August 11 , 2010

Permit: APC

- 2010 / 0082

- CONSTRUCTION (NOx RACT)(NSPS)

Permit: APC

- 2010 / 0083

- CONSTRUCTION (NOx RACT)(NSPS)

Mountaire Farms of Delaware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2

Mountaire Farms of Delaware, Inc.

P.O. Box 1320 Millsboro, DE 19966

ATTENTION: Beth B. Sise

Environmental Manager

Dear Ms. Sise :

Pursuant to the 7 DE Admin. Code 110 2 Section 2 and Section 11, approval by the Department of Natural Resources and Environmental Control is hereby granted for the const ruction of Boiler 1 (Emission Unit 1) and Boiler 2 (Emission Unit 2), both Cleaver Brooks boile rs , Model CBLE

- 800

- 150ST, to fire on natural gas

, located at the Millsboro Complex in Millsboro , Delaware, in accordance with the application submitted on

Form N os. AQM

- 1

, AQM

- 2 , AQM

- 3. 2, AQM

- 5, AQM

- 1001, AQM

- 1001A, AQM

- 1001W and AQM

- 1001BB

dated May 27, 2010 signed by Paul Downes, COO

.

This permit is issued subj ect to the following conditions :

1. General Provisions

1.1 This permit expires on August 31 , 2011. If the equipment covered by this permit will not be constructed by August 31 , 2011, a request to extend this construction permit must be submitted by July 18 , 2011

.

1.2 The project shall be constructed in accordance with the applica tion described above. I f changes are necessary, revised plans must be submitted and a supplemental approval issued prior to actual construction.

1.3 Representatives of the Department may, at any reasonable time, inspect this facility.

1.4 This permit may not be transferred to another location or to another piece of equipment or

process.Permit: APC

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- CONSTRUCTION (NOx RACT)(NSPS)

Permit: APC

- 2010 / 0083

- CONSTRUCTION (NOx RACT)(NSPS)

Mountaire Farms of Del aware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 August 11 , 2010 Page 2

1. 5 This permit may not be transferred to another person, owner, or operator unless the

transfer has been approved in advance by the Department. A request for a permit transfer

shall be re ceived by the Department at least thirty (30) days before the date of the requested permit transfer. This request shall include:

1. 5 .1 Signed letters from each person stating the permit transfer is agreeable to each

person ; and

1. 5 .2 An Applicant Backgr ound Information Questionnaire pursuant to 7 Del. C. , Chapter 79 if the person receiving the permit has not been issued any permits by the Department in the previous five (5) years.

Approval (or disapproval) of the permit transfer will be provided by the Department in writing.

1.6 The applicant shall, upon completion of the construction, installation, or alteration, request in writing that the Department grant approval to operate.

1.6.1 A separate application to operate pursuant to 7 DE Admin. Code 11 02 does not need to be submitted to the Department for the equipment or process covered by this construction permit. Upon a satisfactory demonstration by an on

- site inspection that the equipment or process complies with all of the terms and

conditions of this permit, the Department shall issue a 7 DE Admin. Code 1102 Operating Permit for this equipment or process.

1.6.2 The applicant shall notify the Department sufficiently in advance of the demonstration and shall obtain the Department’s prior concurre nce of the operating factors, time period, and other pertinent details relating to the

demonstration.

1.6.3 The provisions of 7 DE Admin. Code 1102 Sections 2.1 and 11.3 shall not apply to the operation of equipment or processes for the purposes of initia lly demonstrating satisfactory performance to the Department following construction, installation, modification, or alteration of the equipment or processes.

1.7 The owner or operator shall submit a complete application for a significant permit

modificati on to Permit: AQM

- 005/00004 (Renewal 2) pursuant to 7 DE Admin.

Code 1130 Section 7.5.3 within twelve calendar months of requesting permission to
operate. The application shall address all applicable requirements including those of 40 CFR Part 64 (Complia nce Assurance Monitoring) if applicable.

1.8 The owner or operator shall not initiate construction, install, or alter any equipment or facility or air contaminant control device which will emit or prevent the emission of an air contaminant prior to submit ting an application to the Department pursuant to 7 DE

Admin. Code 1102, and, when applicable 7 DE Admin. Code 1125, and receiving approval of such application from the Department; except as exempted in 7 DE Admin.

Code 1102 Section 2.2.Permit: APC

- 2010 / 0082

- CONSTRUCTION (NOx RACT)(NSPS)

Permit: APC

- 2010 / 0083

- CONSTRUCTION (NOx RACT)(NSPS)

Mountaire Farms of Del aware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 August 11 , 2010 Page 3

2. Emission Limi tations

2.1 Air contaminant emission levels shall not exceed those specified in 7 DE Admin. Code 1100 and the following:

2.1.1 Volatile Organic Compound ( V OC) Emissions

V OC emissions shall not exceed 0.13 pounds per hour and 0.57 tons per twelve (12) month rolling period for each boiler

.

2.1.2 Nitrogen Oxide (NOx) Emissions

NOx emissions shall not exceed 1.14 pounds per hour and 4.99 tons per twelve (12) month rolling period for each boiler

.

2.1.3 Carbon Monoxide (CO) Emissions

CO emissions sha ll not exceed 1.19 pounds per hour and 5.21 tons per twelve (12) month rolling period for each boiler

.

2.1.4 Sulfur O xide (SO x ) Emissions

SO 2 emissions shall not exceed 0.06 pounds per hour and 0. 24 ton per twelve (12) month rolling period for each boi ler

.

2.1.5 Particulate Matter (PM10) Emissions

PM10 emissions shall not exceed 0.33 pounds per hour and 1.43 tons per twelve (12) month rolling period for each boiler

.

2.2 P articulate emissions from each emission unit shall not exceed 0.3 lb/MMBTU h eat input on

a maximum two (2) hour average.

2.3 Nitrogen oxide emissions from Emission Units 1 and 2 shall not exceed those achieved through an annual tune

- up performed by qualified personnel.

2. 4 No person shall cause or allow the emission of visib le air contaminants and/or smoke from a stationary or mobile source, the shade or appearance of which is greater than twenty percent (20%) opacity for an aggregate of more than three (3) minutes in any one (1) hour or more than fifteen (15) minutes in any twenty

- four (24) hour period.

2. 5 Odors from this source shall not be detectable beyond the plant property line in sufficient quantities such as to cause a condition of air pollution.

3. Operational Limitations

3.1 The owner or operator shall comply with the following operational limits:

3.1.1 The Company shall combust only natural gas in these emission units.

3.1.2 Total natural gas combusted in Emission Units 1 and 2 shall not exceed 54 3.45 MMSCF in any rolling twelve

- month period.

3.1.3 No o wner or operator shall build, erect, install, or use any article, machine, equipment or process, the use of which conceals an emission which wouldPermit: APC

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Permit: APC

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- CONSTRUCTION (NOx RACT)(NSPS)

Mountaire Farms of Del aware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 August 11 , 2010 Page 4

otherwise constitute a violation of an applicable standard. Such concealment includes, but is not limited to, the use of gaseous diluents to achieve compliance with an opacity standard or with a standard which is based on the concentration of a pollutant in the gases discharged to the atmosphere.

3.1.4 The owner or operator of an affected facility shall record a nd maintain records of the amount of fuel combusted during each operating day.

3.1.5 As an alternative to meeting the requirements of Condition 3. 1.4 , the owner or operator of an affected facility may elect to record and maintain records of the

amount of fuel combusted during each month.

3.1.6 As an alternative to meeting the requirements of Condition 3. 1.4 , the owner or operator of an affected facility or multiple affected facilities located on a contiguous property unit may elect to record and maintain records of the total amount of each steam generating unit fuel delivered to that property during each

calendar month.

3.1.7 Operating hours for each boiler shall not exceed 8,736 hours in any rolling twelve

month period. The Company shall meet the contro l technology requirements of Minor New Source Review if the Company requests an increase in operating limits that result in a NOx potential to emit above five tons per year.

3.1.8 The Company shall have qualified personnel perform tune

- ups for Emission Units 1

and 2.

3. 3 At all times, including periods of startup, shutdown, and malfunction, the owner or operator shall, to the extent practicable, maintain and operate the facility, including associated air pollution control equipment in a manner consisten t with good air pollution control practice for minimizing emissions. Determinations of whether acceptable operating procedures are being used will be based on information available to the Department, which may include, but is not limited to, monitoring re sults, opacity observations, review of operating and maintenance procedures, and inspection of the source.

3. 4 All structural and mechanical components of the equipment covered by this permit shall be maintained in proper operating condition

.

4. Test ing and Monitoring Requirements

4.1 The Department reserves the right to require that the owner or operator perform emission tests using methods approved in advance by the Department.

4. 2 Each month, the Company shall monitor the total MMSCF of natural g as combusted in

Emission Units 1 and 2.

4. 3 Each month, the Company shall monitor the total MMSCF of natural gas for the twelve (12) month period immediately preceding the date of record for Emission Units 1 and 2.

4. 4 The Company shall monitor in a lo g the following:Permit: APC

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- CONSTRUCTION (NOx RACT)(NSPS)

Mountaire Farms of Del aware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 August 11 , 2010 Page 5

4. 4 .1 Each annual tune

- up.

4. 4 .2 Personnel performing the annual tune

- ups.

4. 4 .3 Maintenance performed on the units.

5. Record Keeping Requirements

5.1 The owner or operator shall maintain all records necessary for determining com pliance with this permit in a readily accessible location for five (5) years and shall make these records available to the Department upon written or verbal request.

5.2 The following information shall be recorded, initialed and maintained in a log :

5.2.1 Maintenance performed on the units.

5.2.2 Each annual tune

- up.

5.2.3 Personnel performing the annual tune

- ups.

5. 3 A ny owner or operator shall maintain records of the occurrence and duration of any startup, shutdown, or malfunction in the operatio n of an affected facility; and any malfunction of the air pollution control equipment.

5

. 4 The owner or operator shall maintain records of the amount of fuel combusted in the

boilers in accordance with Condition 3. 1.4 , or Condition 3. 1.5 , or Condition 3. 1.6

.

5. 5 Each month, the Company shall record the total MMSCF of natural gas for the twelve (12) month period immediately preceding the date of record for Emission Units 1 and 2.

5. 6 Each month, the Company shall record the hours of operation for each boiler for the twelve (12) month period immediately preceding the date of record for Emission Units 1

and 2.

5. 7 The rolling twelve (12) month total emissions shall be calculated and recorded each month in a log for each of the following pollutants

.

5. 7 .1 Volatile Organic Compounds

5. 7 .2 Nitrogen Oxides

5. 7 .3 Carbon Monoxide

5. 7 .4 Sulfur Oxides

5. 7 .5 Particulate Matter (PM10)Permit: APC

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- CONSTRUCTION (NOx RACT)(NSPS)

Permit: APC

- 2010 / 0083

- CONSTRUCTION (NOx RACT)(NSPS)

Mountaire Farms of Del aware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 August 11 , 2010 Page 6

6. Reporting Requirements

6.1 Emissions in excess of any permit condition or emissions which create a condition of air

p ollution shall be reported to the Department immediately upon discovery by calling the Environmental Emergency Notification and Complaint number, (800) 662

- 8802.

6.2 In addition to complying with Condition 6.1 of this permit, any reporting required by 7 D E

Admin. Code 1203 “ Reporting of a Discharge of a Pollutant or an Air

Contaminant ”, and any other reporting requirements mandated by the State of Delaware, the owner or operator shall, for each occurrence of excess emissions, within thirty (30) calendar da ys of becoming aware of such occurrence, supply the Department in writing with the following information:

6.2.1 The name and location of the facility;

6.2.2 The subject source(s) that caused the excess emissions;

6.2.3 The time and date of the first observation of the excess emissions;

6.2.4 The cause and expected duration of the excess emissions;

6.2.5 For sources subject to numerical emission limitations, the estimated rate of emissions (expressed in the units of the applicable emission limitatio n) and the operating data and calculations used in determining the magnitude of the excess emissions; and

6.2.6 The proposed corrective actions and schedule to correct the conditions causing the

excess emissions.

6.3 The owner or operator shall submit No tification of the date Construction or Reconstruction is commenced. This notification shall include the following and shall be postmarked no later than 30 days after such date:

6.3.1 The design heat input capacity of the affected facility and identification of fuels to be combusted in the affected facility.

6.3.2 If applicable, a copy of any federally enforceable requirement that limits the annual capacity factor for any fuel or mixture of fuels.

6.3.3 The annual capacity factor at which the owner or operator anticipat es operating the affected facility based on all fuels fired and based on each individual fuel fired.

6.4 The owner or operator shall submit Notification of Initial Startup. This notification shall be postmarked within 15 days of such date and shall include t he information detailed in

Condition 6. 3

.

6. 5 One (1) original and one (1) copy of all required reports shall be sent to the address

below:Permit: APC

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Permit: APC

- 2010 / 0083

- CONSTRUCTION (NOx RACT)(NSPS)

Mountaire Farms of Del aware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 August 11 , 2010 Page 7

Division of Air Quality Blue Hen Corporate Center 655 South Bay Road, Suite 5N Dover, DE 19901

6.6 The Company shall submit notifications and reports required by Conditions 6. 3 and 6. 4 in duplicate to the address below:

The Director, Air Protection Division USEPA Region III

Mail Code 3AP00

1650 Arch Street Philadelphia, PA 19103

- 2029

7

. Administrative Conditions

8. 1 This permit shall be made available on the premises.

8.2 Failure to comply with the provisions of this permit may be grounds for suspension or

revocation.

Sincerely,

Paul E. Foster, P.E. Program Manager Engineering & Compliance Br anch

P EF : JLF : MAS

F: \ EngAndCompliance \ MAS \ mas100 8 1.doc

pc: Dover Title V File

Melanie SmithMEMORANDUM

TO: Paul E. Foster, P.E.

THROUGH: Joanna L. French, P.E.

FROM: Melanie A. Smith, P.E.

SUBJECT: Mountaire Farms of Delaware, Inc.

Millsboro Complex

Permit: APC

- 2010/0082

- CO NSTRUCTION (NOx RACT)(NSPS)

Permit: APC

- 2 0 10 / 0 083

- CONSTRUCTION (NOx RACT)(NSPS)

Natural Gas Boilers 1 a nd 2

DATE: Ju ly 26

, 2010

BACKGROUND INFORMATION

Mountaire Farms of Delaware, Inc. req uested a Construction Permit to construct two Cleaver Brooks boilers, both Model CBLE

- 800

- 150ST and designated Boiler 1 (Emission Unit 1) and Boiler 2 (Emission Unit 2)

, to fire on natural gas

. The new boilers are replacing Boiler 5, a Babcock and Wilcox 36 MMBTU/hr boiler, and Boiler 6, a Babcock and Wilcox 61.7 MMBTU/hr boiler, both fired on No. 6 fuel oil. Beth Sise, Environmental Manager, submitted appropriate application forms on May 27 , 2010. The permit will be

advertised for fifteen days

. After completion of the construction

- t o

- operation inspection, the Company will be issued an operating permit. The Company has twelve calendar months from requesting permission to operate to submit a complete application for a significant permit modification to Permit : AQM

005/00004(Renewal 2) pursuant to 7 DE Admin. Code 1130 Section 7.5.3

.

The Company has not requested confidentiality. The Company is located within the Coastal Zone. The Company has applied for a Coastal Zone Permit, however, it is not necessary for the construction of these boilers

. The Company is current with their annual fees and has paid appropriate construction application fees.

TECHNICAL INFORMATION

Boiler s 1 and 2 are identical and each has a rated heat input of 3 2. 6 59 MMBTU/hr (800 HP)

. A limit of

5 4 3.45 MMSCF (RT1 2) natural gas consumption based on 8,736 hours for both boilers was placed in the permit.

Potential to Emit

Natural Gas Hourly emissions for natural gas at 100% firing rate were taken from Cleaver Brooks Boiler Estimated Exhaust/ Emission Performance Da ta and are tabled below:

Equipment SOx (lb/hr) NOx (lb/hr) CO (lb/hr) PM 10 (lb/hr) V OC (lb/hr)

Boiler 1 0.0 55 1.14 3 1.19 2 0. 3 27 0.13 1

Boiler 2 0.0 55 1.143 1.192 0. 327 0.131MEMORANDUM

Permit: APC

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- CO NSTRUCTION (NOx RACT)(NSPS)

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- CONSTRUCTION (NOx RACT)(NSPS) Mountaire Farms of Delaware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 July 26 , 2010 Page 2

PTE emissions based on 8,760 hours are tabled below:

Equipment S Ox (TPY) NOx (TPY) CO (TPY) PM 10 (TPY) V OC (TPY)

Boiler 1 0. 24 5.006 5.221 1. 43 0

. 5 74

Boiler 2 0. 24 5.006 5.221 1. 43 0

. 574

The source does not exceed threshold limits for Sussex County and is a natural minor. Requested permitted operating hours w ere 24 H/day, 7 days/week, and 52 weeks/yr , for a total of 8,736 hours per

year. Even though the boilers exceed the 7 DE Admin. Code 1125, Section 4, potential to emit threshold limit of five tons per year for NOx , an 8,736 hour per year operating limit c omplies with Minor New Source

Review

.

Rolling twelve month total operating hours will be limited to 8,736 hours to comply with the regulation.

1.143 lb/hr x T/2000 x X hr/yr= 5 TPY NOx X= 8,748.9 hr/yr

Permitted Emissions

Boilers 1 and 2 are operated 24 H/day, 7 days/week, and 52 weeks/yr for a total of 8

, 736 hours. Using the pound/hour emission rates for natural gas and 8

, 736 hours/year, natural gas combustion emissions are

tabled below:

Pollutant Boiler 1 (TPY) Boiler 2 (TPY)

SOx 0. 24 0. 24

NOx 4.9 9 4.99

CO 5.21 5.21

PM 10 1.43 1.43

V OC 0.57 0.57

SCREEN3 Modeling

The effects air contaminant emissions from natural gas combustion on the public health, safety, and welfare were assessed using Department criteria. The criteria assume no adverse effe ct when the ratio of the Threshold Limit Value to the Maximum Downwind Concentration (TLV:MDC) is at least 100:1 at the nearest property line and beyond for each air contaminant released. The TLV of each air contaminant was obtained from the pamphlet, 200 9 TLVs ® and BEIs ® , published by the American Conference of Governmental Industrial Hygienists (ACGIH). The MDC of each air contaminant was computed using SCREEN3 air dispersion modeling.

In utilizing SCREEN3, the boiler stack s w ere treated as point sourc e s . Point source variables in SCREEN3 are air contaminant emission rates (in lb/H), stack height (in ft), stack inside diameter (in ft), stack gas exit velocity (in ft/s) or air flow rate (in acfm), stack gas exit temperature (in  ̊F), receptor height abov e ground level (in ft ), and the rural/urban option. Values input for the stack parameters were the following:

Equipment Stack Height (ft) Stack Diameter (ft) Gas Flow Rate

(acfm) Exit Gas

Temperature (°F)

Boiler 1 3 8 2 9971 379

Boiler 2 38 2 9971 379MEMORANDUM

Permit: APC

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- CO NSTRUCTION (NOx RACT)(NSPS)

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- CONSTRUCTION (NOx RACT)(NSPS) Mountaire Farms of Delaware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 July 26 , 2010 Page 3

The remaining input values were the default value of 70 ° F for ambient temperature, a receptor height above ground of 0 ft, and the urban option. The hourly emissions for PM10 were assumed to be that of

PM.

S CREEN3 predicts the MDC location for each air contaminant for Boiler s 1 and 2 to occur 328 ft from the

exhaust of each stack. The distance to the nearest property line is 2 5 0 ft. The MDC results from SCREEN3 adjusted to an 8

- hour average along with the associated TLVs and the TLV:MDC for each conta minant are

shown below:

Pollutant TLV (8

- hr, mg/m 3 ) MDC (8

- hr, mg/m 3 ) TLV:MDC

NOx 5.65 0.0060 942

SOx 5. 24 0.0003 17,000

V OC 29 0.0007 41,000

CO 28.64 0.0063 4,546

PM10 10 0.0017 5,900

The TLV:MDC ratios for the pollutants are above the 100:1 crite ria established by the Department. As such, the public health, safety, and welfare are presumed to not be adversely impacted by either Boiler 1 ’s

or Boiler 2’s emissions.

REGULATORY REVIEW

X 7 DE Admin. Code 110 2: Permits

X 7 DE Admin. Code 1104: Par ticulate Emissions From Fuel Burning Equipment

X 7 DE Admin. Code 1112: Control of Nitrogen Oxide Emissions

X 7 DE Admin. Code 11 14: Visible Emissions

X 7 DE Admin. Code 11 19: Control of Odorous Air Contaminants

7 DE Admin. Code 11 20: New Source Per formance Standards

7 DE Admin. Code 11 24: Control of Volatile Organic Compound Emissions

X 7 DE Admin. Code 11 25: Requirements for Preconstruction Review

X 7 DE Admin. Code 11 30: Title V State Operating Permit Program

7 DE Admin. Code 11 38: Emiss ion Standards for Hazardous Air Pollutants for Source Categories X 40 CFR Part 60 Subpart Dc: Standards of Performance for Small Industrial

- Commercial

- Institutional Steam Generating Units X 40 CFR Part 60 Subpart A: General Provisions

7 DE Admin. Code 1 10 2 , Section 2.1

, Permits

, is applicable. The Company is subject to the following requirement, “..., no person shall initiate construction, install, alter or initiate operation of any equipment or facility or air contaminant control device which will emit o r prevent the emission of an air contaminant prior to receiving approval of his application from the Department...” With this, the Company shall obtain a 7

DE Admin. Code 110 2 construction permit prior to construction.

7 DE Admin. Code 1104, Section 2.1

, P articulate Emissions From Fuel Burning Equipment

, is applicable

. The boilers are subject to the following particulate emissions limit from fuel burning equipment, “No person shall cause or allow the emission of particulate matter in excess of 0.3 pound pe r million BTU heat input,

maximum 2

- hour average, from any fuel burning equipment.” This emission limitation was placed in the permit. Compliance with 7 DE Admin. Code 1104 shall be consistently demonstrated as long as the

boilers combust natural gas

. T he PM emission factor for natural gas is 1.0E

- 05 lb/MMBTU.MEMORANDUM

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- CONSTRUCTION (NOx RACT)(NSPS) Mountaire Farms of Delaware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 July 26 , 2010 Page 4

7 DE Admin. Code 1112, Section 1.0

, Control of Nitrogen Oxide Emissions , is applicable because the facility is a major source of NOx. As stated in section 3.3.2, since each boiler is less than 5 0 MMBTU/hr, maximum emissions for nitrogen oxides shall not exceed those achieved through an annual tune

- up performed by qualified personnel. The owner or operator shall maintain a log of the tune

- ups performed

on each unit. These conditions have been pl aced in the permit.

DE Admin. Code 11 14

, Section 2.1, Visible Emissions , is applicable. The boilers are subject to the following visible emissions requirement, “No person shall cause or allow the emission of visible air contaminants and/or smoke from a s tationary or mobile source, the shade or appearance of which is greater than twenty percent (20%) opacity for an aggregate of more than three (3) minutes in any one (1) hour or more than fifteen (15) minutes in any twenty

- four (24) hour period.” Particula te emissions from the boilers while operating on natural gas are 1.0E

- 05 lb/MMBTU . This level of particulate should not have a significant potential to cause an opacity violation. Therefore, compliance with the visible emissions standard while operating on natural gas is demonstrated based upon records showing the type of fuel combusted and proper operation of the boiler.

7 DE Admin. Code 11 19 , Section 2.1, Control of Odorous Air Contaminants , is applicable. The boiler is subject to the following contro l of odorous air contaminants requirement, “No person shall cause or allow the emission of an odorous air contaminant such as to cause a condition of air pollution.” C ompliance is demonstrated through the Company having no contradictory knowledge of any c itizen odor complaint and through a satisfactory review of complaint history by the Department. The record keeping requirement has been placed in the permit.

7 DE Admin. Code 11 20

, New Source Performance Standards , is not applicable to the boilers. Acco rding to Section 2.1 of this Regulation, except as provided in Section 9 and Section 11, the provisions of this section are applicable to any fuel burning equipment of more than 250 MMBTU/hr heat input. Section 9 is applicable to electric utility steam gen erating units, and Section 11 is applicable to fuel gas combustion devices in petroleum refineries.

7 DE Admin. Code 11 24

, Control of Volatile Organic Compound Emissions

, is not applicable to Emission

Units 1 and 2

. Each boiler does not emit more than 15 pounds per day of VOCs.

7 DE Admin. Code 11 25 , Section 4.3, Minor New Source Review, Requirements for Preconstruction

Review , is applicable because the boilers will be installed after the applicability date of August 11, 2005

, the source requires a permi t under 7 DE Admin. Code 1102, the source is not covered by the Emission Offset Provisions (EOP) or Prevention of Significant Deterioration of Air Quality (PSD), and each boiler’s potential to emit NOx is greater than 5 TPY. Specifying an operating limit of 8,736 hours/year limits emissions of NOx to below the five ton per year applicability threshold. The Company shall meet the control technology requirements of MNSR if the Company requests an increase in operating limits that result in a NOx potential t o emit above five tons per year

.

7 DE Admin. Code 1130, Title V State Operating Permit Program , is applicable because the facility is a major source of SOx, NOx , and PM10. The permit will be advertised for fifteen days. After completion of

the constructi on

- to

- operation inspection, the Company will be issued an operating permit. The Company has twelve calendar months from requesting permission to operate to submit a complete application for a significant permit modification to Permit: AQM

- 005/00004(Renewa l 2) pursuant to 7 DE Admin.

Code 1130 Section 7.5.3

. These requirements have been placed in the permit.MEMORANDUM

Permit: APC

- 2010/0082

- CO NSTRUCTION (NOx RACT)(NSPS)

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- CONSTRUCTION (NOx RACT)(NSPS) Mountaire Farms of Delaware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 July 26 , 2010 Page 5

7 DE Admin. Code 11 38

, Emission Standards for Hazardous Air Pollutants for Source Categories , is not applicable because the source is not major for HA P.

40 CFR Part 60, Subpart Dc

, Standards of Performance for Small Industrial

- Commercial

- Institutional Steam Generating Units , is applicable to Emission Units 1 and 2 since the boilers are each 32.659 MMBTU/hr. According to §60.40c(a), except as provided in paragraphs (d), (e), (f), and (g) of this section, the affected facility to which this subpart applies is each steam generating unit for which construction, modification, or reconstruction is commenced after June 9, 1989 and that has a maximum design he at input capacity of 29 MW (100 MMBTU/hr) or less, but greater than or equal to 2.9 MW (10 MMBTU/hr).

40 CFR Part 60.48c(a): §60.48c(a) states that the owner or operator shall submit notification of the date of construction or

reconstruction and actual st artup, as provided by §60.7 of this part. This notification shall include:

(1) The design heat input capacity of the affected facility and identification of fuels to be combusted in the affected facility. (2) If applicable, a copy of any federally enforceable re quirement that limits the annual capacity factor for any fuel or mixture of fuels. (3) The annual capacity factor at which the owner or operator anticipates operating the affected facility based on all fuels fired and based on each individual fuel fired.

40 C FR Part 60.48c(g) (g)(1): Except as provided under paragraphs (g)(2) and (g)(3) of this section, the owner or operator shall record and maintain records of the amounts of fuel combusted during each operating day.

(g)(2): As an alternative to meeting the requirements of (g)(1), the owner or operator may elect to record and maintain records of the amount of fuel combusted during each calendar month.

(g)(3): As an alternative to meeting the requirements of (g)(1), the owner or operator of an affected

facili ty or multiple affected facilities located on a contiguous property unit may elect to record and maintain records of the total amount of each steam generating unit fuel delivered to that property during each

calendar month.

40 CFR Part 60.48c(i) : §60.48c (i) requires that all records be maintained for a period of two years. The more stringent five year requirement of the Department will be placed in the permit.

40 CFR Part 60 Subpart A

, General Provisions

40 CFR Part 60.7: In accordance with §60.7(a), th e owner or operator shall furnish the Administrator written notification or, if acceptable to both the Administrator and the owner or operator of the source, electronic notification, as

follows:

(1) A notification of the date construction (or reconstruction) is commenced postmarked no later than 30 days after such date. (2) A notification of the actual date of initial startup postmarked within 15 days after such date.MEMORANDUM

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Permit: APC

- 2010 / 0083

- CONSTRUCTION (NOx RACT)(NSPS) Mountaire Farms of Delaware, Inc.

- Millsboro

Natural Gas Boilers 1 and 2 July 26 , 2010 Page 6

According to §60.7(b), any owner or operator shall maintain records of the occurrence and durati on of any startup, shutdown, or malfunction in the operation of an affected facility; and any malfunction of the air pollution control equipment.

40 CFR Part 60.11(d): At all times, including periods of startup, shutdown, and malfunction, owners and opera tors shall, to the extent practicable, maintain and operate any affected facility including associated air pollution control equipment in a manner consistent with good air pollution control practice for minimizing emissions...” This requirement has been pla ced in the permit as Condition 3. 3 . Compliance shall be demonstrated based on records of maintenance performed on the boilers.

40 CFR Part 60.12: No owner or operator shall build, erect, install, or use any article, machine, equipment or process, the use of which conceals an emission which would otherwise constitute a violation of an applicable standard. Such concealment includes, but is not limited to, the use of gaseous diluents to achieve compliance with an opacity standard or with a standard which is based on the concentration of a pollutant in the gases discharged to the atmosphere.

RECOMMENDATIONS

The application w as advertised Friday, July 2 3 , 2010 for a fifteen

- day public comment period. The proposed project and attached permit comply with al l applicable zoning requirements and federal and state air pollution control laws and regulations. If n o comments or requests for public hearing are received

, I

recommend that the attached Permit s : APC

- 2010 / 0082

- CONSTRUCTION (NOx RACT)(NSPS) and

APC

- 2010 / 0083

- CONSTRUCTION (NOx RACT)(NSPS) be issued.

P EF : JLF : MAS

F: \ EngAndCompliance \ MAS \ mas100 8 1. doc

pc: Dover File