moistur e Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 6 9,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Year Direct Capital Costs (1) 2002 [1] 1,908,056 Purchased Equipment (A) 2005 2,274,990 1,012,119 Purchased Equipment Total (B) 22% of control device cost (A) 1,229,724

Installation - Standard Costs 85% of purchased equi p cost (B) 1,045,266 Installation - Site Specific Costs 0 Installation Total 1,045,266 Total Direct Capital Cost, DC 2,274,990 Total Indirect Capital Costs, IC 15% of purchased e quip cost (B) 184,459 Total Capital Investment (TCI) = DC + IC 3,935,118

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 598,134 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 520,746 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,118,879



### Emission Control Cost Calculation
Baseline Predicted Limit Cont. Emis. Cont Emis Reduct ion Cont Cost Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem PM10 8.3 -

8.3 - NA Total Particulates 8.3 -

8.3 - NA Nitrous Oxides (NOx) 50.9 -

50.9 - NA Sulfur Dioxide (SO 2 

### ) 73.4 3.4

0.05

11.9 61.5 18,198

Notes & Assumptions
1 Original estimate was from Durr. Use 0.6 Powerlaw 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 ci rculating water rate. 4 Evaporation rate calculated from steam table in Bas ic Principles and Calculations in Chemical Engineer ing Third Edition. 5 CUECost Workbook Version 1.0, USEPA Document Page 2

.

Notes to User 1) Enter Data in Blue Highlighted Cells Throughout Worksheet 2) Control cost basis calculated by % control effic iency or concentration. Enter valued in appropriat e yellow highlighted cell 2a) If using % control efficiency, enter data only in coluND F, do not enter concentration units in co luND H 2b) If using concentration, enter concentration dat a in coluND Fand units in coluND H 3) If not data entered in colums F and G; control c ost will show NA. This was done to prevent divide b y zero errors

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### 4) See comments in cell V88 regarding selection of reagents, catalysts and supplies

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 27: SO2 Absorber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 1,012,119 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 101,212 MN Sales Taxes 6.5% of control device cost (A) 65,788 Freight 5% of control device cost (A) 50,606 Purchased Equipment Total (B) 22% 1,229,724

Installation Foundations & supports 12% of purchased equip cost (B ) 147,567 Handling & erection 40% of purchased equip cost (B) 491,890 Electrical 1% of purchased equip cost (B) 12,297 Piping 30% of purchased equip cost (B) 368,917 Insulation 1% of purchased equip cost (B) 12,297 Painting 1% of purchased equip cost (B) 12,297 Installation Subtotal Standard Expenses 85% 1,045,266

Installation Total 1,045,266 Total Direct Capital Cost, DC 2,274,990

Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B) 61,486 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 61,486 Start-up 1% of purchased equip cost (B) 12,297 Performance test 1% of purchased equip cost (B) 12,297 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 36,892 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 184,459

Total Capital Investment (TCI) = DC + IC 2,459,448 Retrofit TCI (TCI*1.6) (5) 3,935,118

Site Preparation, as required site preparation and f oundations 0 Buildings, as required structural steel 0 Site Specific - Other Replacement Power - One 14 day outage [8] 0 Total Site Specific Costs 0

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 3,935,118



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 50.00 $/Hr, 0.5 hr/8 hr shift, 7650 hr/yr 23,906 Supervisor 15% 15% of Operator Costs 3,586 Maintenance Maintenance Labor 60.00 $/Hr, 0.5 hr/8 hr shift, 765 0 hr/yr 28,688 Maintenance Materials 100% of maintenance labor costs 28,688 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 246 kW-hr, 7650 hr/yr, 93% utilization 91 ,145 NA NA - Water 0.40 $/mgal, 112 gpm, 7650 hr/yr, 93% utilization 19, 194 NA NA - NA NA - WW Treat Neutralization 3.80 $/mgal, 91 gpm, 7650 hr/ yr, 93% utilization 147,690 NA NA - SW Disposal 11.48 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization 77 NA NA - NA NA - NA NA - Lime 90.00 $/ton, 16 lb/hr, 7650 hr/yr, 93% utilization 5, 161 NA NA - NA NA - Lost Revenue - Fly Ash NA 250,000 NA NA - Total Annual Direct Operating Costs 598,134

Indirect Operating Costs Overhead 60% of total labor and material costs 50,920 Administration (2% total capital costs) 2% of total c apital costs (TCI) 49,189 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 24,594 1 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 24,594 2 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 371,447 5 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 520,746 1 1

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,118,879

See Summary page for notes and assumptions

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SO2 Absorber 9/6/2006 Page 28 of 42

# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 27: SO2 Absorber

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalyst: Equipment Life 5 years CRF 0.0000 Rep part cost per unit 500 $/ft 3 

### Amount Required 0 ft 3 

### Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (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 37.94 $ each Amount Required 0 Number Total Rep Parts Cost 0 Cost adjusted for freight & sa les tax Installation Labor 0 10 min per bag (13 hr total) Lab or 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 ∆ P in H2O 

### Efficiency Hp kW Blower, Scrubber 119,800 8.55 0.7 - 171.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48 Flow Liquid SPGR ∆ P ft H2O 

### Efficiency Hp kW Circ Pump 4,552 gpm 1 60 0.7 - 73.4 EPA Cost Cont Manual 6 th ed Section 5.2 Chapter 1 Eq 1.49
H2O WW Disch 

### 112 gpm 1 60 0.7 - 1.8 EPA Cost Cont Manual 6th ed Sectio n 5.2 Chapter 1 Eq 1.49 Other Total 246.4

Reagent Use & Other Operating Costs Caustic Use 16.75 lb/hr SO2 2.50 lb NaOH/lb SO2 

### 41.88 lb/hr Caustic Lime Use 16.75 lb/hr SO2 0.96 lb Lime/lb SO2 

### 16.12 lb/hr lime, lime addition at 1.1 times the sto ichiometric ratio Liquid/Gas ratio (2) 38.0 * L/G = Gal/1,000 acf Circulating Water Rate 4,552 gpm Water Makeup Rate/WW Disch = (3) 2.0% of circulating water rate + evap. loss = 112 gpm Evaopration Loss = (4) 21.36 gpm

Pollutant BART Baseline Emissions Control Eff (%) Cont. Emis (lb/MMBtu) T/yr lb/MMBtu lb/hr 80% 0.05 NOx 50.90 0.166071429 11.625 SO2 73.40 0.239285714 16.75

Operating Cost Calculations Annual hours of operatio n: 7,650 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 478 23,906 $/Hr, 0. 5 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA 3,586 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 478 28,688 $/Hr, 0.5 hr/8 hr shift, 7650 hr/yr Maint Mtls 100 % of Maintenance Labor NA 28,688 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 246.4 kW-hr 1,752,797 91,145 $/kw h, 246 kW-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0 scfm 0 0 $/mscf, 0 scfm, 7650 h r/yr, 93% utilization Water 0.40 $/mgal 112.4 gpm 47,984 19,194 $/mgal, 112 gpm , 7650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 0 kscfm 0 0 $/mscf, 0 kscfm, 7650 hr/ yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 91.0 gpm 38,866 147,690 $/mgal, 91 gpm, 7650 hr/yr, 93% utilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 7 77 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization PRB Coal 1 $/ton 0.0 ton/hr 0 0 $/ton, $5.1MM/yr extra for PRB - $1MM/yr Lower O&M Cost Lime 90.0 $/ton 16.1 lb/hr 57 5,161 $/ton, 16 lb/hr, 7650 hr/yr, 93% utilization Caustic 305.21 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr /yr, 93% utilization Oxygen 1.48526 Mscf 0.0 kscf/hr 0 0 Mscf, 0 kscf/hr, 7650 hr/yr, 93% utilization SCR Catalyst 500 $/ft3 0 ft 3 

### 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization Filter Bags 37.94 $/bag 0 bags 0 0 $/bag, 0 bags, 7650 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

Note: Select reagent, catayst and repacement parts by entering number in coluND U. Unhide Col U to en ter choice.

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 28: SO2 Control - Spray Dryer and Baghouse

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998 /1999 390 Expected Annual Hours of Operation 7,650 Hours Moistur e Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 6 9,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Year Direct Capital Costs (1) 2002 [1] 7,786,400 Purchased Equipment (A) 2005 9,283,785 4,391,365 Purchased Equipment Total (B) 22% of control device cost (A) 5,335,508

Installation - Standard Costs 74% of purchased equi p cost (B) 3,948,276 Installation - Site Specific Costs 0 Installation Total 3,948,276 Total Direct Capital Cost, DC 9,283,785 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 800,326 Total Capital Investment (TCI) = DC + IC (5) 16,134,577

Operating Costs (2) Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 693,518 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,061,186 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 2,754,704



### Emission Control Cost Calculation
Baseline Predicted Limit Cont. Emis. Cont Emis Reduct ion Cont Cost Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem PM10 8.3 -

8.3 - NA Total Particulates 8.3 -

8.3 - NA Nitrous Oxides (NOx) 50.9 -

50.9 - NA Sulfur Dioxide (SO 2 

### ) 73.4 3.4

0.05

11.9 61.5 44,804

Notes & Assumptions 1 Stone and Webster 2002 total direct installed cost estimate adjusted for inflation 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 1 3 Compressed air for baghouse assumed to be 2 scfm / 1000 acfm EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 1.5.1.8 4 Bag replacement at 10 min/bag EPA Cost Cont Manual 6th ed Section 6 Chapter 1.5.1.4 lists replacement times from 5 - 20 min per bag. 5 Bag replacement costs for baghouse need to be updat ed. Bag costs from EPA example calculations were u sed. 6 Dry scrubbing SO2 costs include addition of a bagho use. Assumed that the existing baghouse could not handle additional loading. 7 CUECost Workbook Version 1.0, USEPA Document Page 2

.

Notes to User 1) Enter Data in Blue Highlighted Cells Throughout Worksheet 2) Control cost basis calculated by % control effic iency or concentration. Enter valued in appropriat e yellow highlighted cell 2a) If using % control efficiency, enter data only in coluND F, do not enter concentration units in co luND H 2b) If using concentration, enter concentration dat a in coluND Fand units in coluND H 3) If not data entered in colums F and G; control c ost will show NA. This was done to prevent divide b y zero errors

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### 4) See comments in cell V88 regarding selection of reagents, catalysts and supplies

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 28: SO2 Control - Spray Dryer and Baghouse

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 4,391,365 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 439,136 MN Sales Taxes 6.5% of control device cost (A) 285,439 Freight 5% of control device cost (A) 219,568 Purchased Equipment Total (B) 22% 5,335,508

Installation Foundations & supports 4% of purchased equip cost (B) 213,420 Handling & erection 50% of purchased equip cost (B) 2,667,754 Electrical 8% of purchased equip cost (B) 426,841 Piping 1% of purchased equip cost (B) 53,355 Insulation 7% of purchased equip cost (B) 373,486 Painting 4% of purchased equip cost (B) 213,420 Installation Subtotal Standard Expenses 74% 3,948,276

Installation Total 3,948,276 Total Direct Capital Cost, DC 9,283,785

Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B) 266,775 Construction & field expenses 0% of purchased equip c ost (B) 0 Contractor fees 5% of purchased equip cost (B) 266,775 Start-up 1% of purchased equip cost (B) 53,355 Performance test 1% of purchased equip cost (B) 53,355 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 160,065 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 800,326

Total Capital Investment (TCI) = DC + IC 10,084,111 Retrofit TCI (TCI*1.6) (7) 16,134,577

Site Preparation, as required site preparation and f oundations 0 Buildings, as required structural steel 0 Site Specific - Other Replacement Power - One 14 day outage [8] 0 Total Site Specific Costs 0

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 16,134,577



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 7650 hr/yr 95,625 Supervisor 15% 15% of Operator Costs 14,344 Maintenance Maintenance Labor 60.00 $/Hr, 1.0 hr/8 hr shift, 765 0 hr/yr 57,375 Maintenance Materials 100% of maintenance labor costs 57,375 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 217 kW-hr, 7650 hr/yr, 93% utilization 80 ,220 NA NA - Water 0.40 $/mgal, 141 gpm, 7650 hr/yr, 93% utilization 24, 000 NA NA - Comp Air 0.32 $/mscf, 2 scfm/kacfm, 7650 hr/yr, 93% utilizati on 32,391 NA NA - NA NA - SW Disposal 11.48 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization 77 NA NA - NA NA - NA NA - Lime 90.00 $/ton, 16 lb/hr, 7650 hr/yr, 93% utilization 5, 161 NA NA - Lost Revenue - Fly Ash NA 250,000 NA NA - Filter Bags 37.94 $/bag, 0 bags, 7650 hr/yr, 93% utilization 76,9 51 Total Annual Direct Operating Costs 693,518

Indirect Operating Costs Overhead 60% of total labor and material costs 134,831 Administration (2% total capital costs) 2% of total c apital costs (TCI) 201,682 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 100,841 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 100,841 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,522,990 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,061,186

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 2,754,704

See Summary page for notes and assumptions

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Spray Dry Baghouse 9/6/2006 Page 33 of 42

# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 28: SO2 Control - Spray Dryer and Baghouse

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalsyt: Equipment Life 5 years CRF 0.0000 Rep part cost per unit 500 $/ft 3 

### Amount Required 0 ft 3 

### Total Rep Parts Cost 0 Cost adjusted for freight & sa les tax Installation Labor 0 Assume Labor = 15% of catalyst c ost (basis labor for baghouse replacement) Total Installed Cost 0 Zero out if no replacement parts needed Annualized Cost 0

Replacement Parts & Equipment: Filter bags & cages ( 4) Equipment Life 4 years CRF 0.2952 Rep part cost per unit 38 $/bag Amount Required 4410 Total Rep Parts Cost 186,561 Cost adjusted for freigh t & sales tax Installation Labor 74,088 10 min per bag, Labor + Ove rhead (68% = $29.65/hr) EPA Cost Cont Manual 6th ed Section 6 Chapter 1.5.1.4 Total Installed Cost 260,649 Zero out if no replacement parts needed lists replacement times from 5 - 20 min per bag. Annualized Cost 76,951

Electrical Use

Flow acfm **∆** P in H2O 

### Efficiency Hp kW Blower, Baghouse 119,800 10 216.8 Baghouse Shaker 0.0 Gross fabric area ft 2 

### 0 EPA Cost Cont Manual 6th ed Section 6 Chapter 1 E q 1.14 Other Other Other Other Other Total 216.8

Baghouse Filter Cost See Control Cost Manual Sec 6 Ch 1 Table 1.8 for ba g costs Gross BH Filter Area 0 ft 2 

### Cages 0 ft long 0 in dia 0.00 area/cage ft 2 

### 0.000 $/cage Bags 0 $/ft2 of fabric 0.00 $/bag H2O Use (1) 140.56 gpm 0.000 Total Lime Use 16.75 lb/hr SO2 0.96 lb Lime/lb SO2 

### 16.12 lb/hr lime, lime addition at 1.1 times the sto ichiometric ratio

Pollutant BART Baseline Emissions Control Eff (%) Cont. Emis (lb/MMBtu) T/yr lb/MMBtu lb/hr 80% 0.05 NOx 50.90 0.166071429 11.625 SO2 73.40 0.239285714 16.75

Operating Cost Calculations Annual hours of operatio n: 7,650 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50.00 $/Hr 2.0 hr/8 hr shift 1,913 95,625 $/Hr, 2.0 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA 14,344 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 1.0 hr/8 hr shift 956 57,375 $/Hr, 1.0 hr/8 hr shift, 7650 hr/yr Maint Mtls 100 % of Maintenance Labor NA 57,375 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 216.8 kW-hr 1,542,694 80,220 $/kw h, 217 kW-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0 scfm 0 0 $/mscf, 0 scfm, 7650 h r/yr, 93% utilization Water 0.40 $/mgal 140.6 gpm 60,000 24,000 $/mgal, 141 gpm , 7650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization (3) Comp Air 0.32 $/mscf 2 scfm/kacfm 102,278 32,391 $/mscf , 2 scfm/kacfm, 7650 hr/yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 7 77 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization PRB Coal 1 $/ton 0.0 ton/hr 0 0 $/ton, $5.1MM/yr extra for PRB - $1MM/yr Lower O&M Cost 1 Lime 90.0 $/ton 16.1 lb/hr 57 5,161 $/ton, 16 lb/hr, 7650 hr/yr, 93% utilization 2 Caustic 305.21 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 h r/yr, 93% utilization 5 Oxygen 1.48526 Mscf 0.0 kscf/hr 0 0 Mscf, 0 kscf/hr, 7650 hr/yr, 93% utilization 1 SCR Catalyst 500 $/ft3 0 ft 3 

### 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization 1 Filter Bags 37.940902 $/bag 0 bags NA 76,951 $/bag, 0 bag s, 7650 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 Note: Select reagent, catayst and repacement parts by entering number in coluND U. Unhide Col U to en ter choice.

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 29: SO2 Control - Dry Sorbent Injection and B aghouse

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Chemical Engineering Design Capacity 70 MMBtu/hr Standardized Flow Rate 64,771 scfm @ 32o F Chemical Plant Cost Index Expected Utilization Rate 93% Temperature 450 Deg F 1998 /1999 390 Expected Annual Hours of Operation 7,650 Hours Moistur e Content 13.3% 2005 465 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Inflation Adj 1.19 Expected Equipment Life 20 yrs Standardized Flow Rate 6 9,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Year Direct Capital Costs (1) 1997 2,359,900 Purchased Equipment (A) 2005 [6] 2,813,727 1,330,934 Purchased Equipment Total (B) 22% of control device cost (A) 1,617,084

Installation - Standard Costs 74% of purchased equi p cost (B) 1,196,642 Installation - Site Specific Costs 0 Installation Total 1,196,642 Total Direct Capital Cost, DC 2,813,727 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 242,563 Total Capital Investment (TCI) = DC + IC (5) 4,890,063

Operating Costs (2) Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 693,518 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 718,670 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,412,189



### Emission Control Cost Calculation
Baseline Predicted Limit Cont. Emis. Cont Emis Reduct ion Cont Cost Pollutant Emis. T/yr lb/hr lb/MMBtu T/yr T/yr $/Ton Rem PM10 8.3 -

8.3 - NA Total Particulates 8.3 -

8.3 - NA Nitrous Oxides (NOx) 50.9 -

50.9 - NA Sulfur Dioxide (SO 2 

### ) 73.4 3.4

0.05

11.9 61.5 22,969

Notes & Assumptions 1 Total Direct Capital Cost Cost Estimated using the Integrated Air Pollution Control Sytem Program Vers ion 5a, EPA May 1999 2 Calculations per EPA Air Pollution Control Cost Man ual 6th Ed 2002, Section 6 Chapter 1 3 Compressed air for baghouse assumed to be 2 scfm / 1000 acfm EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 1.5.1.8 4 Bag replacement at 10 min/bag EPA Cost Cont Manual 6th ed Section 6 Chapter 1.5.1.4 lists replacement times from 5 - 20 min per bag. 5 Dry scrubbing SO2 costs include addition of a bagho use. Assumed that the existing Ebaghouse could not handle additional loading. 6 Stone and Webster 2002 total direct installed cost estimate adjusted for inflation adjusted for costs already included 7 CUECost Workbook Version 1.0, USEPA Document Page 2

.

Notes to User 1) Enter Data in Blue Highlighted Cells Throughout Worksheet 2) Control cost basis calculated by % control effic iency or concentration. Enter valued in appropriat e yellow highlighted cell 2a) If using % control efficiency, enter data only in coluND F, do not enter concentration units in co luND H 2b) If using concentration, enter concentration dat a in coluND Fand units in coluND H 3) If not data entered in colums F and G; control c ost will show NA. This was done to prevent divide b y zero errors

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### 4) See comments in cell V88 regarding selection of reagents, catalysts and supplies

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 29: SO2 Control - Dry Sorbent Injection and B aghouse

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) 1,330,934 Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC Instrumentation 10% of control device cost (A) 133,093 MN Sales Taxes 6.5% of control device cost (A) 86,511 Freight 5% of control device cost (A) 66,547 Purchased Equipment Total (B) 22% 1,617,084

Installation Foundations & supports 4% of purchased equip cost (B) 64,683 Handling & erection 50% of purchased equip cost (B) 808,542 Electrical 8% of purchased equip cost (B) 129,367 Piping 1% of purchased equip cost (B) 16,171 Insulation 7% of purchased equip cost (B) 113,196 Painting 4% of purchased equip cost (B) 64,683 Installation Subtotal Standard Expenses 74% 1,196,642

Installation Total 1,196,642 Total Direct Capital Cost, DC (6) 2,813,727

Indirect Capital Costs Engineering, supervision [6] 5% of purchased equip c ost (B) 80,854 Construction & field expenses [6] 0% of purchased equ ip cost (B) 0 Contractor fees [6] 5% of purchased equip cost (B) 80,854 Start-up 1% of purchased equip cost (B) 16,171 Performance test 1% of purchased equip cost (B) 16,171 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 48,513 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 242,563

Total Capital Investment (TCI) = DC + IC 3,056,290 Retrofit TCI (TCI*1.6) (7) 4,890,063

Site Preparation, as required site preparation and f oundations 0 Buildings, as required structural steel 0 Site Specific - Other Replacement Power - One 14 day outage [8] 0 Total Site Specific Costs 0

Adjusted TCI for Replacement Parts (Catalyst, Filte r Bags, etc) for Capital Recovery Cost 4,890,063



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 50.00 $/Hr, 2.0 hr/8 hr shift, 7650 hr/yr 95,625 Supervisor 15% 15% of Operator Costs 14,344 Maintenance Maintenance Labor 60.00 $/Hr, 1.0 hr/8 hr shift, 765 0 hr/yr 57,375 Maintenance Materials 100% of maintenance labor costs 57,375 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 217 kW-hr, 7650 hr/yr, 93% utilization 80 ,220 NA NA - Water 0.40 $/mgal, 141 gpm, 7650 hr/yr, 93% utilization 24, 000 NA NA - Comp Air 0.32 $/mscf, 2 scfm/kacfm, 7650 hr/yr, 93% utilizati on 32,391 NA NA - NA NA - SW Disposal 11.48 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization 77 NA NA - NA NA - NA NA - Lime 90.00 $/ton, 16 lb/hr, 7650 hr/yr, 93% utilization 5, 161 (3) NA NA - Lost Revenue - Fly Ash NA 250,000 NA NA - Filter Bags 37.94 $/bag, 0 bags, 7650 hr/yr, 93% utilization 76,9 51 Total Annual Direct Operating Costs 693,518

Indirect Operating Costs 1 Overhead 60% of total labor and material costs 134,831 2 Administration (2% total capital costs) 2% of total c apital costs (TCI) 61,126 5 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 30,563 1 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 30,563 1 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 461,587 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 718,670 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,412,189 See Summary page for notes and assumptions

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# Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 29: SO2 Control - Dry Sorbent Injection and B aghouse

Capital Recovery Factors Primary Installation Interest Rate 7.00% Equipment Life 20 years CRF 0.0944

Replacement Catalsyt: Equipment Life 5 years CRF 0.0000 Rep part cost per unit 500 $/ft 3 

### Amount Required 0 ft 3 

### Total Rep Parts Cost 0 Cost adjusted for freight & sa les tax Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor f or baghouse replacement) Total Installed Cost 0 Zero out if no replacement parts needed Annualized Cost 0

Replacement Parts & Equipment: Filter bags & cages ( 4) Equipment Life 4 years CRF 0.2952 Rep part cost per unit 38 $/bag Amount Required 4410 Total Rep Parts Cost 186,561 Cost adjusted for freigh t & sales tax Installation Labor 74,088 10 min per bag, Labor + Ove rhead (68% = $29.65/hr) EPA Cost Cont Manual 6th ed Section 6 Chapter 1.5.1.4 Total Installed Cost 260,649 Zero out if no replacement parts needed lists replacement times from 5 - 20 min per bag. Annualized Cost 76,951

Electrical Use

Flow acfm **∆** P in H2O 

### Efficiency Hp kW Blower, Baghouse 119,800 10 216.8 Baghouse Shaker 0.0 Gross fabric area ft 2 

### 0 EPA Cost Cont Manual 6th ed Section 6 Chapter 1 E q 1.14 Other Other Other Other Other Total 216.8

Baghouse Filter Cost See Control Cost Manual Sec 6 Ch 1 Table 1.8 for ba g costs Gross BH Filter Area 0 ft 2 

### Cages 0 ft long 5 in dia 0.00 area/cage ft 2 

### 0.000 $/cage Bags 0 $/ft2 of fabric 0.00 $/bag H2O Use (6) 140.56 gpm 0.000 Total Lime Use 16.75 lb/hr SO2 0.96 lb Lime/lb SO2 

### 16.12 lb/hr lime, lime addition at 1.1 times the sto ichiometric ratio

Pollutant BART Baseline Emissions Control Eff (%) Cont. Emis (lb/MMBtu) T/yr lb/MMBtu lb/hr 80% 0.05 NOx 50.90 0.166071429 11.625 SO2 73.40 0.239285714 16.75

Operating Cost Calculations Annual hours of operatio n: 7,650 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50.00 $/Hr 2.0 hr/8 hr shift 1,913 95,625 $/Hr, 2.0 hr/8 hr shift, 7650 hr/yr Supervisor 15% of Op. NA 14,344 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 1.0 hr/8 hr shift 956 57,375 $/Hr, 1.0 hr/8 hr shift, 7650 hr/yr Maint Mtls 100 % of Maintenance Labor NA 57,375 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 216.8 kW-hr 1,542,694 80,220 $/kw h, 217 kW-hr, 7650 hr/yr, 93% utilization Natural Gas 2.31 $/mscf 0 scfm 0 0 $/mscf, 0 scfm, 7650 h r/yr, 93% utilization Water 0.40 $/mgal 140.6 gpm 60,000 24,000 $/mgal, 141 gpm , 7650 hr/yr, 93% utilization Cooling Water 0.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% utilization Comp Air 0.32 $/mscf 2 scfm/kacfm 102,278 32,391 $/mscf, 2 scfm/kacfm, 7650 hr/yr, 93% utilization WW Treat Neutralization 3.80 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization WW Treat Biotreatement 4.28 $/mgal 0.0 gpm 0 0 $/mgal, 0 gpm, 7650 hr/yr, 93% ut ilization SW Disposal 11.48 $/ton 0.0 ton/hr 7 77 $/ton, 0 ton/hr, 7 650 hr/yr, 93% utilization Haz W Disp 281 $/ton 0.0 ton/hr 0 0 $/ton, 0 ton/hr, 7650 hr/yr, 93% utilization Waste Transport 0.56 $/ton-mi 0.0 ton/hr 0 0 $/ton-mi, 0 t on/hr, 7650 hr/yr, 93% utilization PRB Coal 1 $/ton 0.0 ton/hr 0 0 $/ton, $5.1MM/yr extra for PRB - $1MM/yr Lower O&M Cost Lime 90.0 $/ton 16.1 lb/hr 57 5,161 $/ton, 16 lb/hr, 7650 hr/yr, 93% utilization Caustic 305.21 $/ton 0.0 lb/hr 0 0 $/ton, 0 lb/hr, 7650 hr /yr, 93% utilization Oxygen 1.49 Mscf 0.0 kscf/hr 0 0 Mscf, 0 kscf/hr, 7650 hr/ yr, 93% utilization SCR Catalyst 500 $/ft3 0 ft 3 

### 0 0 $/ft3, 0 ft3, 7650 hr/yr, 93% utilization Filter Bags 37.94 $/bag 0 bags NA 76,951 $/bag, 0 bags, 76 50 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

Note: Select reagent, catayst and repacement parts by entering number in coluND U. Unhide Col U to en ter choice.

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 30: SO x 

# Control - Wet Scrubber

Operating Unit: Process Boiler 1 & 2

Emission Unit Number 003 & 004 Stack/Vent Number 003 Standardized Flow Rate 64,771 scfm @ 32o F Expected Utilization Rate 93% Temperature 450 Deg F Expected Annual Hours of Operation 7,650 0 Moisture Content 13% 0 Annual Interest Rate 7.0% Actual Flow Rate 119,800 acfm Expected Equipment Life 20 0 Standardized Flow Rate 69,510 scfm @ 68o F Dry Std Flow Rate 60,265 dscfm @ 68o F

CONTROL EQUIPMENT COSTS Capital Costs Direct Capital Costs (1) Purchased Equipment (A) 1,908,056 Purchased Equipment Total (B) 22% of control device cost (A) 2,318,288

Installation - Standard Costs 85% of purchased equip cost (B) 1,970,545 Installation - Site Specific Costs 6,200,000 Installation Total 1,970,545 Total Direct Capital Cost, DC 4,288,833 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 347,743 Total Capital Investment (TCI) = DC + IC 13,618,522

Operating Costs Total Annual Direct Operating Costs Labor, supervi sion, materials, replacement parts, utilities, etc. 348,057 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,521,875 Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,869,933

Actual 

### Emission Control Cost Calculation Emis 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) 11.6 50.9

0% 50.9 - NA Sulfur Dioxide (SO 2 

### ) 16.8 73.4

80% 14.7 58.7 31,845

Notes & Assumptions 1 Original estimate from STS Consultants. Use 0.6 Po wer law factor to adjust price to stack flow rate f rom 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 ci rculating water rate. 4 Evaporation rate calculated from steam table in Bas ic Principles and Calculations in Chemical Engineer ing Third Edition. 5 CUECost Workbook Version 1.0, USEPA Document Page 2

.

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# Northshore Process Boiler BART Report - Appendix A Emission Control Cost Anal ysis Table 30: SOx Control - Wet Scrubber

CAPITAL COSTS Direct Capital Costs Purchased Equipment (A) (1) Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 1,908,056 Instrumentation 10% of control device cost (A) 190,806 MN Sales Taxes 6.5% of control device cost (A) 124,024 Freight 5% of control device cost (A) 95,403 Purchased Equipment Total (B) 22% 2,318,288

Installation Foundations & supports 12% of purchased equip cost (B ) 278,195 Handling & erection 40% of purchased equip cost (B) 927,315 Electrical 1% of purchased equip cost (B) 23,183 Piping 30% of purchased equip cost (B) 695,486 Insulation 1% of purchased equip cost (B) 23,183 Painting 1% of purchased equip cost (B) 23,183 Installation Subtotal Standard Expenses 85% 1,970,545

Total Direct Capital Cost, DC 4,288,833

Indirect Capital Costs Engineering, supervision 5% of purchased equip cost (B) 115,914 Construction & field expenses 0% of purchased equip cost (B) 0 Contractor fees 5% of purchased equip cost (B) 115,914 Start-up 1% of purchased equip cost (B) 23,183 Performance test 1% of purchased equip cost (B) 23,183 Model Studies NA of purchased equip cost (B) NA Contingencies 3% of purchased equip cost (B) 69,549 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 347,743

Total Capital Investment (TCI) = DC + IC 4,636,576 Retrofit multiplier 5 

### 60% of TCI 2,781,946

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 13,618,522



### OPERATING COSTS Direct Annual Operating Costs, DC

Operating Labor Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hour s, 23,906 Supervisor 15% 15% of Operator Costs 3,586 Maintenance Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Ann ual Operating Hours, 28,688 Maintenance Materials 100% of maintenance labor costs 28,688 Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.05 $/kwh, 246 kW-hr, Annual Operating Hours, 93% utili zation 91,145 Water 0.40 $/kgal, 112 gpm, Annual Operating Hours, 93% ut ilization 19,194 WW Treat Neutralization 3.80 $/kgal, 91 gpm, Annual O perating Hours, 93% utilization 147,690 Lime 90.00 $/ton, 16 lb/hr, Annual Operating Hours, 93% u tilization 5,161 Total Annual Direct Operating Costs 348,057

Indirect Operating Costs Overhead 60% of total labor and material costs 50,920 Administration (2% total capital costs) 2% of total c apital costs (TCI) 92,732 Property tax (1% total capital costs) 1% of total cap ital costs (TCI) 46,366 Insurance (1% total capital costs) 1% of total capita l costs (TCI) 46,366 Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,285,492 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,521,875

Total Annual Cost (Annualized Capital Cost + Operat ing Cost) 1,869,933

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility BART Repo rts\NMC\NMC Furnace-Process Boiler\Appendices\Appen dix A - NMC Process Boiler Control Cost.xls Wet Scrubber 9/6/2006 Page 41 of 42

# Northshore Process Boiler

BART Report - Appendix A Emission Control Cost Anal ysis Table 30: 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 $/ft 3 

### Amount Required 0 ft 3 

### Packing Cost 0 Cost adjusted for freight & sales tax Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor fo r 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 & sa les tax Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQ PS 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 ∆ P in H2O 

### Efficiency Hp kW Blower, Scrubber 119,800 8.55 0.7

- 171.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48 Flow Liquid SPGR ∆ P ft H2O 

### Efficiency Hp kW Circ Pump 4,552 gpm 1 60 0.7

- 73.4 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49
H2O WW Disch 

### 112 gpm 1 60 0.7 - 1.8 EPA Cost Cont Manual 6th ed Sectio n 5.2 Chapter 1 Eq 1.49 Other Total 246.4

Reagent Use & Other Operating Costs Caustic Use 16.75 lb/hr SO2 2.50 lb NaOH/lb SO2 

### 41.88 lb/hr Caustic Lime Use 16.75 lb/hr SO2 0.96 lb Lime/lb SO2 

### 16.12 lb/hr lime, lime addition at 1.1 times the sto ichiometric ratio Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf Circulating Water Rate 2 

### 4,552 gpm Water Makeup Rate/WW Disch 3 

### = 2.0% of circulating water rate + evap. loss = 112 gpm Evaopration Loss 4 

### = 21.36 gpm

Operating Cost Calculations Annual hours of operatio n: 7,650 Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments Item Cost $ Measure Rate Measure Use* Cost Operating Labor Op Labor 50.00 $/Hr 0.5 hr/8 hr shift 478 23,906 $/Hr, 0. 5 hr/8 hr shift, Annual Operating Hours, Supervisor 15% of Op. NA 3,586 15% of Operator Costs Maintenance Maint Labor 60.00 $/Hr 0.5 hr/8 hr shift 478 28,688 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours, Maint Mtls 100 % of Maintenance Labor NA 28,688 100% of Maintenance Labor Utilities, Supplies, Replacements & Waste Managemen t Electricity 0.052 $/kwh 246.4 kW-hr 1,752,797 91,145 $/kwh, 246 kW-hr, Annual Operating Hours, 93% utili zation Water 0.40 $/kgal 112.4 gpm 47,984 19,194 $/kgal, 112 gpm , Annual Operating Hours, 93% utilization WW Treat Neutralization 3.80 $/kgal 91.0 gpm 38,866 147,6 90 $/kgal, 91 gpm, Annual Operating Hours, 93% utili zation Lime 90.0 $/ton 16.1 lb/hr 57 5,161 $/ton, 16 lb/hr, Annual Operating Hours, 93% utiliz ation

*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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