### Commonwealth of Kentucky Energy and Environment Cabinet Department for Environmental Protection Division for Air Quality 200 Fair Oaks Lane, 1 st Floor Frankfort, Kentucky 40601 (502) 564-3999



### AIR QUALITY PERMIT

Issued under 401 KAR 52:040

Permittee Name: Owensbor o Brick and Tile Co. Mailing Address: P.O. Box 907, Owensboro, KY 42303

Source Name: Owensboro Brick and Tile Co. Mailing Address: 1203 Ewing Rd. Owensboro, KY 42303

Source Location: 1203 Ewing Rd.

Permit ID: S-05-104 R3 Agency Interest #: 37847 Activity ID: APE20110002 Review Type: Minor Source, Operating
Source ID: 21-059-00025

Regional Office: Owensboro Regional Office 3032 Alvey Park Dr. W., Suite 700 Owensboro, KY 42303 (270) 687-7304 County: Daviess

Application Complete Date: September 1, 2006 Issuance Date: April 28, 2005 Revision Date: August 5, 2011 Expiration Date: April 28, 2015

John S. Lyons, Director Division for Air Quality

Version 06/26/09Version 7-20-2010 TABLE OF CONTENTS

SECTION ISSUANCE PAGE

A. PERMIT AUTHORIZATION Initial 1

B. EMISSION POINTS, EMISSIONS UNI TS, APPLICABLE Revision 3 2 REGULATIONS, AND OPERATING CONDITIONS

C. GENERAL CONDITIONS Revision 3 8

Permit t y pe Activit y # Complete

Date Issuance

Date Summar y of

Action

C-92-060 Initial Construction 02/27/1992 02/27/1992 Initial

Construction

Permit

S-05-104 Initial State

Permit APE20050001 02/08/2005 04/28/2005 R eplaced fu g itive units; added brick

dr y er, tunnel kilns

S-05-104R1 Permit

Revision APE20100001 01/25/2010 01/26/2010 Replaced Crusher, changed Wet Suspension dust control system to
Torit Cartrid g e S-05-104R2 Administrative

Amendment APE20110001 02/03/2011 02/ 09 /2011 Name chan g e to Owensboro Brick,

LLC

S-05-104R3 Permit

Revision APE20110002 8/1/2011 Modified op. limits and monitoring of dryers to duplicate

test conditions;

corrected HF conc.

limitsPermit Number: S-05-104 R3 Page: 1 of 12



### SECTION A - PERMIT AUTHORIZATION

Pursuant to a duly submitted application the Kent ucky Division for Air Quality (Division) hereby authorizes the operation of the equipment desc ribed herein in accordance with the terms and conditions of this permit. This permit has been issued under the provisions of Kentucky Revised Statutes (KRS) Chapter 224 and regulations promulgated pursuant thereto.

The permittee shall not construct, reconstruct, or modify any affected facilities without first submitting a complete application and receiving a pe rmit for the planned activ ity from the permitting authority, except as provided in this permit or in 401 KAR 52:040, State-origin permits.

Issuance of this permit does not relieve the permittee from the responsibility of obtaining any other permits, licenses, or approvals required by the Ke ntucky Energy and Environm ent Cabinet (Cabinet) or any other federal, state, or local agency.Permit Number: S-05-104 R3 Page: 2 of 12



### SECTION B - EMISSION POINTS , EMISSION UNITS, APPLICABLE REGULATIONS, AND OPERATING CONDITIONS

Emission Unit 01: (EP-24) Waste Heat Brick Dryer rated at 3.25 ton/hr bricks (EP-25) Tunnel Kiln #1 rated at 5.2 MMBtu/hr natural gas

These two units share a common stack

(EP-26) Waste Heat Brick Dryer rated at 3.61 ton/hr bricks (EP-27) Tunnel Kiln #2 rated at 5.98 MMBtu/hr natural gas

These two units share a common stack

Description: Two natural gas burning heaters for two brick dryers equipped with recycling heat Construction Commenced: April 1992 Primary Fuel: Natural Gas

APPLICABLE REGULATIONS: 401 KAR 59:010, New process operations , applicable to emission units constructed after July 2,

1975.

401 KAR 53:010, Ambient air quality standards , contaminant concentrations are applicable to any single point location.

State-Origin Applicable Regulations : 401 KAR 63:020, Potentially hazardous matter or toxic substances

1. Operating Limitations : a. The process weight rate of bricks in either dryer shall not exceed 3.14 tons/hr [to stay below the threshold established in 401 KAR 53:010].

b. The permittee shall not allow exhaust fan sp eeds to fall below 25 hz for kiln#1 and 64.6 hz for kiln 2 [to stay below the threshold established in 401 KAR 53:010].

2. Emission Limitations : a. Emissions of particulate matter from the st ack serving dryer 01 (EP-24) and kiln 01 (EP-25) shall not exceed 7.46 lbs/hr, based on a thr ee (3)-hour average [401 KAR 59:010, Section 3(2)].

b. Emissions of particulate matter from the stack serving dryer 02 (EP-26) and kiln 02 (EP-27) shall not exceed 7.96 lbs/hr, based on a thr ee (3)-hour average [401 KAR 59:010, Section 3(2)].

Compliance Demonstration Method: These units are assumed to be in compliance with particulate matter emission limits while burning only natural gas.Permit Number: S-05-104 R3 Page: 3 of 12



### SECTION B - EMISSION POINTS , EMISSIONS UNITS, APPLICABLE REGULATIONS, AND OPERATING CONDITIONS (CONTINUED)

c. The permittee shall not cause, suffer, allow or permit any continuous emission into the open air from either stack which is equal to or gr eater than twenty (20) percent opacity [401 KAR 59:010, Section 3].

Compliance Demonstration Method: See Section 4.e., Monitoring Requirements

.

d. Emission concentrations of hydrogen fluor ide (HF) modeled beyond the property boundary shall not exceed the following averages more than once per year [401 KAR 53:010]:

(1) Annual Arithmetic Mean: 400 ug/m 3

(2) Maximum One-Month Average: 0.82 ug/m 3

(3) Maximum One-Week Average: 1.64 ug/m 3

(4) Maximum Twenty-Four-Hour Average: 2.86 ug/m 3

(5) Maximum Twelve-Hour Average: 3.68 ug/m 3

Compliance Demonstration Method: Compliance with the HF emission limit was dem onstrated by modeling results performed by the Division. This modeling was based on th e emission concentrations of 2.11 x 10 -6 lb/dscf for kiln

#1 and 6.71 x 10 -7 lb/dscf for kiln #2, obtained during stack testing on November 2 and 3, 2010.

Pollutant Averaging

Time Primary

Standard (ug/m 3 ) Secondary Standard (ug/m 3 ) Max

Concentration (ug/m 3 ) Hydrogen

Fluoride Annual- High First High 400 None 0.091 Hydrogen

Fluoride Month- High Second High None 0.82 0.22 Hydrogen

Fluoride 24-hr- High Second High 800 2.68 1.74 Hydrogen

Fluoride 12-hr- High Second High None 3.68 3.35

e. See Section C.6.d., General Conditions

.

3. Testing Requirements : None

4. Monitoring Requirements : a. The permittee shall monitor the bricks processed for each kiln, in tons, on an hourly basis [401 KAR 52:040, Section 10].

b. The permittee shall monitor the hours of operation for each kiln, on a monthly basis [401 KAR 52:040, Section 10].Permit Number: S-05-104 R3 Page: 4 of 12



### SECTION B - EMISSION POINTS , EMISSIONS UNITS, APPLICABLE REGULATIONS, AND OPERATING CONDITIONS (CONTINUED)

c. The permittee shall monitor source-wide na tural gas consumption, in MMBtu, on a monthly basis [401 KAR 52:040, Section 10].

d. The permittee shall monitor the fan speed s for each unit on a w eekly basis [401 KAR 52:040, Section 10].

e. Compliance with the opacity standard shall be determined by the permittee performing a qualitative visual observation of the opacity of emissions at each stack no less than weekly, when operating, and maintaining a log of the obs ervations. If visible emissions from the stack are seen (not including condensed water in the plume), then an inspection of control equipment shall be initiated and corrective action taken.

If visible emissions are present after the corr ective action, the process shall be shut down and shall not operate again until repairs have been made that result in no visible emissions from the process during operation. In lieu of shutting the process down, the permittee may determine the opacity using U.S. EPA Reference Method 9. If the opacity limit is not exceeded, the process may continue to operate.

5. Recordkeeping Requirements : a. The permittee shall maintain records of the bricks processed for each kiln, in tons, on an hourly basis [401 KAR 52:040, Section 10].

b. The permittee shall maintain records of th e hours of operation for each kiln, on a monthly basis [401 KAR 52:040, Section 10].

c. The permittee shall maintain records of s ource-wide natural gas c onsumption, in MMBtu, on a monthly basis [401 KAR 52:040, Section 10].

d. The permittee shall maintain records of the fan speeds for each unit on a weekly basis [401 KAR 52:040, Section 10].

e. The permittee shall maintain records of qua litative visual observations of the stack, any necessary Method 9 readings, and any inspections or corrective action taken as a result of Method 9 readings [401 KAR 52:040, Section 10].

6. Reporting Requirements : See Section C., General Conditions

.Permit Number: S-05-104 R3 Page: 5 of 12



### SECTION B - EMISSION POINTS , EMISSIONS UNITS, APPLICABLE REGULATIONS, AND OPERATING CONDITIONS (CONTINUED)

Emission Unit 02: Raw Material Handling

Haul Road, Yard Area (Unpaved), and Load-outs Capacity: 35 ton/hr each of material passing Control: Wet Suppression

Stockpile Control: Torit Dust Collector, Enclosure

Crushing Stones Primary, Secondary, and Tertiary Crushers Capacity: 35 ton/hr Control: Torit Dust Collector, Enclosure

Four Screens Capacity: 35 ton/hr each Control: Torit Dust Collector, Enclosure

Conveyors Control: Torit Dust Collector, Enclosure

Pug Mills Capacity: 35 ton/hr each

Extruders Capacity: 35 ton/hr each Control: Torit Dust Collector, Enclosure

APPLICABLE REGULATIONS:

401 KAR 63:010, Fugitive Emissions

1. Operating Limitations : None

2. Emission Limitations a. The materials processed at each affected f acility shall be controlled with wet suppression, enclosures, and/or dust collection equipment so as to comply with the requirements specified in 401 KAR 63:010, Section 3.

b. The permittee shall not cause, suffer, or a llow any material to be handled, processed, transported, or stored; a building or its appurtena nces to be constructed, altered, repaired, or demolished, or a road to be used without ta king reasonable precaution to prevent particulate matter from becoming airborne. Such reasonabl e precautions shall include, when applicable, but not be limited to the following [401 KAR 63:010, Section 3(1)]:Permit Number: S-05-104 R3 Page: 6 of 12



### SECTION B - EMISSION POINTS , EMISSIONS UNITS, APPLICABLE REGULATIONS, AND OPERATING CONDITIONS (CONTINUED)

i. Use, where possible, of water or chemi cals for control of dust in the demolition of existing buildings or structures, constructi on operations, the grading of roads or the clearing of land;

ii. Application and maintenance of asphalt, o il, water, or suitable chemicals on roads, materials stockpiles, and other surfaces which can create airborne dusts;

iii. Installation and use of hoods, fans, and fabric filters to enclose and vent the handling of dusty materials, or the use of water sprays or other measures to suppress the dust emissions during handling. Adequate cont ainment methods shall be employed during sandblasting or other similar operations.

iv. Covering, at all times when in motion, open bodied trucks transporti ng materials likely to become airborne;

v. The maintenance of paved roadways in a clean condition;

vi. The prompt removal of earth or other materi al from a paved street which earth or other material has been transported thereto by tr ucking or earth moving equipment or erosion by water.

c. The permittee shall not cause or permit the discharge of visible fugitive dust emissions beyond the lot line of the property on whic h the emissions originate [401 KAR 63:010, Section 3(2)].

d. When dust, fumes, gases, mist, odorous matte r, vapors, or any combination thereof escape from a building or equipment in such a manne r and amount as to cause a nuisance or to violate any administrative regulation, the Secretary may order that the building or equipment in which processing, handling and storage are done be tightly closed and ventilated in such a way that all air and gases and air or air-borne material leaving the building or equipment are treated by removal or destruction of air contam inants before discharge to the open air [401 KAR 63:010, Section 3(3)].

e. Open bodied trucks, operating outside comp any property, transporting materials likely to become airborne, shall be covered at all times when in motion [401 KAR 63:010, Section 4 (1)].

f. The permittee shall not allow earth or other material being transported by truck or earth moving equipment to be deposited onto a pave d street or roadway [401 KAR 63:010, Section 4 (4)].

3. Testing Requirements : NonePermit Number: S-05-104 R3 Page: 7 of 12



### SECTION B - EMISSION POINTS , EMISSIONS UNITS, APPLICABLE REGULATIONS, AND OPERATING CONDITIONS (CONTINUED)

4. Monitoring Requirements : See Section C., General Conditions

.

5. Recordkeeping Requirements : See Section C., General Conditions

.

6. Reporting Requirements : See Section C., General Conditions

.Permit Number: S-05-104 R3 Page: 8 of 12



### SECTION C - GENERAL CONDITIONS

1. Administrative Requirements

a. The permittee shall comply with all conditions of this permit. Noncompliance shall be a violation of 401 KAR 52:040, Section 3(1)(b), and is grounds for enforcement action including but not limited to the termination, revocation and reissuance, or revision of this permit.

b. This permit shall remain in effect for a fixed term of ten (10) years following the original date of issue. Permit expiration shall terminate the source's right to operate unless a timely and complete renewal application has been submitted to the Division at least six months prior to the expiration date of the permit. Upon a timely and complete submittal, the authorization to operate within the terms and conditions of this permit, including any permit shield, shall remain in effect beyond the expira tion date, until the renewal permit is issued or denied by the Division [401 KAR 52:040, Section 15].

c. Any condition or portion of this permit which becomes suspended or is ruled invalid as a result of any legal or other action shall not i nvalidate any other portion or condition of this permit [Section 1a-11 of the Cabinet Provisions and Procedures for Issuing State-Origin

Permits incorporated by reference in 401 KAR 52:040, Section 23].

d. Pursuant to materials incorporated by reference by 401 KAR 52:040, this permit may be revised, revoked, reopened, reissued, or terminated for cause. The fili ng of a request by the permittee for any permit revision, revocation, reissu ance, or termination, or of a notification of a planned change or anticipated noncompliance shall not stay any permit condition [Section 1a-4, 5, of the Cabinet Provisions and Procedures for Issuing State-Origin Permits incorporated by reference in 401 KAR 52:040, Section 23].

e. This permit does not convey property rights or exclusive privileges [Section 1a-8 of the Cabinet Provisions and Procedures for Issuing State-Origin Permits incorporated by reference in 401 KAR 52:040, Section 23].

f. Nothing in this permit shall alter or affect the liability of the permittee for any violation of applicable requirements prior to or at th e time of permit issuan ce [401 KAR 52:040, Section 11(3)].

g. All previously issued permits to this source at this location are hereby null and void.Permit Number: S-05-104 R3 Page: 9 of 12



### SECTION C - GENERAL CONDITIONS (CONTINUED)

2. Recordkeeping Requirements

a. Records of all required monitoring data and support information, including calibrations, maintenance records, and original strip chart r ecordings, and copies of all reports required by the Division for Air Quality, shall be retained by the permittee for a period of at least five (5) years and shall be made available for in spection upon request by any duly authorized representative of the Division for Air Quality [401 KAR 52:040, Section 3(1)(f), and Section

1b-IV-2 of the Cabinet Provisions and Procedures for Issuing State-Origin Permits incorporated by reference in 401 KAR 52:040, Section 23].

b. The permittee shall perform compliance certifica tion and recordkeeping sufficient to assure compliance with the terms and conditions of th e permit. Documents, including reports, shall be certified by a responsible official pursuant to 401 KAR 52:040, Section 21.



### 3. Reporting Requirements

a. (1) In accordance with the provisions of 401 KAR 50:055, Section 1, the permittee shall notify the Regional Office listed on the front of this permit concerning startups, shutdowns, or malfunctions as follows: i. When emissions during any planned shut downs and ensuing startups will exceed the standards, notification shall be made no late r than three (3) days before the planned shutdown, or immediately following the deci sion to shut down, if the shutdown is due to events which could not have been foreseen three (3) days before the

shutdown. ii. When emissions due to malfunctions, unpl anned shutdowns and ensuing startups are or may be in excess of the standards, no tification shall be made as promptly as possible by telephone (or other electronic me dia) and shall be submitted in writing

upon request. (2) The permittee shall promptly report devia tions from permit requi rements including those attributed to upset conditions (other th an emission exceedances covered by Reporting Requirement condition a.(1) above), the probable cause of the deviation, and corrective or preventive measures taken to the Regiona l Office listed on the front of this permit within thirty (30) days. Other deviations from permit requirements shall be included in the semiannual report [Section 1b-V-3 of the Cabinet Provisions and Procedures for Issuing State-Origin Permits incorporated by reference in 401 KAR 52:040, Section 23].

b. The permittee shall furnish information requested by the Cabinet to determine if cause exists for modifying, revoking and reissuing, or termin ating the permit; or to determine compliance with the permit [Section 1a-6 of the Cabinet Provisions and Procedures for Issuing StateOrigin Permits incorporated by reference in 401 KAR 52:040, Section 23].

c. Summary reports of monitoring required by this permit shall be submitted to the Regional Office listed on the front of this permit at leas t every six (6) months during the life of this permit. For emission units that were still unde r construction or which had not commenced operation at the end of the six (6)-month period covered by the report and are subject to monitoring requirements in this permit, the report shall indicate that no monitoring was performed during the previous six months becau se the emission unit was not in operation. ThePermit Number: S-05-104 R3 Page: 10 of 12



### SECTION C - GENERAL CONDITIONS (CONTINUED)

summary reports are due January 30th and July 30th of each year. All deviations from permit requirements shall be clearly identified in the reports. All reports shall be certified by a responsible official pursuant to 401 KAR 52:040, Section 21.



### 4. Inspections

In accordance with the requirements of 401 KAR 52:040, Section 3(1)(f), the permittee shall allow authorized representatives of the Cabinet to perform the following during reasonable times. Reasonable times are defined as during all hours of operation, during normal office hours, or during an emergency:

a. Enter upon the premises to inspect any fac ility, equipment (including air pollution control equipment), practice, or operation.

b. To access and copy any records required by the permit.

c. Inspect, at reasonable times, any facilities, equipment (including monitoring and pollution control equipment), practices, or operations required by the permit.

d. Sample or monitor, at reasonable times, substa nces or parameters to assure compliance with the permit or any applicable requirements.



### 5. Emergencies/Enforcement Provisions

a. The permittee shall not use as defense in an enforcement action, the contention that it would have been necessary to halt or reduce the perm itted activity in order to maintain compliance [Section 1a-3 of the Cabinet Provisions and Procedures for Issuing State-Origin Permits incorporated by reference in 401 KAR 52:040, Section 23].

b. An emergency shall constitute an affirmative defense to an action brought for the noncompliance with the technology-based emissi on limitations if the permittee demonstrates through properly signed contemporaneous operating logs or relevant evidence that: (1) An emergency occurred and the permittee can identify the cause of the emergency; (2) The permitted facility was at the time being properly operated; (3) During an emergency, the permittee took a ll reasonable steps to minimize levels of

emissions that exceeded the emissions standa rds or other requirements in the permit; and (4) The permittee notified the Division as prom ptly as possible and submitted written notice of the emergency to the Division within tw o working days after the time when emission limitations were exceeded due to the emergency and included a description of the emergency, steps taken to mitigate emissions, and corrective actions taken.

c. Emergency provisions listed in General Cond ition 5.b are in addition to any emergency or upset provision contained in an applicable requirement [401 KAR 52:040, Section 22(1)].

d. In an enforcement proceeding, the permittee seeking to establish the occurrence of an emergency shall have the burden of proof [401 KAR 52:040, Section 22(2)].Permit Number: S-05-104 R3 Page: 11 of 12



### SECTION C - GENERAL CONDITIONS (CONTINUED)

6. Compliance

a. Periodic testing or instrumental or non-instrumental monitoring, which may consist of record keeping, shall be performed to the extent necessary to yield reliable data for purposes of demonstration of continuing compliance with the conditions of this permit. For the purpose of demonstration of continuing comp liance, the following guidelines shall be

followed: (1) Pursuant to 401 KAR 50:055, General complia nce requirements, Section 2(5), all air pollution control equipment and all pollution control measures proposed by the application in response to which this permit is issued shall be in place, properly maintained, and in operation at any time an affected facility for which the equipment and measures are designed is operated, excep t as provided by 401 KAR 50:055, Section 1. (2) All the air pollution control systems shall be maintained regularly in accordance with good engineering practices and the recommendati ons of the respectiv e manufacturers. A log shall be kept of all routine and non-r outine maintenance performed on each control device. Daily observations are required duri ng daylight hours of all operations, control equipment and any visible emissions to determine whether conditions appear to be either normal or abnormal. If the operations, controls and/or emissions app ear to be abnormal, the permittee must then comply with th e requirements of Section C – General Conditions, 3.a.(2), of this permit. (3) A log of the monthly raw material cons umption and monthly production rates shall be kept available at the facility. Compliance with the emission limits may be demonstrated by computer program, spread sheets, calcula tions or performance tests as may be specified by the Division [401 KAR 50:055, Section 2].

b. Pursuant to 401 KAR 52:040, Section 19, the permittee shall certify compliance with the terms and conditions contained in this perm it by January 30th of each year, by completing and returning a Compliance Certification Form (DEP 7007CC) (or an approved alternative) to the Regional Office listed on the front of this permit in accordance with the following requirements: (1) Identification of the term or condition; (2) Compliance status of each term or condition of the permit; (3) Whether compliance was continuous or intermittent; (4) The method used for determining the comp liance status for the source, currently and over the reporting period, and (5) For an emissions unit that was still unde r construction or which has not commenced operation at the end of the twelve (12)-m onth period covered by the annual compliance certification, the permittee shall indicate that the unit is under construction and that compliance with any applicable requirements will be demonstrated within the timeframes specified in the permit.Permit Number: S-05-104 R3 Page: 12 of 12



### SECTION C - GENERAL CONDITIONS (CONTINUED)

(6) The certification shall be postmarked by Ja nuary 30th of each year. Annual compliance

certifications shall be mailed to the Di vision for Air Quality, Owensboro Regional Office, 3032 Alvey Park Drive West, Suite 700, Owensboro, KY 42303-2191.

c. Permit Shield - A permit shield shall not protect the owner or operator from enforcement actions for violating an applicable requirement prior to or at the time of permit issuance. Compliance with the conditions of this permit shall be considered compliance with all: (1) Applicable requirements that are included and specifically identified in this permit; or (2) Non-applicable requirements expressl y identified in this permit [401 KAR 52:040, Section 11].

d. Persons responsible for a source from which hazardous matter or toxic substances may be emitted shall provide the utmost care and consideration, in the handling of these materials, to the potentially harmful effects of the emissions resulting from such activities. No owner or operator shall allow any affected facility to emit potentially hazardous matter or toxic substances in such quantities or duration as to be harmful to the health and welfare of humans, animals and plants. Evaluation of such facilities as to adequacy of controls and/or procedures and emission potential will be made on an individual basis by the Cabinet [401 KAR 63:020].