G:\Client Files\NewPage Papers\Escanaba\C047 033 EPA BART Responses\June 2012 Res ponse\Final Response\Region V Response.docx June 20, 2012 June 20, 2012

Mr. Douglas Aburano United States Environmental Protection Agency, Region 5

Air and Radiation Division

77 West Jackson Boulevard Chicago, Illinois 60604-3590

Re: Supplemental Information Related to the E scanaba Paper Company (EPC) Best Available Retrofit Technology (BART) Recommendation and June 21, 2012 Meeting

Dear Mr. Aburano:

In preparation for our scheduled meeting on June 21, 2012, the NewPage Corporation Escanaba Paper
Company (EPC) is providing U.S. EPA Region 5 with supplemental information regarding the Best
Available Retrofit Technology (BART) determination for the No. 8 and No. 9 Boilers at the Escanaba,

Michigan pulp and paper Mill. The supplemental information reflects the comments that U.S. EPA
Region 5 provided to the Michigan Department of Environmental Quality (DEQ) on May 24, 2012.

These comments include a recommendation to require the installation of low NO X burners on the two

aforementioned boilers at the EPC Escanaba Mill. Based on a review of the U.S. EPA correspondence,

EPC has supplemented previously supplied informati on concerning the operational characteristics of both

boilers. The additional information reflects a description of how the boilers are actually operated, the

feasibility of installing low NO X burners on either boiler, and a re view of actual visibility impacts

associated with NO X emissions from the two boilers. Base d on the supplemental information and
consistent with Michigan DEQ’s de termination, EPC believes that no NO X controls are appropriate for

both boilers. EPC greatly appreciates this opportunity to meet with U.S. EPA Region 5 to discuss the
Mill’s BART determination in a timely fashion.

The No. 9 Boiler at the EPC Mill is a Babcock a nd Wilcox (B&W) stoker grate boiler rated at 250,000

pounds (lbs) of steam per hour and 360 million British Th ermal Units (MMBtu) per hour (i.e., heat input).

The permitted fuels for the No. 9 Boiler include woodw aste, natural gas, and paper cores. Particulate

emissions are controlled with a multi-clone and a we t scrubber. EPC has identified the following issues
related to U.S. EPA Region 5’s assessment of NO X emissions from the Boiler.

 The No. 9 Boiler uses woodwaste generated by the Mill’s pulping operation to generate steam.

To convert the No. 9 Boiler to 100% natural g as would “redefine” the basic operation of the

boiler.

 A switch of fuel from woodwaste to natural gas would increase the No. 9 Boiler’s carbon dioxide
footprint as defined under other U.S. EPA regulatory programs.

 There is no flue gas recirculation (FGR) installed on the No. 9 Boiler.

 EPC is unaware of any low NO X burner technology that is applicable to the combustion of

woodwaste.

 The conversion of the No. 9 Boiler to natural gas would replace a zero cost fuel (woodwaste) with

a higher cost fuel (natural gas).Mr. Douglas Aburano, U.S. EPA Region 5 EPC BART Recommendation and Meeting Page 2 of 3

G:\Client Files\NewPage Papers\Escanaba\C047 033 EPA BART Responses\June 2012 Res ponse\Final Response\Region V Response.docx June 20, 2012  Visibility impacts from the No. 9 Boiler are no higher than 0.29 deciviews (dv) and the peak 98 th

percentile is only 0.15 dv (visibility impacts re flect all emissions of all visibility impairing

pollutants - VIPs).

 A 40% NO X emission reduction would reduce the No. 9 Boiler visibility impacts by less than 0.1

dv.

The No. 8 Boiler is a Combustion Engineering boiler. It is rated at 450,000 lbs of steam per hour. The

heat ratings for the No. 8 Boiler are nominally 594 MMBtu/hr for oil and 560 MMBtu/hr for natural gas.
These two fuels are the only fuels that are permitted to be fired. FGR is used to reduce emissions and a

NO X continuous emissions monitor (CEM) is operated. EPC has identified the following issues related to
U.S. EPA Region 5’s assessment of NO X emissions from the No. 8 Boiler.

 The No. 8 Boiler typically operates as a swing bo iler, and only operates at higher peak loads

when another steam boiler at the Mill is down for maintenance or repair, typically once or twice a
year. A summary of the annual NO X emissions from the No. 8 Boiler is provided as Attachment

A. As shown in this attachment, the NO X emissions for the past several years are significantly

less than those for the 2004 and 2005 baseline peri od that was part of the initial BART analysis.

 In 2009, EPC obtained a facility-specific price quote for installation of low NO X burners. The

quote was prepared by Hamworthy Peabody (now a division of Coen) and identified a firm
turnkey price quote of $797,900. EPC is in the process of updating the 2009 quote. A copy of

the 2009 price quote is included as Attachment B.

 Using U.S. EPA’s cost sheet assumptions, the 2009 Hamworthy Peabody pricing, a 40% NO X emission reduction , and the 2005 annual reported NO X emissions results in a NO X costeffectiveness that is higher than that calcula ted by U.S. EPA. A copy of the control cost

spreadsheet using the 2009 price quote is provided as Attachment C. EPC notes that preliminary

conversations with the low NO X burner vendor have indicated that there will be a significant

increase to the costs previ ously provided to EPC.

 In the U.S. EPA cost sheet, EPC notes that credit is taken for the removal of the FGR system for

NO X control. EPC believes that removing an existing NO X control inappropriately reduces the
cost on a $ per ton of pollutant removed basis. There are many instances where U.S. EPA has

combined NO X control measures. EPC is unaware of any instance where U.S. EPA has

advocated removal of a control measure.

 While a 40% NO X removal efficiency is used to devel op the cost effectiveness numbers for the

No. 8 Boiler, it may not be practical to achieve this removal efficiency given the already low NO X emission rate. As shown in Attachment A, the annual average NO X emission factors range from

0.261 to 0.157 lbs of NO X /MMBtu. Consequently, the cost effectiveness numbers can vary
significantly. Attachment D provides a summary of the potential post-control NO X emissions and

a range of cost effectiveness numbers for the 2004 thru 2011 period.

 Visibility impacts from the No. 8 Boiler were overs tated as part of the initial BART submittal. A

review of the actual short-term and annual operating modes for the No. 8 Boiler show that the

boiler has emitted at the NO X emission rate used in the visibility modeling analysis exactly 3 days

over the April 2004 to December 2011 period.Mr. Douglas Aburano, U.S. EPA Region 5 EPC BART Recommendation and Meeting Page 3 of 3

G:\Client Files\NewPage Papers\Escanaba\C047 033 EPA BART Responses\June 2012 Res ponse\Final Response\Region V Response.docx June 20, 2012  EPC believes that the application of any NO X control on the No. 8 Boiler will result in minor

emission reductions and will similarly result in insignificant visibility improvement.

For the reasons identified above and considering the supplemental informa tion that is attached to this
letter, EPC believes that the Michigan DEQ BART de termination for the Mill is appropriate. EPC looks

forward to meeting with U.S. EPA Region 5 and the Mi chigan DEQ to discuss this matter. Prior to the
meeting, if there are any questions regarding the inform ation presented in this letter, please contact me at

906-233-2929 or via e-mail at tfs5@newpagecorp.com

.

Sincerely, Escanaba Paper Company

Todd Schmidt Environmental Manager

### ATTACHMENT A – Annual NOx Emissions SummaryAttachmentANo. 8 Boiler Historic Annual NOxEmissionsEscanaba Paper Company - Escanaba MillYearNOxEmisisons(a)(TPY)Annual Avg. NOxEmission Rate(lb/MMBtu)2004140 0.2232005129 0.2042006111 0.234200762 0.231200822 0.218200976 0.261201045 0.157201135 0.188Notes:a)As reported on the Mill's historic MAERS reports.Actual 2004 2011 BART Emission Rates.xlsPB8 Annual Nox Summary6/19/2012

### ATTACHMENT B – No. 8 Boiler Low NOx Burner Price QuotationHamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 December 15, 2009

Hamworthy Peabody Proposal No. S-16729

NewPage Corporation Coated Paper 7100 County 426 M.5 Road
Escanaba, MI 49829

Attention: Mr. Francis Schmidt

Dear Mr. Schmidt,

Hamworthy Peabody Combustion (HPC) is pleased to submit our firm priced turnkey proposal for the design, engineering, supply, installation and commissioning of combustion equipment and services as they relate to the Boiler 8 burner retrofit project for one (1) existing C-E VU-60 boiler rated at 450,000 lb/h steam output at Coated Paper in Escanaba, Michigan.

Based upon our discussions at site we have included the following in our offering:

3⁄4 Due to recent advances in our burner design, we are able to meet your NOx emissions requirements without having to alter the existing FGR arrangement. An additional FGR fan is not required.

3⁄4 Hamworthy Peabody has incorporated a fully automatic oil firing system, which will allow starting, stopping, and purging the oil system from the control room without local operator assistance.

We believe we have presented a well-defined scope and approach to this project and would enjoy an opportunity to meet with you and present our proposal in detail.

3⁄4 As Hamworthy Peabody is the manufacturer and system designer as well as a direct bidder, NewPage would be contractually connected with the manufacturer, which is the critical component in the overall scope of supply for this application. Thus, there are no contractual layers between NewPage and the equipment supplier.

3⁄4 We feel we have put together comprehensive bid packages for the supply of the mechanical and electrical installation services. Thus, we are confident our overall scope is as accurate and as complete as possible.Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 3⁄4 Hamworthy Peabody Combustion has an extensive track record of successfully completed turnkey retrofit projects, including the supply of

mechanical and electrical installation services.

3⁄4 Hamworthy Peabody Combustion is committed to meeting all of your needs and expectations in regards to the complete scope of this project. Our team of experienced Turnkey Contract engineers will ensure that every phase of this project proceeds smoothly.

We thank you for the opportunity to present our offering for your review and comment. We look

forward to further discussion.

Kind Regards,

Chris Langhans Manager of Turnkey Contracts

Attachment(s)

cc: Ferdinando Nunziante

Bill Gurski Guy Clement Scott Ingram

File S16729Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Flares &

Thermal Oxidation Power Process Marine Industrial



## Turnkey Solutions - Power Products 

# Proposal for the Turnkey Supply of
Burner Equipment & Services

To:

NewPage Corporation, Coated Paper

For Project:

Boiler #8 Burner Retrofit Escanaba, Michigan

Our Proposal: S16729

Client Contact: Mr. Francis Schmidt Senior Project Engineer
Date: December 14, 2009

From: Chris Langhans Telephone Contact No.: 203-922-1199 X265 E-Mail: clanghans@hamworthy-peabody.com

Hamworthy Peabody Combustion

70 Shelton Technology Center
Shelton, CT 06484

Ph: 203-922-1199 Fax: 203-922-9413 Website: www.hamworthy-peabody.com 

### G L O B A L S O L U T I O N S , L O C A L D E L I V E R Y 

## ___________________________________ ________________________________Page 2 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 

### TABLE OF CONTENTS

I. Introduction

II. Project Overview

A. Combustion Equipment

B. Windbox and Airf low Model Study C. Fuel Delivery System D. Burner Management System E. Combustion Control System

F. Installation Services G. Check Out and Commissioning H. Service and Spare Parts Customer Support

III. Technical Design Specifications

IV. Equipment / Site Services List

A. Burner and Re lated Equipment

B. Valve Train Assemblies C. Combustion Equipment D. Physical Windbox Ai rflow Model Study

E. Installation Services

a. Mechanical

b. Electrical F. Site Management / Commissioning Services

V. Commercial

VI. Related Work Experience / Reference List – Turnkey Contracts

VII. Company Profile and Tec hnical Capability / BrochurePage 3 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 I) Introduction:

Hamworthy Peabody Combustion (HPC) is pleased to submit our firm priced turnkey proposal for the design, engineering, supply, installation and commissioning of combustion equipment and services as they relate to the Boiler 8 burner retrofit project for one (1) existing C-E VU-60 boiler rated at 450,000 lb/h steam output at Coated Paper in Escanaba, Michigan.

This proposal covers the supply, installation, and commissioning of one (1) multi-burner natural gas and oil system; consisting of burners and local valve trains.

The existing forced draft boiler has 4 (four) burners mounted in one windbox; the bottom two burners are dual fuel natural gas and number 6 fuel oil, the top two burners are natural gas only. The existing configuration is not in compliance with the required NOx emissions permits for the boiler, limiting the overall use of the system.

The purpose of this retrofit is to reduce the NOx emissions on No.6 fuel oil and natural gas, as well as eliminate mechanical issues with the existing burner air slides and significantly reduce the manpower required to fire oil. The proposed upgrade includes replacement of local burner valve trains (the header trains will be reused) to comply with current NFPA 85 standards and insurance requirements. The HPC replacement dual fuel burners will fire both natural gas and

No.6 fuel oil.

3⁄4 Due to recent advances in our burner design, we are able to meet your NOx emissions requirements of 0.2lb/MMBtu on natural gas and 0.4lb/MMBtu on No.6 fuel oil without having to alter the existing FGR arrangement. An additional FGR fan is not required.

3⁄4 Hamworthy Peabody has incorporated a fully automatic oil firing system, which will allow starting, stopping, and purging the oil system fr om the control room without local operator

assistance.Page 4 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Based upon our site visit and subsequent discussions, our scope of supply detailed herein will

include:

• Four (4) New Low NOx MSC 2 burners consisting of:

3⁄4 Single pneumatic cylinder operated air slide

3⁄4 Q- jet TM Low NOx center-fired natural gas burner

3⁄4 Pneumatically retracting BC Oil Unit with Spirojet Low NOx No.6 Fuel oil tips

3⁄4 Reliable HPC FPM Natural Gas ignitor

3⁄4 New Plastic refractory burner throat

• Smart Flow TM Windbox and Ducting Model Study to ensure even airflow to the burners resulting in efficient and low emissions combustion (including required baffling)

• Local burner natural gas, ignitor, no.6 fuel oil, and atomizing steam valve trains and
components.

• New main oil flow meter

• New air flow measuring piezometer and transmitter

• Revise existing Combustion Control and Burner Management System logic.

Our intention is to reuse as much equipment as possible without adversely affecting the system reliability. The reused components include:

• Natural gas, ignitor, No.6 fuel oil, and atomizing steam header valve trains, including valves and piping; the fuel oil flow meter will be replaced

• The windbox and ducting with modifications

• The FD fan and FGR system

• The Combustion Control and Burner M anagement Systems (modified by HPC)

• Boiler devices, including steam pressure switches, steam pressure transmitters, etc.

In a Hamworthy Peabody turnkey solution there are no contractual layers between the customer, the equipment supplier, and the installer; Hamworthy Peabody has full “single point” responsibility for the total project implementation.

As part of our total Turnkey Solution Hamworthy Peabody will supply all labor, supervision, tools, equipment, consumables, safety equipment, pipe, pipe fittings, tubing, tube fittings, pipe hangers, supports, structural steel, wire, conduit, cable tray, junction and other miscellaneous materials and support services required to complete the installation of the mechanical and electrical equipment for this project.

Hamworthy Peabody Combustion’s supply includes a site project manager whose responsibility is to ensure proper installation of all equipment by the contractors and to maintain set project schedule. Following a complete system checkout, the HPC site engineer will commission the system, turning over a fully operational sy stem at the conclusion of the project.Page 5 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 II) Project Overview:

A. Combustion Equipment

Following our site visit, a detailed review of the original boiler drawings, and a review of the project goals, we have determined that our MSC 2 Low NOx Dual Fuel burner fit with
a Q- jet TM center fired gas burner is best suited for this application.

MSC 2 Low NOx Burner:

The basis for the MSC 2 TM burner’s operation is Multi-Stage Combustion (MSC). The staged Q- jet TM design introduces fuel into primary and secondary air streams. The primary stream allows for our new STABLE flameTM technology, ensuring an ultra-strong root flame for stability. The secondary zone stages the flame to mitigate thermal NOx production.

MSC 2 Sample Burner Pictures

The air entry to gas and swirler were stra tegically designed to optimize combustion staging, balancing minimal flame temperature with precision flame shaping. Low CO and particulate performance, while maintaining low NOx, has been attained. The MSC 2Page 6 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 is a highly reliable, efficient, low excess ai r/low NOx burner that can meet the emission reduction needs for today and tomorrow.

Side View of the proposed burner arrangement depicted.

Q- jet TM Center Fired Burner:
The Q- jet TM center fired natural gas burner is positioned down the center of the burner. Through gas placement geometry, it achieves fuel staging necessary for Low NOx

combustion.

Q- jet TM Center Fired Gas Burner with Oil Unit Assembly PicturedPage 7 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 No.6 Fuel Oil Unit: We have included one pneumatically retracted Hamworthy Peabody BCT steam atomized oil unit per burner. The unit is of a twin tube (oil, steam) inside mix design. Proper atomization is assured by sheering action and mixing of the steam and oil in the proven Hamworthy Peabody SPIRO jet TM tip and plug. The tip and plug are easily removed for cleaning and maintenance when required. The unit operates on a constant differential pressure system which supplies the atomizing media to the unit at a pressure which is a nominal 20 psig greater than that which the oil is supplied. This pressure differential is maintained throughout the load range, thus minimizing atomizing steam consumption and maximizing turndown.

The oil unit is supplied complete with burner couplings for easy removal, manual valves

for steam and oil as well as metallic flexible hoses for connection to the oil and steam supply points. The Low NOx SPIRO jet TM tip and plug included with this equipment are custom designed based on the specific fuel flow rates, pressures, and furnace

dimensions.Page 8 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 FPM Ignitor: The Hamworthy Peabody FPM gas-electric ignitor has proven to be extremely stable and reliable in register and parallel flow burners. Its unique pilot and nozzle assembly, with dual perforated ends assures stable operati on even in varying air flow streams. The standard ignitor comes complete with 10,000 VAC ignition transformer mounted in a NEMA-4 enclosure, electrical harness and gas hose.

FPM Natural Gas Ignitor

B. Airflow Model Study

Using our in-house, HPC Smart Flow TM Technology , Hamworthy Peabody Combustion will design and build a customized, Plexiglas, physical air flow model (approximately 12:1 scale) of the burner/windbox and duct assembly. An air flow analysis provides invaluable information when designing an internal baffle system to optimize the air flow thru the burner. This allows for maximum emission control and boiler efficiency, and minimizes system draft losses.

Smart Flow TM Physical Air Flow model testing at the HPC Smart Flow TM Model FacilityPage 9 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 The goal of the physical airflow modeling is for the modeler to provide a set of baffle and turning vane drawings designed to provide an even airflow distribution to the windbox and burners. Baffles shall be added only as required to the model to balance the airflow throughout the inlet ducting to burner. Based on the results of the model, a drawing showing recommended baffles for the actual windbox shall be provided such that the result is a matched ducting / burner configuration that will assure balanced air flow and optimum burner performance.

At the completion of the analysis, the results shall be discussed and documented in a written report. The report will include a brief description of the physical model, the model assumptions, and the boundary conditions. The results shall cover the “as-is” conditions of the ductwork, as well as the results of adding the recommended flow distribution

devices.

a. One (1) copy of the final report, as well as one (1) electronic copy shall be provided. This shall include all photographs, drawings, graphs, data tables, and conclusions. b. Complete set of drawings showing the locations of baffles and turning vanes required to ensure proper air flow distribution

C. Fuel Delivery System The existing local burner valve trains will be replaced for all fuels and atomizing steam. The existing main gas burner valve trains do not comply with NFPA 85 vent valve sizing; the existing oil and steam burner trains are not sufficiently automated to permit control room start and stop. The new valve tr ain components will be FM approved and are designed to comply with ASME B31.1 and NFPA 85 2007 Edition. All of the existing header valve trains will be reused, as is.

Main Natural Gas: We have included for reusing the main gas header valve train piping and components, including (but not limited to) the flow control valve, safety shut off valve, flow meter, and vent valve. The main gas ring header that supplied gas to the existing burners will also

be reused.

The local main natural gas trains will be replaced with new 4” Maxon safety shutoff and 2” Maxon vent valves. The new vent valve will tie into the existing vent piping. A new flexible gas hose will also be supplied for each burner.

The gas piping proposed has flanged, socket welded, and butt welded connections, threaded fittings will be minimized in accordance with B31.1. The new valve train components will be factory designed and field installed and wired in accordance with HPC drawings.Page 10 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Ignitor Natural Gas: Hamworthy Peabody Combustion proposes replacing the existing local ignitor valve trains to support our new FPM ignitor. The existing header ignitor train will be reused. The trains will be ASME B31.1 construction, FNPT connections, schedule 80 seamless piping.

No.6 Fuel Oil Piping: The existing fuel oil header system will be reused, with the exception of the fuel oil flow meter, which HPC will replace with a new accurate dP type flow meter. Hamworthy Peabody Combustion intends on replacing the entire local valve train with updated components designed for use with No.6 fuel oil. In place of the existing Maxon shutoff valves, we propose the use of a 1” ITT Skotch valve that incorporates the oil, steam, and automatic purge valves in very reliable and rugged unit. The valve train components will be field installed in accordance with HPC drawings. The trains will be ASME B31.1 construction, CL300 flanged connections, 3000# fittings, schedule 80 seamless piping.

ITT Skotch Trifecta Oil, Atomizing steam, and Purge Valve

Atomizing Steam: Hamworthy Peabody will reuse the existing atomizing steam header and differential pressure control valve. The piping from the header to the burner front will be modified. Specifically, the vertical riser on the left side of the boiler will be removed. A new riser on the right side of the boiler will be added, following the path of the oil system vertical riser. The Trifecta valve will attach to the steam line and will incorporate automatic oil sprayer purging upon normal burner shutdown. A new flexible hose will connect the steam line to the burner inlet. The valve train components will be field installed in accordance with HPC arrangement drawi ngs. The trains will be ASME B31.1 construction, socket welded or CL300 connections, 3000# fittings, schedule 80 seamless piping.Page 11 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 D. Burner Management System We propose to modify the existing Burner Management System to accommodate the new burner and valve train equipment. HPC will supply Boolean Logic diagrams and a brief written narrative for NewPage to implement into their existing BMS.

HPC will confirm proper tagging of existing wires when removed during the installation. We will re-terminate all wiring of the Natural Gas valve train components at existing

locations.

HPC will wire the new oil/atomizing steam safe ty shut-off valves. They will require seven (7) conductors and two (2) spares. The new wires will run where the existing wiring is through cable tray to the existing BMS I/O control room location.

There will be two (2) additional solenoids and three (3) additional switches all generally located within 2’ at the center line of each burner. These will be shop wired to a single junction box located in this area. HPC will pull seven (7) and two (2) spare conductors to the existing BMS I/O control cabinets as described above.

All Digital 120VAC control wiring shall be red #14 AWG THHN 600V rated with wire

markers on both ends.

E. Combustion Control System (CCS) For the Combustion Control System (CCS), HPC will make the appropriate adjustments to ensure that the system functions at its most efficient configuration. HPC will supply SAMA Logic diagrams and a brief written narrative for New Page to implement into their existing Foxboro DCS.

HPC will also install a new piezometer airflow transmitter along with the 4-20 mA wiring that goes along with it into the existing Foxboro DCS. The piezometer will be located upstream of the fan and FGR connection near the ducting inlet.Page 12 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 F. Installation Services Hamworthy Peabody will supply all labor, s upervision, tools, equipment, consumables, safety equipment, pipe, pipe fittings, tubing, tube fittings, pipe hangers, supports, structural steel, wire, conduit, cable tray, junction and other misc. materials and support services required to complete the installation of the mechanical and electrical equipment for this project.

Hamworthy Peabody Combustion will supply a site project manager whose responsibility is to ensure proper installation of all equipment by the contractors and to maintain set project schedule.

Specific demolition and installation activities are detailed in this proposal.

G. Check Out and Commissioning: Hamworthy Peabody Combustion will use one of our experienced service engineers to perform a full equipment and system checkout prior to commissioning. This will ensure a smooth start up.

A Hamworthy Peabody Combustion service engineer will then commission our equipment, ensuring proper operation of all equipment.Page 13 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 H. Service and Spare Parts Customer Support:

Hamworthy Peabody Combustion’s After Market Services department is headquartered in our Shelton, Connecticut office. Tim Welch, HPC’s After Market Services Manager, is responsible for the successful startup and commissioning of all Hamworthy Peabody products. Tim’s Group is also responsible for supplying a recommended spare parts list for each project.Page 14 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 III) Technical Specifications

We have based our quotation on the following design conditions. A confirmation of all the design data will be required in the contract stages of this project in order to verify equipment selection, size, and suitability.

Site Conditions:

Elevation 607 FASL Plant Location Escanaba, Michigan Equipment Location New Page Corporation, Coated Paper Ambient Temperature 50 - 100 o F Area Classification Non-Hazardous (Indoors) Electrical Power Available (uninterruptible) Supply Power 3 Phase, 60 Hz, 480 V Control 1 Phase, 60 Hz, 120 V

Boiler Data:

No. of boilers 1 Boiler Manufacturer Combustion Engineering (C-E) Steam Capacity 450,000 lb/h Steam Pressure, operating 1,475 psig Steam Temperature 950 ng / 900 fuel oil Feedwater Temperature 367 o F Burners per Boiler 4 Air Temperature to Burners 655 - 700 o F FGR Temperature, o F 267 o F Furnace Pressure Approximately 13.5 "W.C. Boiler Efficiency 84% ng / 88% oil

Inside Furnace Dimensions Width: 21 ft (approx) Height: 12 ft (approx) (bull nose) Depth: 26 ft (available firing depth)

Burner Centerlines 7 ft

Fuel Gas: Type Natural Gas Higher Heating Value 1,000 Btu/ft 3
Gas supply temperature 70 o F Pressure Available 30.0 psig (regulated supply gas pressure) Line size 6” (header)Page 15 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Design Fuel Analysis Component Vol. %

Carbon Monoxide CO 0.00 Hydrogen H 2 0.00

Carbon Dioxide CO 2 0.00 Hydrogen Sulfide H 2 S 0.00 Oxygen O 2 0.00 Nitrogen N 2 5.2

Methane CH 4 80.1

Ethane C 2 H 6 14.7 Propane C 3 H 8 0.00

n-Butane nC 4 H 10 0.00

iso-Butane iC 4 H 10 0.00

n-Pentane nC 5 H 12 0.00

iso-Pentane iC 5 H 12 0.00

n-Hexane nC 6 H 14 0.00 Ethene (Ethylene) C 2 H 4 0.00 Propene (Propylene) C 3 H 6 0.00 1-Butene (Butylene) nC 4 H 8 0.00

Iso-Butene iC 4 H 8 0.00

1-Pentene nC 5 H 10 0.00

Hexene C 6 H 12 0.00

Helium He 0.00

Water H 2 O 0.00

Fuel Oil: Type No. 6 Oil Higher Heating Value, Btu/lb 18,500 Pressure Available, psig 120 Viscosity at Burner, ssu 80-100 Atomization Medium Steam (dry & clean) Atomizing Pressure, psig 140 Line Size, in 1” / 1” (oil / atomizing steam)

Design Fuel Analysis Component Wgt %

Sulfur 1.0 Nitrogen 0.3 Asphaltenes 7.0

Ash 0.05Page 16 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Burner Design Specification: Gross Heat Input 142.5MMBtu/h per burner on natural gas 570MMBtu/h total on natural gas 140MM Btu/h per burner on No.6 fuel oil

560MM Btu/h total on No.6 fuel oil

Excess Air @ MCR 7.5% Excess Air on natural gas

12.5% Excess Air on No.6 fuel oil

Unit Combustion Air Flow 448,965 lb/h on natural gas 469,155 lb/h on No.6 fuel oil

Flue Gas Recirculation (FGR) 7.5% on natural gas

10% on No.6 fuel oil

Burner Data:

Burner Model MSC 2 -730

Throat Diameter 28.7in RDL @ MCR 5.5 in w.c. on natural gas

7.1 in w.c. on No.6 fuel oil Flame Dimensions 18ft long X 7.2ft wide on natural gas 18ft long X 5.2ft on No.6 fuel oil Burner Turndown (Contingent on fuel pressure available) Gas firing 8:1 Oil Firing 4:1Page 17 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 IV) EQUIPMENT / SITE SERVICES LIST

A. Burner and Related Equipment:

4- HPC MSC 2 -730 natural gas and No.6 fuel oil burner equipped with the following: 1- Single cylinder pneumatically retracted air slide
1- HPC Q- jet TM center-fired gas burner 1- HPC Model BC steam atomized oil unit (to be positioned down the center
of the Q- jet TM ), with SPIRO jet TM Low NOx tip and plug, stainless steel flexible hoses, and spare oil sprayer. With single pneumatic cylinder

retraction 1- HPC Model FPM gas electric ignitor with 10,000V ignition, with stainless

steel flexible hose. 1- Quarl former for refractory throat with refractory 1- Adaptor plate for burner front to allow fit-up to existing windbox

B. Valve train assemblies (shipped loose for field installation):

Burner Ignitor Gas Valve Trains (4 trains total):

4- Fisher regulator

8- Manual Bleed Leak & Test valve

8- Asco SSV – Stainless Steel B31.1

4- Asco Vent Valve – Stainless Steel B31.1 4- Pressure Gauge 4- Manual Gauge Isolation Valve

4- Manual Isolation Valves

Burner Main Natural Gas Valve Trains (4 trains total):

4- Pressure gauge with isolation valve 8- Maxon Safety Shutoff valve w/ closed position switches

8- Leak test valves 4- Maxon vent valve – with open switch

4- Manual isolation ball valve 4- Stainless steel flexible hose 4” diameter X 3ft long with CL150

connections

No.6 Fuel Oil Valve Trains (4 trains total):

1- Rosemount dP flowmeter

8- Manual shutoff valve

4- Y Strainer 8- Pressure gauge with diaphragm seal and isolation valve 4- 1” ITT Skotch Trifeca safety shutoff valve assembly incorporating the steam shutoff and automatic purge valvePage 18 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Atomizing Steam Valve Trains (4 trains total):

8- Manual isolation valve 8- Pressure gauge with isolation valve and siphon loop 4- Swing check valves 1- Steam Trap with Isolation valve

HPC has included for the supply of the following valve manufactures which are in accordance with the supplied pre approved sub-suppliers list:

Manual isolation valve: Worcester, Jamesbury, Velan (or mutually acceptable equiv.) Automatic Safety

Shutoff/Vent Valves ITT, Worcester, Jamesbury, Asco, (or mutually acceptable equiv.)

Strainer: Mueller (or mutually acceptable equiv.)

Pressure gauge: Ashcroft, Wika, Weksler (or mutually acceptable equiv.) Pressure switch: Ashcroft, Wika, Honeywell, Yokagawa (or mutually acceptable equiv.) Regulator & Relief: Fisher, Cascho (or mutually acceptable equiv.) Fuel Flow Control: Fisher, Cascho (or mutually acceptable equiv.) Fuel Flow Meters: Rosemount, Yokagawa, ABB (or mutually acceptable equiv.) Transmitters: Rosemount, Yokagawa, Honeywell, (or mutually acceptable equiv.)

C. Combustion Control Equipment:

1- Piezometer with 4-20mA transmitter and manifold block. Piezometer will be suitable for duct arrangement

D. Physical Flow Model:

1- One (1) copy of the final report, as well as one (1) electronic copy shall be provided. This shall include all photographs, drawings, graphs, data tables, and

conclusions 1- Complete set of drawings showing the locations of baffles and turning vanes required to ensure proper air flow distribution 1- Complete set of baffles installed by HPC in the windbox and ductPage 19 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 E. Demolition & Installation Services:

Our proposal includes a complete turnkey scope detailed herein. Specific activities include, but are not limited to the following;

(Instructions Given to Contractors Below)

A. Mechanical Equipment Installation

Burner Removal and Installation The existing burners are going to be replaced with new burners of a slightly smaller throat size, all burners will be identical. New air slides will also be included.

1. To access the existing burner fronts, the existing piping to the burner needs to be cleared. The existing gas Maxon valves and piping from the gas ring header to the

individual burners will be removed.

Keep Piping

Discard valve and piping beginning with this valve to

burner.Page 20 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 2. The oil and steam piping to each burner will be replaced. All oil piping and valve components from header tie-in to burner will be removed, as depicted below:

3. Once area is free and clear, the existing burner front plates will be unbolted and burner removed in its entirety from windbox . Air-slide support bars will be cut from boiler wall box. Cut and remove burner throat can from wall box. Chip out existing burner throat; there will be a new throat shape on the HPC supplied burners. Keep manual valve,

discard downstream

to burner

Discard all oil and steam piping and components in

this area

Cut air-slide
support

Cut and remove

can

Chip out part of throat – 1-2” deepPage 21 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 4. On the windbox opening, ring 2” wider than existing bolt circle will be cut to remove bolt pattern of existing burner. HPC will supply new windbox adaptor with bolt pattern to match our burner.

5. New windbox adaptor ring will be installed to windbox, seal welded concentric to burner centerline. New boiler adaptor plate will be installed onto boiler wall box and seal welded to existing wall box, concentric with windbox opening, + or – 1/8”.

6. New burner throat will be installed with HPC throat former. Refractory to be plastic air set, with minimum alumina content of 70%.

7. Internal to windbox, all existing air baffling will be removed. HPC will supply new baffle plates and locating drawing which will be welded through out windbox and

duct.

8. New burner will be installed in accordance with contract drawings.

9. New airflow measurement piezometer will be installed in inlet air duct, upstream of

FGR connection and FD fan inlet. Transmitter will be located in a convenient location and tubed from piezometer to transmitter.

10. The windbox front will be touch up painted as necessary, in accordance with HPC

Standards.

11. Existing burner air slide control enclosure and tubing will be removed. The HPC air slide pneumatic tubing connection is located at each burner. 3/8” stainless steel tubing will be used for all pneumatic instrument or plant air lines. Cut plate around

OD of bolt circlePage 22 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Valve Train Installation

1. The natural gas, fuel oil, and atomizing steam piping will be ASTM A-106 seamless pipe Schedule 80 for line sizes 2" and under and ASTM A-106 seamless pipe Schedule 40 for line sizes 2-1/2" and larger. Line sizes 2" and under will be of socket weld construction, CL3000 fittings (except for instrumentconnections which shall be threaded). Line sized of 2-1/2" and larger will be buttwelded and/or flanged, CL150. All fittings to be seamless. Bolts will be ASTM A-193 grade 7. Nuts will be ASTM A-194 grade 2H.

2. All piping will comply with ASME B31.1 – Power Piping.

3. Contractor will clean and pressure test (pneumatic) all piping systems that have been modified during the retrofit.

4. HPC will provide all valve train components, including valves, gages, switches etc. These components will be shipped loose for field installation.

5. HPC will supply P&ID and arrangement drawings depicting the valve train layout

and location.

6. Natural Gas Main: the header valve train will be reused unchanged. HPC will also reuse the natural gas ring header as it exists. HPC will supply new Maxon safety shut off valves, vent valves, ba ll valve and gages, and flexible hose. The natural gas connection for the new burner will be located in the middle of the burner front plate. The vent piping is acceptable; the vent valves will be replaced. Paint the new piping in accordance with NewPage specifications. Remove enclosure, transmitters, and support. Route

instrument air to

each burner air

slide drive.Page 23 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 7. Natural Gas Ignitor: The header piping for the natural gas ignitors will be reused. The local ignitor trains will be replaced with new solenoid valves, etc. The new trains will be located close to where the existing trains are positioned.

8. The No.6 Fuel Oil System: The main oil header is going to be reused, with the exception of the oil flow meter which will be replaced with a new unit, flanged end connections. The piping local to each burner will be removed. The riser headers from the horizontal header on the first floor will be reused. Coming off each riser

will be manual valve and an ITT Skotch Trifecta oil shutoff valve for each burner.

One connection on the valve is the oil and the other is the steam.

The valves will be located on the right side of each burner, where the existing oil riser tap-off exists. This valve incorporates an auto purge feature, eliminating most of the boiler front piping that currently exists. The recirculation line will be reused, and will tie-in upstream of the Skotch valve. All oil piping will be painted in accordance with NewPage specifications and insulated.

9. Atomizing Steam: The atomizing steam sy stem will require some modifications. The piping from the header will be reused. Our intention is to reuse the riser that is located in the center of the burner front. It will be reconfigured to connect to the burners on the left side of the boiler. The existing left side riser will be cut, capped, and removed as indicated in the picture below. Position

Skotch

valves in

these two

locations on

both floorsPage 24 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 A tee will be added where the center riser braches off, and a new pipe run to right side of boiler. The existing right-side oil riser will be followed with the new steam riser to service the right hand burners. All existing local burner steam piping will be cleared as it will not be reused. The riser will be connected to the Skotch valve at each burner. A pressure gauge, manual isolation valve and strainer will be inline prior to the Skotch valve. All steam piping will be painted in accordance with NewPage specifications and insulated.

10. All necessary connections will be made, pneumatic lines (3/8” stainless steel tubing) will be ran to the Skotch valve (the natural gas safety shutoff valves will be Maxon electric actuated).

11. Flexible hose will be installed between valve trains and burner.

12. The piping will be supported as necessary, in accordance with New Page specifications. Cut and cap

steam line here.

Demo riser.

Cut off riser

connection and cap.

This line will

connect to

left side

Remove all existing

steam piping



### .Page 25 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Electrical and Instrumentation Work and Specification (Electrical Contractor)

Burner Front Wiring:

1) Proper tagging of wires will be confirmed when they are removed and reterminated at the burner fronts. 2) Once new valve trains are installed, all devices will be re-terminated. Devices will be re-installed at existing locations. 3) Existing Maxon oil safety shut-off valve will be replaced with new oil/atomizing steam safety shut-off valves. There are currently four (4) conductors to existing Maxon valve. The new oil valve requires seven (7) conductors and two (2) spares. The new wires will run where the existing wiring is through cable tray to the existing control cabinet room.

4) There will be two (2) additional solenoids and three (3) additional switches all located within 2’ at the center line of each burner. These will be shop wired to a single junction box located in this area. Seven (7) and two (2) spare conductors will be pulled to the existing control cabinets as described above.Page 26 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 5) HPC will ring out and document all wiring from the new junction box enclosure to the existing control cabinets. 6) All Digital 120VAC control wiring shall be red #14 AWG THHN 600V rated with

wire markers on both ends. 7) Add 4-20 mA wiring for new airflow piezometer transmitter. Piezometer will be located upstream of the fan and FGR connection near the inlet.

F. Site Management / Commissioning

Hamworthy Peabody Combustion will perform a ll required site supervision services, including installation supervision, equipment check out, and commissioning.Page 27 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 V COMMERCIAL:

Pricing:

Our price for the proposed equipment and work as described herein:

Base Price:

The firm turnkey price for the Burner retrofit project for Boiler 8 Including Engineering, Equipment, Installation, & Commissioning Services as described

above is: $797,900.00 (Seven Hundred Ninety Seven Thousand Nine Hundred US Dollars)

Validity:

This proposal is valid for a period of 60 days from date of issue.

Terms of Payment: (Pending Credit Approval)

With Order 30% On submission of drawings 10% On shipment of equipment 40% On successful startup of Boiler 20%

All invoices are due and payable 30 days after date of issue.

Project Schedule:

Based on current workload, shipment availability of the above equipment from receipt of order and all necessary data to allow us to proceed is estimated as follows:

Weeks Drawings preparation and submittal for approval 6-8 Customer review and approval 2 Equipment manufacture 12-14 Equipment inspection, testing and crating 1 Installation, check-out, and Commissioning 4 TOTAL Estimated Delivery 25-30 weeks A.R.O. & acceptancePage 28 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Exclusions:

• All sales taxes and duties (including VAT's)

• Permits and Approvals

• Any and all asbestos removal/encapsulation

• Any and all lead paint removal/encapsulation

• Supply of site utilities to contact termination points

• Spare Parts

Terms and Conditions:

The acceptance of our quotation includes acceptance of the attached Hamworthy Peabody Combustion, Inc. Standard Terms and Conditions of Sale and of the special conditions (if any) stated in this proposal.

HPC is willing to agree to mutually acceptable commercial terms and will require that the following conditions be included in any such mutually agreed terms:

1) In all instances both parties will act in a fair and reasonable manner. 2) Any reference to “Time is of the Essence” or the related conditions is hereby excluded. Late delivery attributable to the supplier compensated by liquidated damages (if applicable) at the rate of 0.5% per week to a maximum of 5% of the contract value. The liquidated damages are the sole liability for late delivery and are in full and final settlement of any claim. 3) Hamworthy Peabody Combustion shall be under no liability to the Customer for any indirect or consequential loss (including but not limited to shortcomings in Customer’s equipment, loss of profit, income, production or plant availability, additional fuel, labor or other costs or for any third party claims or losses). 4) Hamworthy Peabody Combustion's liability for breach of contract shall be limited to money damages only and under no circumst ances shall such liability exceed: i. In respect of a failure to achieve agreed contractual emission limits (if applicable) on the sale of products incorporating burners, the price of

burners. ii. In respect of all other breaches, the Contract Price actually paid. 5) Title will not pass to the purchaser until all outstanding monies are paid. 6) Force Majeure must be included as a legitimate reason for delay. Force Majeure shall not have any exclusion(s). 7) Contract payment cannot be offset against other or different legal matters not

associated with this contract. 8) Client approval and/or comments are required within the agreed time specified. Failure to comply is a legitimate reason for extension of the project time-scales. 9) Third party inspection, customer inspection, costs and expenses are specifically excluded except where specifically stated. 10) The copyright/design right in all drawi ngs and designs supplied by us is hereby asserted and such drawings and designs shall only be used for the execution of this

contract. 11) The Buyer is responsible for providi ng Hamworthy Peabody Combustion with the information necessary to enable Hamworthy Peabody Combustion to carry out the contract and we are not responsible for any shortcomings in such information. BothPage 29 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413parties accept that in complicated engineering projects the contract will involve cooperation. Both parties will have an overriding duty to act fairly and reasonably. 12) If applicable; any performance bonds provi ded by the vendor will not be claimed by the purchaser until all the full rigors of the contract have been explored between both parties including any arbitration proceedings. 13) Save in respect of damages for death and personal injury, the Company’s liability for negligence shall be limited to $1M. For all other torts, the Company’s liabilities will be limited to the amount of its relevant insurance policies.

Technical Data:

All technical data included in this proposal is subject to confirmation during detailed engineering of the project.

Technical sales literature included with this proposal is for illustration purposes only and does not constitute a contractual or performance commitment.

Customer Obligations:

This proposal has been prepared and submitted based on customer supplied specifications, technical and operational data. Any change in this data may result in a change in the scope and price proposed.

Instruction Manuals:

One (1) hard copy of the manual will be provided along with one (1) CD containing Adobe PDF copies of the manual documents.

Additional manuals can be provided upon request, and may be subject to a nominal charge.

Drawings:

Adobe PDF copies of contract drawings will be supplied for approval via email. Hard copies of contract drawings can be provided, if requested. All drawings will be in English Units and in the English language.

After purchaser review of the approval drawi ngs, revised copies will be provided at no additional charge, provided the changes do not alter the scope of the project.

Final revisions of the drawings will be included in the instruction manual.

Drawings provided to Hamworthy Peabody fr om sub-suppliers will be provided as

necessary.

Confidentiality:

This proposal contains proprietary information not to be duplicated, used or disclosed for any purpose whatsoever other than for bid evaluation.Page 30 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Guarantees/Warranty:

Except as detailed below the equipment offered in this proposal is guaranteed for a period of 12 months from start-up or 18 months from shipment, whichever occurs first. This guarantee is subject to the conditions of Hamworthy Peabody Standard Terms and

Conditions of Sale.

Performance Guarantees

Emissions Performance

Based on the supplied information the following are emission guarantees for the above quoted burners: Gas firing No. 6 Oil Firing

% FGR 7.5% 10% NOx, lb/MMBtu 0.20 0.40

Notes:

• Emissions stated above are applicable for boiler loading from 25% to 100% of MCR, unless noted otherwise above.

• All ppm values stated above (where applicable) are corrected to 3.0% O 2 dry

basis.

• The burner MCR excess air levels stat ed herein are expected operating levels and may need to be adjusted during commissioning to optimize combustion to achieve other performance criteria stat ed herein (i.e. NOx and / or CO emissions.

• The above NOx emission levels are based on the ability of the boiler system design and configured combustion control system to control excess O 2 levels and FGR when firing gas or oil at:

o The Excess Air/O 2 levels stated in the Technical Section of this proposal

from 50% to 100% load.

o Excess O 2 levels between those stated in the Technical Section of this proposal and not more than 5% O 2 from 25% to 50% load.

• Where applicable NOx guarantees are given on the basis of fuel Nitrogen being measured by ASTM-D5762 for heavy oils and ASTM D-4629 for light oils, full

measurement tolerances are assumed in HPC favor.

• Nitrogen Test Methods for Fuels Oils:

Test Method Test Method Nitrogen Range Accuracy Comments

ASTM D3228 0.015% - 2.0% ± 0.17% N 2 Will give high readings if

used for RFO.

ASTM D4629 0.00003% - 0.01% ± 0.0025%

N 2 Non preferred method –

can read low.

ASTM D5762 0.004% - 1.0% ± 0.03% N 2 Preferred method.Page 31 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Summary:

ASTM D3228 This method covers the determination of nitrogen in fuel oils when present in the

concentration from 0.015 to 2.0% mass.

Note: This method may not be applicable to certain materials containing N-O or N-N linkage.

Method - Modified Kjeldhal Method

ASTM D4629 This method covers the determination of trace total nitrogen naturally found in liquid hydrocarbons boiling in the range of 50 to 400 °C, with viscosities between 0.2 and 10 cSt (mm2/s) at room temperature. This method is applicable to distillates and oils containing 0.00003% to 0.01% nitrogen by mass.

Method - Syringe Inlet Oxidative Combustion & Chemiluminescence

ASTM D5762 This method covers the determination of nitrogen in liquid hydrocarbons in the range from 0.004 to 1% nitrogen by mass. For light hydrocarbons containing less than 0.1% nitrogen, Test Method D4629 is more appropriate.

Method - Boat-Inlet Chemiluminescence

Note: The accuracy of the methods is given as + % N 2 . Therefore if the analysis of the oil gives a reading of 0.3% and the accuracy is quoted + 0.17% N2, this means the actual level of the Nitrogen is

between 0.13 - 0.47%

Proposal Revision Summary:

Revision No. Description of Scope/Change 0 Firm Turnkey ProposalPage 32 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 Exceptions & Clarifications:

- Hamworthy Peabody reserves the right to inspect the boiler / furnace during the proposal and/or contract stages to verify furnace conditions.

- As specified, and due to the unknown extent of asbestos, lead based paint and silica containing areas; we have excluded abatement of these materials from our scope as well as any scheduling or cost impacts.

- Unless otherwise specified the equipment si zing, performance and pricing is based on the fuel analysis stated in the Technical Specification of this proposal. Any variations in actual fuel analysis may alter performance and emissions.

- HPC has offered a prediction on no fl ame impingement as defined by ABMA:

Per the American Boiler Manufacturers Association (ABMA): Flame impingement is defined as the c ondition which exists when the flame resulting from the combustion of the fuel comes into contact with any interior surface of the furnace in such a way as to result in localized incomplete

combustion of the fuel and such condition manifests itself in the formation of hard carbonaceous deposits at the contact location. Flame impingement is a condition of firing a fuel which may cause failure and/or excessive maintenance of

combustion chamber wall surfaces.

If a particular flame length is required as a guarantee, then HPC will require that the furnace needs to be completely/100% air tight with a distribution grid for a CO Travers where the boundaries of the flame will be considered to be with values above 2,500 ppm

CO.

- We have not had an opportunity to inspect the inside of the boiler / furnace. Thus, our quotation is based on the premise that all existing boiler design criteria reflects the actual operating conditions prior to burner modification and upon request Purchaser can document such operating conditions.

- HPC has not included for any seismic loading or calculations in our offering.

- HPC has not included for any PE stamping of our drawings submittals.Page 33 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 - HPC assumes that all existing equipment which is going to be reused, including mechanical, electrical, controls and all other field devices controlled or monitored by the BMS and/or CCS are in proper working order and meet all applicable codes. Repairs or replacement of malfunctioning equipment not supplied by HPC under this contract is not within the scope of this contract. HPC assumes no liability for existing equipment that is reused. This includes

but is not limited to:

3⁄4 All boiler field devices, such as actuators, steam switches, drum level switches, etc which will be reused. Corrections of deficiencies from original design and performance of this equipment are not within the scope of this contract.

3⁄4 All existing electrical conduit and wiring. Corrections of deficiencies in the performance of this equipment are not within the scope if this contract

3⁄4 All reused existing valve trains and components, including ignitor header, main gas header, No.6 fuel oil header, and atomizing steam header. Corrections of deficiencies in the performance of this equipment are not within the scope if this contract

3⁄4 The forced draft fan. Performance of the fan is assumed to be at or near original performance, and able to comply with NewPage provided fan curve. Corrections of deficiencies in the performance of this equipment are not within the scope of this

contract.

- HPC assumes that the all existing boiler equipment is like new and ready for the retrofit.

- HPC excludes all boiler repair work that may be necessary, including, but not limited to: tube work / leaks, drums, target wall, and floor, ID ducting, stack and associated ducting, etc., the existing boiler structure and supports, inlet air plenum and ash hopper, and boiler front wall (once the existing burner throats and ash retention hoppers are removed). Corrections of deficiencies of this equipment are not within the scope of this contract.

- HPC assumes that the existing windbox is in good condition and able to support the new burners. Corrections of warpage or failure of windbox or its supports are not within the scope of this contract.

- Hamworthy Peabody reserves the rights to review further local state/province requirements that may impact our scope of supply. Any changes required in our design or scope of supply as a result of additional pertinent specifications/requirements will be as a contract

adder.

- HPC shall provide its standard Welding protocols for the quoted equipment. HPC internal welding procedure can be made available for your review and comment. We have not included for any NDE (nondestructive examinat ion), Radiography, Ultrasonic, or magnetic particle examination methods.

- HPC shall provide its standard surface prepar ation and painting suitable for the environment for the quoted equipment. HPC surface preparation and painting can be provided for your review and comment upon request.Page 34 Proposal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 - All fuel valving shall be site arranged such that the location of the ignition and main fuel safety shut off valves does not impede the ability of the burner or burner management system to satisfy NFPA time requirements for ignitor and/or main fuel flame proving.

- Hamworthy Peabody standard quality control program and testing have been offered. Hamworthy Peabody Combustion, Inc. is an ISO 9001:2008 registered company.

- Once contract is awarded, if requested, Hamworthy Peabody Combustion can provide contractor, safety, quality, drug testing, and labor relations information required.

- Our quotation and scope of supply is strictly based on the standard industry specifications, namely: NFPA 85. Hamworthy Peabody cannot verify our compliance with any other specifications that may be referenced for this project that may pertain to our scope of supply. Any changes required in our design or scope of supply as a result of additional pertinent specifications will be as a contract adder.

- The repair of any pipe leaks or existing damage to the main gas, ignitor gas, No.6 fuel oil, and atomizing steam piping are not included in this proposal. Corrections of deficiencies of this equipment are not within the scope of this contract.

- HPC assumes that all existing wiring is to NEC. Any existing wiring not in compliance is not the responsibility of HPC.

- Unless otherwise specified the equipment si zing, performance and pricing is based on the fuel analysis stated in the Technical Specification of this proposal. Any variations in actual fuel analysis may alter performance and emissions.

- Contractor will place all discarded materials in a location designated by customer. Customer is responsible for removal of rubbish from site.Pro posal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 VI) Related Work Experience / Reference List for Turnkey Contracts:

Hamworthy Peabody Combustion has provided equipment on a turnkey basis for more than 30 years.

Our approach to turnkey applications is to use local, customer approved contractors who are familiar with the site conditions and regulations. The site management will be by Hamworthy Peabody Combustion personnel such that we will have a representative on site during the complete installation / demolition process. All startup & unit commissioning will be performed by a certified Hamworthy Peabody Combustion Commissioning engineer.

We have attached a list of turnkey projects for your review.Pro posal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 VII) Company Profile and Technical Capability:

A. Company Profile:

Hamworthy Peabody Combustion History: Hamworthy Peabody Combustion was founded by Er nest Peabody in 1920. Prior to forming Hamworthy Peabody Combustion, Ernest took a position with Babcock & Wilcox, where he was assigned to investigate methods of burning fuel oil. Peabody showed his early productive talents by inventing a revolutionary oil furnace and developing mechanical atomizers badly needed by the U.S. Navy.

Peabody's pioneering spirit was combined with an entrepreneurial instinct. In 1920, he organized the Peabody Engineering Corporation, beginning more than four decades of personal leadership in the manufacture of unique combustion equipment for industry.

The new company's initial mission was to develop a wide-range mechanical atomizing burner based on principles discovered by Commander Joseph Fisher (USN) to at omize oil for diesel engines. The famous Peabody-Fisher burner, using a recirculating oil atomizing tip, was patented in 1921. This development allowed individual mechanical atomizing oil burners to operate over a wide capacity range for the first time.

The company rapidly became a supplier of large burners for boiler applications, an activity that formed the base for Peabody's growth up to the present.

The early 1920's were a time of innovation with new patents, products, and installations. A versatile double-port register burner was patented, equipment for scrubbing flue gases was introduced, and large installations were completed ranging from steamships (SS Leviathan) to power stations (Cumberland Power & Light) to commercial (R.H. Macy & Co.) and industrial facilities (Johns-Manville Co.).

Still growing through the great depression and during the years leading up to World War II, additional burner patents were obtained and dozens of burner designs were introduced, including the well known Type M multifuel burner that could fire gas and oil alone or in combination. An early version of this outstanding burner is part of the Smithsonian permanent collection.

During WW II, Peabody Engineering provided burners and associated combustion equipment for the thousands of cargo ships ferrying material to battlefronts around the globe. Wartime developments included the introduction of Peabody Type A and Type H gas and oil burners and an emphasis on "constant differential" wide-range oil burning systems.

In the high-growth, postwar period, and through the early 1950's Peabody Engineering introduced many additional products including ignition equi pment, remote burner controls, burner systems designed for use with package boilers, kiln burners, and a line of patented gas/oil and solid fuel burners. Other products at the time included gas scrubbers, coolers, and absorbers; refinery burners; flame failure detection systems; and direct-fired air heaters.Pro posal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 A few of the hundreds of important installations made during the 1950's included West Point Military Academy, Brooklyn Union Gas Company, Gimbel Brothers, and Eberhard Faber Pencil Company.

Peabody Engineering was a New York City entity until it transferred all operations to Stamford, Connecticut in 1969. It's unique contributions to combustion technology attracted international attention. As far back as 1928, a subsidiary was formed in England, where Peabody carried on an aggressive research and development effort.

A Canadian subsidiary, Peabody Engineering Canada, Ltd., established in Toronto in 1959, brings Peabody products to that important sector of the world. In 1984, Peabody Engineering formed Ingeneria Peabody S.A. de C.V. in partnership with Groupo Industrial AXIS, and established a dominant position in the Mexican marketplace for combustion equipment.

This international presence has seen the instal lation of Peabody equipment around the world – to the Middle East and Far East, to Central and South America, Africa, Australia, and Japan.

A major development in the 1970's was the development of the Air Pressure Recovery (APR TM ) lowexcess air burner which provides electric utilities and industrial power plants with a high efficiency, multi-fuel burner that reduces fuel costs and stack emissions. Initial large utility installations at Florida Power, Puerto Rico Electric Power Authority, and Consolidated Edison proved the value of this revolutionary burner.

By careful control of air flow, the APR burner provides highly efficient mixing of fuel and air resulting in outstanding performance. More than 1000 APR burners are installed in nearly 100 locations worldwide, making it the burner of choice for high-efficiency/low emission applications.

The 1980's brought unprecedented progress in the continuing growth of Peabody Engineering as a leading manufacturer of combustion equipment. Duri ng this period, clean-burning Peabody low-excess

air burners continued to be installed in record numbers.

Peabody burner management, flame detection, and igniti on systems set the standard for reliability. And Peabody equipment for the process industries remained an important part of an expanding product

line.

In the first of several partnerships, Peabody Engineering began significant restructuring when it joined Hercules Galion in 1969 forming Peabody Galion Cor poration – later to become Peabody International Corporation. In 1985 Peabody

International and Pullman Corporation merged creating Pullman-Peabody Company to provide transportation, energy, and process related products.

Since 1992, Peabody Engineering has been a cornerst one of the Hamworthy Group of combustion companies that includes Hamworthy Combustion Sy stems, Airoil-Flaregas, and Peabody Engineering Ltd., all of the United Kingdom. This association places Peabody Engineering in a group of combustion companies with worldwide activities and provides access to European technologies and products. The Group is supported by one of the world's largest oil and gas firing test facilities.

A major effort beginning in the 1980's and continuing today is the development of a technically advanced burner that reduces NOx formation, has lo w CO emissions, produces less particulates, and operates at fuel efficient low-excess air levels.Pro posal: S16729

Hamworthy Peabody Combustion, Inc. 70 Shelton Technology Center, Shelton, Connecticut, 06484 USA Tel.: (203) 922-1199 Fax: (203) 922-9413 The resulting Peabody-Hamworthy DFL / MSC 2 low NOx burners provide these benefits without the use of costly external porting, flue gas recirculation, or additional emission control equipment. It sets the standard for low NOx operation and continues Peabody's position of combustion leadership. Over all its years of operation, Peabody Engineering has had a deep involvement with American industry. Peabody equipment, for example, is installed at more than 32 different plants representing 22 companies in the pulp and paper industry alone.

The company also continues a long-standing traditi on of supporting the steam generation industry. Ernest Peabody helped establish the Industrial Oil Burning Equipment Association in the early 1930's to protect large oil burning facilities from unfai r government standards. Peabody Engineering, as a member of the American Boiler Manufacturers Association, continues to be attentive to association interests and goals.

An important part of the company's task today is t he investigation of new markets to supplement the maturing power industry. Completely new product lines are being developed by the Hamworthy Group while Peabody continues to define its position in specialized combustion equipment such as burners designed to augment heat input for cogeneration and fluidized bed combustor systems.

In August of 2004 Peabody Engineering Corporation as part of the Hamworthy Combustion Group changed its name to Hamworthy Peabody Combustion, Inc.

Hamworthy Peabody Combustion will continue to build on its 80+ years of excellence with efficient, reliable combustion equipment designed to improve ex isting installations, meet the requirements of evolving applications, and serve entirely new areas yet to be recognized.

### ATTACHMENT C – No . 8 Boiler NOx Control Cost AnalysisCAPITAL COSTSANNUALIZED COSTSNO. 8 BOILERANNUALCOST ITEM FACTOR COST ($) COST ITEM COST FACTOR UNIT COST COST ($)Costs to Purchase and Install EquipmentAnnual Operating CostsPurchased Equipment CostsDirect Annual Costs(a) Burners(a)Operating LaborPurchased Equipment Costs Subtotal A (a)Labor, one employee 0 hours/shift $56.00 per hour $0ATTACHMENT C (REVISED 6/18/2012)ESCANABA PAPER COMPANYBART EVALUATION CAPITAL AND ANNUALIZED COSTSNO. 8 BOILER NOxCONTROLLOW NOXBURNERS(b) Instrumentation 0.100 A (a)(b) Sales taxes 0.030 A (a)Maintenance(b) Freight 0.050 A (a) (b)Maintenance Labor and Materials0.015TCI$11,969Total Purchased Equipment Cost B (a)UtilitiesDirect Installation CostsTotal Direct Annual CostsDAC $11,969Guns, piping, electrical, refractory, misc.1.14 B (a)Direct Installation CostC (a)Indirect Annual Costs(b) Overhead 60% of sum of operating & maintenance costs $7,181Total Direct CostD (a)(b) Administrative Charges 2% of TCI $15,958(b) Property Taxes 1% of TCI $7,979Indirect Costs (Installation)(b) Insurance 1% of TCI $7,979(b)General Facilities0.05 D (a)(b)E i i d H Offi F0 10D( )T t l I di t A l C tIAC$39 097Engineering andHomeOfficeFees.aTotalIndirectAnnualCosts$39,097(b)Process Contingency0.05 D (a)(b)Project Contingency0.15 (D+Gen Fac+Eng+Proc Cont) (a)Total Annual O&M CostsO&M $51,066(b)Total Plant Cost(D+Gen Fac+Eng+Proc Cont+Proj Cont) (a)(b)Preproduction Cost0.02 Total Plant Cost (a)Cost EffectivenessExpected lifetime of equipment, years 15Interest rate, %/yr 7.0%Total Capital Investment (TCI).............................................................................Tot Plt Cost+Pre Prod Cost$797,900Capital recovery factor 0.110Total capital investment cost $797,900Annualized capitalinvestment cost$87,605Total Annualized Cost (Including O&M)$138,671Incremental Cost Effectiveness129.0 tons NOx/yrAnnual Cost/Ton Removed51.6 tons NOx/yr 40% NOx removalNOx Evaluation$2,687Controlled Emissions if the Mill were to Utilizecurrent FGR on a Year-Round Basis and AlsoInstall LNBNotes:(a) Cost information obtained in December, 2009 from Hamworthy Peabody (now a division of Coen). Individual purchased equipment, direct installation, and indirect installation costs have not been calculated. EPC has a firm-bid turnkey price quotationthat includes such costs. Therefore, the TCI represents the firmbid turnkey price for the installation of low NOxburners.(b) Cost information estimated using the U.S. EPA Air Pollution Control Cost Manual (6th edition) published in January 2002 bythe OAQPS. The website for the manual is available at http://www.epa.gov/ttn/catc/dir1/c_allchs.pdf.No. 8 PB Cost Effectiveness Calcs 6_12_12.xls, 8PB LNB6/19/2012

### ATTACHMENT D – Post -Control NOx Emissions and Control Cost

Effectiveness SummaryAttachment DNo. 8 Boiler Historic and Post-Control Annual NOxEmission RatesEscanaba Paper Company - Escanaba MillCurrent Scenario 40% Control Efficiency 20% Control EfficiencyActual Avg. NOxEmission Rate(lb/MMBtu)Actual NOx(a)Emisisons(TPY)Post-Control Avg. NOxEmission Rate(lb/MMBtu)Post-Control NOxEmissions(TPY)Post-Control Avg. NOxEmission Rate(lb/MMBtu)Post-Control NOxEmissions(TPY)20040.223 140 0.134 84.0 0.178 112.020050.204 129 0.122 77.4 0.163 103.320060.234 111 0.140 66.8 0.187 89.020070.231 62 0.139 37.4 0.185 49.920080.218 22 0.131 13.2 0.175 17.620090.261 76 0.157 45.6 0.209 60.820100.157 45 0.094 27.3 0.125 36.420110.188 35 0.113 21.3 0.150 28.4$2,476 - $15,758 $4,953 - $31,516Notes:a)As reported on the Mill's historic MAERS reports.b)Total annualized cost for the installation of low NOxburners on the No. 8 Boiler is estimated at $138,671 /year.YearRange of Cost Effectiveness ($/ton NOxRemoved)Actual 2004 2011 BART Emission Rates.xlsPB8 Nox Controlled Em Rates6/19/2012