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DEPARTMENT OF ENVIRON:VIENTAL PROTECTION

In the matter of

The State of Connecticut and

Sprague Paperboard, Inc.

)

)

)

)

)

Trading Agreement

and Order No. 811 7A

.,

Whereas, the Commissioner ofEnvironmental Protection ("Commissioner") and Sprague

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

to improve the air quality within the State of Connecticut and that the use of discrete emission

reduction credit ("DERe") trading to reduce nitrogen oxide ("NOx") emissions will achieve

this result in a timely and cost-effective manner.

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

I. This Trading Agreement and Order supercedes Trading Agreement and Order 8117

issued on Dece~ber 12, 2002.

2. Sprague is a corporation that on April 8, 1999, purchased from International Paper

Company, and now owns and operates the manufacturing facility at 130 Inland Road,

Versailles, Connecticut ("facility").

3. At the facility, Sprague operates fuel-burning equipment that consists of a Budget

Source 288 million British thennal units per hour (":M1vffitulhr") when burning

natural gas (275 MMBtuIhr when burning No.6 fuel oil) Babcock and Wilcox dualfuel fired natural gas andlor No.6 fuel oil PFI steam boiler ("PF! boiler") and a Nonbudget source Babcock and Wilcox natural gas fired PM steam boiler ("PM boiler"),

which are subject to Section 22a-174-22 of the Regulations ofConnecticllt State

Agencies ("Regulations").

4. Sprague monitors NOx emissions from the PFI boiler using a continuous emissions

monitoring system ("CEM"), certified in accordance with 40 Code of Federal

Regulations ("CFR") Part 75.

5. When burning natural gas or No.6 fuel oil in the PFI boiler, Sprague exceeds the

allowable NOx emissions limits specified in Section 22a-174-22 (e) ofthe

Regulations.

6. Pursuant to Section 22a-174-220) ofthe Regulations, during the non-ozone season,

Sprague intends to acquire and use approved DERCs until May 1,2005 for the PFI

boiler at the facility. Pursuant to Section 22a-174-22(i) of the Regulations, during

the ozone s'eason, Sprague intends to acquire and use approved discrete emission

reduction credits ("DERCs") and/or Budget discrete emission reduction credit

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Sprague Paperboard, Inc. 2 Trading Agreement

and Order No. 8117A

()

("BDERCs") until May 1, 2005 for the PFI boiler at the facility in accordance with

lhis Trading Agreement and Order.

7. Official U.S. Environmental Protection Agency ("EPA") Method 7E emission tests

perfonned on the FM boiler showed that. Ox emissions rates were as follows;

Table I

Sprague- FM and PFI Boiler

NO]; /EmiSSiOD Rates and Allowable Limits in IbsJM:MBtu

Unit: DEP Fuel- Heat Emission Generation Allowable Date of Next

Permit! Input Test FLER Limits EmissioD Emission

Reg:istration # Rate Test Test Due

FM Boiler INat. Gas iO 0.11 I 0.13 0.20 5/10/0J I 5/10/06

P-170-001

PFI Boiler No.6 Oil 275 GEM GEM 0.25 N/A N/A

R-170-00J Nat. Gas 288 GEM GEM 0.20 N/A N/A

•

• Or the proportioned al10wable limit, pursuant to Section 22a-174-22(f)(2)(A) of the

Regulations when burning both natural gas and No.6 fuel oil simultaneously.

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

approved DERCs from the FM boiler until April 30, 2007 using a full load emission

rate ("FLER") of 0.13 IbslMMBtu as shown in Table I ofthis Trading Agreement

and Order.

9. When properly documented by Sprague, and approved by the Commissioner, the

emission reductions from the FM boiler identified above, and as computed in

accordance with the tenns ofthis Trading Agreement and Order, will confonn to the

requirements ofSection.22a-174-22(j)(3) of the Regulations. Specifically, the

reductions will be:

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

net of any consequential increase in actual emission resulting from shifting demand.

The emission reductions will be properly measured, recorded, and reponed.

Quantifiable because they are based on Department witnessed emission testing as

applied in an appropriate reliable and replicable protocol and periodic re-testing.

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

mandated by a current State Implementation Plan ("SIP''), and are not currently relied

upon in any applicable anainment plan, any reasonable funher progress pl'!Jl or

milestone demonstration.

Permanent because the low-NOx burners will be in place and operating, and an

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

quantify the creation ofDERCs.
Sprague Paperboard, Inc. 3 Trading Agreement

and Order No. 8117A

Enforceable because the DERCs are approved by the Commissioner retrospectively

after the submission by Sprague of a report that documents their creation.

10. The Commissioner, pursuant to Section 22a-174-22(j) of the Regulations, approved

the NOx DERCs referenced in Table 2 ofthis Trading Agreement and Order. DERC

creation serial numbers assigned by the Commissioner to these previously approved

DERCs are provided in Table 2 ofthis Trading Agreement and Order. Unused

DERCs are subject to the vintage restrictions ofthis Trading Agreement and Order.

Dates after whic.tt fue unused DERCs will no longer be eligible for use as a result of

the vintage restrictions are provided in Table 2 of this Trading Agreement and Order

in the expiration date colwnn.

Table 2

Sprague

Previouslv Purchased and Generated A lDroved DERCs (to the extent not already used)

Year Ozone Season NOx DERC Ozone Non-ozone season NOx Non- Expiration

of serial numbers Season DERC serial numbers ozone Date

Gen. DERCs season

DERCs

t999 I SIN not assi2:!lcd 36 SIN not assi£ned IS 12131/04

1999 SIN nOI assilrncd 103 ! SIN not assilrned 72 12131104

1999 None 0 SIN not assi2:!led 125 12131104

1999 SIN not assigned 5 I SIN not assigned 4 12131104

2000 CTOO/8117(DC)NOxoz(I-40) 40 I CTOO/8117(DC)NOxnoz( 1-60) I 60 I 12131105

B.1. The Commissioner, in accordance with the provisions ofthis Trading Agreement and

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

and approved sources within Connecticllt to use NOx DERCs generated by Sprague

which have been approved by the Commissioner. These DERCs may be used for the

purposes of compliance und'er Section 22a-174-22(j) ofthe Regulations, to achieve a

portion ofthe nitrogen oxide emission reductions required.

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

Order, pursuant to Section 22a-174-220) ofthe Regulations, hereby allows Sprague to:

a. Comply with Section 22a-174-22(d) ofthe Regulations through use ofDERCs,

BDERCs and/or allowance trading;

b. Use ozone season BDERCs in accordance with this Trading Agreement and Order;

and

c. Upon sufficient docwnentatioD as prescribed in this Trading Agreement and Order,

generate additional DERCs. Upon issuance of an addendum to this Trading

Agreement and Order the Commissioner may approve the generation of additional

DERCs by Sprague retrospectively. Approved DERCs generated by Sprague may

be held by Sprague or transferred to other persons in accordance with this Trading

Agreement and Order.
Sprague Paperboard, Inc. 4 Trading Agreement

and Order No. 8117...

,

C. With the agreement of Sprague, the Commissioner, acting under Sections 22a-6, 22a171, 22a-174, 22a-176, and 22a-177 of the Connecticut General Statutes, hereby

orders Sprague as follows:

1. Upon issuance ofthis Trading Agreement and Order, Sprague may generate approved

DERCs from the FM boiler as allowed under this Trading Agreement and Order until

April 30, 2007

2. Upon issuance of...~s Trading Agreement and Order until Sprague achieves

permanent compliance with the emission standard in Section 22a-174-22(e) of the

Regulations or by May 1, 2005 for the PFI boiler or April 30, 2007 for the FM boiler,

whichever occurs earlier, Sprague shall comply with Section 22a-174-22 of the

Regulations through emission reduction trading in accordance with the following:

a. Sprague shall use approved DERCs as required under this Trading Agreement

and Order;

b. Sprague shall have in its possession sufficient approved DERCs, BDERCs, or

allowances to meet applicable NOx emission limits as allowed under this

Trading Agreement and Order;

c. Sprague shall comply during the operation ofthe PM boiler with the FLER

shown in Table 1in accordance with this Trading Agreement and Order; and

d. Sprague shall not burn No.6 fuel oil in the FM boiler.

3. FM Boiler DERC Generation. Until April 30, 2007, when burning natural gas in the

FM boiler at the facility, Sprague shall calculate the amount ofDERCs generated as

follows: .

DERCs (tons) Generated = {[(FM boiler natural gas heat input in !v11v1Btu) x

(allowable limit in IbsIMMBtu - FLER limit in

IbsIMMBtu)] + 2000 Ibslton} x (0.90) x (0.90)

Where:

FLER for the FM boiler = generation FLER shown in Table 1.

Allowable limit = allowable limit rate for natural gas shown in Table 1 of

this Trading Agreement and Order.

Discount (0.901 (0.901 = A discount factor often (10) percent for the

benefit orthe environment and another ten (l0) percent for the uncertainty

of using one emission test every five years in beu ofCEMs, shall be

applied to all DERCs (tons) as calculated on a monthly baslS.

Fuel heatin2 value = 1050 Btu/cffor natural gas.
Sprague Paperboard, lne. 5 I raomg ."\grccmem

and Order No. 8117A

a) In requesting DERC approval for credits generated, Sprague shall provide

documentation containing a sample spreadsheet with calculation formulas used

to determine reported numbers, monthly operating reports of daily actual fuel

usage including the BTU content and the nwnber of cubic feet used based on

heat input, daily actual NOx mass emissions and NOx emission rates (24-hour

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

allowable emission rate(s) in accordance with this Trading Agreement and

Order, net ofthe applicable environmental and potential uncertainty discounts.

I

b) Requests for approval of all DERCs generated by Sprague under this Trading

Agreement and Order shall be submined in writing to the Commissioner. Such

requests shall be compiled on a monthly or seasonal basis and shall be

submined at least on an annual basis. Approved DERCs generated by Sprague

under this Trading Agreement and Order may be held or transferred to other

persons and shall remain valid until they are used or until their vintage

expiration date, whichever occurs first. Should Sprague choose to generate

additional DERCs, repoTts documenting these DERCs shall be submined to the

Commissioner on an ozone season, non-ozone season (January through April

and andlor October through December), or annual basis. Such reports shall be

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

4. If at any time during the period while this Trading Agreement and Order remains in

effect, Sprague has reason to believe it may be exceeding the FLER limit shown in

Table 1 of this Trading Agreement and Order, Sprague shall conduct NOx emissions

testing ofthe FM Boiler within sixry (60) days after the discovery ofthe potential

exceedance in accordance with the following:

Sprague shall submit to the Commissioner for his review and written

approval an Intent-To-Test ("ITT') protocol not less than thirry (30) days

pnor to the emissions testing required. pursuant to thisraragraph of this

Trading Agreement and Order. The ITT protocol shal include at least:

-'

1.

ll.

ill.

IV.

v.

The Department ofEnvironrnental Protection's Bureau of Air

Management Test Fonn No. I, "Intent to Test";

System operating parameters indicative oftbe highest operating rate since

the previous emissions test, including, but not limited to: steam output

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

The m protocol shall provide that Sprague shall perfonn testing as

specified in Sections 22a-174-5 and 22a-174-22 ofthe Regulations,

including operating the FM boiler at not less than ninety percent

(90%) of its maximum rated capacity limit or highest operating rate

since its last/previous emissions test, whichever 1S higher.

Sprague shall perform all testing required by paragraph CA. in

accordance WIth the approved m protocor.

In conducting and performing the testing reCluired by paragraph CA.

and in analyzing the results ofsuch testmg, Sprague shall adhere to

methods specified in Sections 22a·174·5 and 22a·174·22 of the
Sprague Paperboard, Inc. 6 Trading Agreement

and Order No. SI17A

VI.

Vll.

Regulations and as approved by the United States Environmental

Protection Agency ("EPA") and the Commissioner.

Syrague shall schedule all emissions testing so as to allow the

Commissioner to be present during such testing and to independentlY

verify f~cility operatIons, air pollution control equipment parameters, and testmg procedures.

Within 30 days after completing any emissions testing required by this

Trading Agreement and Order, Sprague shall submit to the

COmmIssioner a wrinen report providing the results ofsuch testing; within'15 days ofa notice from the Commissioner indicating any

deficiencies In such report, Sprague shall submit a revised report.

5. PFI Boiler DERCs and BDERCs Use. Until May I, 2005, before the first day of

each month, and beginning on October I, 2003, also before the first day of each

non-ozone season, Sprague shall have in its possession sufficient approved

DERCs for the PFI boiler based on the following:

a. At all times:

Before the first day of each month, calculate projected DERCs required for

that calendar month as follows:

Estimated DERCs (tons) = {[estimated 24-hour NOx emission rate in

IbslMMBtu - ((0.95) x (24-hour NOx allowable

emission limit in Table 1 or proportioned emission

rate calculated pursuant to Section 22a-174-

22(1)(2)(A) of the Regulations in IbslMMBtu»] x

(Estimated fuel use in MMBtu)} -;- 2000

pounds/ton.

No later than the ~entieth day of each month, Sprague shall calculate and

pennanentiy retire DERCs used in the preceding calendar month, as follows:

1. For the PFI boiler on each day, detennine whether the 24-hour average

actual NOx emission rate· is greater than the NOx allowable limit in

Table 1 above.

11. Wben the PFI boiler has a 24-hour actual NOx emission rate exceeding the

NOx allowable limit, calculate and permanently retire the amount of

DERCs used, as follows:

Actual DERCs (tons) {[(24-hour average actual CEM-recorded NO.

emission rate in IbslMMBtu*) - ((0.95) x (NOx

allowable emission limit or proportioned emission

rate calculated pursuant to Section 22a-174-

22(f)(2)(A) ofthe Regulations in IbsIMMBru)] x

(actual fuel use in MMB!u)} -;- 2000 pounds/ton.
Spf<Jgue Paperboard, Inc. 7 Trading Agreement

and Order No. 8117 A

*This rate shall be calculated pursuant to the methodology described in 40

CFR Part 75.

111. With the exception ofBDERCs, excess DERCs from previous months

can be applied to subsequent months. BDERCs are subject to the

limitations set forth in paragraph C.6 ofthis Trading Agreement and

Order.

b. During the non-alone season starting on October 1, 2003:

In addition'to meeting the 24-hour emission limit in Table 22-1 of

Section 22a·174-22 ofthe Regulations, Sprague shall meet a non-alone

season emission limit of 0.15 Ibs!MJv1Bru. Prior to October I, 2003 and

October 1, 2004, Sprague shall estimate and acquire the amount of

DERCs or allowances required for such non-ozone season needed to

comply with Section 22a-174-22(e)(3) ofthe Regulations as follows:

Estimated DERCs (tons) [Estimated maximum fuel use in MMBtu from

October I through April 30 x (lower ofthe

estimated seasonal average NOx emission rate or

the proportioned 24-hour allowable emission

limits in IbslMMBtu during October I through

April 30 - (0.95 x 0.15 IbslMMBtu))]-;- 2000

pounds/ton.

No later than May 31, 2004, and May 1, 2005, in addition to the DERCs retired

pursuant to paragraph C.5.a. of this Trading Agreement and Order, Sprague

shall calculate and permanently retire DERCs used in the preceding non-ozone

season as follows:

Actual DERCs (tons) = [Actual fuel use in MMBtu from October I

through April 30 x (lower of the actual seasonal

average CEM·recorded NOx emission rate or the

proportioned 24-hour allowable limit in

IbslMMBtu during October 1 through April 30 -

(0.95 x 0.15IbslMMBtu))]-;- 2000 pounds/ton.

c. When the daily or non-Olone season CEM-recorded NOx emission rate is used

to calculate DERCs used by the boiler, Sprague shall include missing data

calculated in accordance with missing data substitution procedures under 40

CFR Part 75.

6. BDERCs shall only be used by other NOx Budget Program sources located in

Connecticut. BDERCs shall only be used to offset ozone season excess emissions,

and shall not be used for compliance during the non-alone season. BDERCs

generated during a given year shall only be used through the following ozone season.

BDERCs are subject to all DERC requirements set forth in this Trading Agreement
Sprague Paperboard, Inc. 8 Trading Agreement

and Order No. 8\ \ 7 A

and Order except for those requirements pertaining solely to non-ozone season

DERCs and as otherwise may be provided

7. Sprague shall make and keep records of: daily fuel use and fuel type; the 24-hour

actual NOx emission rate; starting on October 1, 2003 non-ozone season average

NOx emission rates; the number of operating hours per day; the number ofinvalid

data hours of the total operating hours per day; the number ofDERCs created and

used each day in accordance with the appropriate emission rates and limits in this

Trading Agreement and Order; the number ofDERCs in its possession and

purchased (by senal number if assigned) each month; the number ofDERCs used

during the ozone and non-ozone season (by serial number if assigned); as well as

documentation anesting to the fact that approved DERCs used during the ozone

season were generated during the ozone season. Generator certification of this fact

shall be sufficient. Sprague shall maintain and submit such records to the

Commissioner in accordance with Section 22a-174-22 ofthe Regulations.

8. Record Keeping. Sprague shall retain records and supporting documentation as

described in this Trading Agreement and Order for a minimum offive years,

commencing on the date such records were created. Sprague shall provide the

records specified above to the Corrunissioner within thirty (30) days ofreceipt of a

written request from the Commissioner.

9. Reportine

a. Annual Emission Statement. No later than March 1 of every year after issuance

of this Trading Agreement and Order. Sprague shall include with the .I\nnual

Emission Statement provided to the Commissioner, a record of each sale or other

transfer ofDERCs generated pursuant to this Trading Agreement and Order for

the previous calendar year. Sprague shall also include actual NOx emissions

from each boiler and the amount of all DERCs used (including serial numbers (if

assigned) and approved DERCs generated andlor purchased from other

facilities), generated andlor approved for the previous calendar year. These

repons shall be on a fonn prescribed by the Commissioner and shall be in

monthly increments, and for each boiler by ozone and non-ozone seasons.

b. Starting on October 1, 2003: No later than July 30 of every year after issuance of

the Trading Agreement and Order, Sprague shall submit in writing to the

Conunissioner the nOD-Olone season fuel consumption and amount of all DERCs

used (including serial numbers (if assigned) and approved DERCs purchased

from other facilities for the PFI boiler during the previous October through April

time period. These reports shall be on fonns prescribed by the Commissioner.

10. Allowance Use. Pursuant to Section 22a-174-22(d)(3) of the Regulations, Sprague

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

achieve all or a portion of the reductions required by Section 22a-174-22 of the

Regulations. Any NOx allowance used for compliance with Section 22a-174-22(e) of
Sprague Paperboard, lnc. 1 raamg .'\greemenl

and Order No. 8117 A

-'

the Regulations shall be subject to all restrictions and/or requirements applicable to

DERCs contained in this Trading Agreement and Order. Each allowance used for

compliance with Section 22a-174-22 ofthe Regulations shall be equivalent to one

DERC and shall be deducted from Sprague's NOx Budget Program compliance

account upon such use. Allowances shall be considered used for compliance with

Section 22a-174-22 of the Regulations when they are transferred from the facility's

compliance account or overdraft account to a State of Connecticut NOx allowance

retirement account, account ill CTOOOOOOO300 in the 1 'Ox Allowance Tracking

System (NATS). I

,

11. DERC Doubling. At a minimum, DERCs required shall be adjusted upwards by

100% ifDERCs are not in Sprague's possession prior to use. However, based on the

gravity of the noncompliance, the Commissioner may require additional upward

adjusnnent.

12. Vintage Restriction. For the purposes of compliance with Section 22a-174-22 of the

Regulations, DERCs/aliowances shall only remain valid for five (5) calendar years

from the year ofthe generation/allocation ofsuch DERCs/allowances.

DERCs/allowances generated/allocated more than five (5) calendar years ago are not

valid for use for compliance with Section 22a-174-22 ofthe Regulations.

Notwithstanding the above the DERCslallowances generated/allocated prior to

calendar year 2000 shall be valid for use until December 31, 2004.

13. FLER Exceedance. Noncompliance with an established FLER shall subject

Sprague to make restitution by matching the quantity of emissions ("true up")

caused by the exceedance plus a 100% premium. The true up in tons of

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

the total heat input during the period of noncompliance divided by 2000

lbs/ton. Ifthe period of noncompliance is not known, the time period from the

completion of the last/previous Commissioner witnessed emission test through

the date the FLER compliance is achieved as approved by the Commissioner

shall be used. However, nothing in this Trading Agreement and Order shall

affect the Commissioner's authority to institute any proceeding or take any

other acnon to require additional upward adjustment, based on the gravity of

any alleged noncompliance or violation of law.

14. FLER Modification. FLERs set forth in Table 1 of this Trading Agreement

and Order may be modified only after the consent of the Commissioner by

wrinen modification ofthis Trading Agreement and Order.

15. Emissions Testing. Pursuant to Section 22a·174-22(k) ofthe Regulations

Sprague shall conduct NOx emission tests of the FM boiler at least once every

five years commencing from the next emission test due date as provided in

Table 1 of this Trading Agreement and Order.

16. Extension. No later than May 1, 2005 forthe PFI boiler and May 1, 2007 for

the FM boiler, Sprague shall comply with the requirements of Subdivision
Sprague Paperboard, Inc. 10 Trading Agreement

and Order No. 8117 A

22a-174-22(d) of the Regulations. However, after full program review of this

and other Trading Agreements and Orders and, if detennined to be

appropriate, the Conunissioner may grant a wrinen extension ofthis Trading

Agreement and Order.

17. Future ComPliance Report. On or before September. 1, 2004, Sprague shall

submit a report to the Commissioner indicating how the PFI boiler shall

comply with Section 22a-174-22 ofthe Regulations on and after May 1,2005.

r

18. Full compliance~Sprague shall not be considered in full compliance with this

Trading Agreement and Order until all actions required by this Trading

Agreement and Order have been completed as approved and to the

Conunissioner's satisfaction.

19. Approvals. Sprague shall use best efforts to submit to the Commissioner all

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

approvable form. Ifthe Commissioner notifies Sprague that any document or

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

modifications, it is deemed disapproved, and Sprague shall correct the

deficiencies and resubmit it within the time specified by the Commissioner or,

ifno time is specified by the Commissioner, within 30 days of the

Commissioner's notice of deficiencies. In approving any document or other

action under this Trading Agreement and Order, the Conunissioner may

approve the document or other action as submined or performed. or with such

conditions or modifications as the Commissioner deems necessary to carry out

the purposes of this Trading Agreement and Order. Nothing in this paragraph

shall excuse noncompliance or delay.

20. Definitions. As used in·this Trading Agreement and Order, "Approved

DERCs" are those for which the Commissioner has provided written

authorization for use in compliance with Section 22a-174-22 ofthe

~egulations; "Commissioner" means the Commissioner or a representative of

the Commissioner; "Ozone season" means the period from May 1 through

September 30 in any given calendar year; "Non-ozone season" means the

period from October 1 through April 30 in any given calendar year. The date

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

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

whichever is earlier.

21. Dates. The date ofsubmission to the Commissioner of any docwnent required

by this Trading Agreement and Order shall be the date such docwnent is

received by the Commissioner. The date of any notice by the Commissioner

under this Trading Agreement and Order, including but not limited to notice of

approval or disapproval of any docwnent or other action, shall be the date such

notice is deposited in the U.S. mail or is personally delivered, whichever is

earlier. Except as otherwise specified in this Trading Agreement and Order,

the word "day" as used in this Trading Agreement and Order means calendar
Sprague Paperboard, Inc. 11 Trading Agreement

and Order No. 8117 A

<J

day. Any document or action which is required by this Trading Agreement

and Order to be submitted or performed by a date which falls on a Saturday,

Sunday or a Connecticut or federal holiday shall be submitted or performed by

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

holiday.

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

notice, which is required to be submitted to the Commissioner under this

Trading Agreement and Order shall be signed by Sprague or, if Sprague is not

an individual, by an individual who is an authorized representative of Sprague,

in accordance with Section 22a-174-2a(a) of the Regulations ofConnecticut

State Agencies, and by the individual(s) responsible for actually preparing

such document, and each such individual shall certify in vvriting as follows:

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

this document and all attachments thereto, and I certify, based on reasonable

investigation, including my inquiry of those individuals responsible for obtaining .

the information, that the submitted information is true, accurate and complete to

the best ofmy knowledge and belief. I understand that any false statement made

in the submitted information is punishable as a criminal offense under §53a-157b

ofthe Connecticut General Statutes and any other applicable law."

Noncompliance. This Trading Agreement and Order is a final order of the

Commissioner with respect to the matters addressed herein, and is

nonappealable and immediately enforceable. Failure to comply with this

Trading Agreement and Order may subject Sprague to an injunction and

penalties.

24.

26.

False statements. Any false statement in any information submitted pursuant to

this Trading Agreement and Order is punishable as a criminal offense under

§53a-157b oftbe Connecticut General Statutes and any other applicable law.

Notice oftransfer: liability of Sprague. Until Sprague has fully complied with

this Trading Agreement and Order, Sprague shall notify the Commissioner in

writing no later than 15 days after transferring all or any portion ofthe facility,

the operations, the site or the business which is the subject ofthis Trading

Agreement and Order or after obtaining a new mailing or location address.

Sprague's obligations under this Trading Agreement and Order shall not be

affected by the passage oftitle to any property to any other person or

municipality.

Commissioner's powers. Nothing in this Trading Agreement and Order shall

affect the Commissioner's authority to institute any proceeding or take any

other action to prevent or abate violations oflaw, prevent or abate pollution,

recover costs and natural resource damages, and to impose penalties for past,

present, or future violations oflaw. If at any time the Commissioner

determines that the actions taken by Sprague pursuant to this Trading

Agreement and Order have not successfully corrected all violations, fully
Sprague Paperboard, Inc. 12 Trading Agreement

and Order No. 8117 A

characterized the extent or degree of any pollution, or successfully abated or

prevented pollution, the Commissioner may institute any proceeding to require

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

violations or pollution.

27. $pra!ZUe 's obli2ations under law. Nothing in this Trading Agreement and

Order shall relieve Sprague of other obligations under applicable federal, state

and local law.

, 28. No assurance bv Commissioner. No provision ofthis Trading Agreement and

Order and no action or inaction by the Commissioner shall be construed to

constitute an assurance by the Commissioner that the actions taken by Sprague

pursuant to this Trading Agreement and Order will result in compliance or

prevent or abate pollution.

29. Access to facility. Any representative of the Department ofEnvironmental

Protection may enter the facility without prior notice for the purposes of

monitoring and enforcing the actions required or allowed by this Trading

Agreement and Order.

30. No effect on ricllts of other persons. TItis Trading Agreement and Order

neither creates nor affects any rights of persons or municipalities that are not

parties to this Trading Agreement and Order.

31. No Creation of PropertY Rights. This Trading Agreement and Order does not

create any property rights with respect to those DERCs.

32. Notice to Commissioner of chan2es. Within 15 days of the date Sprague

becomes aware of a change in any information submitted to the Commissioner

under this Trading Agreement and Order, or that any such information was

inaccurate or misleading or that any relevant information was omined, Sprague

spall submit the correct or omitted information to the Conunissioner.

33. Notification of noncompliance. In the event that Sprague becomes aware that

it did not or may not comply, or did not or may not comply on.time, with any

requirement ofthis Trading Agreement and Order or of any docwnent required

hereunder, Sprague shall immediately notify by telephone the individual

identified in the next paragraph and shall take all reasonable steps to ensure

that any noncompliance or delay is avoided or, if unavoidable, is minimized to

the greatest extent possible. Within five (5) days of the initial notice, Sprague

shall submit in writing the date, time, and duration ofthe noncompliance and

the reasons for the noncompliance or delay and propose, for the review and

wrinen approval of the Commissioner, dates by which compliance will be

achieved, and Sprague shall comply with any dates which may be approved in

writing by the Commissioner. Notification by Sprague shall not excuse

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

dates proposed shall not excuse noncompliance or delay unless specifically so
Sprague Paperboard, Jnc. 13 Trading Agreement

and Order No, 8117 A

-,

stated by the Commissioner in writing.

34. Submission of documents. Any document required to be submitted to the

Commissioner under this Trading Agreement and Order shall, unless

otherwise specified in this Trading Agreement and Order or in writing by the

Commissioner, be directed to:

Mr, Roland , L. Severance Jr. PE

Depan;ment ofEnvirorunental Protection

Bureau ofAir Management

Emissions and Credit Trading Section

79 Elm Street

Hartford, Connecticut 06106-5127
- - - -- -_. Og~~S/ZOJJ TEU 08:32 FAX S50 ~24 ~O~2

Sprague Paperboard.., !Dc.

DE? .-J»)J IN DF

14 Trading Agrcam:ot

and Order No. 8117 A

:Q 00 2

Sprague consents to the issuance ofthis Trading ..l\..greeme::o.t and Orde::r without further notice.

The undersigned certifies that he/she: is fully authorized to enter into this TradiDg Agreement :md

Order and to legaUy bind Sprague to the terms and c.onditions ofthc: Trading Agre=ment and

OrdCT.

!pr~?aperbo~~ Inc.

Signature: ~d.~

Nome . f)cild) J. 131?/£JeG

Title: U, f? G/ltf!8l1SLriR L:,Ci'i'?'O ill/Is/oM

Date: VZz/03

.Issued as a fin.al order ofthe Commissioner ofEDviromnental Protection

on~t",..k."~~ .. 2003.

._,

TOWN OF SPRAGUE LAND RllCORDS

MAILED CERTIFIED MAlL,

R.ETIJR>'1 RECElPT RllQUESTED

Certified DOCUID.ent No.