Exhibit 10.19


 


STATE OF MINNESOTA


MINNESOTA POLLUTION CONTROL AGENCY


 


	
  IN THE MATTER OF:

  	
  American Crystal

  	
   

  	
  STIPULATION AGREEMENT

  
	
   

  	
  Sugar Company

  	
   

  	
   

  



 


Part 1. PARTIES. This Stipulation Agreement (“Agreement”)
applies to and is binding upon the following parties:


 


a.     American Crystal Sugar
Company (“Regulated Party”); and


 


b.     The Minnesota Pollution
Control Agency (“MPCA”).


 


Unless
specified otherwise in this Agreement, where this Agreement identifies actions
to be taken by the MPCA, the Commissioner or the Commissioner’s designees shall
act on the MPCA’s behalf.


 


Part 2. PURPOSE AND SCOPE OF STIPULATION AGREEMENT. The purpose of this Agreement is to resolve
the alleged violations set out in Part 6 of this Agreement by specifying
actions the Regulated Party agrees to undertake. By entering into this
Agreement, the Regulated Party is settling a disputed matter between itself and
the MPCA and does not admit that the alleged violations set out in Part 6
of this Agreement occurred. However, the Regulated Party agrees that the MPCA
may rely upon the alleged violations set out in Part 6 as provided in Part 11
of this Agreement. Except for the purposes of implementing and enforcing this
Agreement, nothing in this Agreement constitutes an admission by either Party,
or creates rights, substantive or procedural, that can be asserted or enforced with respect to any
claim of or legal action brought by a person who is not a party to this Agreement.


 


Part 3. AUTHORITY. This Agreement is entered under the
authority vested in the MPCA by Minnesota Statutes Chapters 115 and 116.


 


Part 4. DEFINITIONS. Unless otherwise explicitly stated, the
definitions in Minnesota Statutes Chapters 115, 115A, 115B, 115C, 116, 116B and
in Minnesota Rules Chapters 7000 to 7151 apply, as appropriate, to the
terms used in this Agreement.


 


1

















 


Part 5. BACKGROUND. The following is the background of this
Agreement:


 


a.     Minn. R. 7009.0080
establishes a hydrogen sulfide (H2S)
ambient air standard of 0.05 parts per million (ppm) measured as a half-hour
average which is not to be exceeded more than two times per year.


 


b.     Minn. R. 7009.0080 also
establishes a H2S ambient air standard of 0.03 ppm measured
as a half-hour average which is not to be exceeded more than two times in any
five consecutive days.


 


c.     The Regulated Party is a
Minnesota corporation and operates three sugar beet processing facilities
located in Moorhead, E. Grand Forks, and Crookston, Minnesota.


 


d.
On July 1, 2003, Air Emission Permit No. 11900001-002 was issued to
the Regulated Party for operation of the sugar beet processing facility located
in Crookston, Minnesota (Crookston Facility).


 


e.     On March 30, 2005, Air
Emission Permit No. 11900002-004 was issued to the Regulated Party for
operation of the sugar beet processing facility located in E. Grand Forks,
Minnesota (E. Grand Forks Facility).


 


f.      On March 10, 2005,
Air Emission Permit No. 02700001-007 was issued to the Regulated Party for
operation of the sugar beet processing facility located in Moorhead, Minnesota
(Moorhead Facility).


 


g.     On June 6, 2006, Air
Emission Permit No. 02700001-009 was issued to the Regulated Party for
operation of the Moorhead Facility. Air Emission Permit No. 02700001-009
amended and replaced Air Emission Permit No. 02700001-007 for the Moorhead
Facility. Permit Action No. 02700001-008 was initiated on September 12,
2005, but was dropped at the request of the Regulated Party resulting in a
break in the sequence of issued permit numbers.


 


h.     The permits require the
Regulated Party to operate an ambient air H2S
monitoring network at each facility to measure the ambient concentration of H2S at the property line of each facility from April 1 through October 31
annually.


 


i.      The data the Regulated
Party collects is due to the MPCA by November 30 of each year.


 


2

















 


j.      The Regulated Party
collected H2S data from the ambient air monitoring
network at each facility from: April 1, 2005, through October 31,
2005, April 1, 2006 through October 31, 2006; and April 1, 2007,
through October 31, 2007.


 


k.     The following tables
summarize the readings above the standards from the 2005, 2006 and 2007
monitoring periods:


 


Crookston H2S Violations of 30 ppb
Standard 2005


 


	
   

  	
   

  	
  No. of Readings

  	
   

  	
  Avg. of Readings

  	
   

  
	
  Dates

  	
   

  	
  in Violation

  	
   

  	
  in Violation (ppb)

  	
   

  
	
  10/14/05 –
  10/17/05

  	
   

  	
  5

  	
   

  	
  34

  	
   

  



 


Crookston H2S Violations of 50 ppb
Standard 2005


 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  8/26/05

  	
   

  	
  1

  	
   

  	
  58

  	
   

  



 


Moorhead H2S Violations of 30 ppb
Standard 2005


 


	
   

  	
   

  	
  No. of Readings

  	
   

  	
  Avg. of Readings

  	
   

  
	
  Dates

  	
   

  	
  in Violation

  	
   

  	
  in Violation (ppb)

  	
   

  
	
  7/23/05 –
  7/26/05

  	
   

  	
  9

  	
   

  	
  42

  	
   

  



 


Moorhead H2S Violations of 50 ppb
Standard 2005


 


	
   

  	
   

  	
  No. of Readings

  	
   

  	
  Avg. of Readings

  	
   

  
	
  Dates

  	
   

  	
  in Violation

  	
   

  	
  in Violation (ppb)

  	
   

  
	
  7/24/05

  	
   

  	
  2

  	
   

  	
  67

  	
   

  
	
  7/25/05 –
  7/26/05

  	
   

  	
  4

  	
   

  	
  57

  	
   

  



 


E. Grand Forks H2S Violations of 30 ppb
Standard 2005


 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  4/3/05 –
  4/6/05

  	
   

  	
  4

  	
   

  	
  35

  	
   

  
	
  4/11/05 –
  4/12/05

  	
   

  	
  7

  	
   

  	
  40

  	
   

  
	
  5/4/05 –
  5/9/05

  	
   

  	
  18

  	
   

  	
  39

  	
   

  
	
  5/9/05 –
  5/14/05

  	
   

  	
  25

  	
   

  	
  39

  	
   

  
	
  5/16/05 –
  5/18/05

  	
   

  	
  14

  	
   

  	
  38

  	
   

  
	
  5/21/06 –
  5/25/05

  	
   

  	
  17

  	
   

  	
  36

  	
   

  
	
  6/10/05 –
  6/11/05

  	
   

  	
  2

  	
   

  	
  42

  	
   

  
	
  6/15/05 –
  6/20/05

  	
   

  	
  4

  	
   

  	
  37

  	
   

  
	
  6/29/05 –
  7/1/05

  	
   

  	
  15

  	
   

  	
  39

  	
   

  
	
  7/21/05 –
  7/23/05

  	
   

  	
  3

  	
   

  	
  37

  	
   

  



 


3

















 


E. Grand Forks H2S Violations of 50 ppb
Standard 2005


 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  5/6/05 –
  5/8/05

  	
   

  	
  9

  	
   

  	
  64

  	
   

  
	
  5/9/05

  	
   

  	
  2

  	
   

  	
  52

  	
   

  
	
  5/16/05 –
  5/19/05

  	
   

  	
  25

  	
   

  	
  69

  	
   

  
	
  5/21/05

  	
   

  	
  1

  	
   

  	
  69

  	
   

  
	
  5/23/05

  	
   

  	
  2

  	
   

  	
  56

  	
   

  
	
  6/10/05

  	
   

  	
  2

  	
   

  	
  66

  	
   

  
	
  6/15/05 –
  6/16/05

  	
   

  	
  2

  	
   

  	
  60

  	
   

  
	
  6/19/05

  	
   

  	
  2

  	
   

  	
  68

  	
   

  
	
  6/29/05

  	
   

  	
  9

  	
   

  	
  67

  	
   

  
	
  7/21/05

  	
   

  	
  3

  	
   

  	
  64

  	
   

  
	
  8/9/05

  	
   

  	
  1

  	
   

  	
  59

  	
   

  
	
  10/31/05

  	
   

  	
  1

  	
   

  	
  71

  	
   

  



 


	
  Crookston H2S Violations of
  30 ppb Standard 2006

  	
   

  	
   

  	
   

  



 


	
  Dates 

  	
   

  	
  No. of Readings

  in Violation 

  	
   

  	
  Avg. of Readings

  in Violation (ppb) 

  	
   

  
	
  6/4/06 –
  6/6/06

  	
   

  	
  2

  	
   

  	
  39

  	
   

  
	
  9/4/06 –
  9/7/06

  	
   

  	
  5

  	
   

  	
  39

  	
   

  



 


	
  Crookston H2S Violations of
  50 ppb Standard 2006

  	
   

  	
   

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  9/5/06

  	
   

  	
  1

  	
   

  	
  52

  	
   

  
	
  9/6/06

  	
   

  	
  1

  	
   

  	
  57

  	
   

  



 


	
  Moorhead H2S Violations of
  30 ppb Standard 2006

  	
   

  	
   

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  6/2/06

  	
   

  	
  1

  	
   

  	
  35

  	
   

  
	
  8/29/06

  	
   

  	
  1

  	
   

  	
  35

  	
   

  



 


	
  E. Grand Forks H2S Violations of
  30 ppb Standard 2006

  	
   

  	
   

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  4/10/06 –
  4/14/06

  	
   

  	
  7

  	
   

  	
  36

  	
   

  
	
  4/16/06 –
  4/21/06

  	
   

  	
  15

  	
   

  	
  41

  	
   

  
	
  4/28/06 –
  5/1/06

  	
   

  	
  25

  	
   

  	
  42

  	
   

  
	
  5/4/06 –
  5/7/06

  	
   

  	
  4

  	
   

  	
  36

  	
   

  
	
  5/9/06 –
  5/10/06

  	
   

  	
  14

  	
   

  	
  41

  	
   

  
	
  5/15/06 –
  5/20/06

  	
   

  	
  12

  	
   

  	
  39

  	
   

  
	
  5/23/06 –
  5/26/06

  	
   

  	
  14

  	
   

  	
  41

  	
   

  
	
  5/28/06 –
  6/1/06

  	
   

  	
  11

  	
   

  	
  38

  	
   

  
	
  6/2/06 –
  6/7/06

  	
   

  	
  17

  	
   

  	
  39

  	
   

  
	
  6/9/06 –
  6/14/06

  	
   

  	
  16

  	
   

  	
  37

  	
   

  
	
  6/14/06 –
  6/19/06

  	
   

  	
  27

  	
   

  	
  39

  	
   

  
	
  6/19/06 –
  6/24/06

  	
   

  	
  13

  	
   

  	
  39

  	
   

  
	
  6/25/06 –
  6/28/06

  	
   

  	
  5

  	
   

  	
  46

  	
   

  
	
  6/30/06

  	
   

  	
  1

  	
   

  	
  31

  	
   

  



 


4

















 


	
  E. Grand Forks H2S Violations of
  30 ppb Standard 2006 continued

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  8/19/06 –
  8/20/06

  	
   

  	
  2

  	
   

  	
  45

  	
   

  
	
  8/24/06 –
  8/29/06

  	
   

  	
  5

  	
   

  	
  39

  	
   

  
	
  8/29/06 –
  9/2/06

  	
   

  	
  4

  	
   

  	
  42

  	
   

  
	
  9/9/06 –
  9/13/06

  	
   

  	
  3

  	
   

  	
  45

  	
   

  



 


	
  E. Grand Forks H2S Violations of
  50 ppb Standard 2006

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  4/13/06

  	
   

  	
  7

  	
   

  	
  74

  	
   

  
	
  4/16/06

  	
   

  	
  8

  	
   

  	
  65

  	
   

  
	
  4/18/06 –
  4/20/06

  	
   

  	
  24

  	
   

  	
  72

  	
   

  
	
  4/22/06

  	
   

  	
  1

  	
   

  	
  60

  	
   

  
	
  4/26/06

  	
   

  	
  1

  	
   

  	
  55

  	
   

  
	
  4/28/06 –
  4/29/06

  	
   

  	
  23

  	
   

  	
  73

  	
   

  
	
  5/1/06

  	
   

  	
  6

  	
   

  	
  74

  	
   

  
	
  5/6/06

  	
   

  	
  1

  	
   

  	
  58

  	
   

  
	
  5/7/06

  	
   

  	
  2

  	
   

  	
  58

  	
   

  
	
  5/10/06

  	
   

  	
  2

  	
   

  	
  58

  	
   

  
	
  5/18/06 –
  5/19/06

  	
   

  	
  5

  	
   

  	
  81

  	
   

  
	
  5/24/06 –
  5/28/06

  	
   

  	
  24

  	
   

  	
  69

  	
   

  
	
  5/31/06 –
  6/3/06

  	
   

  	
  23

  	
   

  	
  73

  	
   

  
	
  6/5/06

  	
   

  	
  2

  	
   

  	
  53

  	
   

  
	
  6/6/06 -
  6/7/06

  	
   

  	
  8

  	
   

  	
  80

  	
   

  
	
  6/9/06 –
  6/11/06

  	
   

  	
  41

  	
   

  	
  82

  	
   

  
	
  6/12/06 –
  6/13/06

  	
   

  	
  5

  	
   

  	
  56

  	
   

  
	
  6/14/06 –
  6/17/06

  	
   

  	
  48

  	
   

  	
  80

  	
   

  
	
  6/19/06 –
  6/21/06

  	
   

  	
  21

  	
   

  	
  73

  	
   

  
	
  6/23/06 –
  6/25/06

  	
   

  	
  18

  	
   

  	
  72

  	
   

  
	
  6/27/06 -
  6/28/06

  	
   

  	
  15

  	
   

  	
  74

  	
   

  
	
  6/30/06

  	
   

  	
  3

  	
   

  	
  68

  	
   

  
	
  8/18/06 –
  8/20/06

  	
   

  	
  22

  	
   

  	
  80

  	
   

  
	
  8/22/06

  	
   

  	
  2

  	
   

  	
  63

  	
   

  
	
  8/24/06

  	
   

  	
  1

  	
   

  	
  64

  	
   

  
	
  8/26/06

  	
   

  	
  2

  	
   

  	
  74

  	
   

  
	
  8/29/06

  	
   

  	
  13

  	
   

  	
  87

  	
   

  
	
  9/2/06

  	
   

  	
  2

  	
   

  	
  56

  	
   

  



 


	
  Crookston
  H2S
  Violations of 30 ppb Standard 2007 

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  4/29/07

  	
   

  	
  2

  	
   

  	
  31

  	
   

  
	
  7/3/07 -
  7/7/07

  	
   

  	
  12

  	
   

  	
  40

  	
   

  
	
  8/14/07 –
  8/16/07

  	
   

  	
  12

  	
   

  	
  41

  	
   

  
	
  8/23/07 –
  8/28/07

  	
   

  	
  2

  	
   

  	
  44

  	
   

  
	
  8/29/07 –
  9/2/07

  	
   

  	
  1

  	
   

  	
  34

  	
   

  



 


5

















 


	
  Crookston H2S Violations of
  50 ppb Standard 2007

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  7/4/07 – 7/5/07

  	
   

  	
  8

  	
   

  	
  78

  	
   

  
	
  7/7/07

  	
   

  	
  2

  	
   

  	
  66

  	
   

  
	
  7/22/07

  	
   

  	
  1

  	
   

  	
  53

  	
   

  
	
  8/15/07 – 8/16/07

  	
   

  	
  4

  	
   

  	
  58

  	
   

  
	
  8/25/07

  	
   

  	
  1

  	
   

  	
  72

  	
   

  
	
  8/28/07 – 8/29/07

  	
   

  	
  4

  	
   

  	
  67

  	
   

  



 


	
  Moorhead H2S Violations of
  30 ppb Standard 2007

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  4/27/07 – 6/2/07

  	
   

  	
  8

  	
   

  	
  39

  	
   

  
	
  6/2/07 – 6/6/07

  	
   

  	
  21

  	
   

  	
  37

  	
   

  
	
  6/13/07 – 6/18/07

  	
   

  	
  15

  	
   

  	
  38

  	
   

  
	
  6/19/07 – 6/22/07

  	
   

  	
  2

  	
   

  	
  31

  	
   

  
	
  8/12/07 – 8/13/07

  	
   

  	
  2

  	
   

  	
  39

  	
   

  
	
  8/18/07 – 8/20/07

  	
   

  	
  4

  	
   

  	
  38

  	
   

  
	
  8/31/07 – 9/3/07

  	
   

  	
  1

  	
   

  	
  34

  	
   

  



 


	
  Moorhead H2S Violations of
  50 ppb Standard 2007

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  6/1/07 – 6/4/07

  	
   

  	
  5

  	
   

  	
  61

  	
   

  
	
  6/13/07

  	
   

  	
  1

  	
   

  	
  59

  	
   

  
	
  6/14/07

  	
   

  	
  1

  	
   

  	
  64

  	
   

  
	
  6/16/07 – 6/17/07

  	
   

  	
  11

  	
   

  	
  69

  	
   

  
	
  7/23/07

  	
   

  	
  2

  	
   

  	
  68

  	
   

  
	
  8/18/07

  	
   

  	
  1

  	
   

  	
  71

  	
   

  



 


	
  E. Grand Forks H2S Violations of
  30 ppb Standard 2007

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  4/17/07 – 4/19/07

  	
   

  	
  6

  	
   

  	
  36

  	
   

  
	
  6/13/07 – 6/17/07

  	
   

  	
  6

  	
   

  	
  45

  	
   

  
	
  6/20/07 – 6/25/07

  	
   

  	
  7

  	
   

  	
  37

  	
   

  
	
  6/29/07 – 7/3/07

  	
   

  	
  7

  	
   

  	
  39

  	
   

  
	
  7/6/07 – 7/10/07

  	
   

  	
  7

  	
   

  	
  35

  	
   

  
	
  7/13/07 – 7/18/07

  	
   

  	
  6

  	
   

  	
  39

  	
   

  
	
  7/19/07 – 7/23/07

  	
   

  	
  7

  	
   

  	
  39

  	
   

  
	
  7/27/07 – 7/31/07

  	
   

  	
  5

  	
   

  	
  41

  	
   

  



 


	
  E. Grand Forks H2S Violations of
  50 ppb Standard 2007

  	
   

  



 


	
  Dates

  	
   

  	
  No. of Readings

  in Violation

  	
   

  	
  Avg. of Readings

  in Violation (ppb)

  	
   

  
	
  6/16/07 – 6/17/07

  	
   

  	
  5

  	
   

  	
  66

  	
   

  
	
  6/29/07 – 7/2/07

  	
   

  	
  11

  	
   

  	
  61

  	
   

  
	
  7/6/07

  	
   

  	
  6

  	
   

  	
  74

  	
   

  
	
  7/9/07 – 7/10/07

  	
   

  	
  3

  	
   

  	
  62

  	
   

  
	
  7/17/07 – 7/18/07

  	
   

  	
  5

  	
   

  	
  66

  	
   

  
	
  7/27/07

  	
   

  	
  1

  	
   

  	
  54

  	
   

  



 


6
















 


1.     Air Emission Permit No. 11900002-005
contains an emission limit of 0.25 pounds per hour (lb/hr) for particulate
matter with an aerodynamic diameter less than or equal to ten microns (PM10) from the E. Grand Forks Facility’s West Pellet Cooler (EU006).


 


m.    On October 2, and 4,
2007, the Regulated Party conducted performance stack testing for EU006 PM10 emissions. The October 2,
and 4, 2007, performance test documented the EU006 PM10 emission rate at 0.36 lb/hr. The EU006 PM10 emission rate exceeded the PM10 emission limit by 30 percent.


 


n.     On November 28, and
29, 2007, the Regulated Party conducted a retest for EU006 PM10 emissions. The November 28,
and 29, 2007, performance test documented the EU006 PM10 emission rate at 0.11 lb/hr.


 


o.     On May 10, 2007, the
Regulated Party submitted a minor permit amendment application to modify the
South Pulp Dryer (EU007) to accept and combust biogas.


 


p.     On January 8, 2008,
the MPCA determined that the modification to convert EU007 to combust biogas
would require a major permit amendment.


 


q.     On February 5, 2008,
the MPCA conducted a compliance evaluation of the Facility. At the time of the
evaluation, the MPCA staff documented that the Regulated Party had already
installed the piping and valves required to direct biogas to EU007. The
Regulated Party stated that, while the piping and valves had already been
installed, no biogas had yet been combusted in EU007.


 


r.      Air Emission Permit No. 027000001-009
contains a PM10 emission limit of 5.0 lb/hr and a particulate
matter (PM) emission limit of 5.0 lb/hr for the Lime Kiln (EU004) at the
Moorhead Factory.


 


s.     On November 27, 2007,
the Regulated Party conducted performance stack testing for EU004 PM10 and PM emissions. The November 27,
2007, performance test documented the EU004 PM10 emission rate at 8.7 lb/hr and the PM emission
rate at 12.0 lb/hr. The EU004 PM10 emission rate exceeded the PM10 emission limit by 74 percent and
the PM emission rate exceeded the PM limit by 140 percent.


 


7

















 


t.      On February 6, 14,
and 15, 2008, the Regulated Party conducted a retest for EU004 PM10 and PM emissions. The February 6,
14, and 15, 2008, performance test documented the EU004 PM10 emission rate at 3.5 lb/hr.


 


Part 5A. STATEMENT OF THE REGULATED PARTY. The Regulated Party has provided the
following statement. The MPCA takes no position on this Statement.


 


The
Regulated Party states the following:


 


The
Regulated Party seeks continually to improve its environmental performance and
to become a better neighbor. In this regard, it has made substantial
investments in money, time, and effort not only to comply with environmental
regulations, but to exceed regulatory requirements and move beyond compliance.


 


Specifically,
in accordance with the requirements of a 2003 Stipulation Agreement with the
MPCA, the Regulated Party spent a total of $13,716,924 – including $7,272,973
in capital investments and $6,443,951 in chemical expenses – in order to
control H2S emissions and associated odors at its three
Minnesota facilities.


 


After
fulfilling the requirements of the 2003 Stipulation Agreement, the Regulated
Party spent almost two and a half times that amount – including $18,918,688 in
capital investments and $14,305,004 in chemical expenses, for a total of
$33,223,692 – in voluntarily undertaking further steps to control H2S.


 


These
additional steps included, but were not limited to:


 


a.     The installation of a pre-acidification wastewater treatment
unit at the E. Grand Forks facility.


 


b.              The installation of a permeable pond cover
over the high-strength wastewater pond at the Moorhead facility.


 


c.               The installation of mini-clarifiers on each
mud press at the E. Grand Forks and Moorhead facilities.


 


d.              Improved pulp press performance at all three
facilities.


 


e.               Improved management of beet pile runoff at
all three facilities.


 


f.                 Improved by-products management.


 


8

















 


g.              Improved beet storage management at all three
facilities through the use of ice mats and insulation membranes.


 


h.              The use of odor neutralizers at all three
facilities.


 


In
addition, the Regulated Party created an internal Odor Control Task Force to
identify and evaluate additional potential measures to improve performance with
respect to H2S, including, but not limited to, measures to
reduce sources of wastewater generation, measures to increase wastewater
treatment efficiency, and measures to improve wastewater storage.


 


The
Capital Project Completion Dates set forth in the 2008 H2S Management Strategies are based on the assumption that the MPCA will
review and approve all necessary submittals within 60 days and that all
required permits for a capital project have been identified.


 


Part 6. ALLEGED VIOLATIONS. The MPCA alleges that the Regulated Party
has violated the following requirements of statute, rule and/or permit
condition:


 


a.     Minn. R.
7009.0080 STATE AMBIENT AIR QUALITY STANDARDS.


 


The following table contains the state ambient air
quality standards.


 


	
  Pollutant/

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Air

  	
   

  	
  Primary

  	
   

  	
  Secondary

  	
   

  	
   

  
	
  Contaminant

  	
   

  	
  Standard

  	
   

  	
  Standard

  	
   

  	
  Remarks

  
	
  Hydrogen

  	
   

  	
  0.05
  ppm by

  	
   

  	
   

  	
   

  	
  1/2
  hour average not

  
	
  Sulfide

  	
   

  	
  volume
  (70.0

  	
   

  	
   

  	
   

  	
  to
  be exceeded over

  
	
   

  	
   

  	
  micrograms
  per

  	
   

  	
   

  	
   

  	
  2
  times per year

  
	
   

  	
   

  	
  cubic
  meter)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  0.03
  ppm by

  	
   

  	
   

  	
   

  	
  1/2
  hour average not

  
	
   

  	
   

  	
  volume
  (42.0

  	
   

  	
   

  	
   

  	
  to
  be exceeded over

  
	
   

  	
   

  	
  micrograms
  per

  	
   

  	
   

  	
   

  	
  2
  times in any 5

  
	
   

  	
   

  	
  cubic
  meter)

  	
   

  	
   

  	
   

  	
  consecutive
  days

  



 


Crookston Facility


 


During
the period of April 1, 2005, through October 31, 2005, the Crookston
monitoring network recorded exceedance events which demonstrated five
violations of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2006, through October 31, 2006, the Crookston
monitoring network recorded exceedance events which demonstrated seven
violations of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


9

















 


During
the period of April 1, 2007, through October 31, 2007, the Crookston
monitoring network recorded exceedance events which demonstrated 29 violations
of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2005, through October 31, 2005, the Crookston
monitoring network recorded an exceedance event which demonstrated one
violation of the 0.05 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2006, through October 31, 2006, the Crookston
monitoring network recorded exceedance events which demonstrated two violations
of the 0.05 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2007, through October 31, 2007, the Crookston
monitoring network recorded exceedance events which demonstrated 20 violations
of the 0.05 ppm standard contained in Minn. R. 7009.0080.


 


Moorhead Facility


 


During
the period of April 1, 2005, through October 31, 2005, the Moorhead
monitoring network recorded exceedance events which demonstrated nine
violations of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2006, through October 31, 2006, the Moorhead
monitoring network recorded exceedance events which demonstrated two violations
of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2007, through October 31, 2007, the Moorhead
monitoring network recorded exceedance events which demonstrated fifty-53
violations of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2005, through October 31, 2005, the Moorhead
monitoring network recorded exceedance events which demonstrated six violations
of the 0.05 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1,
2007, through October 31, 2007, the Moorhead monitoring network recorded exceedance events which
demonstrated 21 violations of the 0.05 ppm standard contained in Minn. R.
7009.0080.


 


E. Grand Forks Facility


 


During
the period of April 1, 2005, through October 31, 2005, the E. Grand
Forks monitoring network recorded exceedance events which demonstrated 109
violations of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


During the period of April 1,
2006, through October 31, 2006, the E. Grand Forks monitoring network
recorded exceedance events which demonstrated 195 violations of the 0.03 ppm
standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2007, through October 31, 2007, the E. Grand
Forks monitoring network recorded exceedance events which demonstrated 53
violations of the 0.03 ppm standard contained in Minn. R. 7009.0080.


 


10

















 


During
the period of April 1, 2005, through October 31, 2005, the E. Grand
Forks monitoring network recorded exceedance events which demonstrated 59
violations of the 0.05 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2006, through October 31, 2006, the E. Grand
Forks monitoring network recorded exceedance events which demonstrated 330
violations of the 0.05 ppm standard contained in Minn. R. 7009.0080.


 


During
the period of April 1, 2007, through October 31, 2007, the E. Grand
Forks monitoring network recorded exceedance events which demonstrated 31
violations of the 0.05 ppm standard contained in Minn. R. 7009.0080.


 


b.               Air Emission Permit No. 11900002-005


 


Subject Item: EU006 Pellet Cooler


 


	
  What to
  do

  	
   

  	
  Why
  to do it

  
	
  Particulate
  matter < 10 microns: less than or equal to 0.25 lbs/hour for each
  stack (SV 006 and SV 007)

  	
   

  	
  Title
  I condition: 40 CFR § 52.21(k); Minn. R. 7007.3000

  



 


On
October 2, and 4, 2007, the Regulated Party conducted performance stack
testing for EU006 PMl0 emissions. The October 2, and 4, 2007,
performance test documented the EU006 PM10 emission rate at 0.36 lb/hr. The EU006 PM10 emission rate exceeded the
permitted PMl0 emission
limit by 30 percent.


 


c.               Minn. R. 7007.0150 PERMIT
REQUIRED.


 


Subpart
1. Prohibition. No person may construct, modify, reconstruct, or operate an
emissions unit, emission facility, or stationary source except in compliance
with an air emission permit from the agency. Exceptions to the requirement to
obtain a permit are located in part 7007.0300. Exceptions to the requirement to
obtain a permit amendment are located in parts 7007.1250  and 7007.1350.
A person violates this subpart when the person begins actual construction on a
new source, reconstruction, or modification prior to obtaining the permit or
amendment, except as allowed in parts 7007.0750, subpart 7, 7007.1450, subpart
7, and 7007.1500, subpart 3a.


 


Minn. R. 7007.1500 MAJOR PERMIT AMENDMENTS.


 


Subpart
1. Major permit amendment required. A “major permit amendment” is required for
any change to permit conditions or any modification at a permitted stationary
source that is not allowed under parts 7007.1250 and 7007.1350 and for which an
amendment cannot be obtained under the administrative permit amendment
provisions of part 7007.1400, or the minor or moderate permit amendment
provisions of part 7007.1450. The following always require major permit
amendments:


 


...


 


11

















 


B.    any amendment to establish or amend a permit
condition that is required to be based on a case-by-case determination of an
emission limitation or other standard, on a source-specific determination of
ambient impacts, or on a visibility or increment analysis;


 


On
May 10, 2007, the Regulated Party submitted a minor permit amendment
application to modify the South Pulp Dryer (EU007) to accept and combust
biogas. On January 8, 2008, the MPCA determined that the modification to
convert EU007 to combust biogas would require a major permit amendment under
Minn. R. 7007.1500. On February 5, 2008, the MPCA conducted a compliance
evaluation of the Facility. At the time of the evaluation, the MPCA staff
documented that the Regulated Party had installed the piping and valves
required to direct biogas to EU007. The Regulated Party failed to obtain a
major permit amendment prior to modifying EU007 as required by Minn. R.
7007.0150 and Minn. R. 7007.1500.


 


d. Air Emission Permit No. 02700001-009


 


Subject
Item: EU 004 Vertical Lime Kiln


 


	
  What to
  do

  	
   

  	
  Why
  to do it

  
	
  Particulate
  Matter < 10 microns: less than or equal to 5.0 lbs/hour during normal
  operation.

  	
   

  	
  Title
  I Condition: 40 CFR  Section 52.21(k);
  Minn. R. 7007.3000

  
	
  Total
  Particulate Matter: less than or equal to 5.0 lbs/hour during normal
  operation.

  	
   

  	
  Title
  I Condition: 40 CFR  Section 52.21(k);
  Minn. R. 7007.3000

  



 


On
November 27, 2007, the Regulated Party conducted performance stack testing
for EU004 PM10 and PM emissions. The November 27,
2007, performance test documented the EU004 PM10 emission rate at 8.7 lb/hr and the PM emission
rate at 12.0 lb/hr. The EU004 PM10 emission rate exceeded the PM10 emission limit by 74 percent and
the PM emission rate exceeded the PM limit by 140 percent.


 


Part 7. CIVIL PENALTY.
The Regulated Party agrees to pay One Hundred and Eighty-Five Thousand Dollars
($185,000) to the MPCA as a civil penalty for the violations alleged in Part 6
within 30 days after the effective date of this Agreement. Payment of the
penalty amount of $185,000 is to be by check or money order payable to the
Minnesota Pollution Control Agency. The check must be mailed to: Enforcement
Penalty Coordinator, Minnesota Pollution Control Agency, 520 Lafayette Road
North, St. Paul, Minnesota 55155-4194.


 


If
the Regulated Party fails to make the required payment on time, the MPCA may
assess and the Regulated Party agrees to pay a late payment charge, in addition
to the civil penalty, to be assessed as follows. Forty-five days after the
effective date of this Agreement, the Regulated Party is obligated to pay a
late charge in an amount equal to ten percent of the unpaid civil penalty.
Sixty days after the effective date of this Agreement, the Regulated Party is
obligated to pay an additional late charge in an amount equal to twenty percent
of the unpaid civil penalty.


 


12
















 


Part 8. REGULATED PARTY REQUIREMENTS. The Regulated Party agrees to the following
requirements:


 


a.        The Regulated Party
shall implement the 2008 Hydrogen Sulfide Management Strategies for its
Moorhead, E. Grand Forks and Crookston facilities. The Strategies are attached
as Exhibits A, B and C and are hereby incorporated into and made enforceable
parts of this Agreement. If the Regulated Party submits monthly monitoring
reports, for a facility, that show three consecutive months of exceedances
that, after validation, may constitute violations of the ambient hydrogen
sulfide standards, the MPCA may require that the Regulated Party prepare and
submit an evaluation of the applicable H2S
Management Strategy for that facility. The parties shall meet and confer about
the monitored exceedances and the hydrogen sulfide evaluation. The parties may
agree to revise the H2S Management Strategy or Strategies.


 


b.       Prior to any of the
construction or modifications required by any of the Strategies, the Regulated
Party shall determine, under applicable rules, whether such construction or
modification requires a permit or approval from the MPCA and shall obtain such
permit or approval as provided for by the rules.


 


c.        By January 31 of
each year, while the Agreement is in effect, the Regulated Party shall submit a
written report that documents all activities completed, under the 2008 Hydrogen
Sulfide Management Strategies, during the previous calendar year and outlines
the activities the Regulated Party expects to complete during the current
calendar year.


 


Part 9. PENALTIES FOR VIOLATIONS OF THIS AGREEMENT.


 


a.        If the Regulated Party
fails to comply with a Capital Project Completion Date, as listed in Table 1 of
the Moorhead, E. Grand Forks or Crookston 2008 Hydrogen Sulfide Management
Strategies, the Regulated Party shall pay to the MPCA a penalty in the amount
of $500 per capital project for each day beyond the proposed completion date.
If the Regulated Party fails to comply with a By-products Management Plan for
removal of by-products from the facilities, as described in Section 2.1(3) of
the Moorhead, E. Grand Forks and Crookston 2008 Hydrogen Sulfide Management
Strategies, the Regulated Party shall pay to the MPCA a penalty in the amount
of $500 per day for each day of failure. If the Regulated Party fails to
commence implementation of the corrective


 


13

















 


actions
contained in the Straw Management Plan as described in Attachment E, Appendix
F, or Appendix D of the Moorhead, E. Grand Forks or Crookston 2008 Hydrogen
Sulfide Management Strategies respectively, within 24 hours of identifying a
noncompliant straw-cover, the Regulated Party shall pay to the MPCA a penalty
in the amount of $500 per day for each day of failure. If the Regulated Party
fails to submit reports as required by Part 9.c., the Regulated Party
shall pay to the MPCA a penalty in the amount of $100 per day for each day of
failure.


 


b.     Penalties for failure to comply with
requirements of Part 9 of this Agreement shall accrue from the date the
Regulated Party was to have fulfilled the requirement until the Regulated Party
fulfills the requirement. Penalties shall not accrue while the MPCA considers a
timely extension request under Part 15 or during dispute resolution under Part 13,
unless the MPCA determines that the Regulated Party filed the request or
initiated dispute resolution solely for purposes of delay. If the Regulated
Party does not pursue dispute resolution under Part 13 for denial of a
timely extension request, penalties shall accrue from the date the extension
request is denied by the MPCA Case Contact. If the Regulated Party pursues
dispute resolution for denial of an extension request and does not file a
timely challenge in a court of competent jurisdiction as provided by Part 13,
penalties shall accrue from the date of a Commissioner’s dispute resolution
decision against the Regulated Party until the Regulated Party fulfills the
requirement that is the subject of the extension request.


 


c.     The Regulated Party shall pay a penalty
under this Part within 30 days after receiving written notice from the
MPCA that the penalty is due. The written notice shall specify the provision of
the Agreement that the Regulated Party has not fulfilled and indicate the date
penalties began to accrue. If the Regulated Party fails to make timely payment,
the MPCA may assess and the Regulated Party agrees to pay a late payment
charge, in addition to the stipulated penalty, to be assessed as follows.
Forty-five days after receipt of written notice, the Regulated Party shall be
obligated to pay a late charge in an amount equal to ten percent of the unpaid
stipulated penalty. Sixty days after receipt of written notice, the Regulated
Party shall be obligated to pay an additional late charge in an amount equal to
twenty percent of the unpaid stipulated penalty.


 


14

















 


d.     In dispute resolution
before the Commissioner under Part 13, the Regulated Party can contest the
factual basis for the MPCA’s determination that the Regulated Party has not
fulfilled a requirement of this Agreement covered by this Part. However, the
Regulated Party waives its right to challenge, on legal grounds, the
requirement that it pay penalties under this Part.


 


e.     The Regulated Party shall
not be liable for payment of penalties for failure to comply with requirements
of Part 9 of this Agreement covered by this Part if it has submitted
to the MPCA a timely request for an extension of schedule under Part 15
and the MPCA has granted the request. The MPCA’s grant of an extension of
schedule waives the payment of penalties covered by this Part only on the
requirements for which the MPCA granted an extension of schedule and only for
the time period specified by the MPCA in the grant of an extension. An
extension of schedule for one requirement of Part 9 does not extend the
schedule for any other requirement of Part 9.


 


f.      Any requirement of this
Agreement may be enforced as provided in Minn. Stat. § 115.071 (2004). Payment
of a stipulated penalty does not relieve the Regulated Party of its obligation
to fulfill and complete requirements under the Agreement and to otherwise
comply with the terms and conditions of the Agreement.


 


Part 10.
COVENANT NOT TO SUE AND RESERVATION OF REMEDIES. So long as the Regulated Party performs
according to and has complied with the terms, covenants, and agreements
contained in this Agreement, the MPCA agrees not to exercise any
administrative, legal, or equitable remedies available to the MPCA with respect
to the Regulated Party to address the violations alleged and described in Part 6,
the violations alleged in the MPCA Notice of Violation issued to the Regulated
Party dated July 17, 2007, or any other violations related to hydrogen
sulfide, which the MPCA could have pleaded in a civil action based on written
information in the possession of the MPCA at the time this Agreement become
effective. In addition, for so long as the Regulated Party is in compliance
with the provisions of Part 9 of this Agreement, the MPCA agrees not to
exercise any administrative, legal, or equitable remedies available to the MPCA
to address future violations of the state ambient air quality standards for
hydrogen sulfide set forth in Minn. Rule 7009.0080 until after the requirements
of Part 9 are complete for each facility. The MPCA reserves the
right to enforce this Agreement or take
any action authorized by law, if the Regulated Party fails to comply with the


 


15

















 


terms
and conditions of this Agreement. Further, the MPCA reserves the right to seek
to enjoin violations of this Agreement and to exercise its emergency powers
pursuant to Minn. Stat. § 116.11 (2004) in the event conditions or the
Regulated Party’s conduct warrant such action. Nothing in this Agreement shall
prevent the MPCA from exercising these rights and nothing in this Agreement
constitutes a waiver of these rights.


 


The
Regulated Party agrees to waive all claims it may now have, as of the effective
date of this Agreement, under Minn. Stat. § 15.472 for fees and expenses
arising out of matters leading up to and addressed in this Agreement.


 


Part 11. REPEAT VIOLATIONS. Federal and state environmental programs
establish harsher penalties for violations of environmental laws or rules that
constitute repeat violations. In a proceeding to resolve alleged violations by
the Regulated Party, if any, occurring after the date of the alleged violations
set out in Part 6 of this Agreement, the Regulated Party may argue about
the extent to which the violations alleged in Part 6 of this Agreement
should affect the penalty amount for the later violations, but waives the
right: (1) to contend that the violations alleged in Part 6 of this
Agreement did not occur as alleged; and (2) to require the MPCA to prove
the violations alleged in Part 6 of this Agreement.


 


Part 12. RESOLUTION OF DISPUTES. The parties to this Agreement shall resolve
disputes that arise as to any part of the Agreement as follows:


 


a.     Either party, acting through
its Case Contact (as named in Part 16 below), may initiate dispute
resolution by providing to the Case Contact of the other party an initial
written statement setting forth the matter in dispute, the position of the
party, and the information the party is relying upon to support its position.
The other party, acting through its Case Contact, shall provide a written
statement of its position and supporting information to the Case Contact of the
initiating party within 14 calendar days after receipt of the initial written
statement.


 


b.     If the parties, acting
through their Case Contacts, do not reach a resolution of the dispute and
reduce such resolution to writing in a form agreed upon by the parties within
21 calendar days after the initiating party receives the statement of position
from the responding party, the Commissioner shall issue a written decision
resolving the dispute. The written decision may address


 


16

















 


stipulated
penalties assessed pursuant to Part 10. The Commissioner’s decision shall
be considered a final decision of the MPCA for purposes of judicial review.


 


c.     The Commissioner’s decision
shall become an integral and enforceable part of this Agreement unless the
Regulated Party timely challenges the decision in a court of competent
jurisdiction. Failure to timely challenge means the Regulated Party agrees to
comply with the MPCA Commissioner’s decision on the matter in dispute and to
pay any penalties that accrue pursuant to Part 10 for failure to fulfill
requirements of this Agreement that are the subject of the dispute resolution.
Further, if the Commissioner’s decision assesses penalties pursuant to Part 10
of this Agreement, the Regulated Party agrees to and shall pay the amount of
penalty determined by the Commissioner within 60 days after receiving the
Commissioner’s decision.


 


d.     Throughout any dispute
resolution, the Regulated Party shall comply with all portions of the Agreement
that the MPCA determines are not in dispute.


 


Part 13. VENUE. Actions brought by the MPCA to enforce
requirements and terms of this Agreement shall be venued in Ramsey County
District Court.


 


Part 14. EXTENSION OF SCHEDULES. If the Regulated Party wants an extension of
a deadline included in a schedule set out in Part 9, the Regulated Party
must request the extension in writing at least ten days before the scheduled
deadline, or as soon as possible before that date if the reason for the
extension request arises less than ten days before the deadline. Each deadline
extension request shall separately specify the reason why the extension is
needed. No requested extension shall be effective until approved in writing by
the MPCA, acting through the MPCA Case Contact or the Commissioner. The MPCA
shall grant an extension only for the period of time the MPCA determines is
reasonable under the circumstances. The written approval or grant of an
extension request shall be considered an enforceable part of the Agreement.


 


The
Regulated Party has the burden of demonstrating to the satisfaction of the MPCA
that the request for the extension is timely, and that good cause exists for
granting the extension. Good cause can include, but is not limited to, the
following:


 


a.        Circumstances beyond the
reasonable control of the Regulated Party; and


 


17

















 


b.       Delays caused by the MPCA
in reviewing timely submittals required by this Agreement, the Regulated Party
submitted in complete and approvable form, which make it not feasible for the
Regulated Party to meet the required schedules.


 


Good
cause does not include unanticipated costs, increases in the cost of control
equipment, or delays in MPCA review of submittals when the submittals are not
in complete and approvable form.


 


The
Regulated Party may challenge a decision by the MPCA to deny a request for an
extension under Part 13.


 


Part 15.
CASE CONTACT.
The MPCA and the Regulated Party shall each designate a Case Contact for the
purpose of overseeing the implementation of this Agreement. The MPCA Case
Contact is Rachel Peters. The Regulated Party’s Case Contact is Patricia
Hansen. Either party may change its designated Case Contact by notifying the
other party in writing, within five days of the change. To the extent possible,
communications between the Regulated Party and the MPCA concerning the terms
and conditions of this Agreement shall be directed through the Case Contacts.
The address, telephone number, and email address of the MPCA’s Case Contact is:
7678 College Road, Suite 105, Baxter, Minnesota, 56425; 218-825-2120;
rachel.peters@pca.state.mn.us. The address, telephone number, and email address
of the Regulated Party’s Case Contact is: 101 North Third Street, Moorhead,
Minnesota 56560; 218-236-4347; phansen@crystalsugar.com.


 


Part 16.
REGULATED PARTY INFORMATION. The Regulated Party shall not knowingly make any false statement,
representation or certification in any record, report, plan or other document
filed or required to be submitted to the MPCA under this Agreement. The
Regulated Party shall immediately upon discovery report to the MPCA any errors
in such record, report, plan or other document.


 


Part 17.
REVIEW OF SUBMITTALS. The MPCA, acting through its Commissioner, Case Contact, or other
designated MPCA staff, shall review all submittals made by the Regulated Party
as required by this Agreement and shall notify the Regulated Party in writing
of the approval or disapproval of each submittal, if applicable. The MPCA and
the Regulated Party shall consult with each other upon the request of either
party during the review of submittals or modifications. If any


 


18

















 


submittal
is disapproved in whole or in part, the MPCA Commissioner or designated MPCA
staff shall notify the Regulated Party of the specific inadequacies and shall
indicate the necessary amendments or reviews. Within 15 calendar days after
receipt of any notice of disapproval, the Regulated Party shall submit
revisions and take actions to correct the inadequacies.


 


Part 18. ACCESS.
During the term of this Agreement, the Regulated Party agrees to provide the
MPCA and its staff access to Regulated Party’s facilities and its records and
documents related to the implementation of this Agreement to the extent
provided under Minn. Stat. § 116.091 (2004) or other law, conditioned only upon
the presentation of credentials.


 


Part 19. SAMPLING AND DATA AVAILABILITY. The Regulated Party shall make available to
the MPCA the results of any sampling, tests, or other data generated by the
Regulated Party, or on its behalf, to implement the requirements of this
Agreement. Nothing in this paragraph is intended to waive or alter any
protection afforded by statute to data that qualifies for an exception to
public disclosure.


 


Part 20. RETENTION OF RECORDS. The Regulated Party shall retain in its
possession all records, documents, reports and data related to this Agreement.
The Regulated Party shall preserve these records, documents, reports and data
for a minimum of three years after the termination of this Agreement despite
any document retention policy of the Regulated Party to the contrary, and shall
promptly make all such
documentation available for review upon request by the MPCA.


 


Part 21. APPLICABLE LAWS AND PERMITS. The Regulated Party shall undertake all
actions required to be taken pursuant to this Agreement in accordance with the
requirements of all applicable state and federal laws and regulations. Except
when the MPCA has specified and authorized a different compliance method in Part 9,
the Regulated Party must also comply with all applicable permits, orders,
stipulation agreements and schedules of compliance. Nothing in this Agreement
exempts or relieves the Regulated Party of its obligation to comply with local
governmental requirements.


 


Part 22. OTHER CLAIMS.
Nothing herein shall release the Regulated Party from any claims, causes of
action or demands in law or equity by any person, firm, partnership or
corporation not a signatory to this Agreement for any liability it may have
arising out of or relating to the release of


 


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any
pollutant or contaminant from its operations or from a facility. Neither the
Regulated Party nor the MPCA shall be held as a party to any contract entered
into by the other party to implement the requirements of this Agreement.


 


Part 23. HOLD HARMLESS AGREEMENT. The Regulated Party agrees to indemnify,
save and hold the MPCA, its agents and employees harmless from any and all
claims or causes of action arising from or on account of acts or omissions of
the Regulated Party, its officers, employees, agents, or contractors in
implementing the activities conducted pursuant to this Agreement; provided,
however, that the Regulated Party shall not indemnify the MPCA or save or hold
its employees and agents harmless from any claims or causes of action arising
out of the acts or omissions of the MPCA, or its employees and agents. When the
Regulated Party is required to hold the MPCA harmless, the MPCA shall give the
Regulated Party notice of any claim or cause of action subject to this Part and
the Regulated Party has the right to participate in the defense against any
claim or cause of action. No settlement shall be effective against the
Regulated Party unless the Regulated Party agrees to the settlement. Nothing
herein waives or modifies the provisions of the Minnesota Tort Claims Act,
Minn. Stat. §§ 3.732, et seq., and other applicable law.


 


Part 24. SUCCESSORS, AGENTS AND
CONTRACTORS. This Agreement shall
be binding upon the Regulated Party and its successors and assigns and upon the
MPCA, its successors and assigns. If the Regulated Party sells or otherwise
conveys or assigns any of its right, title or interest in the Facility, the
conveyance shall not release the Regulated Party from any obligation imposed by
this Agreement, unless the party to whom the right, title or interest has been
transferred or assigned agrees in writing to fulfill the obligations of this
Agreement and the MPCA approves the transfer or assignment. The Regulated Party
shall ensure that the Regulated Party’s agents, contractors and subsidiaries
comply with the terms and conditions of this Agreement.


 


Part 25. AMENDMENTS. Except with respect to extensions of
schedules granted under Part 15 and approved submittals under Part 18,
this Agreement may be amended only by written agreement between the parties.
The provisions of the attached Hydrogen Sulfide Management Strategies may be
amended as provided in each Strategy.


 


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Part 26.
EFFECTIVE DATE.
This Agreement shall be effective on the date it is signed by the MPCA.


 


Part 27.
TERMINATION.
The provisions of this Agreement shall be deemed satisfied and terminated when
the Regulated Party receives written notice from the MPCA that the Regulated
Party has demonstrated, to the satisfaction of the MPCA, that all terms of the
Agreement have been completed.


 


Part 28.
SURVIVAL. The
provisions of Parts 2, 11, 12, 17, 20, 21, 22, 23, 24, 25, and 29 of this
Agreement and the rights, duties and obligations of the MPCA and the Regulated
Party created in those provisions shall survive termination of this Agreement.


 


BY THEIR SIGNATURES BELOW, THE UNDERSIGNED REPRESENT THAT THEY

HAVE AUTHORITY TO BIND THE PARTIES THEY REPRESENT


 




	
  American
  Crystal Sugar Company

  	
   

  	
  STATE
  OF MINNESOTA

  
	
   

  	
   

  	
  POLLUTION
  CONTROL AGENCY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Joseph James Talley

  	
   

  	
  By:

  	
  /s/ Brad
  Moore

  
	
  Name:

  	
  Joseph
  James Talley

  	
   

  	
   

  	
  Brad
  Moore

  
	
  Title:

  	
  Chief Operating Officer

  	
   

  	
   

  	
  Commissioner

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  11/25/08

  	
   

  	
  Date:

  	
  11/25/08

  
						






 


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