Document:

Exhibit 10.2

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

This Amendment to Employment
Agreement (‘Agreement”), entered into as of the 21st day of July , 2010 by
and between the River Rock Entertainment Authority (‘Authority”), a
governmental instrumentality of the Dry Creek Band of Pomo Indians (‘Tribe”),
on behalf of the River Rock Casino (“Casino”), a governmental economic
development  project of the Tribe, and
Joseph Callahan (“Employee”), amends certain Employment Agreement dated 9th day of April, 2010(“the Agreement”).  Capitalized terms used but not otherwise in
this Agreement shall have the respective meanings ascribed to them in the
Agreement.

 

In consideration of the covenants
and agreements contained in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the
parties to this Amendment agree as follows:

 

Amendment:  Section 6.6 shall be
amended to read:

 

Notwithstanding any other provision
of this Agreement, any resignation by Employee will constitute a waiver and
release by Employee of all claims, whether known or unknown, against the Tribe,
the Authority and the Casino, and their respective members, officers,
directors, employees, agents, representatives, heirs, assigns, attorneys, and
successors. Employee waives the provisions of California Civil Code § 1542,
which states: “A general release does not extend to claims which the creditor
does not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his settlement
with the debtor.” Following Employees notice of resignation, Employee shall not
accrue or be paid any PTO with respect to the period, between the notice of
termination and the Actual Termination Date, if any and shall waive any right
to any bonus or severance payment whatsoever

 

Amendment:  Add Section 6.7,
Termination by Authority which shall read:

 

Termination by Authority.  Should the Authority terminate Key Employee without Good Cause,
the Authority shall provide the Key Employee sixty (60) days written
notice.  Should the Authority require the
Key Employee to leave his position prior to the Sixty (60) days, the Authority
shall pay the Key Employee for the time not worked.

 

As sole
compensation for such termination, and provided such termination is more than
90 days following the Commencement Date and Key Employee executes a release and
waiver as described in Section 7.5 (d) above, the Authority shall pay
to Key Employee an amount equal to his salary for a period of six (6) months
from the Actual Date of Termination, together with all employee benefits during
that six-month period which he would have earned had he remained employed
during said period.

 

Miscellaneous:

 

(a)         Except
as amended hereby the terms of the Agreement shall remain unmodified and in all
other respects shall continue in full force and effect.

 

(b)         This
Agreement shall control in the event of any conflict between it and the
Agreement.

 

 

The Parties have executed this
Agreement effective as of the Effective Date as set forth above.

 

 

	
  /s/Harvey Hopkins

  	
   

  
	
  Harvey Hopkins: Chairman, River
  Rock Entertainment Authority

  	
   

  

 

 

	
  /s/Joseph Callahan

  	
   

  
	
  Joseph Callahan: EmployeeExhibit
10.1

 

IN
THE UNITED STATES DISTRICT COURT 

FOR
THE MIDDLE DISTRICT OF FLORIDA

 

	
  UNITED STATES OF AMERICA,

  	
  )

  	
   

  
	
  and

  	
  )

  	
   

  
	
  FLORIDA DEPARTMENT OF

  	
  )

  	
   

  
	
  ENVIRONMENTAL PROTECTION,

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  Plaintiffs,

  	
  ) 

  	
  Civil Action
  No. [            ]

  
	
  v.

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  CF INDUSTRIES, INC.,

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  Defendant.

  	
  )

  	
   

  

 

CONSENT DECREE

 

WHEREAS, Plaintiffs,
the United States of America (United States), on behalf of the United States
Environmental Protection Agency (EPA), and the Florida Department of
Environmental Protection (FDEP) (together the Plaintiffs), have filed a
complaint alleging that Defendant, CF Industries, Inc., (CFI) has violated
the Resource Conservation and Recovery Act (RCRA), 42 United States Code
(U.S.C.) § 6901 et  seq., and the Florida Resource Recovery and
Management Act, § 403.702 et  seq., Florida Statutes (F.S.), and
the applicable regulations in 40 C.F.R. Parts 260-270, as adopted by reference
in Chapter 62-730, Florida Administrative Code (F.A.C.); at its Plant City,
Florida phosphoric acid and fertilizer manufacturing facility (Facility); 

 

WHEREAS, the Complaint
includes allegations, disputed by CFI, that CFI failed to characterize and
illegally treated, stored and disposed of hazardous wastes from the production
of sulfuric acid, diammonium phosphate (DAP) and monoammonium phosphate (MAP)
fertilizer; wastes generated during cleaning of phosphoric acid plant and
fertilizer plant equipment; and wastewaters generated from the scrubbers used
to control air pollution from the 

 

 

phosphoric acid plants. The
Complaint also alleges, and CFI disputes, that CFI illegally placed hazardous
wastes in a Phosphogypsum Stack System for managing phosphoric acid wastes
exempt from hazardous waste regulation pursuant to the Bevill Exemption, 40
C.F.R. § 261.4(b)(7), thus violating Section 3005 of RCRA, 42 U.S.C. §
6925, and the applicable regulations in 40 C.F.R. Parts 260-270, as adopted by
reference in Chapter 62-730, Florida Administrative Code (F.A.C.); 

 

WHEREAS, the objective
of the Parties in this Consent Decree is to establish injunctive relief whereby
CFI shall modify certain operating practices with respect to its management of
hazardous wastes and Bevill-Exempt wastes and implement environmental controls,
remediation, and financial assurance as set forth herein, and to assess an
appropriate penalty to resolve the allegations of the Complaint; 

 

WHEREAS, CFI has
conducted itself in good faith in its discussions with the Plaintiffs
concerning the violations alleged in the Complaint, and has already implemented
operational changes and corrective measures obviating the need for certain
injunctive relief; 

 

WHEREAS, by agreeing
to entry of this Consent Decree, CFI makes no admission of law or fact with
respect to the allegations in the Complaint and denies any non-compliance or violation
of any law or regulation identified therein. For the purpose of avoiding
litigation among the parties, however, CFI agrees to the requirements of this
Consent Decree.

 

WHEREAS, the Parties
recognize, and the Court by entering this Consent Decree finds, that this
Consent Decree has been negotiated by the Parties in good faith and will avoid
litigation among the Parties and that this Consent Decree is fair, reasonable,
and in the public interest;

 

2

 

NOW,
THEREFORE, before the taking of any testimony, without the
adjudication or admission of any issue of fact or law except as provided in
Section I, below, and with the consent of the Parties,

 

IT IS
HEREBY ADJUDGED, ORDERED, AND DECREED as follows:

 

I. JURISDICTION AND VENUE

 

1.             This Court has jurisdiction
over the subject matter of this action and over the Parties, pursuant to
Section 3008(a) of RCRA, 42 U.S.C. § 6928, and 28 U.S.C. §§ 1331,
1332, 1345, 1355 and 1367. Venue is proper in this judicial district pursuant
to 28 U.S.C. §§ 1331, 1332, 1345, 1355, 1367, 1391(b) and (c), and
1395(a), and Section 3008(a) and (g) of RCRA, 42 U.S.C. §
6928(a) and (g), because CFI’s phosphoric acid and ammoniated fertilizer
Facility is located in the vicinity of Plant City, Florida, which is in this
judicial district. For purposes of this Decree, or any action to enforce this
Decree, EPA, FDEP, and CFI consent to the Court’s jurisdiction over this Decree
and any such action and over CFI and further consent to venue in this judicial
district.

 

2.             Pursuant to
Section 3008(a)(2) of RCRA, 42 U.S.C. § 6928(a)(2), notice of the
commencement of this action has been given to FDEP.

 

3.             For purposes of this Consent
Decree, CFI agrees that the Complaint states claims upon which relief may be
granted pursuant to Sections 3004 and 3005 of RCRA, 42 U.S.C. § 6924 and 6925,
and Sections 403.721, 403.722, and 403.727, F.S.

 

II. APPLICABILITY

 

4.             The obligations of this
Consent Decree apply to and are binding upon the United States, FDEP, and CFI
and any successors, assigns, or other entities or persons otherwise bound

 

3

 

by law. Rights granted to
EPA under this Consent Decree may be exercised by FDEP upon the written
agreement of EPA and FDEP.

 

5.             No transfer of ownership or
operation of the Facility, whether in compliance with the procedures of this
Paragraph or otherwise, shall relieve CFI of its obligation to ensure that the
terms of the Decree are implemented, unless: (1) the transferee agrees in
writing to undertake the obligations required by this Decree and to be
substituted for CFI as a Party to the Decree and thus be bound by the terms
thereof; and (2) the United States, after consultation with FDEP, consents
in writing to relieve CFI of its obligations pursuant to Section XVII of
this Consent Decree (Modification). At least thirty (30) Days prior to such
transfer, or such other period agreed to by the Parties in writing, CFI shall
provide a copy of this Consent Decree to the proposed transferee and shall
simultaneously provide written notice of the prospective transfer, together
with a copy of the proposed written agreement transferring obligations to the
transferee, to EPA, FDEP, the United States Attorney for the Middle District of
Florida, and the United States Department of Justice, in accordance with
Section XIV of this Decree (Notices). The United States’ determination
whether to approve the transferee’s substitution for CFI under this Consent
Decree will take into account CFI’s completion of all of the modifications to
the Facility necessary to allow CFI to comply with the obligations of this
Consent Decree and a demonstration that the transferee has the financial and
technical capability to comply with this Consent Decree. The United States’
decision to refuse to approve the substitution of the transferee for CFI shall
be subject to dispute resolution pursuant to Section X (Dispute
Resolution) of this Consent Decree, but any judicial review shall be conducted
pursuant to Paragraph 70(a) of this Consent Decree. If Defendant does not
prevail in such judicial review, Defendant shall pay all costs incurred by the
United States in connection with such judicial

 

4

 

review, including attorney’s
fees. Any transfer of ownership or operation of the facility without complying
with this Paragraph constitutes a violation of this Decree.

 

6.             CFI shall provide a copy of
this Consent Decree to all officers, employees, and agents whose duties might
reasonably include compliance with any provision of this Decree, as well as to
any contractor retained to perform Work required under this Consent Decree. CFI
shall condition any such contract upon performance of the Work in conformity
with the terms of this Consent Decree.

 

7.             In any action to enforce
this Consent Decree, CFI shall not raise as a defense the failure by any of its
officers, directors, employees, agents, or contractors to take any actions
necessary to comply with the provisions of this Consent Decree.

 

III. DEFINITIONS

 

8.             Except as otherwise provided
in this Consent Decree (including its Appendices), definitions for the terms
presented herein shall be incorporated from the following statutes and their
corresponding regulations: RCRA, as amended, 42 U.S.C. §§ 6901 et  seq.
and the Florida Resource Recovery and Management Act, Sections 403.702 et
seq., F.S., and Chapter 62-780, F.A.C. In the case of a conflict between
the federal and state definitions, federal definitions shall control. Whenever
the terms set forth below are used in this Consent Decree, the following
definitions shall apply: 

 

a.             Bevill-Exempt Wastes shall
mean Phosphogypsum and Process Wastewater from phosphoric acid mineral
processing, which are solid wastes excluded from hazardous waste regulation
pursuant to 40 C.F.R. § 261.4(b)(7)(ii)(D) and/or (P); 

 

b.             Complaint shall mean the
complaint filed by the United States and FDEP in this action;

 

5

 

c.             Consent Decree or Decree
shall mean this Decree and all Appendices identified in Section XXIII
(Appendices) and attached hereto. In the event of any conflict between this
Decree and any Appendix hereto, this Decree shall control;

 

d.             Day shall mean a calendar
day unless expressly stated to be a business day. In computing any period of
time under this Consent Decree, where the last day would fall on a Saturday,
Sunday, or federal or State of Florida holiday, the period shall run until the
close of business of the next business day;

 

e.             Defendant or CFI shall mean
CF Industries, Incorporated;

 

f.              Downstream Operations shall
mean all Facility operations involving the storage, management, transport,
treatment, disposal or further processing of the First Saleable Product,
manufacturing operations that use the First Saleable Product as a feedstock,
and fluorosilicic acid (FSA) production operations, unless designated as a
Mixed-Use Unit or Grandfathered Unit in the Facility Report. 

 

g.             EPA shall mean the United
States Environmental Protection Agency and any of its successor departments or
agencies;

 

h.             Effective Date is defined in
Section XVI;

 

i.              Facility shall mean CFI’s
manufacturing plant, Phosphogypsum Stack System, and all other contiguous or
adjacent property owned and/or operated by CFI, that is located in the vicinity
of Plant City, Florida at 10609 State Road 39 North, as delineated in Appendix
3, Site Map. 

 

j.              Facility Report shall mean
the report dated January 7, 2010, and attached hereto as Appendix 4,
prepared by EPA following an inspection of the CFI Facility, which identifies
CFI’s Upstream and Downstream Operations, its Mixed-Use Units, and
Grandfathered Units;

 

6

 

k.             FDEP shall mean the State of
Florida Department of Environmental Protection and any of its successor
departments or agencies; 

 

l.              Financial Assurance shall
mean financial assurance for the benefit of EPA and FDEP in order to ensure
coverage for Third-party Liability, Phosphogypsum Stack System Closure, Long
Term Care, and, if required, Corrective Action, as set forth in Appendix 2 of
the Consent Decree;

 

m.            First Saleable Product shall
mean:

 

1)
Merchant Grade Acid (“MGA”), which is typically 52% to 54% (by weight) of P205 but may vary
slightly, manufactured from the direct reaction of phosphate rock and sulfuric
acid, and containing less than one percent (1%) solids content, whether or not
it is actually placed into commerce; or, if applicable,

 

2)
any intermediate phosphoric acid product with a P205 content less than or equal to
MGA that is diverted from further processing into MGA in order to be placed
into commerce, further concentrated above 54% P205 (by weight), or used as a
feedstock in manufacturing MAP/DAP, Superphosphoric Acid (SPA), Purified Acid,
or other chemical manufacturing products; 

 

n.             Florida Phosphogypsum
Rules shall mean Sections 376.30701, 403.087, 403.0876, 403.088, 403.0885,
403.121, 403.4154, and 403.4155, F.S., and the rules promulgated
thereunder in Chapters 62-4, 62-520, 62-620, 62-672, 62-673, 62-777, and
62-780, F.A.C., pertaining to the operation and closure of phosphoric acid
facilities within the State;

 

o.             FSA shall mean fluorosilicic
acid (H2 SiF6);

 

p.             Grandfathered Unit shall
mean a pipe, tank and/or other production, storage, or transportation unit in
Downstream Operations specifically identified in the Facility Report as not

 

7

 

feasibly segregable from
Upstream Operations;

 

q.             Interest shall mean the
interest rate specified in 28 U.S.C. § 1961;

 

r.              MAP/DAP shall mean
monoammonium phosphate and/or diammonium phosphate; 

 

s.             Mixed-Use Unit shall mean a
pollution control device, pipe, tank and/or other production, storage, or
transportation unit specifically identified in the Facility Report as serving
both Upstream Operations and Downstream Operations; 

 

t.              Non-Hazardous Aqueous
Solution shall mean an aqueous solution used for cleaning pipes, tanks or other
equipment that as a waste would not be a listed or characteristic hazardous
waste, including without limitation fresh water, non-hazardous condensate,
non-hazardous recycled water, and non-hazardous recovered groundwater;

 

u.             Paragraph shall mean a
portion of this Decree identified by an arabic numeral;

 

v.             Parties shall mean the
United States, FDEP and CFI;

 

w.            Phosphogypsum shall mean
calcium sulfate and byproducts produced by the reaction of sulfuric acid with
phosphate rock to produce phosphoric acid. Phosphogypsum is a solid waste
within the definition of Section 1004(27) of RCRA, 42 U.S.C. § 6903(27); 

 

x.             Phosphogypsum Stack shall
mean any defined geographic area associated with a phosphoric acid production
facility in which phosphogypsum is disposed of or stored, other than within a
fully enclosed building, container or tank; 

 

y.             Phosphogypsum Stack System
shall mean the defined geographic area associated with a phosphoric acid
production facility in which Phosphogypsum and Process Wastewater is disposed
of or stored, together with all pumps, piping, ditches, drainage, conveyances, water
control structures, collection pools, cooling ponds, surge ponds, auxiliary
holding ponds,

 

8

 

regional holding ponds, and
any other collection or conveyance system associated with the transport of Phosphogypsum
from the plant to the Phosphogypsum Stack, its management at the stack, and the
Process Wastewater return to phosphoric acid production. This includes toe
drain systems and ditches and other leachate collection systems, but does not
include conveyances within the confines of the fertilizer production plant or
emergency diversion impoundments used in emergency circumstances caused by
rainfall events of high volume or duration for the temporary storage of Process
Wastewater to avoid discharges to surface waters of the state; 

 

z.             Process Wastewater shall
mean process wastewater from phosphoric acid production. The following
wastestreams constitute process wastewater from phosphoric acid production:
water from phosphoric acid production operations through concentration to the
First Saleable Product; process wastewater generated from Upstream Operations
that is used to transport Phosphogypsum to the Phosphogypsum Stack;
Phosphogypsum Stack runoff; process wastewater generated from the uranium
recovery step of phosphoric acid production; process wastewater generated from
non-ammoniated animal feed production defluorination operations that qualify as
mineral processing operations based on the definition of mineral processing
that EPA finalized on September 1, 1989; and process wastewater generated
from the superphosphate production process that involves the direct reaction of
phosphate rock with dilute, not Merchant Grade, phosphoric acid [see 55 Fed.
Reg. 2328, January 23, 1990]; 

 

aa.           Purified Phosphoric Acid
(PPA) shall mean a refined grade of phosphoric acid where contaminants have
been removed from wet-process phosphoric acid through solvent extraction,
chemical precipitation, filtration or other purification process to produce a
purified phosphoric acid product suitable for food grade or other higher purity
phosphoric acid applications;

 

9

 

bb.          Section shall mean a
portion of this Decree identified by a roman numeral;

 

cc.           State shall mean the State
of Florida;

 

dd.          Superphosphoric Acid (SPA)
shall mean liquid phosphoric acid (not a solid phosphate product such as
granulated triple superphosphoric acid) generally with a P205 content
greater than 54%, resulting from the concentration of wet process acid that
does not involve the direct reaction of phosphate ore in such concentration
operations; 

 

ee.           Treatment shall mean any
method, technique, or process, including neutralization, designed to change the
physical, chemical, or biological character or composition of a waste so as to
neutralize such waste or so as to recover energy or material resources from the
waste, or so as to change or reduce a hazardous constituent of the waste or
make it safer to transport, store, or dispose of, or amenable for recovery, amenable
for storage, or reduced in volume;

 

ff.            United States shall mean the
United States of America, acting on behalf of EPA;

 

gg.          Upstream Operations shall
mean all phosphoric acid mineral processing operations resulting in the
manufacture of the First Saleable Product; and 

 

hh.          Work shall mean any activity
that CFI must perform to comply with the requirements of this Decree, including
Appendices.

 

IV. CIVIL PENALTY

 

9.             Within thirty (30) Days
after the Effective Date of this Consent Decree, CFI shall pay the sum of
$701,050.00 as a civil penalty, together with Interest accruing from the date
on which the Consent Decree is lodged with the Court, at the rate specified in
28 U.S.C. § 1961 as of the date of lodging, in accordance with the following
Paragraphs.

 

10.           CFI shall pay $350,525.00 to
the United States by FedWire Electronic Funds

 

10

 

Transfer (EFT) to the U.S.
Department of Justice, in accordance with written instructions to be provided
by the Financial Litigation Unit of the U.S. Attorney’s Office for the Middle
District of Florida, 400 N. Tampa Street, Suite 3200, Tampa, Florida,
33602 (813-274-6000) to CFI following lodging of the Consent Decree. At the
time of payment, CFI shall send a copy of the EFT authorization form and the
EFT transaction record, together with a transmittal letter, to the United
States in accordance with Section XIV of this Decree (Notices); by email
to acctsreceivable.CINWD@epa.gov; and by mail to:

 

EPA Cincinnati Finance Office

26 Martin Luther King Drive

Cincinnati, OH 45268

 

The transmittal letter shall
state that the payment is for the civil penalty owed pursuant to the Consent
Decree in United States et al. v. CF Indus., Inc., and shall
reference the civil action number and DOJ case number 90-7-1-08388/5.

 

11.           Within 30 Days after the
Effective Date of this Consent Decree, CFI shall pay the sum of $350,525 as a
civil penalty, to FDEP by EFT in accordance with instructions that will be
provided by FDEP within ten (10) Days of the lodging of this Consent
Decree. At the time of payment, CFI shall send a copy of the EFT authorization
form and the EFT transaction record, together with a transmittal letter, to
FDEP in accordance with Section XIV of this Consent Decree (Notices). The
transmittal letter shall state that the payment is for a civil penalty owed
pursuant to the Consent Decree in United States et al. v. CF
Indus., Inc., and shall reference the FDEP OGC number 09-3352 and DOJ
case number 90-7-1-08388/5.

 

12.           CFI shall not deduct any
penalties paid under this Decree pursuant to this Section or Section VIII
(Stipulated Penalties) in calculating its federal or state or local income tax.

 

11

 

V. COMPLIANCE REQUIREMENTS

 

13.           Compliance Projects and Schedule. CFI shall
undertake the actions set forth in Appendix 5 (Best Management Practices (BMP)
Plan) of this Consent Decree to reduce the amount of non-hazardous ammoniated
wastes deposited in the Phosphogypsum Stack System. CFI also shall implement
certain Facility changes (including Project 1 as described on pp. 19-21 and pp.
35-37 of Section IV of Appendix 4 (Facility Report)), pursuant to the
Compliance Schedule attached to this Consent Decree as Appendix 8. CFI shall
complete all projects by the project completion dates set forth in Appendix 8.

 

14.           Hazardous Waste Determinations. CFI shall make a
RCRA hazardous waste determination, pursuant to 40 C.F.R. § 262.11, of all
non-Bevill-Exempt solid wastes that are not managed in accordance with
Paragraphs 15-19, below, and, if the wastes are hazardous, CFI shall manage
such wastes in compliance with RCRA Subtitle C.

 

15.           Wastes from Downstream Operations. Unless otherwise
authorized by this Paragraph or Paragraphs 16-19 below, CFI shall manage all
hazardous wastes generated from Downstream Operations (including, without
limitation, units that transport, store, treat, or manage the First Saleable
Product (e.g., pipes, tanks, railcars); chemical manufacturing processes
that use the First Saleable Product as a feedstock (e.g., MAP/DAP, SPA
or PPA processes); FSA production processes; pollution control devices, waste
storage, transport and treatment units, and spills and leaks from all such
processes and units) in compliance with RCRA Subtitle C, regardless of the use
of any Bevill-Exempt Wastes as influent to such Downstream Operations. For any
wastes generated by units that will be modified, shut down, or replaced in
connection with, or for any wastes that will be managed differently as a result
of Projects 1 (as identified on pp. 19-21 and pp. 35-37 in Section IV of
Appendix 4 (Facility

 

12

 

Report)), 2 and 3, as
described in Appendix 8 (BMP and Project Implementation Schedule), this
Paragraph shall become effective upon completion of those Projects pursuant to
the schedule in Appendix 8 (Compliance Schedule). Except as authorized by
Section VI (Planned Phosphoric Acid Production Operations) and Section VIII
(Authorized Future Installations) of Appendix 4 (Facility Report), if any
Mixed-Use Units or Grandfathered Units are replaced or reconfigured after the
date of the Facility Report such that they serve to manage, store or transport
materials from Downstream Operations that are not identified in the Facility
Report as being associated with those Units, they will be deemed to serve
Downstream Operations, and any hazardous wastes generated from such units must
be treated, managed, stored, transported, and disposed of in accordance with
RCRA Subtitle C.

 

16.           Wastes from Upstream Operations: Phosphoric Acid
Scrubber Wastes. Wastes from air pollution control devices that are
associated with Upstream Operations, or that are identified as Mixed-Use Units
in the Facility Report, may be (a) input to Upstream Operations, or
(b) treated, stored, managed, transported or disposed of together with
Bevill-Exempt Wastes, provided that CFI deposits such wastes only in a
Phosphogypsum Stack System subject to and in compliance with the requirements
of Appendix 1, Attachment B (Groundwater and Zone of Discharge Requirements)
and Attachment C (Phosphogypsum Stack System Construction and Operational
Requirements) to this Consent Decree, and EPA has not made a determination that
the Financial Assurance provided by Defendant no longer satisfies the
requirements of this Consent Decree (Paragraph 26 and Appendix 2), pursuant to
Paragraph 34 of Appendix 2.

 

17.           Wastes from Upstream Operations; Cleaning Wastes.
Wastes generated from the use of pond water from the Phosphogypsum Stack
System, Process Wastewater, or a

 

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Non-Hazardous Aqueous
Solution to clean pipes, tanks, process equipment, or other storage or
transport units that are: (i) associated with Upstream Operations;
(ii) serve to manage, store, or transport Bevill-Exempt Wastes; or
(iii) identified as Mixed-Use or Grandfathered Units in the Facility
Report, may be (a) input to Upstream Operations, or (b) treated,
stored, managed, transported and disposed of together with Bevill-Exempt
Wastes, provided that CFI deposits such wastes only in a Phosphogypsum Stack
System subject to and in compliance with the requirements of Appendix 1,
Attachment B (Groundwater and Zone of Discharge Requirements) and Attachment C
(Phosphogypsum Stack System Construction and Operational Requirements) to this
Consent Decree, and EPA has not made a determination that the Financial
Assurance provided by Defendant no longer satisfies the requirements of this
Consent Decree (Paragraph 26 and Appendix 2), pursuant to Paragraph 34 of
Appendix 2. Following the completion of Project 3 as set forth in Appendix 8
(Compliance Schedule), if CFI, in the cleaning of Upstream Operation units,
uses sulfuric acid or any other chemical cleaning agent that, as a waste, would
generate a hazardous waste when mixed with Bevill-Exempt Process Wastewater
under the Bevill Mixture Rule, 40 C.F.R. § 261.3(a)(2)(i), then CFI shall make
a RCRA hazardous waste determination of the cleaning wastes, pursuant to 40
C.F.R. § 262.11, and, if the wastes are hazardous, CFI shall manage such wastes
in compliance with RCRA Subtitle C.

 

18.           Wastes from Upstream Operations: Spills and Leaks.
Spills and leaks of all grades of phosphoric acid product from Upstream
Operations, Mixed-Use Units, and Grandfathered Units that are not subject to
separate containment apart from Process Wastewater, as identified in Appendix 4
(Facility Report), shall be minimized and properly managed, tracked, and
reported, in accordance with Appendix 5 (BMP Plan) for Phosphoric Acid Product
Handling. This requirement shall also apply to leaks of sulfuric acid used as a
feedstock within

 

14

 

the phosphoric acid plant
battery limits that are not subject to separate containment. CFI shall notify
EPA and FDEP, pursuant to Paragraph 40, in the event of a release of:
(i) phosphoric acid product (s) identified in Appendix 4 (Facility
Report), as measured pursuant to Appendix 5 (BMP Plan), that exceeds 5,000
gallons in a 24-four period; or (ii) sulfuric acid used as a feedstock
within the phosphoric acid plant battery limits, as measured pursuant to the
requirements of the BMP, that exceeds 1,000 gallons in a 24-hour period. Such
notice(s) shall be in addition to any notices required by Section 103
of the Comprehensive Environmental Response, Compensation, and Liability Act,
42 U.S.C. § 9603, or Section 304 of the Emergency Planning and Community
Right to Know Act, 42 U.S.C. § 11004. In the event of: (i) a release of
phosphoric acid that exceeds 10,000 gallons in a 24-hour period on two
(2) or more Days in a calendar quarter, or a release of sulfuric acid that
exceeds 1,000 gallons in a 24-hour period on two (2) or more Days in a
calendar quarter, where such releases are captured within a Phosphogypsum Stack
System that complies with the requirements of Appendix 1, Attachment C,
Section VI (Phosphogypsum Stack System Construction Requirements); or
(ii) a release of phosphoric acid that exceeds 500 gallons in a 24-hour
period on two (2) or more Days in a calendar quarter, or a release of
sulfuric acid that exceeds 65 gallons in a 24-hour period on two (2) or
more Days in a calendar quarter, where such releases are not captured within a
Phosphogypsum Stack System that complies with the requirements of Appendix 1,
Attachment C, Section VI (Phosphogypsum Stack System Construction
Requirements), CFI within ten (10) days of the second such release shall
submit to EPA for approval a plan for any necessary corrective action as a
result of the releases, as well as proposed modifications to the BMP Plan to
avoid, minimize, or contain future such releases.

 

19.           Wastes from Treatment of Phosphogypsum Stack Wastes.
Wastes generated from the treatment of materials in the Phosphogypsum Stack
System that does not introduce hazardous

 

15

 

constituents or other
contaminants into such materials may be (a) input to Upstream Operations,
or (b) treated, stored, managed, transported and disposed of together with
Bevill-Exempt Wastes, provided that CFI deposits such wastes only in a
Phosphogypsum Stack System subject to and in compliance with the requirements
of Appendix 1, Attachment B (Groundwater and Zone of Discharge Requirements)
and Attachment C (Phosphogypsum Stack System Construction and Operational
Requirements) to this Consent Decree, and EPA has not made a determination that
the Financial Assurance provided by Defendant no longer satisfies the
requirements of this Consent Decree (Paragraph 26 and Appendix 2), pursuant to
Paragraph 34 of Appendix 2.

 

20.           Sulfuric Acid Plant. CFI shall implement the
Sulfuric Acid Plants Hazardous Waste Management Plan attached hereto as
Appendix 6 and shall manage hazardous waste generated at the sulfuric acid
plants in accordance with applicable law. CFI shall periodically submit to EPA
for review and approval updates to the Sulfuric Acid Plants Hazardous Waste
Management Plan.

 

21.           Site Assessment and Corrective Action. Plaintiffs
agree that CFI has already completed activities substantially equivalent to
those specified in Appendix 1, Attachment A (Site Assessment, Reporting, and
Corrective Measures), and which satisfy the requirements of that Attachment.
Attachment A is included as part of this Consent Decree in order to advise the
Court and the public of remedial activities already completed by CFI as part of
its settlement with the United States and Florida.

 

22.           Phosphogypsum Stack System. CFI shall comply with
all requirements set forth in Appendix 1, Attachment B (Groundwater and Zone of
Discharge Requirements), Attachment C (Phosphogypsum Stack System Construction
and Operational Requirements), Attachment D (Closure of Phosphogypsum
Stacks/Stack Systems), and Attachment E (Imminent and

 

16

 

Substantial Endangerment
Diagnostic Requirements). While certain requirements of these Attachments are
more stringent or detailed than the requirements of the Florida Phosphogypsum
Rules, as further detailed in the following Paragraph, the majority of the Work
required by the above-cited Attachments is also required under the Florida
Phosphogypsum Rules.

 

23.           EPA will consult periodically with FDEP regarding CFI’s
compliance with the Florida Phosphogypsum Rules. If EPA agrees that CFI is in
compliance with the Florida Phosphogypsum Rules, using the definition of
Bevill-Exempt Wastes set forth in this Consent Decree, such compliance shall be
deemed to satisfy the Work requirements of Appendix 1, Attachments B, C, D and
E, provided that CFI also complies with the following three (3) specific
Work requirements of Appendix 1 that are more stringent or detailed than the
Florida Phosphogypsum Rules:

 

(a) The Stack Closure
Plan shall be amended as needed to include the requirements of
Rule 62-673.600(3), F.A.C., and a description of the physical
configuration of the Phosphogypsum Stack System and process water inventory for
the period of time that the most costly scenario for closure is determined as
calculated in accordance with Appendix 2 (Financial Assurance);

 

(b) The Permanent
Closure Plans incorporated in the closure operation permit application shall
conform to the requirements in Rule 62-673.610(7), F.A.C., and must
include: (1) a revised estimate of all costs associated with stack
closing, long-term care and site-specific water management activities being
undertaken under the Permanent Stack Closure Plan in accordance with Appendix 2
(Financial Assurance); and (2) a description of the proposed method of
demonstrating financial responsibility for the long-term monitoring and
maintenance in accordance with Appendix 2 (Financial Assurance);

 

(c) As of the fifth
anniversary of the Effective Date of this Consent Decree, no Bevill-Exempt
Wastes shall be placed in an unlined Phosphogypsum Stack System. Plaintiffs
agree that the Facility’s Phosphogypsum Stack System as it exists on the
Effective Date of this Consent Decree is a lined system consistent with the
requirements of Appendix 1, Attachment C (Phosphogypsum Stack System
Construction and Operational Requirements). Plaintiffs further agree that the
use of the alternative synthetic liner system in certain portions of the
Facility’s Phosphogypsum Stack System, including the area known as the “Notch,”
which

 

17

 

has been previously approved
by the FDEP, is an acceptable alternative to the composite liner design
requirement set forth in Attachment C, Section VI (Phosphogypsum Stack
System Construction Requirements).

 

24.           EPA reserves the right to fully and directly enforce all
requirements of Appendix 1, Attachments B, C, D, and E, if it finds that CFI is
not in compliance with the Florida Phosphogypsum Rules, or if the Florida
Phosphogypsum Rules are modified and EPA determines that such
modifications do not comport with the Work requirements of the above-cited
Attachments. Any decision by EPA to directly enforce the Work requirements of
this Consent Decree shall not be subject to judicial review, but shall be
subject to dispute resolution (other than judicial review) pursuant to
Section X (Dispute Resolution) of this Consent Decree, although CFI
retains its right to invoke dispute resolution as set forth in Section X
(Dispute Resolution) regarding any liability for stipulated penalties due to
any asserted non-compliance with the Work requirements of this Consent Decree.

 

25.           Plaintiffs agree that CFI has already met the requirements
of (a) Section II (Assessment of Existing Perimeter Dikes) of
Attachment C (Phosphogypsum Stack System Construction and Operational
Requirements) by submitting to FDEP a report prepared by Ardaman &
Associates, dated April 16, 2007, regarding the Assessment of Existing
Earthen Perimeter Dikes and Process Water Conveyance and Containment Systems
Relative to Requirements of Rule 62-672, Plant City Phosphate Complex,
Hillsborough County, Florida, attached hereto as Appendix 7; and
(b) Section I (General Requirements for the Stack Closure Plan) of
Attachment D (Closure of Phosphogypsum Stacks/Stack Systems), by submitting a
Stack Closure Plan to FDEP. Plaintiffs further agree that CFI has a zone of
discharge authorized by FDEP before the Effective Date of this Consent Decree
and that such zone of discharge shall continue to apply unless modified
pursuant to Section II.B. of Attachment B.

 

18

 

26.           Financial Assurance. CFI shall secure and maintain
Financial Assurance for the benefit of EPA and FDEP pursuant to the
requirements of Appendix 2 (Financial Assurance) of this Consent Decree, in
order to ensure coverage for: (a) Third-party Liability;
(b) Phosphogypsum Stack System Closure (including Long-Term Care) as
required under Appendix 1, Attachment D; and, (c) Corrective Action, if
required pursuant to Appendix 1, Attachment A. Nothing in this Paragraph shall
be construed to waive or subordinate CFI’s obligation to comply with Chapter
62-673, F.A.C., of the Florida Phosphogypsum Rules regarding financial
assurance. CFI’s inability to secure and/or maintain adequate Financial
Assurance shall in no way excuse performance of the Work or any other
requirement of this Consent Decree.

 

27.           In addition to the financial assurance information
included in the reports provided pursuant to Section VII (Reporting
Requirements) of this Consent Decree, CFI, within fourteen (14) days of any
request by EPA or FDEP, shall provide requested information or reports
regarding the financial status of CFI, the financial mechanism(s) provided
by CFI to meet its obligation for Financial Assurance, and the financial
institution or guarantor providing the financial mechanism(s) to secure
CFI’s obligation.

 

28.           Approval of Submissions. After review of any work
plan, report, or other item that is required to be submitted, or revised and
resubmitted, to EPA for approval pursuant to this Consent Decree, EPA, after
consultation with FDEP, shall in writing: (a) approve the submission;
(b) approve the submission upon specified conditions; (c) approve
part of the submission and disapprove the remainder; or (d) disapprove the
submission. In the event of disapproval of any portion of the submission, EPA
shall include a statement of the reasons for such disapproval in its response.
All work plans, reports and other items that are developed and

 

19

 

submitted to EPA for
approval pursuant to this Consent Decree shall be complete and technically adequate.

 

29.           If the submission is approved pursuant to Paragraph 28,
CFI shall take all actions required by the plan, report, or other document, in
accordance with the schedules and requirements of the plan, report, or other
document, as approved. If the submission is conditionally approved or approved
only in part, pursuant to Paragraph 28(b) or (c), CFI shall, upon written
direction from EPA, take all actions required by the approved plan, report, or
other item that EPA determines are technically severable from any disapproved
portions, subject to CFI’s right to dispute only the specified conditions or
the disapproval of portions of the submission under Section X of this
Decree (Dispute Resolution).

 

30.           If the submission is disapproved in whole or in part
pursuant to Paragraph 28(c) or 28(d), CFI shall, within sixty (60) Days or
such other time as the Parties agree to in writing, correct all deficiencies
and resubmit the plan, report, or other item, or disapproved portion thereof,
for approval, in accordance with the preceding Paragraphs. If the resubmission
is approved in whole or in part, CFI shall proceed in accordance with the
preceding Paragraph.

 

31.           Any stipulated penalties applicable to the original
submission, as provided in Section VIII (Stipulated Penalties) of this
Decree, shall accrue during the sixty (60)-Day period or other agreed period, but
shall not be payable unless the resubmission is untimely or is disapproved in
whole or in part; provided that, if the original submission was so deficient as
to constitute a material breach of CFI’s obligations under this Decree, the
stipulated penalties applicable to the original submission shall be due and
payable notwithstanding any subsequent resubmission.

 

20

 

 

32.           If a resubmitted plan, report, or other item, or portion
thereof, is disapproved in whole or in part, EPA, after consultation with FDEP
may again require CFI to correct any deficiencies in accordance with the
preceding Paragraphs, or may itself correct any deficiencies, subject to CFI’s
right to invoke dispute resolution under Section X (Dispute Resolution)
and the right of EPA and FDEP to seek stipulated penalties as provided in the
preceding Paragraphs. If the resubmission is approved or corrected in whole or
in part, CFI shall proceed in accordance with Paragraph 28.

 

33.           Correction of Non-Compliance. If CFI violates, or
determines that it will violate, any requirement of Section V (Compliance
Requirements) of this Consent Decree other than those set forth in Paragraph 26
(which are governed by Appendix 2 (Financial Assurance)), it shall:
(a) comply with the reporting obligations of Section VII (Reporting
Requirements) of this Consent Decree; (b) pay any penalties pursuant to
Section VIII (Stipulated Penalties) of this Consent Decree unless waived
pursuant to Paragraph 53 of this Consent Decree; and (c) if the violation
has not been corrected prior to reporting to EPA, submit to EPA and
subsequently implement a Correction Plan to rectify the violation. Nothing in
this Paragraph shall be construed as EPA approval of CFI’s correction efforts
pursuant to this Paragraph or Appendix 2, or as limiting the rights reserved by
Plaintiffs under Section XII (Effect of Settlement/Reservation of Rights),
and EPA further reserves the right to require, upon written request, that a
Correction Plan be submitted to EPA for approval in accordance with Paragraphs
28-32, above.

 

34.           Permits. Where any compliance obligation under this
Section requires CFI to obtain a federal, state, or local permit, or
approval, CFI shall submit timely and complete applications and take all other
actions necessary to obtain all such permits or approvals. CFI

 

21

 

may seek relief under the
provisions of Section IX of this Consent Decree (Force Majeure) for any
delay in the performance of any such obligation resulting from a failure to
obtain, or a delay in obtaining, any permit or approval required to fulfill
such obligation, if CFI has submitted timely and complete applications and has
taken all other actions necessary to timely obtain all such permits or
approvals.

 

35.           Provided that CFI: (a) remains in compliance with
Section V (Compliance Requirements) of this Consent Decree (including any
modifications made pursuant to Section IX (Force Majeure) or
Section XVII (Modification)); or (b) satisfactorily corrects any
instances of non-compliance with Section V (Compliance Requirements)
obligations pursuant to Paragraph 33 or prevails in dispute resolution pursuant
to Section X (Dispute Resolution) of this Consent Decree, and is not
subject to a Work Takeover pursuant to Section VI (Work Takeover) of this
Consent Decree, it shall not be required to obtain a RCRA permit as a Treatment
Storage and Disposal Facility under RCRA Subtitle C with respect to:
(1) the treatment, storage, transport, management, and disposal of
Bevill-Exempt Wastes that have been commingled with hazardous wastes prior to
the lodging of this Consent Decree, as alleged in the Complaint; and
(2) wastes that Paragraphs 15 through 19 allow to be input to Upstream
Operations or managed together with Bevill-Exempt Wastes.

 

VI. WORK TAKEOVER

 

36.           In the event EPA determines that CFI has: (a) ceased
implementation of any portion of the Work; or (b) is seriously or
repeatedly deficient or late in its performance of the Work; or (c) is
implementing the Work in a manner that may cause an endangerment to human
health or the environment, EPA, after consultation with FDEP, may issue a
written notice (Work Takeover Notice) to CFI. Any Work Takeover Notice issued
by EPA shall specify the grounds

 

22

 

upon which such notice was
issued and shall provide CFI a period of thirty (30) Days within which to remedy
the circumstances giving rise to EPA’s issuance of such notice.

 

37.           If, after expiration of the thirty (30)-Day period
specified in Paragraph 36 of this Section, CFI has not remedied to EPA’s
satisfaction the circumstances giving rise to EPA’s issuance of the relevant
Work Takeover Notice, EPA may at any time thereafter assume and/or direct the
performance of all or any portions of the Work as EPA deems necessary (Work
Takeover). EPA shall notify CFI in writing (which writing may be electronic) if
EPA determines that implementation of a Work Takeover is warranted under this
Consent Decree.

 

38.           In the event that CFI invokes dispute resolution with
respect to EPA’s Work Takeover, pursuant to Section X (Dispute Resolution)
of the Consent Decree, EPA during the pendency of any such dispute may, in its
unreviewable discretion, commence and continue a Work Takeover until the
earlier of: (a) the date that CFI remedies, to EPA’s satisfaction, the
circumstances giving rise to original issuance of the Work Takeover Notice; or
(b) the date that a final decision is rendered in accordance with
Section X (Dispute Resolution) of the Consent Decree requiring EPA to
terminate such Work Takeover.

 

39.           After commencement and for the duration of any Work
Takeover, CFI shall provide EPA with immediate access to and benefit of any
Financial Assurance for such Work provided pursuant to Paragraph 26 and
Appendix 2 (Financial Assurance) of this Consent Decree. If CFI refuses to
provide the Financial Assurance, or the Work addressed by the Work Takeover is
not covered by Financial Assurance, then any unreimbursed costs incurred by EPA
in connection with the Work Takeover shall be considered a financial obligation
owed by Defendant to the United States and collectible in an action to enforce
this Consent Decree. Nothing in this Paragraph shall be construed to relieve
CFI of its obligation to provide adequate

 

23

 

Financial Assurance pursuant
to Appendix 2.

 

VII. REPORTING REQUIREMENTS

 

40.           Within thirty (30) Days after the end of each
calendar-quarter after lodging of this Consent Decree, until the quarter ending
after the two (2)-year anniversary of the date of lodging, CFI shall submit to
EPA and FDEP a report for the preceding calendar quarter (quarters shall end on
March 31, June 30, September 30 and December 31 of each
year) that shall include the status of any construction or compliance measures;
completion of milestones; problems encountered or anticipated, together with
implemented or proposed solutions; status of permit applications; operation and
maintenance difficulties or concerns; status of Financial Assurance; reports to
state agencies; and the log of spills and leaks tracked pursuant to the BMP.
Thereafter, CFI shall submit such reports to Plaintiffs on a semi-annual basis
until the quarter following the five (5)-year anniversary of the lodging of
this Decree. Thereafter, CFI shall submit such reports annually until such time
as CFI submits the Closure Application pursuant to Appendix 1, Attachment D
(Closure of Phosphogypsum Stacks/ Stack Systems). CFI shall submit its next
report within one-hundred twenty (120) Days after that time, on a date no more
than thirty (30) Days after the end of the quarter following approval of the
Closure Application. Thereafter, CFI shall again submit quarterly reports for a
period of two (2) years. Thereafter CFI shall submit reports annually
until the termination of this Decree pursuant to Section XVIII
(Termination).

 

41.           The reports shall also include a description of any
violation of the requirements of this Consent Decree and an explanation of the
likely cause of the violation and of the remedial steps taken, or to be taken,
to prevent or minimize such violation. If CFI violates, or determines that it
will violate, any requirement of this Consent Decree, CFI shall notify EPA and
FDEP of such violation and its likely duration, in writing, within ten
(10) working Days of the day CFI

 

24

 

first becomes aware of the
violation, with an explanation of the likely cause of the violation and of the
remedial steps taken, or to be taken, to prevent or minimize such violation. If
the cause of a violation cannot be fully explained at the time the report is
due, CFI shall so state in the report. CFI shall investigate the cause of the
violation and shall then submit an amendment to the report, including a full
explanation of the cause of the violation, within thirty (30) Days of the day
CFI becomes aware of the cause of the violation. Nothing in this Paragraph or
the following Paragraph relieves CFI of its obligation to provide the notice
required by Section IX of this Consent Decree (Force Majeure).

 

42.           Whenever any event affecting CFI’s performance under this
Decree, or the performance of its Facility, may pose an immediate threat to the
public health or welfare or the environment, CFI shall notify EPA and FDEP as
per Section XIV (Notices), as well as EPA Region 4 Emergency Response,
orally or by electronic or facsimile transmission as soon as possible, but no
later than twenty-four (24) hours after CFI first knew of the violation or
event, and shall comply with the requirements of Appendix 1, Attachment E
(Imminent and Substantial Endangerment Diagnostic Requirements). This notice
requirement is in addition to the requirement to provide notice of a violation
of this Consent Decree set forth in the preceding Paragraph.

 

43.           All reports and reporting obligations shall be submitted
to the persons designated in Section XIV of this Consent Decree (Notices).

 

44.           Each report submitted by CFI under this Section shall
be signed by a responsible corporate official of CFI (as defined in 40 C.F.R. §
270.11(a)) and shall include the following certification:

 

25

 

I certify under penalty of
law that this document and all attachments were prepared under my direction or
supervision in accordance with a system designed to assure that qualified
personnel properly gather and evaluate the information submitted. Based on my
inquiry of the person or persons who manage the system, or those persons
directly responsible for gathering the information, the information submitted
is, to the best of my knowledge and belief, true, accurate, and complete. I am
aware that there are significant penalties for submitting false information,
including the possibility of fine and imprisonment for knowing violations.

 

This certification
requirement does not apply to emergency notifications where compliance would be
impractical.

 

45.           The reporting requirements of this Consent Decree do not
relieve CFI of any reporting obligations required by RCRA or its implementing
regulations, or by any other federal, state, or local law, regulation, permit,
or other requirement.

 

46.           Any information provided pursuant to this Consent Decree
may be used by the Plaintiffs in any proceeding to enforce the provisions of
this Consent Decree and as otherwise permitted by law.

 

VIII. STIPULATED PENALTIES

 

47.           CFI shall be liable as of the Effective Date of this
Consent Decree for stipulated penalties to the United States and FDEP for
violations of this Consent Decree as specified below, unless excused under
Section IX (Force Majeure). A violation includes failing to perform any obligation
required by the terms of this Decree, including any work plan or schedule
approved under this Decree, according to all applicable requirements of this
Decree and within the specified time schedules established by or approved under
this Decree.

 

48.           If CFI fails to pay the civil penalty required to be paid
under Section IV of this Decree (Civil Penalty) when due, CFI shall pay a
stipulated penalty of $1,000 per day for each Day that the payment is late for
the first ten (10) Days, together with Interest. Thereafter, CFI

 

26

 

shall pay $3,000 per day for
each Day that the payment is late, with Interest. Late payment of the civil
penalty shall be made in accordance with Section IV (Civil Penalty),
Paragraph 10. Stipulated penalties shall be paid in accordance with Paragraphs
51, 52, 54 and 55, below. All transmittal correspondence shall state that any
such payment is for late payment of the civil penalty due under this Decree, or
for stipulated penalties for late payment, as applicable, and shall include the
identifying information set forth in Paragraph 10, above.

 

49.           Compliance Milestones

 

The following stipulated
penalties shall accrue per violation per day for each violation of the requirements
identified in Section V (Compliance Requirements):

 

	
  Penalty
  Per Violation Per Day

  	
   

  	
  Period
  of Noncompliance

  
	
   

  	
   

  	
   

  
	
  $

  	
  1,000

  	
   

  	
  1st through 14th Day

  
	
   

  	
   

  	
   

  
	
  $

  	
  2,000

  	
   

  	
  15th through 30th Day

  
	
   

  	
   

  	
   

  
	
  $

  	
  3,000

  	
   

  	
  31st Day and beyond

  

 

50.           Reporting Requirements. The following stipulated
penalties shall accrue per violation per day for each violation of the
requirements of Section VII of this Consent Decree (Reporting
Requirements):

 

	
  Penalty
  Per Violation Per Day

  	
   

  	
  Period
  of Noncompliance

  
	
   

  	
   

  	
   

  
	
  $

  	
  750

  	
   

  	
  1st through 14th Day

  
	
   

  	
   

  	
   

  
	
  $

  	
  1,000

  	
   

  	
  15th through 30th Day

  
	
   

  	
   

  	
   

  
	
  $

  	
  2,000

  	
   

  	
  31st Day and beyond

  

 

51.           Subject to the provisions of Paragraph 31, above,
stipulated penalties under this Section shall begin to accrue on the day
after performance is due or on the day a violation occurs, whichever is applicable,
and shall continue to accrue until performance is satisfactorily

 

27

 

completed or until the
violation ceases. Stipulated penalties shall accrue simultaneously for separate
violations of this Consent Decree.

 

52.           CFI shall pay stipulated penalties to the United States
and to FDEP within ten (10) Days of a written demand by either Plaintiff.
CFI shall pay fifty percent (50%) of the total stipulated penalty amount due to
the United States and fifty percent (50%) to FDEP. The Plaintiff making a
demand for payment of a stipulated penalty shall simultaneously send a copy of
the demand to the other Plaintiff.

 

53.           The Plaintiffs, may, in the unreviewable exercise of their
respective discretion, reduce or waive stipulated penalties otherwise due to
that Plaintiff under this Consent Decree. The determination by one Plaintiff
not to seek stipulated penalties, or to subsequently waive or reduce the amount
it seeks, shall not preclude the other Plaintiff from seeking the full amount
of the stipulated penalties owed.

 

54.           Stipulated penalties shall continue to accrue as provided
in Paragraph 51, during any Dispute Resolution, but need not be paid until the
following:

 

a. If the dispute is
resolved by agreement or by a decision of the United States or FDEP that is not
subject to judicial review or appealed to the Court, CFI shall pay accrued
penalties determined to be owing, together with Interest, to the United States
or FDEP within thirty (30) Days of the effective date of the agreement or the
receipt of the United States’ or FDEP’s decision or order.

 

b. If the dispute is
appealed to the Court and the United States or FDEP prevails in whole or in
part, CFI shall pay all accrued penalties determined by the Court to be owing,
together with Interest, within sixty (60) Days of receiving the final appellate
Court decision.

 

55.           CFI shall pay stipulated penalties owing to the United
States in the manner set

 

28

 

forth and with the
confirmation notices required by Paragraph 10, except that the transmittal
letter shall state that the payment is for stipulated penalties and shall state
for which violation(s) the penalties are being paid. CFI shall pay
stipulated penalties owing to FDEP in accordance with Paragraph 11, except that
the transmittal letter shall state that the payment is for stipulated penalties
and shall state for which violation(s) the penalties are being paid.

 

56.           CFI shall not deduct Stipulated Penalties paid under this
Section in calculating its state and federal income tax.

 

57.           If CFI fails to pay stipulated penalties according to the
terms of this Consent Decree, CFI shall be liable for Interest on such
penalties, as provided for in 28 U.S.C.§ 1961, accruing as of the date payment
became due. Nothing in this Paragraph shall be construed to limit the United
States or FDEP from seeking any remedy otherwise provided by law for CFI’s
failure to pay any stipulated penalties.

 

58.           Subject to the provisions of Section XII of this
Consent Decree (Effect of Settlement/ Reservation of Rights), the stipulated
penalties provided for in this Consent Decree shall be in addition to any other
rights, remedies, or sanctions available to the United States or FDEP for CFI’s
violation of this Consent Decree or applicable law. Where a violation of this
Consent Decree is also a violation of relevant statutory or regulatory
requirements, CFI shall be allowed a credit for any stipulated penalties paid
against any statutory penalties imposed for such violation.

 

IX. FORCE MAJEURE

 

59.           Force majeure, for purposes of this Consent Decree, is
defined as any event arising from causes beyond the control of CFI, of any
entity controlled by CFI, or of CFI’s contractors, that delays or prevents the
performance of any obligation under this Consent Decree

 

29

 

despite CFI’s best efforts
to fulfill the obligation. The requirement that CFI exercise best efforts to
fulfill the obligation includes using best efforts to anticipate any potential
force majeure and best efforts to address the effects of any potential force
majeure (1) as it is occurring and (2) following the potential force
majeure such that the delay and any adverse effects of the delay are minimized
to the greatest extent possible. Force Majeure does not include CFI’s financial
inability to perform any obligation under this Consent Decree 

 

60.           If any event occurs or has occurred that may delay the
performance of any obligation under this Consent Decree, whether or not caused
by a force majeure event, CFI shall provide notice orally or by electronic or
facsimile transmission as soon as possible, as provided in Section XIV of
this Consent Decree (Notices), but not later than seventy-two (72) hours after
the time when CFI first knew that the event might cause a delay. Within ten
(10) Days thereafter, CFI shall provide written notice to EPA and FDEP
with an explanation and description of the reasons for the delay; the
anticipated duration of the delay; all actions taken or to be taken to prevent
or minimize the delay; a schedule for implementation of any measures to be
taken to prevent or mitigate the delay or the effect of the delay; CFI’s
rationale for attributing such delay to a force majeure event if it intends to
assert such a claim; and a statement as to whether, in the opinion of CFI, such
event may cause or contribute to an endangerment to public health, welfare or
the environment. CFI shall include with any notice all available documentation
supporting the claim that the delay was attributable to a force majeure. CFI
shall include with any notice all available documentation supporting its claim
that the delay was attributable to a force majeure. CFI shall be deemed to know
of any circumstance of which CFI, any entity controlled by CFI, or CFI’s
contractors knew or reasonably should have known. Failure to comply with the
above requirements regarding an event shall preclude CFI from

 

30

 

asserting any claim of force
majeure regarding that event, provided, however, that if EPA, despite the late
notice, is able to assess to its satisfaction whether the event is a force
majeure under Paragraph 59 and whether CFI has exercised its best efforts under
Paragraph 60, EPA may, in its unreviewable discretion, excuse in writing CFI’s
failure to submit timely notices under this Paragraph.

 

61.           If EPA, after consultation with FDEP, agrees that the
delay or anticipated delay is attributable to a force majeure event, the time
for performance of the obligations under this Consent Decree that are affected
by the force majeure event will be extended by EPA, after consultation with
FDEP, for such time as is necessary to complete those obligations. An extension
of the time for performance of the obligations affected by the force majeure
event shall not, of itself, extend the time for performance of any other
obligation. If EPA, after consultation with FDEP, agrees that the delay is
attributable to a force majeure event, EPA will notify CFI in writing of the
length of the extension, if any, for performance of the obligations affected by
the force majeure event.

 

62.           If EPA, after consultation with FDEP, does not agree that
the delay or anticipated delay has been or will be caused by a force majeure
event, EPA will notify CFI in writing of its decision.

 

63.           If CFI elects to invoke the dispute resolution procedures
set forth in Section X (Dispute Resolution), it shall do so no later than
fifteen (15) days after receipt of EPA’s notice. In any such proceeding, CFI
shall have the burden of demonstrating by a preponderance of the evidence that
the delay or anticipated delay has been or will be caused by a force majeure
event, that the duration of the delay or the extension sought was or will be
warranted under the circumstances, that best efforts were exercised to avoid
and mitigate the effects of the delay, and

 

31

 

that CFI complied with the
requirements of Paragraphs 59 and 60, above. If CFI carries this burden, the
delay at issue shall be deemed not to be a violation by CFI of the affected
obligation of this Consent Decree identified to EPA and the Court.

 

X. DISPUTE RESOLUTION

 

64.           Unless otherwise expressly provided for in this Consent
Decree, the dispute resolution procedures of this Section shall be the
exclusive mechanism to resolve all disputes arising under or with respect to
this Consent Decree. CFI’s failure to seek resolution of a dispute under this
Section shall preclude CFI from raising any such issue as a defense to an
action by the United States or FDEP to enforce any obligation of CFI arising
under this Decree.

 

65.           Informal Dispute Resolution. Any dispute subject to
Dispute Resolution under this Consent Decree shall first be the subject of
informal negotiations, which may include any third-party assisted, non-binding
alternative dispute resolution process agreeable to the Parties. CFI shall
submit a written Notice of Dispute to both the United States and FDEP within
twenty (20) Days after receiving written notice from EPA or FDEP of a decision
that CFI disputes. The dispute shall be considered to have arisen on the date
that both the United States and FDEP have received a written Notice of Dispute.
Such Notice of Dispute shall state clearly the matter in dispute. The period of
informal negotiations shall not exceed twenty (20) Days from the date that both
Plaintiffs have received the Notice of Dispute, unless that period is modified
by written agreement. If the Parties cannot resolve a dispute by informal
negotiations, then the position of EPA, after consultation with FDEP, shall be
considered binding, unless CFI invokes formal dispute resolution procedures as
provided in the following Paragraph.

 

66.           Formal Dispute Resolution. If CFI invokes formal
dispute resolution pursuant to Paragraph 65, CFI shall, within thirty (30) Days
after the conclusion of the informal negotiation

 

32

 

period, serve on the United
States and FDEP a written Statement of Position regarding the matter in
dispute. The Statement of Position shall include, but need not be limited to,
any factual data, analysis, or opinion supporting CFI’s position and any
supporting documentation relied upon by CFI.

 

67.           The United States, after consultation with FDEP, shall
serve its Statement of Position within forty-five (45) Days of receipt of CFI’s
Statement of Position. The United States’ Statement of Position shall include
or clearly reference, but need not be limited to, any factual data, analysis,
or opinion supporting that position and any supporting documentation relied
upon by the United States. Where appropriate, EPA may allow submission of
supplemental statements of position by the parties to the dispute. The United
States’ Statement of Position shall be binding on CFI, unless CFI files a
motion for judicial review of the dispute in accordance with the following
Paragraph.

 

68.           CFI may seek judicial review of the dispute by filing with
the Court and serving on the United States and FDEP, in accordance with
Section XIV of this Consent Decree (Notices), a motion requesting judicial
resolution of the dispute. The motion must be filed within twenty (20) Days of
receipt of the United States’ Statement of Position pursuant to the preceding
Paragraph. The motion shall contain a written statement of CFI’s position on
the matter in dispute, including any supporting factual data, analysis,
opinion, or documentation, and shall set forth the relief requested and any schedule
within which the dispute must be resolved for orderly implementation of the
Consent Decree.

 

69.           The United States, after consultation with FDEP, shall
respond to CFI’s motion within the time period allowed by the Local
Rules of this Court. CFI may file a reply memorandum, to the extent
permitted by the Local Rules.

 

33

 

70.           Standard of Review  

 

a. Disputes Concerning
Matters Accorded Record Review. In any dispute brought under this
Section pertaining to the adequacy or appropriateness of plans, procedures
to implement plans, schedules or any other items requiring approval by EPA
under this Consent Decree; the adequacy of the performance of Work undertaken
pursuant to this Consent Decree; and all other disputes that are accorded
review on the administrative record under applicable principles of
administrative law, EPA shall compile an administrative record of the dispute
containing all Statements of Position, including supporting documentation and
referenced data or information, and CFI shall have the burden of demonstrating,
based on the administrative record, that the position of the United States is
arbitrary and capricious or otherwise not in accordance with law.

 

b. In any other dispute
brought under this Section, CFI shall bear the burden of demonstrating that its
position complies with and furthers the objectives of this Consent Decree. 

 

71.           The invocation of dispute
resolution procedures under this Section shall not, by itself, extend,
postpone, or affect in any way any obligation of CFI under this Consent Decree,
unless and until final resolution of the dispute so provides or unless ordered
by the Court. Stipulated penalties with respect to the disputed matter shall
continue to accrue from the first day of noncompliance, but payment shall be
stayed pending resolution of the dispute as provided in Paragraph 54. If CFI
does not prevail on the disputed issue, stipulated penalties shall be assessed
and paid as provided in Section VIII (Stipulated Penalties).

 

34

 

XI. INFORMATION COLLECTION AND RETENTION

 

72.           The United States, FDEP, and
their representatives, including attorneys, contractors, and consultants, shall
have the right of entry into the Plant City Facility, at all reasonable times,
upon presentation of appropriate identification, to:

 

a. monitor the progress of
activities required under this Consent Decree;

 

b. verify any data or
information submitted to the United States or FDEP in accordance with the terms
of this Consent Decree;

 

c. obtain samples and, upon
request, splits of any samples taken by CFI or its representatives,
contractors, or consultants;

 

d. obtain documentary
evidence, including photographs and similar data;

 

e. assess CFI’s compliance
with this Consent Decree; and

 

f. conduct Work pursuant to
Section VI (Work Takeover) of this Consent Decree.

 

73.           Upon request, CFI shall
provide EPA, FDEP or their authorized representatives splits of any samples
taken by CFI. Upon request, EPA and FDEP shall provide CFI splits of any
samples taken by EPA, FDEP, or their authorized representatives.

 

74.           CFI shall retain, and shall
require its contractors and agents to preserve, all non-identical copies of all
documents, records, or other information (including documents, records, emails
or other information in electronic form) in its or its contractors or agents possession
or control, or that come into its or its contractors or agents possession or
control, and that relate to CFI’s performance of its obligations under this
Consent Decree for a period of five (5) years after the creation of such
documents, records or other information. This information-retention requirement
shall apply regardless of any contrary corporate or

 

35

 

institutional policies or
procedures. At any time during this information-retention period, upon request
by the United States or FDEP, CFI shall provide copies of any documents,
records, or other information required to be maintained under this Paragraph.
CFI shall not dispose of materials following the expiration of its five
(5) year retention period more often than once a year.

 

75.           At the conclusion of the
information-retention period provided in the preceding Paragraph, CFI shall
notify the United States and FDEP at least ninety (90) Days prior to the
destruction of any documents, records, or other information subject to the
requirements of the preceding Paragraph and, upon request by the United States
or FDEP, CFI shall deliver any such documents, records, or other information to
EPA or FDEP. CFI may assert that certain documents, records, or other
information are privileged under the attorney-client privilege or any other
privilege recognized by federal law, provided that CFI shall not assert a legal
privilege for any data, records or information (excluding legal advice)
generated or received in connection with CFI’s obligations pursuant to the
requirements of this Consent Decree. If CFI asserts a privilege, it shall
provide the following: (1) the title of the document, record, or
information; (2) the date of the document, record, or information;
(3) the name and title of each author of the document, record, or
information; (4) the name and title of each addressee and recipient;
(5) a description of the subject of the document, record, or information;
and (6) the privilege asserted by CFI. If Plaintiffs and CFI disagree as
to whether a particular document or record is privileged, CFI shall deliver
such document or record to the United States or the FDEP unless it invokes
dispute resolution pursuant to Section X (Dispute Resolution), in which case,
CFI shall not have an obligation to deliver such document or record until a
final determination is made,

 

36

 

pursuant to the procedures
set forth in Section X (Dispute Resolution), that such document or record
is not privileged.

 

76.           CFI may also assert that
information required to be provided under this Section is protected as
Confidential Business Information (ACBI@) under 40 C.F.R. Part 2. As to
any information that CFI seeks to protect as CBI, CFI shall follow the
procedures set forth in 40 C.F.R. Part 2.

 

77.           This Consent Decree in no
way limits or affects any right of entry and inspection, or any right to obtain
information, held by the United States or FDEP pursuant to applicable federal
or state laws, regulations, or permits, nor does it limit or affect any duty or
obligation of CFI to maintain documents, records, or other information imposed
by applicable federal or state laws, regulations, or permits.

 

XII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS

 

78.           This Consent Decree resolves
the civil claims of the United States and FDEP for the violations alleged in
the Complaint filed in this action through the date of the lodging of the
Consent Decree. Provided that CFI complies with this Consent Decree from the
date of lodging of the Consent Decree through its Effective Date, these claims
shall also be resolved through the Effective Date of this Consent Decree, as of
the Effective Date. Provided that CFI complies with the Consent Decree from the
Effective Date of this Consent Decree through the date of termination of this
Consent Decree pursuant to Section XVIII (Termination), these claims shall
be finally resolved as of the date the Consent Decree terminates.

 

79.           This resolution of the
United States’ and FDEP’s civil claims set forth in the Complaint is expressly
conditioned upon complete and satisfactory performance of the requirements set
forth herein. The United States and FDEP reserve all legal and equitable

 

37

 

remedies available to
enforce the provisions of this Consent Decree, and CFI reserves all legal and
equitable defenses available to it in the defense of any such enforcement. This
Consent Decree shall not be construed to limit the rights of the United States
or FDEP to obtain penalties or injunctive relief under the federal and state
environmental statutes or their implementing regulations, or under other
federal or state law regulations or permit conditions, including
Section 3008(h) of RCRA, 42 U.S.C.§ 6928(h), except as expressly
specified in Paragraph 78 with respect to the civil claims alleged in the
Complaint. The United States and FDEP further retain all authority and reserve
all rights to take any and all actions authorized by law to protect human
health and the environment, including all legal and equitable remedies to
address any imminent and substantial endangerment to the public health or
welfare or the environment arising at, or posed by, CFI’s Plant City Facility,
whether related to the violations addressed in this Consent Decree or
otherwise.

 

80.           This Consent Decree is not a
permit, or a modification of any permit, under any federal, State, or local law
or regulation. CFI is responsible for achieving and maintaining complete
compliance with all applicable federal, State, and local laws, regulations, and
permits; and CFI’s compliance with this Consent Decree shall be no defense to
any action commenced pursuant to any such law, regulation, or permit, except as
expressly specified in Paragraph 78 with respect to the civil claims alleged in
the Complaint. The United States and FDEP do not, by their consent to the entry
of this Consent Decree, warrant or aver in any manner that CFI’s compliance
with any aspect of this Consent Decree will result in compliance with
provisions of RCRA, or with any other provision of federal, State, or local
law, regulation, or permit.

 

81.           This Consent Decree does not
limit or affect the rights of CFI or of the United States or FDEP against any
third parties, not a Party to this Consent Decree, nor does it limit the

 

38

 

rights of third parties, not
a Party to this Consent Decree, against CFI, except as otherwise provided by
law.

 

82.           This Consent Decree shall
not be construed to create rights or obligations in, or grant any cause of
action to, any third party not party to this Consent Decree.

 

83.           Nothing in the Complaint
filed in this action or in this Consent Decree, including the execution and
implementation of this Consent Decree, shall constitute an admission by
Defendant of any of the allegations of the Complaint. The terms of this Consent
Decree may not be used as evidence in any litigation between the Parties except
pursuant to Section X (Dispute Resolution) or in an action to enforce this
Consent Decree.

 

XIII. COSTS

 

84.           The Parties shall bear their
own costs of this action, including attorneys’ fees, except that the United
States and FDEP shall be entitled to access Financial Assurance pursuant to
Paragraph 26 and Appendix 2 (Financial Assurance) of this Consent Decree, and
to collect the costs (including attorneys’ fees) incurred in any action
necessary to collect any portion of the civil penalty or any stipulated
penalties or other costs due under this Consent Decree but not paid by CFI.

 

XIV. NOTICES

 

85.           Unless otherwise specified
herein, whenever notifications, submissions, or communications are required by
this Consent Decree in accordance with Section VII, Reporting
Requirements, they shall be made electronically, unless otherwise requested by
either FDEP and EPA, and addressed as follows: 

 

To the United States: 

 

Chief, Environmental
Enforcement Section

 

39

 

Environment
and Natural Resources Division

U.S.
Department of Justice

Re:
DOJ No. 90-7-1-08388/5

 

	
  by email

  	
   

  	
  by fax

  	
   

  	
  by regular mail or post office
  express mail

  	
   

  	
  by private overnight service

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c/o Deborah.Reyher@usdoj.gov

  	
   

  	
  (202) 514-4113 or 514-0097

  	
   

  	
  Box 7611 Ben Franklin Station

  	
   

  	
  601 D Street, NW.,

  
	
   

  	
   

  	
   

  	
   

  	
  Washington, D.C.
  20044-7611

  	
   

  	
  2nd floor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Washington, D.C. 20004

  

 

United States Attorney for
the Middle District of FL 

Middle District of FL

400 N. Tampa Street,
Suite 3200 

Tampa, FL 33602 

Phone: (813) 274-6000 

Fax: (813) 274-6358

 

and to EPA, below.

 

To EPA:

 

Bethany Russell and Joan
RedleafDurbin 

U.S. Environmental
Protection Agency, Region 4 

61 Forsyth Street, S.W.

Atlanta, GA 30303-8960 

Phone: (404) 562-8542 

Fax: (404) 562-8078 

russell.bethany@epa.gov 

redleaf-durbin.joan@epa.gov

 

Kathryn P. Caballero

Office of Civil Enforcement

Mail Code 2249A

U.S. Environmental
Protection Agency

Ariel Rios Building

1200 Pennsylvania Ave., NW

Washington, D.C. 20460

Phone: (202) 564-1849

Fax: (202) 564-0019

caballero.kathryn@epa.gov

 

To FDEP:

 

Tim Bahr, Administrator

Hazardous Waste Regulation
Section M.S. 4560

 

40

 

Department of Environmental
Protection 

2600 Blair Stone Road 

Tallahassee, FL 32399-2400 

tim.bahr@dep.state.fl.us

 

James Dregne, Hazardous
Waste Manager 

Department of Environmental
Protection 

13051 North Telecom Parkway 

Temple Terrace, FL
33637-0926 

james.dregne@dep.state.fl.us

 

John A. Coates, P.E., Chief

Bureau of Mining and
Minerals Regulation 

FL DEP, Division of Water
Resource Management 

2051 East Dirac Drive

Tallahassee, FL 32312

john.coates@dep.state.fl.us

 

Sam Zamani, P.E., Program
Administrator 

Phosphate Management
Section 

FL DEP, Division of Water
Resource Management 

13051 North Telecom Parkway 

Temple Terrace, FL 33637-0926

sam.zamani@dep.state.fl.us

 

· and with
respect to notices pertaining to Financial Assurance:

 

Robert Stewart 

USEPA - Region 4

Atlanta Federal Center -
11th Floor 

61 Forsyth Street, SW

Atlanta, GA 30303-8960

 

Debbie Jourdan

Superfund & RCRA
Records Program Manager 

USEPA - Region 4 

Atlanta Federal Center -
11th Floor 

61 Forsyth Street, SW

Atlanta, GA 30303-8960

 

To CFI:

 

Herschel Morris

CF Industries, Inc.

Post Office Drawer L

 

41

 

Plant City, FL 33564-9007

Michael P. Petrovich,
Esquire

Hopping Green &
Sams, P.A.

123 South Calhoun Street

Tallahassee, FL 32301

 

Henry C. Eisenberg

Skadden Arps Slate
Meagher & Flom

1440 New York Avenue, N.W.

Washington, D.C. 20005-2111

 

86.           Any Party may, by written
notice to the other Parties, change its designated notice recipient or notice
address provided above.

 

87.           Notices submitted pursuant
to this Section shall be deemed submitted upon electronic transmission,
unless otherwise provided in this Consent Decree or by mutual agreement of the
Parties in writing.

 

XV. EFFECTIVE DATE

 

88.           The Effective Date of this
Consent Decree shall be the date upon which this Consent Decree is entered by
the Court or a motion to enter the Consent Decree is granted, whichever occurs
first, as recorded on the Court’s docket; provided, however, that CFI hereby
agrees that it shall be bound from the date of its execution of this Decree to
perform obligations scheduled in this Consent Decree to occur prior to the
Effective Date.

 

XVI. RETENTION OF JURISDICTION

 

89.           The Court shall retain
jurisdiction over this case until termination of this Consent Decree, pursuant
to Section XVIII (Termination), for the purpose of resolving disputes
arising under this Decree or entering orders modifying this Decree, pursuant to
Sections X (Dispute Resolution) and XVII (Modification), or effectuating or
enforcing compliance with the terms of this Decree.

 

42

 

XVII. MODIFICATION

 

90.           Except as specifically
provided for herein, there shall be no modifications or amendments of this
Consent Decree without the written agreement of the Parties to this Consent
Decree. Changes to provisions of this Consent Decree that expressly allow for
change upon written agreement, and changes to the provisions of Appendices 1
through 8 hereto, or other modifications that do not constitute a material
change to this Decree, may be made without approval by the Court upon written
agreement between CFI and EPA, after consultation with FDEP, and upon execution
shall become enforceable under this Consent Decree and shall be filed with the
Court. Any other modifications agreed to by the Parties shall be effective only
upon approval by the Court. A Party’s refusal to agree to a modification of this
Consent Decree shall not be subject to dispute resolution or judicial review.

 

91.           In the event that a
transferee of property under Section II of this Consent Decree should
desire to become a party to this Consent Decree and subject to all its terms and
provisions, it may do so upon written approval of the United States pursuant to
Section II (Applicability) of this Consent Decree, in which event a
supplemental signature page will be affixed to this Consent Decree and
filed with the Court.

 

XVIII. TERMINATION

 

92.           Periodic Review of Work
Status. At least once every three (3) years, and more often if the
Parties so agree, the Parties shall meet to review the status of the Work and
to evaluate whether discrete portions of the Work have either been completed or
may be accomplished and supervised under an EPA or FDEP administrative order or
permit. Any agreement of the Parties shall be memorialized in a written
modification to this Consent Decree pursuant to Section XVII
(Modification) and shall not require judicial approval. If the Parties

 

43

 

agree that such
modifications allow this Consent Decree to be terminated, the Parties shall
submit, for the Court’s approval, a joint stipulation terminating the Consent Decree.
The Parties’ inability to reach an agreement relating to modification or
termination under this Paragraph shall not be subject to dispute resolution or
judicial review.

 

93.           Completion of Work. Within ninety
(90) Days after CFI concludes that all Work required under this Consent Decree
has been fully performed, CFI, if EPA and/or FDEP so requests, shall schedule
and conduct an inspection of the facility to be attended by EPA, FDEP and CFI
at a mutually agreeable time. Following the inspection, and correction of any
problems or deficiencies noted by EPA, after consultation with FDEP, CFI shall
submit one or more written reports by a third party registered professional
engineer, in the relevant technical field, certifying compliance with Section V
(Compliance Requirements) of this Consent Decree that the Work has been
completed in full satisfaction of the requirements of this Consent Decree. The
reports shall indicate the case name and civil action number, and shall be
submitted, together with a request for Acknowledgment of Completion, in
accordance with Paragraph 40, Section VII (Reporting Requirements) of this
Consent Decree.

 

94.           If, after review of the
written report(s) and certification and consultation with FDEP, EPA
determines that any portion of the Work has not been completed in accordance
with this Consent Decree, EPA will notify CFI in writing of the activity(ies)
and/or obligation(s) that must be undertaken to complete the Work. EPA
will set forth in the notice a schedule for performance of the activity(ies)
and/or obligation(s) required under the Consent Decree, or will require
CFI to submit a schedule for EPA approval pursuant to Section V
(Compliance Requirements) of this Consent Decree. CFI shall perform all
activities described in the notice in accordance with the specifications and
schedules established therein, subject to CFI’s right to

 

44

 

invoke the dispute
resolution procedures set forth in Section X (Dispute Resolution) of this Consent
Decree.

 

95.           If EPA concludes, based on
the initial or any subsequent request for an Acknowledgment of Completion by
CFI, and after reasonable opportunity for review and comment by FDEP, that the
Work has been fully performed in accordance with this Consent Decree, EPA will
so notify CFI in writing, which notice shall constitute the Acknowledgment of
Completion.

 

96.           Termination. After CFI has
completed the requirements set forth in Paragraphs 92 and 93 of this Section,
has obtained an Acknowledgment of Completion, has complied with all other
requirements of this Consent Decree, and has paid the civil penalty and any
accrued stipulated penalties as required by this Consent Decree, CFI may serve
upon the United States and FDEP a Request for Termination, stating that CFI has
satisfied those requirements, together with all necessary supporting
documentation.

 

97.           Following receipt by the
United States and FDEP of CFI’s Request for Termination, the Parties shall
confer informally concerning the Request and any disagreement that the Parties
may have as to whether CFI has satisfactorily complied with the requirements
for termination of this Consent Decree. If the United States, after
consultation with FDEP, agrees that the Decree may be terminated, the Parties
shall submit, for the Court’s approval, a joint stipulation terminating the
Decree.

 

98.           If the United States, after
consultation with FDEP, does not agree that the Decree may be terminated, CFI
may invoke Dispute Resolution under Section X of this Decree. However, all
time periods and deadlines established under Section X (Dispute
Resolution) shall be extended by sixty (60) Days, or more by the agreement of
the Parties.

 

45

 

XIX. PUBLIC PARTICIPATION

 

99.           This Consent Decree shall be lodged with the Court for a
period of not less than thirty (30) Days for public notice and comment in
accordance with 28 C.F.R. § 50.7. The United States reserves the right to
withdraw or withhold its consent if the comments regarding the Consent Decree
disclose facts or considerations indicating that the Consent Decree is
inappropriate, improper, or inadequate. CFI consents to entry of this Consent
Decree without further notice and agrees not to withdraw from or oppose entry
of this Consent Decree by the Court or to challenge any provision of the
Decree, unless the United States has notified CFI in writing that it no longer
supports entry of the Decree.

 

XX. SIGNATORIES/SERVICE

 

100.         Each undersigned representative of CFI, the Assistant
Attorney General for the Environment and Natural Resources Division of the
Department of Justice, or his designee, and the Secretary of the Florida
Department of Environmental Protection certifies that he or she is fully
authorized to enter into the terms and conditions of this Consent Decree and to
execute and legally bind the Party he or she represents to this document.

 

101.         This Consent Decree may be signed in counterparts, and its
validity shall not be challenged on that basis. CFI agrees to accept service of
process by mail with respect to all matters arising under or relating to this
Consent Decree and to waive the formal service requirements set forth in
Rules 4 and 5 of the Federal Rules of Civil Procedure and any
applicable Local Rules of this Court including, but not limited to,
service of a summons.

 

XXI. INTEGRATION

 

102.         This Consent Decree and its Appendices constitute the final,
complete, and exclusive agreement and understanding among the Parties with respect
to the settlement

 

46

 

embodied in the Decree and
supersede all prior agreements and understandings, whether oral or written,
concerning the settlement embodied herein. Other than the Appendices, which are
attached to and incorporated in this Decree, no other document, nor any
representation, inducement, agreement, understanding, or promise, constitutes
any part of this Decree or the settlement it represents, nor shall it be used
in construing the terms of this Decree.

 

XXII. FINAL JUDGMENT

 

103.         Upon approval and entry of this Consent Decree by the Court,
this Consent Decree shall constitute a final judgment of the Court as to the
United States, FDEP and CFI. The Court finds that there is no just reason for
delay and therefore enters this judgment as a final judgment under Fed. R. Civ.
P. 54 and 58.

 

XXIII. APPENDICES

 

104.         The following Appendices are attached to and part of this
Consent Decree: 

 

Appendix 1 contains the
following compliance requirements: 

 

Attachment A (Site
Assessment, Reporting, and Corrective Measures); 

 

Attachment B (Groundwater
and Zone of Discharge Requirements); 

 

Attachment C (Phosphogypsum
Stack System Construction and Operational Requirements); 

 

Attachment D (Closure of
Phosphogypsum Stacks/Stack Systems); 

 

Attachment E (Imminent and
Substantial Endangerment Diagnostic Requirements); 

 

Attachment F (Definitions
for Purpose of the Consent Decree); 

 

Appendix 2 establishes
Financial Assurance Requirements; 

 

Appendix 3 is a Site Map of
the CFI Facility; 

 

Appendix 4 is the Facility
Report;

 

47

 

Appendix 5 is CFI’s current
BMP Plan for Phosphoric Acid Product Handling and includes operational changes
to reduce generation of MAP/DAP ammoniated wastes;

 

Appendix 6 is the Sulfuric
Acid Plants Hazardous Waste Management Plan provided to EPA and FDEP on
December 19, 2007; 

 

Appendix 7 is a letter from
CFI to FDEP, dated April 17, 2007, enclosing an April 16, 2007
Ardaman & Associates Assessment of Existing Perimeter Earthen Dikes at
the Plant City Phosphate Complex; and

 

Appendix 8 is the Compliance
Schedule (BMP and Project Implementation Schedule)

 

 

Dated and entered this     
day of                     ,
2010.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UNITED STATES DISTRICT
  JUDGE

  
	
   

  	
   

  	
  MIDDLE DISTRICT OF FLORIDA

  

 

48

 

WE HEREBY CONSENT to the
entry of the Consent Decree in United States et al. v. CF Industries, Inc.,
subject to the public notice requirements of 28 C.F.R. § 50.7.

 

	
   

  	
   

  	
  FOR THE UNITED STATES OF
  AMERICA:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  8/03/10

  	
   

  	
  /s/ Robert G. Dreher

  
	
   

  	
   

  	
  Robert G. Dreher

  
	
   

  	
   

  	
  Acting Assistant Attorney
  General

  
	
   

  	
   

  	
  Environment & Natural
  Resources Division

  
	
   

  	
   

  	
  United States Department
  of Justice

  
	
   

  	
   

  	
  950 Pennsylvania Avenue,
  NW

  
	
   

  	
   

  	
  Washington, D.C. 20530

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  8/04/10

  	
   

  	
  /s/ Deborah M. Reyher

  
	
   

  	
   

  	
  DEBORAH M. REYHER

  
	
   

  	
   

  	
  Senior Counsel

  
	
   

  	
   

  	
  Environmental Enforcement
  Section

  
	
   

  	
   

  	
  Environment and Natural
  Resources Division

  
	
   

  	
   

  	
  U.S. Department of Justice

  
	
   

  	
   

  	
  P.O. Box 7611

  
	
   

  	
   

  	
  Ben Franklin Station

  
	
   

  	
   

  	
  Washington, D.C. 20044

  
	
   

  	
   

  	
  (202) 514-4113

  

 

49

 

WE HEREBY CONSENT to the
entry of the Consent Decree in United States et al. v. CF Industries, Inc.,
subject to the public notice requirements of 28 C.F.R. § 50.7.

 

	
   

  	
   

  	
  FOR THE UNITED STATES OF
  AMERICA:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A. BRIAN ALBRITTON

  
	
   

  	
   

  	
  United States Attorney

  
	
   

  	
   

  	
  for the Middle District of
  FL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Kenneth Stegeby

  
	
   

  	
   

  	
  KENNETH STEGEBY

  
	
   

  	
   

  	
  Assistant United States
  Attorney

  
	
   

  	
   

  	
  USAO No.112

  
	
   

  	
   

  	
  400 N. Tampa Street,
  Suite 3200

  
	
   

  	
   

  	
  Tampa, FL 33602

  
	
   

  	
   

  	
  Phone: (813) 274-6303

  
	
   

  	
   

  	
  Facsimile: (813) 274-6198

  
	
   

  	
   

  	
  Email: Kenneth.stegeby@usdoj.gov

  

 

50

 

WE HEREBY CONSENT to the
entry of the Consent Decree in United States et al. v. CF Industries, Inc.,
subject to the public notice requirements of 28 C.F.R. § 50.7.

 

	
   

  	
   

  	
  FOR THE UNITED STATES OF
  AMERICA:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE: 7/30/10

  	
   

  	
  /s/ Cynthia Giles

  
	
   

  	
   

  	
  CYNTHIA GILES

  
	
   

  	
   

  	
  Assistant Administrator

  
	
   

  	
   

  	
  Office of Enforcement and
  Compliance Assurance

  
	
   

  	
   

  	
  United States Environmental
  Protection Agency

  
	
   

  	
   

  	
  Washington, D.C. 20460

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE: 

  	
   

  	
   

  
	
   

  	
   

  	
  ADAM M. KUSHNER

  
	
   

  	
   

  	
  Director, Office of Civil
  Enforcement

  
	
   

  	
   

  	
  Office of Enforcement and
  Compliance Assurance

  
	
   

  	
   

  	
  United States Environmental
  Protection Agency

  
	
   

  	
   

  	
  Washington, D.C. 20460

  

 

51

 

 

	
  Date: 

  	
  6/29/2010

  	
   

  	
  /s/ A. Stanley Meiburg

  
	
   

  	
   

  	
  A. STANLEY MEIBURG

  
	
   

  	
   

  	
  Acting Regional
  Administrator

  
	
   

  	
   

  	
  U.S. Environmental
  Protection Agency, Region 4

  
	
   

  	
   

  	
  61 Forsyth Street, S.W.

  
	
   

  	
   

  	
  Atlanta, GA 30303-8960

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  6/29/10

  	
   

  	
  /s/ Joan Redleaf Durbin

  
	
   

  	
   

  	
  JOAN REDLEAF DURBIN

  
	
   

  	
   

  	
  Senior Attorney

  
	
   

  	
   

  	
  U.S. Environmental
  Protection Agency, Region 4

  
	
   

  	
   

  	
  SNAFC, 13th Floor

  
	
   

  	
   

  	
  61 Forsyth Street, S.W.

  
	
   

  	
   

  	
  Atlanta, GA 30303-8960

  

 

52

 

WE HEREBY CONSENT to the
entry of the Consent Decree in United States et al. v. CF Industries, Inc.,
subject to the public notice requirements of 28 C.F.R. § 50.7.

 

	
   

  	
   

  	
  FOR FLORIDA DEPARTMENT OF
  ENVIRONMENTAL PROTECTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE: 

  	
  7/16/10

  	
   

  	
  /s/ Mimi Drew

  
	
   

  	
   

  	
  MIMI DREW

  
	
   

  	
   

  	
  Deputy Secretary,
  Regulatory Programs

  
	
   

  	
   

  	
  Florida Department of
  Environmental Protection

  
	
   

  	
   

  	
  3900 Commonwealth Blvd.,
  M.S. 15

  
	
   

  	
   

  	
  Tallahassee, FL 32399-3000

  
				

 

53

 

	
  FOR CF
  INDUSTRIES, INC.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE: August 4, 2010

  	
   

  	
  /s/ S. R. Wilson

  
	
   

  	
   

  	
  STEPHEN R. WILSON

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
  CF Industries, Inc.

  

 

54

 

 

APPENDIX 1- OPERATING AND CLOSURE REQUIREMENTS FOR THE
PHOSPHORIC ACIC PRODUCTION INDUSTRY

 

ATTACHMENT A: 
SITE ASSESSMENT, REPORTING, AND CORRECTIVE MEASURES

 

SAMPLING AND ANALYSIS WORKPLAN

 

1)     The Defendant shall submit
to the Implementing State Agency and/or EPA for approval an Outline for a
Sampling and Analysis Workplan (“Outline”), for carrying out the required
monitoring, testing, analysis, and reporting.

 

2)     The Defendant shall submit
to the Implementing State Agency and/or EPA a Sampling and Analysis Workplan (“Workplan”),
unless Defendant has already submitted a Sampling and Analysis Workplan that
has been approved by the Implementing State Agency and/or EPA and is consistent
with this Attachment.

 

3)     The Sampling and Analysis
Workplan shall be designed to determine the presence, magnitude, extent,
direction, and rate of movement of any hazardous waste, hazardous constituents,
and/or constituents of concern (“COC”) within and beyond the Facility
boundary.  COCs shall be limited to those
contaminants that are reasonably likely to be found at the Facility.  The Workplan shall document the procedures
the Defendant shall use to assess sampling and analysis data that is generated
and that relate to the purposes of this Attachment.  The Workplan shall also document the
procedures the Defendant shall use to conduct those activities necessary to:
characterize the source(s) of contamination; characterize the potential
pathways of contaminant migration; define the degree and extent of
contamination; and identify actual or potential human and/or ecological
receptors.  The Defendant may implement
the Work contained in the Workplan in a multi-phased approach.  A specific schedule for expeditious
implementation of all activities shall be included in the Workplan.  At a minimum, the Workplan for assessment
shall include the following [All requirements below
would be facility-specific]:

 

(a)           A sediment and/or soil, as
appropriate, sampling and analysis section to collect and analyze
representative sediment and/or soil samples to determine the nature and extent
of potential contamination, both vertically and horizontally.  Areas of sampling shall include process
areas, areas of historical spills and/or historical contamination, areas of
waste management, other facility operation areas (to be defined), stormwater
and non-process water ditches and ponds, and ditches associated with National
Pollutant Discharge Elimination System (“NPDES”) outfall(s).  The Workplan must define the number,
location, and depth of the samples, and the parameters for analysis.  The number of samples shall be sufficient to
produce a 95% confidence level that the results are representative of the
environmental conditions found at each location.

 

(b)           A surface water (including run-off) sampling and
analysis section to determine the nature and extent of any contaminated surface
water flowing from the portions of

 

 

the
facility adjacent to and down-gradient from the unlined areas of facility
operations (to be defined).  The Workplan
shall define the number, location, and depth of samples, and the parameters for
analysis.

 

(c)           A groundwater sampling and analysis section to
characterize the groundwater quality and the extent of any groundwater
contamination, both vertically and horizontally, that may be migrating from
Defendant’s facility.  This shall include
unlined areas, and/or lined areas which do not meet the requirements of
Attachment C, within the facility operations. 
The Workplan shall define the number, location, and depth of groundwater
samples (either from existing wells included in the current groundwater
monitoring program, temporary wells, or direct-push technology), and the
parameters for analysis.

 

(d)           Upon confirmation of the existence of hazardous
waste, hazardous constituents and/or COCs in groundwater emanating from the
facility beyond the “zone of discharge,” a section addressing a potable well
survey within a 1⁄2 mile radius of the facility including a schedule for sampling
of each well, and the parameters for analysis. 
Upon confirmation of an exceedance of State-groundwater standards in any
of the potable wells, the well survey will be extended by 1⁄2 mile radial
increments in the appropriate direction depending on the results of the initial
well survey.

 

(e)           A survey that identifies any wetlands, creeks, or
lakes within a one (1) mile radius down gradient and beyond the Defendant’s
property boundaries (not including public roadside ditches).  This survey should also identify any such
bodies of water that are used for public recreational purposes or may contain
endangered species.

 

(f)            A Project Management Plan.

 

(g)           A Data Collection Quality Assurance Project Plan for
new sampling and analysis.

 

(h)           A Data Management Plan for new sampling and
analysis.

 

(i)            A Community Relations Plan
(if appropriate).

 

(j)            A timeline for Work detailed above and a schedule
for the submission of progress reports, including a draft Sampling and Analysis
Report, and a final Sampling and Analysis Report.

 

4)     Concurrent with the
submission of the Sampling and Analysis Workplan, the Defendant shall submit a
Health and Safety Plan with respect to the Work to be performed.

 

5)     Upon receipt of the
Implementing State Agency’s and/or EPA’s approval of the Workplan, the
Defendant  shall implement the approved Workplan in
accordance with the terms and schedules contained therein.  Upon completion of the Agency-approved
sampling activities

 

 

proposed
in the Workplan, the Defendant shall submit to the Implementing State Agency
and/or EPA for approval a draft Sampling and Analysis Report, in accordance
with the requirements and schedule contained in the approved Sampling and
Analysis Workplan.  Upon approval of the
draft Sampling and Analysis Report by the Implementing State Agency and/or EPA,
the Defendant shall submit a final Sampling and Analysis Report.

 

6)     The Implementing State
Agency and/or EPA acknowledge that the Defendant may have completed some of the
tasks required by this Attachment and/or that the Defendant has available
pertinent information and data required by this Attachment.  This previous work may be used to meet some
of the requirements of this Attachment, upon submission to and written approval
by the Implementing State Agency and/or EPA.

 

7)     The Defendant shall develop
background levels for minerals, metals, and naturally occurring materials in
order for results to be compared to determine what the appropriate
clean-up/action level for a particular constituent of concern.

 

ADDITIONAL WORK

 

8)     Based on Work performed
under the Workplan described above, the Implementing State Agency and/or EPA
may determine that additional monitoring, testing, analysis, and/or reporting
is necessary to ascertain the nature and extent of any hazard to human health
and the environment that may be presented by the presence or release of
hazardous wastes and/or hazardous constituents at or from the facility.  If the Implementing State Agency and/or EPA
determine that such additional Work is necessary, the Implementing State Agency
and/or EPA will notify the Defendant in writing and specify the basis for its
determination that additional Work is necessary.  Procedures for disputing this determination
of additional Work are outlined in the Consent Decree.

 

MINIMUM QUALIFICATIONS FOR PERSONNEL

 

9)     All Work performed by or for
the Defendant pursuant to this Attachment shall be under the direction and
supervision of an individual who has demonstrated expertise in hazardous waste
site investigation.  Before any Work is
performed, the Defendant shall submit to the Implementing State Agency and/or
EPA, in writing, the name, title, and qualifications of the supervisory
personnel and of any contractors or subcontractors to be used in carrying out
the terms of this Attachment. 
Additionally, the Defendant shall ensure that when a license is required,
only licensed individuals shall be used to perform any Work required by this
Attachment.

 

QUALITY ASSURANCE/QUALITY CONTROL

 

10)   All new sampling and
analysis conducted under this Attachment shall follow applicable EPA or State
standards for sample analysis.  The
contact person(s), name(s), address(es), and telephone number(s) of the
analytical laboratories the Defendant proposes to use must be specified in the
applicable Workplan.

 

 

11)   All Workplan(s) required
under this Attachment shall include data quality objectives for each data
collection activity to ensure that data of known and appropriate quality are
obtained and that data are sufficient to support their intended use(s).

 

12)   The Defendant shall monitor
to ensure that high quality data are obtained by its consultant or contract
laboratories.  The Implementing State
Agency and/or EPA may reject any data that does not meet the requirements of
the approved Workplan or approved analytical methods and may require
re-sampling and additional analysis.

 

13)   The Defendant shall ensure
that appropriate chain-of-custody procedures are specified in the
Workplan.  Such procedures shall include,
but not be limited to: standardized field tracking reports to establish sample
custody in the field prior to shipment, pre-pared sample labels containing all
the information necessary for sample tracking; identification of responsible
party at a laboratory who is authorized to sign for incoming field samples,
obtain documents of shipment, and verify the data entered into the sample
custody records; use of sample custody log consisting of serially numbered
standard lab-tracking report sheets; and specification of laboratory sample
custody procedures for sample handling, storage and dispersement for analysis.

 

14)   The Implementing State
Agency and/or EPA may conduct a performance and Quality Assurance/Quality
Control (“QA/QC”) audit of the laboratories chosen by the Defendant before,
during, or after sample analyses.  Upon
request by the Implementing State Agency and/or EPA, the Defendant shall have
its laboratory perform analyses of samples provided by the Implementing State
Agency and/or EPA to demonstrate laboratory performance.  If the audit reveals deficiencies in a laboratory’s
performance or QA/QC, re-sampling and additional analysis may be required.

 

SAMPLING AND DATA/DOCUMENT AVAILABILITY

 

15)   The Defendant shall submit
to the Implementing State Agency and/or EPA the results of all sampling and/or
tests or other data generated by, or on behalf of, the Defendant pursuant to
the requirements of this Attachment.

 

16)   The Defendant shall notify
the Implementing State Agency and/or EPA, in writing or by electronic mail, at
least ten (10) days in advance of engaging in any field activities at the
facility conducted pursuant to this Attachment. 
At the request of the Implementing State Agency and/or EPA, the
Defendant shall provide, or allow the Implementing State Agency and/or EPA or
its authorized representatives to take, split and/or duplicate any of the
samples collected by the Defendant pursuant to this Attachment.  Similarly, at the request of the Defendant,
the Implementing State Agency and/or EPA will allow the Defendant or its
authorized representatives to take split and/or duplicate any of the samples
collected by the Implementing State Agency and/or EPA under this Attachment,
provided that such sampling shall not delay the Implementing State Agency
and/or EPA’s proposed sampling activities. 
Nothing in this Attachment shall limit or otherwise affect the Implementing
State Agency’s and/or EPA’s authority to collect samples pursuant to applicable
law, including, but not limited to, RCRA and/or CERCLA.

 

 

RISK ASSESSMENT PLAN (1)

 

17)   The Defendant shall develop
and submit for approval a Risk Assessment Plan to the Implementing State Agency
and/or EPA within forty-five (45) days of confirming the existence of hazardous
waste, hazardous constituents and/or COCs exceeding action levels established
through Appendix A-1 or background, whichever is higher, that may be emanating
from the facility in soil and/or sediment, and/or surface water, and/or near,
at or beyond the “zone of discharge” in groundwater.  The Risk Assessment Plan shall address both
environmental and human receptors and shall contain, but not be limited to the
following elements: description of the facility or site; scope of the risk
assessment; identification and description of the hazardous waste, hazardous
constituents and/or COCs; description of sampling methods and collection
strategies; exposure assessment (including identification of exposure
pathways); toxicity assessment; and risk characterization.  The Defendant shall contact the Implementing
State Agency and/or EPA and obtain any publically available guidance or models
that will assist in the development of the Risk Assessment Plan and the
subsequent Report.

 

a)     The Defendant shall
implement the Work under the Risk Assessment Plan within thirty (30) days of
written approval by the Implementing State Agency and/or EPA of the Risk
Assessment Plan.

 

b)    The Defendant shall prepare
and submit a written Risk Assessment Report to the Implementing State Agency
and/or EPA within forty-five (45) days after completion of the Work under the
Risk Assessment Plan.  The Report must
include the following information at a minimum: a description of the risk
assessment; a summary of the results of the risk assessment; a summary of the
problems encountered in doing the risk assessment; and an explanation of the
activities that need to be taken to address the risks identified by the
assessment. The Defendant shall contact the Implementing State Agency and/or
EPA and obtain any publically available guidance or models that will assist in
the development of the Risk Assessment Report.

 

CORRECTIVE ACTION PLAN (1)

 

18)   The Defendant shall develop
and submit for approval a Corrective Action Plan to the Implementing State
Agency and/or EPA within ninety (90) days after notification by the
Implementing State Agency and/or EPA that such a plan is required.  The Corrective Action Plan must include
sections addressing: (1) the identification and evaluation of potential
remedial alternatives from the releases that have been identified at the
facility; and (2) those measures or actions appropriate to remediate,
control, prevent or mitigate the release, potential release or movement of
hazardous waste, hazardous constituents and/or COCs into

 

(1)  If determined by
EPA and/or the Implementing State Agency that the requirements of the Risk
Assessment and/or Corrective Action Sections of this Attachment apply, EPA may,
in consultation with the Implementing State Agency, defer the oversight of the
Risk Assessment and/or Corrective Action obligations of this Attachment to the
Implementing State Agency’s corresponding authorized program, and may monitor
these same obligations, in lieu of the requirements of this Attachment.

 

 

the environment, or within
or from one environmental medium to another. The Defendant shall contact the
Implementing State Agency and/or EPA and obtain any publically available
guidance or models that will assist in the development of the Corrective Action
Plan and associated reports.

 

a)     The Defendant shall
implement the Work under the portion of the Corrective Action Plan addressing
the identification and examination of the potential alternative remedies within
sixty (60) days after receiving written approval from the Implementing State
Agency and/or EPA.  The Defendant shall,
within thirty (30) days after completion of the identification and examination
Work, submit to the Implementing State Agency and/or the EPA a Corrective
Measures Evaluation Report which includes an evaluation of each remedial
alternative, including all information gathered and studies conducted (e.g., bench scale or pilot tests).  This Report must contain adequate information
to enable the Implementing State Agency and/or EPA to make a decision as to the
adequacy and appropriateness of the corrective measures selection.

 

b)    Defendant will be notified
by the Implementing State Agency and/or EPA, upon review of the Corrective
Measures Evaluation Report, if no further action is required or which selected
remedies need to be implemented at the facility or site.  If determined that corrective measures are
needed, the Implementing State Agency and/or EPA may select corrective measures
from the Corrective Measures Evaluation Report, reject any alternative provided
in the report or prescribe a different remedial alternative or corrective
measure(s) performance standard.

 

i)      The Implementing State
Agency and/or the EPA will draft a statement of basis and seek public
comment.  The Implementing State Agency
and/or EPA will consider public comments regarding the proposed corrective
measures.  The Implementing State Agency
and/or the EPA will make publically known the final decision regarding the
selected corrective measures.

 

ii)     If the Implementing State
Agency and/or EPA determine that corrective measures are needed, the Defendant
shall prepare and submit a Corrective Measures Implementation Plan within sixty
(60) days after receiving notification to implement corrective measures as
selected by the Agency.  The Corrective
Measures Implementation Plan shall include, at a minimum, sections addressing:
engineering design; construction, operation and maintenance;  monitoring and performance monitoring; waste
management; health and safety plan; schedule; corrective measure goals;
reporting requirements; and public participation .

 

c)     The Defendant shall prepare
and submit to the Implementing State Agency and/or EPA a Corrective Action
Certification Report within forty-five (45) days after completion of the
corrective measures.  The Corrective
Action Certification Report shall contain the following minimum information: a
description of the corrective measures completed; summaries of results and
documentation of attainment of performance requirements; summaries of all the
problems encountered; summaries of accomplishments and/or effectiveness of
corrective measures; and a certification of completion signed by the

 

 

Defendant
and by an independent, registered professional engineer skilled in the
appropriate technical discipline(s).  The
Corrective Action Certification Report will be reviewed by the Implementing
State Agency and/or EPA for adequacy and will be subject to public comment.

 

19)   If during the implementation
of the Corrective Action Plan, information comes to the attention of the
Defendant that waste units or areas of concern pose an immediate or potential
threat to human health and the environment, the Defendant shall immediately
notify the Implementing State Agency and/or EPA of the threat.

 

a)     The Defendant, within thirty
(30) days of such notification, shall submit for approval to the Implementing
State Agency and/or EPA an Interim Measures Plan designed to mitigate any
immediate or potential threat(s) to human health and the environment.  The Interim Measures Plan shall include at a
minimum: engineering design; construction, operation and maintenance;
monitoring and performance monitoring; waste management; health and safety
plan; schedule; corrective measure goals; reporting requirements; and public
participation.

 

b)    The Defendant shall prepare
and submit an Interim Measures Report to the Implementing State Agency and/or
EPA after completion of the interim measures conducted under this Consent
Decree.  The Report shall at a minimum
include: a description of interim measures implemented; summaries of results;
summaries of problems encountered; and summaries of accomplishments and/or
effectiveness of the interim measures.

 

c)     The Defendant shall contact
the Implementing State Agency and/or EPA and obtain any publically available
guidance or models that will assist in the development of the Interim Measures
Plan and the Interim Measures Report.

 

 

ATTACHMENT A

APPENDIX 1

 

Screening Criteria- Action Levels for Assessment of
Corrective Action

 

I.              Definition

 

Action
levels are conservative health-based concentrations of hazardous wastes and/or
hazardous constituents determined to be indicators for the protection of human
health or the environment.  Action levels
shall be set by the Implementing State Agency and/or EPA for all hazardous
wastes and/or hazardous constituents identified through Attachment A which the
Implementing State Agency and/or EPA has reason to believe may have been
released from the facility into the environment.  Should the concentration of hazardous wastes
and/or hazardous constituents in soils, sediments, or surface water, or in
groundwater (at or beyond the zone of discharge) exceed the action levels
established for any environmental medium, the Implementing State Agency and/or
EPA may require the Respondent to conduct a Risk Assessment and/or perform
Corrective Action.  If the Implementing State
Agency and/or EPA determine that concentrations of hazardous wastes and/or
hazardous constituents released from the facility, below established action
levels, potentially pose a threat to human health or the environment given
site-specific exposure conditions, cumulative effects, ecological concerns or
other factors, then the Implementing State Agency and/or EPA may require a Risk
Assessment.  The requirement to conduct a
Risk Assessment and/or perform Corrective Action shall not be subject to
judicial review, but shall be subject to dispute resolution (other than
judicial review) pursuant to Section XI of the Consent Decree.

 

Action
levels shall be concentration levels that satisfy the following criteria.

 

II.            Soils

 

Action
levels for constituents in soils shall be derived from the most stringent of
levels established by the Implementing State Agency or EPA’s Regional Screening
Levels.

 

III.           Sediment

 

Action levels for constituents in sediment shall be concentrations
specified as:

 

1.             Latest Sediment
and Soil Screening Values for ecological risks as calculated by the
Implementing State Agency and/or EPA.

 

2.             If action
levels are not available from these screening values, then other EPA-approved
action levels will be used.

 

IV.           Groundwater

 

Action levels for constituents in groundwater at or beyond the zone of
discharge shall be concentrations specified as:

 

 

1.             Maximum
Contaminant Levels (“MCLs”) established at 40 CFR Part 141, or the
applicable state law or facility permit requirements for the State in which the
facility is located, these action levels must meet appropriate aquatic water
quality criteria if it is determined through the process outlined in Attachment
A that groundwater has the potential to impact surface water.

 

2.             For facilities
where the MCL is the most stringent standard for individual contaminants, if
the natural background exceeds the MCL, representative natural background will
be the default groundwater standard, unless the applicable state law or
facility permit is more stringent than natural background for that contaminant,
in which case the applicable state law or facility permit will provide the
appropriate standard for that contaminant.

 

V.            Surface Water

 

Action levels for constituents in surface water shall be concentrations
specified as:

 

1.             The more stringent of the
Implementing State Agency and/or EPA Surface Water Screening Values for
ecological risk;

 

2.             If action levels are not
available from the screening values, Ambient Water Quality Criteria as
established by the Clean Water Act will be used;

 

9

 

ATTACHMENT C: PHOSPHOGYPSUM STACK SYSTEM CONSTRUCTION
AND OPERATIONAL REQUIREMENTS

 

I. Phosphogypsum Stack System General Criteria

 

Phosphogypsum
Stack Systems. The purpose of this document is to ensure the physical integrity
of impoundments used to manage phosphogypsum and process water generated during
the course of production of phosphate fertilizer.  This document establishes minimum design,
construction, operation, inspection, and maintenance requirements to ensure
that phosphogypsum stack system impoundments meet critical safety standards and
do not cause unplanned releases to the environment. Owners/Operators of
phosphogypsum stack systems are required to maintain inspection logs and to
develop and maintain plans to respond to emergency conditions.

 

(1) Performance
standards. A phosphogypsum stack system shall be designed, constructed,
operated, maintained, closed, and monitored throughout its design period to
control the movement of waste and waste constituents into the environment so
that groundwater and surface water quality standards and criteria will not be
violated outside the applicable zone of discharge specified for the system.

 

(2) Operation
plan. The owner/operator of a phosphogypsum stack system shall have an
operation plan that provides written, detailed instructions for the daily
operation of the system. The operation plan shall be kept at or near the
facility and shall be accessible to operators of the system.

 

(3) Groundwater
monitoring.  The facility shall perform
groundwater monitoring and reporting as prescribed in the Groundwater and Zone
of Discharge Requirements (Attachment B).

 

(4) Surface
water management. Phosphogypsum stack systems shall be operated to provide for
the collection, control, recycling and treatment of surface runoff from the
site as necessary to meet the applicable water quality standards of the State
where the facility is located.

 

(5) Leachate
management. So long as the release of leachate would not result in
non-compliance with water quality standards or zone of discharge, any leachate
emanating from a phosphogypsum stack system shall be collected and routed to a
cooling pond, surge pond, or decant pond, to be contained within the system or
recirculated to the production plant or if discharged, treated if required to
meet the applicable water quality standards of the State where the facility is
located.

 

(6) Interim
Stack System Management Plan (“ISSMP”). The owner/operator of each
phosphogypsum stack system shall compile and submit an ISSMP for approval to
the Implementing State Agency and/or EPA. 
The approved ISSMP and subsequent revisions shall be made available to
the Implementing State Agency and/or EPA upon request.  The ISSMP shall provide instructions for two (2) years
of operation and management of the specific phosphogypsum stack system should a
shutdown occur such that no phosphoric acid will be produced at the facility
for up to a two-(2)-year period.  By July 1
of each following year, the owner/operator shall revise the ISSMP, taking into
account the process wastewater levels and the existing stack system
configuration as of June 1 of that year. The ISSMP shall be designed to

 

10

 

protect
human health and the environment and shall include:

 

(a) A
detailed description of process wastewater management procedures that will be
implemented to insure that the stack system operates in accordance with all
applicable requirements.  The procedures
shall address the actual process wastewater levels present at the facility as
of June 1 of each year and shall assume that the facility will receive
average annual rainfall during the two-(2)-year planning period;

 

(b) A
detailed description of the procedures to be followed for the daily operation
and routine maintenance of the stack system (including required environmental
sampling and analyses) as well as for any maintenance or repairs recommended
following annual inspections of the system;

 

(c) Identification
of all machinery, equipment and materials necessary to implement the plan as
well as actions that would be taken to assure the availability of these items
during the planning period;

 

(d) Identification
of the sources of power or fuel necessary to implement the plan as well as the actions
that would be taken to assure the availability of power or fuel during the
planning period; and

 

(e) Identification
of the personnel necessary to implement the plan, including direct labor
required for paragraphs (a) and (b) above, and any necessary direct
supervisory personnel, as well as the actions that would be taken to assure
their availability and any required training of these personnel.

 

(7) 
If the owner/operator applies for temporary deactivation of a phosphogypsum
stack system in accordance with Attachment D.III (Temporary Deactivation of
Phosphogypsum Stack System(s)) of this Consent Decree, the ISSMP must be
submitted to the Implementing State Agency and/or EPA for approval as part of
the request in accordance with Attachment D.III(2)(d).

 

(8) Upon
approval of the temporary deactivation and the ISSMP by the Implementing State
Agency and/or EPA, the owner/operator must implement the procedures set forth
in the approved ISSMP immediately upon phosphogypsum stack system deactivation.

 

(9) No
ISSMP is required for phosphogypsum stack systems that are closed, that are
undergoing closure, or for which an application for a closure permit has been
submitted, where permitting requirements apply.

 

II.
Assessment of Existing Perimeter Dikes

 

(1) Within
six (6) months of the signing of the Consent Decree, the owner/operator of
a phosphogypsum stack system shall submit to the Implementing State Agency
and/or EPA documentation that existing perimeter dikes have either been:

 

(a) Assessed
and certified by a third-party engineer post January 2005, to have been
constructed or modified to address freeboard, dike seepage, factors of safety,
and slope stability, in accordance with a permit issued by the Implementing
State Agency in response to an application, where permitting requirements
apply; or

 

(b) Engineered
or retrofitted such that they are assessed and certified by a third-party
engineer to be in compliance with the following:

 

11

 

(i) Cross
section design

 

(A) Both
inside and outside slopes shall be no steeper than two horizontal to one
vertical.

 

(B) The
design shall provide positive seepage control features such as:

 

1.
Cut-off trench in natural soil foundations

 

2.
Clay core or other impermeable core material

 

3.
Blanket drain

 

4.
Chimney drain and toe drain

 

5.
Geomembrane or composite liner on inside slope

 

(C) The
top of the dike shall include a roadway that will permit wheeled vehicles. The
design shall also incorporate an all-weather roadway near the downstream toe
that will permit wheeled vehicle traffic around the perimeter of the dike for
purposes of inspection of the slope, toe and natural ground beyond the toe, as
well as maintenance.

 

(ii) Freeboard  provisions

 

(A) The
design freeboard of an above-grade perimeter dike shall not be less than five (5) feet
unless a design freeboard of less than five (5) feet is justified based on
results of seepage and stability analyses and wave run-up analyses.
However, in no event shall the design freeboard of an above-grade perimeter
dike be less than three (3) feet.

 

(iii) Design
factors of safety and slope stability

 

(A) Stability
analysis. A seepage or flow net analysis shall be made, when applicable,
for use in the stability analysis. The stability analysis shall consider the
minimum fluid level as well as the fluid level at the design freeboard on the
upstream slope of the dike, and possible fluctuations of the tail water level.

 

(B) Design
safety factors — The designing engineer shall use the following minimum safety
factors: 1.75 for horizontal shear at base of fill; 1.5 for horizontal shear
within the fill due to seepage through the outer face; 1.5 for horizontal
shear or circular arc failure through the foundation soils; 1.5 for protection
against shear failure of any circular arc in either inside or outside slope. It
is imperative that water pressure distribution be included in the analyses; or

 

(c) Evaluated
by a third-party engineer who certifies the safety and stability of the dikes
in accordance with (1)(b)(iii) of this section.

 

(2) Within  nine (9) months of a final determination that a dike’s
safety and stability cannot be certified in accordance with (1)(b)(iii) of
this section, the owner/operator shall submit to the Implementing State Agency
and/or EPA for approval, a proposal to upgrade or retrofit the dike to comply
with the requirements  of II.(1)(b) of
this Attachment,  or to take the dike out of
service as soon as practicable but no later than ninety (90) days after a final
determination that the dike’s safety and stability cannot be certified and that
the dike cannot or will not be upgraded or retrofitted to comply with the
requirements of II(1)(b).

 

(3) The
owner/operator of any dike in need of upgrade, retrofit, or de-servicing, shall
implement, within six (6) months of the Implementing State Agency’s and/or
EPA’s approval of the proposal submitted in accordance with (2), above, interim
measures recommended by a third-party engineer that will ensure the safety and
stability of the dike until such time as it is upgraded or retrofitted or taken
out of service. These interim measures must be
submitted to the

 

12

 

Implementing
State Agency and/or EPA for approval.

 

(4) At
the time of the assessment performed pursuant to (1)(b) or (1)(c) of
this section, a third-party engineer shall also determine whether the existing
system is equipped with process water conveyance/containment capabilities that
conform to the following design requirements:

 

(a) Conveyance
ditches, pumps, pipes, and hydraulic structures located within a phosphogypsum
stack system shall have adequate capacity to circulate the process water
stream(s), if applicable, and to contain or transfer runoff on the process
watershed upstream of the water control structures resulting from a storm event
generating a 100-year rainfall in twenty-four (24) hours while maintaining at
the same time the design freeboard of the perimeter dike.  If provisions are made to contain some or the
entire storm surge resulting from such event within the phosphogypsum stack
system upstream from the conveyance system or water control structures, then
the transfer capacity of the ditches, pumps, pipes, and related structures may
be reduced accordingly.

 

(5) Within
one year of a final determination that a system does not meet the design
criteria of (4)(a) of this Section, the owner/operator shall submit to the
Implementing State Agency and/or EPA for approval, a proposal to modify the
system to attain compliance.  Such modification
shall be completed as soon as practicable, but not later than fourteen (14)
months  after the owner/operator receives all
necessary governmental permits or other prior approvals, whichever shall later
occur.

 

III.
Construction of New Perimeter Dikes

 

(1) Design.

 

(a) Site
investigation. The general area desired for construction of a perimeter dike
shall be carefully inspected by a design engineer prior to selection of the
exact location for the dike. Areas of uneven natural subsidence, sinkholes, pockets
of organic matter, or other unstable soils shall be avoided, unless special
provisions are made for their mitigation.

 

(b) Soil
testing.  A program of soil sampling and testing
adequate to determine the characteristics of the foundation material that will
support the proposed dike and of the material to be used for construction of
the dike shall be performed.  Sampling
shall include borings, test pits, or in-place samples from the associated
exposed excavation face.  All borings
and/or test pit explorations shall be logged using a recognized engineering
soil classification system, with location and depths of all samples recorded on
the log. Tests to determine in-place densities, shear-strength, and
permeabilities of the foundation and embankment soils shall be performed.  Tests on foundation soils shall be performed
either on undisturbed samples or on the in-place soil. Tests on embankment
soils shall be performed on samples remolded to the densities and moisture contents
to be used in construction.

 

(c) Cross
section design.

 

(i) The
crest on the top of the dike shall be graded toward the inside or the outside
slope.  If the dike exceeds ten (10) feet
in height and crest runoff is directed toward the outside slope, runoff
controls shall be used to protect the outside slope against erosion.  Both inside and outside slopes 

 

13

 

shall
be no steeper than two and one-half (2.5) horizontal to one (1.0)
vertical.  Seepage control shall be
provided by means of a liner constructed in accordance with Section VI of
this Attachment, placed on the inside slope of the dike.

 

(d) Freeboard  provisions

 

(i) The
design freeboard of an above-grade perimeter dike shall not be less than five (5) feet
unless a design freeboard of less than five (5) feet is justified based on
results of seepage and stability analyses and wave run-up analyses.
However, in no event shall the design freeboard of an above-grade perimeter
dike be less than three (3) feet.

 

(e) Design
factors of safety and slope stability of perimeter dikes.

 

(i) Stability
analysis.  A seepage or flow net
analysis shall be made, when applicable, for use in the stability
analysis.  The stability analysis shall
consider the minimum fluid level as well as the fluid level at the design
freeboard on the upstream slope of the dike, and possible fluctuations of the
tail water level.

 

(ii) Design
safety factors — The designing engineer shall use the following minimum safety
factors for perimeter dikes: 1.75 for horizontal shear at base of fill; 1.5 for
horizontal shear within the fill due to seepage through the outer face;
1.5 for horizontal shear or circular arc failure through the foundation soils;
1.5 for protection against shear failure of any circular arc in either inside
or outside slope.  It is imperative that
water pressure distribution be included in the analyses.

 

(2) Site
preparation.  Ground which will become
the foundation of dikes shall be stripped of all vegetation and organic
detritus or residue, including muck, mud, slimes, or other material which would
flow or undergo excessive consolidation under heavy loading. All earth
foundation surfaces on which fill is to be placed shall be scarified or
moistened and compacted prior to spreading of first course of fill material,
and the dike base shall be well drained during construction, except when
placing hydraulic fill.

 

(3) Material
to be used. Material used for dikes shall be free of extraneous matter that
could affect the compactability, density, permeability, or shear strength of
the finished dike (e.g. stumps, vegetation, trees, palmettos, debris).  Tailings may be used for dike fill when such
a completed dike will meet the seepage and structural requirements above.

 

(4) Process
water control design. Conveyance ditches, pumps, pipes, and hydraulic
structures located within a phosphogypsum stack system shall have adequate
capacity to circulate the process water stream(s), if applicable, and to
contain or transfer runoff on the process watershed upstream of the water control
structures resulting from a storm event generating a 100-year rainfall in
twenty-four (24) hours, while maintaining at the same time the design freeboard
of the perimeter dike. If provisions are made to contain all or part of the
storm surge resulting from such event within the phosphogypsum stack system
upstream from the conveyance system or water control structures, then the
transfer capacity of the ditches, pumps, pipes, and related structures may be
reduced accordingly.

 

(5) Methods
of construction.

 

(a) Each
new dike shall be constructed to meet or exceed the minimum safety requirements
of this section and the specifications and design for that dike.  Appropriate earthmoving equipment

 

14

 

shall
be used to place materials in dike construction.  The soil shall be compacted and density tests
shall be performed to ensure that the designed densities are obtained. A
representative of the third-party engineer shall be present on the site during
construction of the dike and liner, and during construction and installation of
spillways and penetrations through the dike or liner.  The
Implementing State Agency and/or EPA shall be advised of the date on which
construction of a new dike will begin.

 

(b) Areas
around any water level control structure pipe, any other conduit, or any
surface of discontinuity between materials within the mass of the dike shall be
carefully inspected to avoid potential concentration of seepages and to
ensure that soils under and around a culvert are uniformly compacted and are in
continuous contact with the external culvert surface.  All penetrations through the liner on the
upstream slope of the dike shall be made using water tight joints or connections
and shall be capable of maintaining their integrity under anticipated in-use
conditions.  All pipes and joints in
pipes or conduits extending through a dike shall be made leak-proof and shall
be constructed of materials suitable for the fluids carried and the load
imposed.  In order to avoid leaks
associated with differential settlement, conduits through dikes shall not be
rigidly supported by piles or piers. 
Backfill around conduits shall be of a density that is equal to or
greater than those of the surrounding embankment. Particular attention shall be
devoted to the lower third of the conduit.

 

IV. Operational Requirements for Perimeter Dikes

 

(1) All
perimeter dikes shall be operated so as to maintain the design freeboard,
unless temporary incursions into the freeboard are demonstrated to be safe in
accordance with IV(2), below. Each perimeter dike shall be inspected as
prescribed in this document.

 

(a)Vegetative
cover adequate to inhibit wind and water erosion shall be established and
maintained on the outside slope of the dike. Such vegetation shall be
maintained sufficiently low to permit visual inspection of the soil surfaces
and critical areas; or

 

(b) In
areas where historically evapotranspiration exceeds precipitation, an
alternative method may be used to inhibit wind and water erosion on the outside
slope of the dike.  The alternative
method must be certified by a third party engineer as providing erosion
protection equivalent to that of a vegetative cover.

 

(2) Temporary
Non-emergency Use of Design Freeboard.

 

(a) To
assure system safety and integrity and to reduce the probability of discharge,
a facility seeking to temporarily utilize the design freeboard of a perimeter
must maintain the safety and stability of the dike.  If the facility decides to seek temporary use
of the design freeboard, it must demonstrate that safety and stability is
maintained using the following mechanisms:

 

1.
An inspection of the facility;

 

2.
Dike design and construction information;

 

3.
Results of seepage and stability analyses (including monitoring of seepage pressures
within the dike if such monitoring is deemed necessary); and

 

4.
Wind surge and wave run-up analyses.

 

15

 

(b) A
report by a third-party engineer shall specify conditions under which such use
may be authorized, such as:

 

1.
Acceptable wind speeds in forecast;

 

2.
Acceptable rainfall levels in the forecast;

 

3.
Increased inspection frequencies; and

 

4.
Weekly monitoring of piezometric levels within the mass of the dike, if and as
needed.

 

(c) This
report shall be made available to the Implementing State Agency and/or EPA upon
request.

 

(3) A
completed new perimeter dike shall be thoroughly inspected prior to the
placement of process water behind it. 
Spillways and water level control structures shall be certified by a
design third-party engineer as meeting all specifications of the design, and
degree of compaction of the fill shall also be certified. Legible photographs,
either aerial or ground, may be used to document this initial inspection, but shall
not in themselves constitute certification. A complete file describing the
items inspected and their condition shall be maintained by the facility.

 

(4) All
perimeter dikes and water control structures shall be inspected weekly. Water
level elevations and freeboard compliance shall be determined at least every 12
hours. Piezometric water levels within the dike shall be measured quarterly if
piezometers have been installed. The inspections shall be made by a qualified
company employee or contractor employed or retained by the owner/operator of
the dike. The findings of each inspection shall be recorded in a log.

 

(5) Each
perimeter dike shall be inspected annually by a third-party engineer with
experience in the field of construction and operation of perimeter dikes. An
annual report pertaining to such an inspection shall be prepared and shall
include recommendations and corrective measures taken.  The report shall be retained by the
owner/operator.  The annual inspections
shall include:

 

(a) Analyses
of seepage or other significant items shown on all aerial photographs of
the dike that have been taken for any reason since the date of the last annual
inspection.

 

(b) Condition
of soil surfaces and top and slopes of the dike and in areas within fifty feet
(50’) downstream from the outside toe.

 

(c) Review
of all periodic inspection reports to evaluate the effectiveness of maintenance
done to the dike during the period since the last annual inspection.

 

(d) Examination
and interpretation of data obtained from any instrumentation installed in the
mass of the dike.

 

(e) Condition
of spillway and water level control structures, including all conduits exiting
the dike.

 

(6) The
following items shall be considered as indicating potential trouble areas that
must be documented and closely checked on subsequent inspections and repaired
as necessary:

 

(a) Abnormal
dead vegetation or damp areas on the downstream slope, at the toe of slope, or
downstream from the toe of slope that could be indicative of pond water seepage.

 

(b) Surface
erosion, gullying or wave erosion on the upstream slope of the dike.

 

(c) Surface
erosion or gullying on the downstream slope of the dike.

 

(d) Erosion
below any conduit through the dike near or at the toe of slope of the dike.

 

16

 

V. New Phosphogypsum Stack Systems or Lateral
Expansions of Existing Phosphogypsum Stack Systems

 

(1) Any
lateral expansion is considered a new phosphogypsum stack and must be
constructed in accordance with the applicable requirements of Section VI
of this Attachment.

 

(2) Except
for incidental deposits of phosphogypsum entrained in the process wastewater,
placement of phosphogypsum outside the phosphogypsum stack footprint is
considered a lateral expansion of the phosphogypsum stack system.  For the purpose of this section, the
footprint is defined as the outside edge of the starter dikes used to contain
the placement of phosphogypsum in the stack.

 

(3) Storage
or containment of process wastewater outside the footprint of the phosphogypsum
stack, cooling ponds, surge ponds, or perimeter drainage conveyances is
considered a lateral expansion of the phosphogypsum stack system.  For the purpose of this paragraph, the
footprint is defined as the outside edge of the dams, dikes or ditches used to
store or contain process wastewater.

 

(4) A
completed new phosphogypsum stack system, including the starter dike, shall be
thoroughly inspected prior to the deposition of process water in it. The liner,
spillways and water level control structures shall be certified by a design
third-party engineer as meeting all specifications of the design, and the
degree of compaction of the fill shall also be certified. Legible photographs,
either aerial or ground, may be used to document this initial inspection, but
shall not in themselves constitute certification. A complete file describing
the items inspected and their condition shall be made available to the
Implementing State Agency and/or EPA upon request.

 

(5) An
“Emergency Diversion Impoundment” will not be considered a lateral expansion
under this Section V unless the Impoundment stores process wastewater for
more than 90 consecutive days or 120 days cumulatively per year.

 

Exceptions

 

No
person shall dispose of, or store prior to disposal, any phosphogypsum except
within a permitted phosphogypsum stack system, in States where permitting
requirements apply. This provision shall not be construed to prohibit any use
or reuse of phosphogypsum not otherwise prohibited by law.

 

VI. Phosphogypsum Stack System Construction Requirements

 

(1) Minimum
design standards. The requirements of this document are the minimum standards
for constructing a phosphogypsum stack system.

 

(2) Run-On
Control.  Install and maintain a run-on
control system capable of preventing flow during peak discharge from at least a
twenty-five (25)-year storm.

 

(3) Run-Off
Control.  Install and maintain a run-off
management system to collect and control at least the water volume resulting
from a twenty-four (24)-hour, twenty-five (25)-year storm.

 

17

 

(4) Liner
and leachate control systems. Phosphogypsum stack systems shall be constructed
with composite liners and leachate control systems. Cooling ponds shall be
constructed with composite liners.

 

(a) Liners
shall be:

 

1.
Constructed of materials that have appropriate physical, chemical, and
mechanical properties to prevent failure due to physical contact with the
phosphogypsum, process wastewater or leachate to which they are exposed,
climatic conditions, the stress of installation, and other applied stresses and
hydraulic pressures that are anticipated during the operational and closure
period of the system. The supplier of materials for the liner components shall
provide test information accepted by the engineer of record, that supports the
capabilities of the materials to meet these needs;

 

2.
Installed upon a base and in a geologic setting capable of providing structural
support to prevent overstressing of the liner due to settlements and applied
stresses;

 

3.
Constructed so that the bottom of the liner system is not subject to
fluctuations of the groundwater so as to adversely impact the integrity of the
liner system;

 

4.
Designed to resist hydrostatic uplift if the liner is located below the
seasonal high groundwater table; and

 

5.
Installed to cover all surrounding earth that could come into contact with the
phosphogypsum, process wastewater or leachate.

 

(b) Liner
design standards.

 

1.
The synthetic component of composite liners shall consist of a 60-mil or
thicker geomembrane liner with a maximum water vapor transmission rate of 0.24
grams per square meter per day as determined by the American Society for
Testing and Materials (ASTM) Method E96-80, procedure BW, “Test Methods for Water
Vapor Transmission of Materials,” Sections 04.06, 08.03, and 15.09, which
document is incorporated herein by reference.

 

2.
The non-synthetic component of the composite liner shall consist of either of
the following:

 

a.
A layer of compacted soil at least eighteen (18) inches thick, placed below the
geomembrane, with a maximum hydraulic conductivity of 1 × 10-7 centimeters per second, constructed in
six-inch lifts. The geomembrane liner component shall be installed in direct
and uniform contact with the compacted soil component to retard leachate
migration if a leak in the flexible membrane liner should occur.  Soil materials used within the top twelve
(12) inches of the compacted soil layer immediately below the synthetic liner
shall be free from rigid or sharp objects that could damage or otherwise affect
the integrity of the liner.

 

b.
A layer of mechanically compacted phosphogypsum at least twenty-four (24)
inches thick, placed above the geomembrane, with a maximum hydraulic
conductivity of 1 × 10-4 centimeters per second.  No rigid or sharp objects that could damage
the liner may be placed within this compacted layer of phosphogypsum;

 

3.
The non-synthetic component of a composite liner may not be required where it
can be demonstrated to the Implementing State Agency and/or EPA that a
synthetic liner alone or in contact with sedimented gypsum placed in slurry
form will be equivalent or superior to a composite liner designed and installed
in accordance with these requirements.

 

18

 

(c) Any
proposed composite liner design shall be accompanied by a detailed construction
quality assurance plan, describing in detail how the design will be properly
constructed in the field. For composite liners using compacted phosphogypsum,
the quality assurance plan shall place particular emphasis on protection of the
geomembrane during placement and compaction of the phosphogypsum, and on prompt
placement of phosphogypsum on the geomembrane. 
The construction quality assurance plan must be submitted to the
Implementing State Agency and/or EPA for approval.

 

(d) The
following liner design standards must be met:

 

1.
Standards for geosynthetic components.

 

a.
Geomembranes shall have factory and field seams whose shear strengths during
testing are at least ninety percent (90%) of the specified minimum yield
strength for that lining material, and the failure shall occur in the lining
material outside the seam area. All field seams must also be visually inspected
and pressure or vacuum tested for seam continuity using suitable
non-destructive techniques.

 

b.
No large or rigid objects may be placed in the phosphogypsum stack system in a
manner that may damage the liner or leachate collection system and, with the
exception of liners installed at the toe of the phosphogypsum stack, in no case
shall such objects be placed within ten (10) vertical feet of the liner or
leachate collection system, unless approved by the Implementing State Agency
and EPA.

 

c.
High density polyethylene (HDPE) geomembranes shall meet the specification
contained in method GRI GM13.

 

d.
Polyvinyl chloride (PVC) geomembranes shall meet the specification contained in
method PGI 1197.

 

e.
Interface shear strength of the actual components that will be used in the
liner system shall be tested with method ASTM D5321 or an equivalent test
method.

 

f.
The transmissivity of geonets shall be tested with method ASTM D4716, or an
equivalent test method, to demonstrate that the design transmissivity will be
maintained for the design period of the facility. The testing for the geonet in
the liner system shall be conducted using actual boundary materials intended
for the geonet at the maximum design normal load for the phosphogypsum stack,
and at the design load expected from one lift of phosphogypsum. At the maximum
design normal load, testing shall be conducted for a minimum period of 100
hours unless data equivalent to the 100-hour period is provided in which case
the test shall be conducted for a minimum period of one hour. In the case of
the design load from one lift of phosphogypsum, the minimum period shall be one
hour. For geonets used in final covers, only one test shall be conducted for a
minimum period of one hour using the expected maximum design normal load from
the cover soils and the actual boundary materials intended for the geonet.

 

h.
In addition, the synthetic liner material shall be subjected to continuous
spark testing at the production facility prior to delivery to the site for
installation. If the continuous spark testing detects any defect, the tested
material must be rejected and not delivered to the site;

 

(e) Standards
for soil components.

 

19

 

1.
Soil components of liner systems shall be constructed to preclude, to the
greatest extent practicable, lenses, cracks, channels, root holes, pipes, or
other structural inconsistencies that can increase the saturated hydraulic
conductivity of the soil component. The design shall illustrate and describe
those instances in which over-excavation of permeable areas and backfilling may
be necessary to seal the permeable area. The soil component shall be placed and
compacted in layers to achieve the design performance.

 

2.
The permeability of soil liner components shall not be increased above the values
specified for the component, as a result of contact with leachate from the
phosphogypsum stack system. Compatibility of the soil component and leachate
shall be demonstrated by testing the soil component with actual or simulated
leachate in accordance with EPA Test Method 9100 or an equivalent test method.

 

3.
The soil component of the liner system may consist of in-situ soils or
compacted imported soils, provided they meet the specifications for soil
liners.

 

4.
Specifications for the soil component of the liner system shall contain at a
minimum:

 

a.
Allowable range of particle size distribution and Atterberg limits, to include
shrinkage limit;

 

b.
Placement moisture criteria and dry density criteria;

 

c.
Maximum laboratory-determined saturated hydraulic conductivity, using simulated
leachate as the saturating and testing liquid;

 

d.
Minimum thickness of the soil liner;

 

e.
Lift thickness;

 

f.
Surface preparation (scarification) for tying lifts together; and

 

g.
Type and percentage of clay mineral within the soil component.

 

5.
The soil liner shall be placed using construction equipment and procedures that
achieve the required saturated hydraulic conductivity and thickness. A field
test section shall be constructed using the proposed construction equipment and
tested to document that the desired saturated hydraulic conductivity and
thickness is achieved in the field.

 

(f) Liner
systems construction quality assurance.

 

1.
Liner systems shall have a construction quality assurance plan to provide
personnel with adequate information to achieve continuous compliance with the
liner construction requirements. The plan shall include or refer to
specifications and construction methods that use established engineering
practices to construct a liner system and provide for quality control testing
procedures and sampling frequencies. Sampling and testing shall be conducted in
the field by trained personnel during construction and after construction
completion. Such personnel will be under the direction of the construction
quality assurance professional engineer, to assure the liner system will comply
with the standards. The construction quality assurance professional engineer or
his designee shall be on-site at all times during construction to monitor
construction activities. Construction activities include the time during which
the protective layer is installed over the geomembrane, to ensure that the
placement techniques do not cause damage to the liner system materials.

 

2.
Liner systems shall be installed in accordance with the construction quality
assurance plan. Plans that comply with EPA Document EPA/600/R-93/182 or updates
thereof shall be presumed

 

20

 

to
be in compliance with this section. The following minimum specific elements
shall be included in the plan:

 

a.
Responsibility and authority of all organizations and key personnel involved in
permitting, designing, constructing, and providing construction quality
assurance of the phosphogypsum stack system shall be described fully;

 

b.
Minimum qualifications of the construction assurance quality professional
engineer and supporting personnel shall be in the plan to demonstrate that they
possess the training and experience necessary to fulfill their identified
responsibilities;

 

c.
Procedures and tests that will be used to monitor the installation of the liner
system components shall be described in detail;

 

d.
The sampling activities, sample size, sample locations, frequency of testing,
acceptance and rejection criteria, and plans for implementing corrective
measures that may be necessary shall be described; and

 

e.
Reporting requirements for construction quality assurance activities shall be
described, including daily summary reports, observation data sheets, problem
identification and corrective measures, and final documentation. All such
documents shall be included in a final report.

 

3.
A laboratory experienced in the testing of geosynthetics, independent of the
liner manufacturer and installer, shall perform the required testing that must
include, at a minimum, conformance testing for all geosynthetics and
geocomposites, and testing of seam shear and peel strength for geomembranes.

 

4.
The professional engineer in charge of construction quality assurance shall
provide a signed, sealed final report and record drawings stating that the
liner system has been installed in substantial conformance with the plans and
specifications for the liner system and identifying any significant deviations.

 

(g) Soil
Liner construction quality assurance.

 

In
addition to the requirements of (f) above, the following requirements
apply to construction of the soil component of liner systems. All required
testing and analysis shall be performed in accordance with generally accepted
engineering procedures, such as those promulgated by the ASTM. Parenthetic
references to ASTM methods are intended as guidance only.

 

1.
A construction quality assurance/quality control plan shall be prepared for
each soil liner project to outline project specifications and construction
requirements. The plan shall specify performance criteria for the soil liner,
and provide quality control testing procedures and minimum sampling
frequencies. In addition, the plan shall define the responsibilities of the
parties that will be involved in soil liner construction, and shall present
minimum qualifications of each party to fulfill their identified
responsibilities.

 

2.
Field and laboratory testing during liner construction shall be conducted by a
qualified soil testing laboratory representing the owner/operator. A qualified
field technician representing the owner/operator shall provide full time,
on-site inspection during liner construction. The field technician shall work
under the supervision of a professional engineer with experience in soil liner
construction.

 

3.
Prior to soil liner installation, an appropriate borrow source shall be
located. Suitability of the

 

21

 

liner
construction materials from that source shall be determined in accordance with
the following:

 

(a).
If demonstrated field experience is available from at least three (3) prior
successful projects of five (5) or more acres each to document that a
given borrow source can meet the requirements of the project specifications,
then extensive laboratory testing of the borrow source will not be required.
However, the source of material shall be geologically similar to and the
methods of excavating and stockpiling the material shall be consistent with
those used on the prior projects. Furthermore, a minimum of three
representative samples from the appropriate thickness of the in-situ stratum or
from stockpiles of the borrow material proposed for liner construction shall be
submitted to an independent soil testing laboratory to document through index
testing that the proposed material is consistent with the material used on
prior successful projects. At a minimum, index testing shall consist of percent
fines, Atterberg limits and moisture content determinations.

 

(b).
If demonstrated field experience as defined above is not available or cannot be
documented, then the following requirements shall be met.

 

1.
A field exploration and laboratory testing program shall be conducted by an
independent soil testing laboratory to document the horizontal and vertical
extent and the homogeneity of the soil strata proposed for use as liner
material. A sufficient number of index tests from each potential borrow stratum
shall be performed to quantify the variability of the borrow materials and to
document that the proposed borrow material complies with specifications. At a
minimum, the index tests shall consist of percent fines, Atterberg limits and
moisture content determinations.

 

2.
Sufficient laboratory hydraulic conductivity tests shall be conducted on
samples representative of the range invariability of the proposed borrow source
(ASTM D-5084). For each such sample, test specimens shall be prepared and
tested to cover the range of molding conditions (moisture content and dry
density) required by project specifications. The hydraulic conductivity tests
shall be conducted in triaxial type permeameters. The test specimens shall be
consolidated under an isotropic consolidation stress no greater than ten (10) pounds
per square inch and permeated with water under an adequate backpressure to
achieve saturation of the test specimens. The inflow to and outflow from the
specimens shall be monitored with time and the hydraulic conductivity
calculated for each recorded flow increment. The test shall continue until
steady state flow is achieved and relatively constant values of hydraulic
conductivity are measured (ASTM D-5084). The borrow source will only be
considered suitable if the hydraulic conductivity of the material, as
documented on laboratory test specimens, can be shown to meet the requirements
of the project specifications at the ninety-eight percent (98%) confidence
level.

 

3.
Prior to full-scale liner installation, a field test section or test strip
shall be constructed at the site above a prepared sub-base. The test strip
shall be considered acceptable if the measured hydraulic conductivities of
undisturbed samples from the test strip meet the requirements of the project
specifications at the ninety-eight percent (98%) confidence level. If the test
section fails to achieve the desired results, additional test sections shall be
constructed in accordance with the following requirements:

 

a.
The test section shall be of sufficient size such that full-scale liner
installation procedures can

 

22

 

be
duplicated within the test section;

 

b.
The test section shall be constructed using the same equipment for spreading,
kneading and compaction and the same construction procedures (e.g., number of passes, moisture addition and
homogenization, if needed) that are anticipated for use during full-scale liner
installation;

 

4.
At a minimum, the liner test section shall be subject to the following field
and laboratory testing requirements:

 

a.
A minimum of five (5) random samples of the liner construction material
delivered to the site during test section installation shall be tested for
moisture content (ASTM D-2216), percent fines (ASTM D-1140) and Atterberg
limits (ASTM D-4318);

 

b.
At least five (5) field density and moisture determinations shall be
performed on each lift of the compacted liner test section;

 

c.
Upon completion of the test section lift, the thickness of the lift shall be
measured at a minimum of five (5) random locations to check for thickness
adequacy; and

 

d.
A minimum of five (5) Shelby tube or drive cylinder (ASTM D-2937) samples
shall be obtained from each lift of the test section for laboratory hydraulic
conductivity testing. Laboratory hydraulic conductivity testing shall be
conducted in triaxial type permeameters (ASTM D-5084). The test specimens shall
be consolidated under an isotropic consolidation stress no greater than ten (10) pounds
per square inch and permeated with water under an adequate backpressure to
achieve saturation of the test specimens. The inflow to and outflow from the
specimens shall be monitored with time and the hydraulic conductivity
calculated for each recorded low increment. The test shall continue until
steady state flow is achieved and relatively constant values of hydraulic
conductivity are measured (ASTM D-5084). 
Alternatively, a sealed double-ring infiltration field test (ASTM D3385)
may be used as an alternative to taking drive or Shelby tube samples.

 

5.
Full scale liner installation may begin only after completion of a successful
liner test section. During liner construction, documentation of quality control
testing shall be maintained and made available to the Implementing State Agency
and/or EPA upon request, to document that the installed liner conforms to
approved project specifications. The testing frequencies for quality control
testing are specified below; however, during construction of the first five
acres of the liner, these frequencies shall be doubled. Samples shall be
obtained from random locations selected by an independent soil testing
laboratory. If there are indications of a change in material properties,
product quality or construction procedures during liner construction,
additional tests shall be performed to determine compliance.

 

6.
Field testing during liner installation. The following field tests shall be
performed:

 

a.
Prior to the laying of the liner materials, the liner sub-base shall be
compacted to the specified density. Density tests shall be conducted at a
minimum rate of two tests per acre;

 

b.
A minimum of two (2) moisture content and field density determinations
shall be conducted per acre per lift of the compacted liner. The degree of
compaction shall be checked using the one-point field Proctor test or other
appropriate test procedures; and

 

c.
A minimum of four (4) thickness measurements shall be conducted per acre
per lift of the compacted liner.

 

23

 

7.
Laboratory testing during liner installation. The following laboratory tests
shall be performed:

 

a.
Percent fines (ASTM D-1140) of the liner construction material shall be
determined at a minimum frequency of two (2) tests per ace per lift of
installed liner;

 

b.
Atterberg Limits determinations shall be performed on one sample per acre per
lift of installed liner; and

 

c.
Hydraulic conductivity testing of Shelby tube or drive cylinder (ASTM D-2937)
samples of the compacted liner shall be performed at a minimum frequency of one
test per acre per lift. Laboratory hydraulic conductivity tests shall be
conducted in triaxial type permeameters (ASTM D-5084). The test specimens shall
be consolidated under an isotropic consolidation stress no greater than ten (10) pounds
per square inch and permeated with water under an adequate backpressure to
achieve saturation of the test specimens. The inflow to and outflow from the
specimens shall be monitored with time and the hydraulic conductivity
calculated for each recorded flow increment. The test shall continue until
steady state flow is achieved and relatively constant values of hydraulic
conductivity are measured.

 

8.
If the test data from a liner section does not meet the requirements of the
project specifications, additional random samples may be tested from that liner
section. If such additional testing demonstrates that the thickness and
hydraulic conductivity meet the requirements of the project specifications at
the ninety-five percent (95%) confidence level, that liner section will be
considered acceptable. If not, that liner section shall be reworked or
reconstructed so that it does meet these requirements.

 

(h) Leachate
control system standards.

 

1.
A perimeter underdrain system designed to stabilize the side slopes of the
phosphogypsum stack shall be installed above the geomembrane liner.

 

2.
Perimeter drainage conveyances used in the leachate control system shall either
consist of covered or uncovered ditches that are lined continuously with the
phosphogypsum stack liner, or of chemically compatible leachate collection
pipes. Covered ditches shall have maintenance manholes installed at appropriate
intervals.  Piped systems shall have
manholes or appropriate cleanout structures at appropriate intervals unless the
engineer of record certifies and identifies areas where manholes or cleanout
structures in piped systems are not feasible.

 

3.
All toe drain or leachate collection systems must be constructed within the
lined system.

 

(i) Liquid
containment and conveyance systems.

 

1.
Composite liners shall be used on all liquid containments and conveyances
associated with phosphogypsum transport, cooling water, and return of process
wastewater. Exceptions are pumped flow systems contained in pipes or
alternative systems that provide an equivalent degree of protection.

 

2.
Pump and piping systems associated with the transport of phosphogypsum or
process wastewater and that cross surface waters of the State must be double
contained with chemically compatible materials in a manner that assures that
all materials under pumped flow are contained within a lined system in the
event of a leak or piping system failure.

 

24

 

VII. Requirements for Actively Operated
Phosphogypsum Stack Systems

 

(1) All
active stack compartments, including any noted areas containing critical
conditions, as defined below in (4), until corrected, shall be inspected daily.
Inactive stack compartments, stack slopes, collection ditches, and drain
outlets shall be inspected at least weekly and after storms.  Flow from drain outlets shall be checked
quarterly. The total areal coverage of water on the stack shall be estimated
each month and the total water inventory on top of the stack shall be estimated
annually. The required inspections and estimates shall be carried out by a
qualified company employee or contractor employed or retained by the
owner/operator of the phosphogypsum stack. 
The results of the required inspections and estimates shall be recorded
in a log that shall be maintained by the owner/operator of the phosphogypsum stack.

 

(2) Where
a leak detection system exists, the amount of liquid removed from any such
system must be recorded weekly.

 

(3) Each
phosphogypsum stack shall be inspected within one year of the date of entry of
the Consent Decree and annually thereafter by a third-party engineer with
experience in the field of construction and operation of phosphogypsum stacks
at the same time that the annual inspection of the associated perimeter dike
occurs. This annual inspection shall be recorded in a report and shall include
an updated aerial photograph and state the area of the top of the stack and the
current height and elevation of the stack. The annual inspection report shall
include recommendations and corrective measures taken.  If corrective measures are not completed by
the time of annual submittal, then follow up inspections shall be conducted by
the third-party engineer on a quarterly basis with quarterly project reports
submitted until completion of all corrective measures.  One copy of the annual inspection report
shall be submitted to the Implementing State Agency and/or EPA.

 

(4) Any
of the following items shall be considered as indicating a critical condition
that requires immediate investigation and may require emergency maintenance
action:

 

(a) Concentrated
seepage (e.g., springs or boils) on the
face of a stack slope, at the toe of the slope, or beyond the toe of a slope
with active signs of piping at the point of seepage (e.g.,
a gypsum or soil cone or delta at the point of seepage).

 

(b) Evidence
of slope instability including sloughing, bulging or heaving of the face of the
stack or the toe of the slope.

 

(c) Lateral
movement or subsidence of the slope or crest of the stack.

 

(d) Formation
of new non-shrinkage cracks or enlargement of wide cracks in the surface of the
slope or crest of the stack.

 

(e) Observed
or suspected damage to the liner system.

 

(f) Drains
discharging turbid water.

 

(g) Concentrated
seepage (i.e., springs or boils) in the
vicinity of a decant pipe.

 

(5) In
addition to the indicators set forth in Attachment E (items considered as
indicating a critical condition that requires immediate investigation and/or
emergency maintenance action), the following items shall be considered as
indicating potential trouble areas that must be documented and closely checked
on subsequent inspections and repaired as necessary:

 

(a) Concentrated
seepage (e.g., springs or boils) on the
face of a stack or at the toe of slope

 

25

 

without
active signs of piping at the point of seepage.

 

(b) Previously
observed localized sloughing at the toe of slope of the stack.

 

(c) Previously
observed cracks in the surface of the slope or crest of the stack.

 

(d) Nonflowing
drains.

 

(6) Phosphogypsum Stack System Operation Plans.

 

The
following items shall be included in the operation plan for each phosphogypsum
stack system and shall be approved by an engineer experienced in the
construction and operation of phosphogypsum stacks:

 

(a) The
method used to raise and operate the stack.

 

(b) A
description of the source and consistency of gypsum used in constructing the
gypsum dikes and the method used for shaping and/or mechanically working the
gypsum.

 

(c) The
overall average exterior slope for raising the phosphogypsum stack and the
maximum design height of the stack.

 

(d) The
procedures used to assure that pipes used to transport phosphogypsum to the
phosphogypsum stack systems and to return process water to the phosphate
fertilizer production facilities are operated and maintained in a safe manner.

 

(e) The
procedures used to decant process water from the top of the phosphogypsum
stack.

 

(f) The
location of pumps, spillways, and staff gauges.

 

(g) Provisions
that address emergency measures to be taken in the event of mechanical failure
of a pump or in the event of a power failure for any portion of a phosphogypsum
stack system that relies on pumps or power to operate monitoring equipment or
to transfer process water and/or rainfall-runoff from low areas to the main
cooling pond. Such emergency provisions may include:

 

i.
Back-up power (e.g., on-site power; diesel
generator, etc.) and/or back-up pump that would be activated in the event
of electrical or mechanical failure; or

 

ii.
Sufficient surge storage capacity or emergency surge capacity within the
conveyance system to contain the process water stream(s), if applicable, as
well as runoff from a storm event generating a 100-year rainfall in 24 hours;
or

 

iii.
Increased inspection frequencies or continuous monitoring (e.g.,
remote video camera or automatic water level control device tied to a warning
system) to provide early warning of an imminent spill prior to its occurrence;
and an emergency action plan that would be undertaken to prevent or contain an
accidental spill.

 

(h) A
site-specific water management plan shall be prepared and updated annually to
reflect changes in process watershed area, storm surge, and projected water
balances. The updated plan shall be consistent with water quality based
effluent limits applicable to the facility. This plan shall specify at a
minimum, a set of specific actions, including minimum process water consumption
and transfer rates, that are put into motion when the storage volume, surge
capacity, or operating water level(s) of the cooling/surge pond system are
determined to be inadequate to contain the rainfall from a storm event
generating a 100-year rainfall in twenty-four (24) hours, or where such actions
are determined to be necessary based on water balance model results for the
rainfall scenarios described in subsection (7) below. The site
specific-water management plan

 

26

 

and
annual updates thereof shall be submitted to the Implementing State Agency
and/or EPA.

 

(i) The
adequacy of the facility’s site-specific water management and action plans and
emergency measures shall be based on a five-year water balance analysis as set
forth in (7) below.

 

(7) The
water balance analysis shall use the first day of the month that succeeds the
month of the year with the highest long-term average precipitation total as the
beginning date for the analysis, unless the EPA and Implementing State Agency
approve the use of an alternate date where a larger volume of precipitation or
water accumulation (such as snowmelt) is expected.  The analysis shall identify the rates of all
water inputs and outputs, any manufacturing production changes, and changes in
process watershed area considered in the analysis. A third-party engineer shall
verify the accuracy of the analysis. A summary of the analysis and the water
balance analysis results shall be included in the annual updated site-specific
water management plan required in (6) above.

 

(a) The
water balance calculations shall be performed for five (5) distinct
extreme rainfall scenarios applied for the subsequent five (5)-year period
using monthly, or more frequent, input rainfall quantities which shall include:

 

1.
Rainfall corresponding to the highest monthly 100-year Rainfall Event occurring
during the annual 100-year Rainfall Event, as defined in Attachment F; and

 

2.
Annual rainfall events shall be determined based on a long-term rainfall record
from a National Oceanic & Atmospheric Administration or equivalent
weather station in the vicinity of the facility.  The five-year rainfall total shall be based
on a cumulative five-year rainfall event which has a probability of exceedance
of five percent (5%), which shall be considered an equivalent probability as
the 100-year Rainfall Event (i.e., a
probability of not being exceeded = 99%) for not being exceeded during a five
(5)-year period (i.e., [1 – 0.995] = 5%).

 

(i) Example
of the input annual rainfall quantities for each of the five 5-year extreme
rainfall scenarios(2):

 

	
   

  	
   

  	
  Rainfall, inches

  
	
   

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  	
  Year 4

  	
   

  	
  Year 5

  	
   

  	
  Total

  
	
  Scenario
  1

  	
   

  	
  100-year
  annual rainfall quantity incorporating the highest monthly 100-year rainfall
  event (Y1)

  	
   

  	
  An
  annual rainfall event which together the preceding or following annual
  rainfall event, contributes to a 2-year total which has a 5% probability of 

  	
   

  	
  An
  annual rainfall event which together the preceding or following annual
  rainfall events, contributes to a 3-year total which has a 5% probability of 

  	
   

  	
  An
  annual rainfall event which together the preceding or following annual rainfall
  events, contributes to a 4-year total which has a 5% probability of 

  	
   

  	
  An
  annual rainfall event contributing to a 5-year total which has a 5%
  probability of exceedance (Y5)

  	
   

  	
  5-year
  cumulative rainfall total determined in accordance with (6)(a)(2). of this
  section (∑)

  

 

(2) In lieu of the requirements of  7(a)1(i), facilities located in Florida must
provide annual updates to their operation plan and water balance analyses that
incorporate the five (5)-year extreme rainfall scenarios prescribed by the
Florida Administrative Code (F.A.C.) Chapter 62-672.680 and/or any updates
thereof.

 

27

 

	
   

  	
   

  	
   

  	
   

  	
  exceedance
  (Y2)

  	
   

  	
  exceedance
  (Y3)

  	
   

  	
  exceedance
  (Y4)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Scenario
  2

  	
   

  	
  (Y3)

  	
   

  	
  (Y1)

  	
   

  	
  (Y2)

  	
   

  	
  (Y5)

  	
   

  	
  (Y4)

  	
   

  	
  (∑)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Scenario
  3

  	
   

  	
  (Y5)

  	
   

  	
  (Y4)

  	
   

  	
  (Y1)

  	
   

  	
  (Y3)

  	
   

  	
  (Y2)

  	
   

  	
  (∑)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Scenario
  4

  	
   

  	
  (Y2)

  	
   

  	
  (Y3)

  	
   

  	
  (Y4)

  	
   

  	
  (Y1)

  	
   

  	
  (Y5)

  	
   

  	
  (∑)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Scenario
  5

  	
   

  	
  (Y4)

  	
   

  	
  (Y5)

  	
   

  	
  (Y3)

  	
   

  	
  (Y2)

  	
   

  	
  (Y1)

  	
   

  	
  (∑)

  

 

3.
The annual rainfall quantities exceeding or less than the long-term average
annual rainfall shall be distributed at least amongst the various months of the
year, other than the month for the highest monthly 100-year rainfall event, in
proportion to the normal monthly rainfall amounts determined from the
corresponding long-term record.

 

(b) The
water balance analysis for any phosphogypsum stack system shall indicate
whether the system storage will be less than any of the following water balance
targets:

 

1.  At the beginning of the rainy season, the
calculated 100-year, 24-hour rainfall event plus one-half the value for the
25-year, 24-hour rainfall event calculated (in inches) for the area where the
facility is located.

 

2.
At the end of the rainy season, the 100-year, 24-hour rainfall event calculated
(in inches) for the area where the facility is located.

 

3.
Water levels that exceed impoundment maximum design levels at any time during a
year.

 

If
the water balance for any phosphogypsum stack system indicates that system
storage is less than the water balance targets, the owner/operator must provide
reasonable assurance that additional process water consumption or management
items, not already included as outputs in the water balance analysis, are
readily available and capable of maintaining these water balance targets. Use
of available storage within an auxiliary holding pond, up to its maximum design
levels, may be used to provide this assurance.

 

(c) If
the water balance indicates that at any time during the five (5)-year period
that process water levels, in conjunction with additional available process
water consumption or management items will not meet the water balance targets,
the owner/operator must provide additional process water consumption or
management items, and submit an alternatives plan and implementation schedule
for approval by the Implementing State Agency and/or EPA for the additional
consumption or management measures within ninety (90) days of submittal of the
water balance analysis. The plan and schedule shall include, at a minimum, the
following elements:

 

1.
A listing and description of the additional process water consumption or
management items to be evaluated, including the identification of items that
can be rapidly implemented to achieve the water balance targets;

 

2.
A listing of interim measures that can be implemented to prevent an unpermitted
release of process water in the event that actual rainfall events contribute to
process water levels exceeding maximum design levels; and

 

3.
A proposed schedule for the evaluation, selection, engineering, design, and
construction, 

 

28

 

installation or implementation for the items
and interim measures needed to increase water consumption, reduce inventories,
or any combination of such actions that will result in achievement of the water
balance targets.

 

VIII.
Contingency Plans for Operating Phosphogypsum Stack Systems

 

(1) The
owner/operator of a phosphogypsum stack system shall prepare, and update
annually thereafter, a contingency plan to address unplanned releases of
process water. The elements of such a plan shall address the applicable
elements of the “National Response Team’s Integrated Contingency Plan Guidance,”
61 Fed. Reg. 28,641 (June 5, 1996), which is incorporated herein by
reference and shall demonstrate the ability to mobilize equipment and manpower
to respond to emergency situations. The plan shall be maintained at the
facility and be available for inspection by the Implementing State Agency
and/or EPA upon request.

 

(2) Training. The owner/operator of a
phosphogypsum stack system shall provide annual training in inspection and
operations requirements and contingency plan requirements to appropriate
personnel. Newly hired personnel shall receive training prior to engaging in
inspection or operations activities. A training plan consistent with the
requirements of this document shall be maintained at each facility and be
available for inspection upon request. Records demonstrating that appropriate
personnel have received the necessary training shall be maintained by the
facility owner/operator for a period of three years.

 

29

 

 

ATTACHMENT
D:  CLOSURE OF PHOSPHOGYPSUM STACKS/
STACK SYSTEMS

 

I. General Requirements for the Stack Closure Plan

 

(1)
Applicability. The following requirements must be incorporated into the Stack
Closure Plan for each phosphogypsum stack system.  The Stack Closure Plan shall be developed no
later than one year after entry of the Consent Decree.  The requirements of Section I of this
Attachment apply to active and inactive phosphogypsum stack systems, and to new
or expanded components (e.g. lateral expansions) of phosphogypsum stack systems
when constructed.  A Stack Closure Plan
and schedules for closure need not be submitted if the system has already
undergone stack closure, began undergoing stack closure prior to January 30,
2007, or an application for stack closure in a manner that satisfies the
requirements of Attachment D has been submitted to the Implementing State
Agency and/or EPA as of the Date of the EPA Notice of Violation.  The requirements of Section II apply to the
same phosphogypsum stack system and are due at least ninety (90) days before
permanent deactivation is scheduled to occur.

 

(2)
Owners/operators of actively operating phosphogypsum stack systems shall submit
the Stack Closure Plan, including a schedule for closure, for its phosphogypsum
stack systems for approval to the Implementing State Agency and/or EPA.  The Stack Closure Plan shall include:

 

(a)
A description of the physical configuration of the phosphogypsum stack system
for the period of time that the closure cost scenario is determined as
calculated in accordance with Appendix 2 of this Consent Decree.

 

(b)
A site-specific water management plan describing the procedures to be employed
during closure of the phosphogypsum stack system to manage the anticipated
volume of process wastewater. The Stack Closure Plan shall address the
management, treatment (including neutralization), and disposal of ponded and
pore process wastewater, both during stack system closing activities and
long-term care activities. An independent third- party with water treatment
expertise must be used to evaluate the water and its neutralization
requirements for the duration of stack system closure;

 

(c)
An estimate of all costs associated with stack system closure, including the
costs of stack closing, long-term care activities, and implementation of the
site-specific water management plan; and

 

(d)
A description of all construction work necessary to properly undertake stack
system closure

 

II. Permanent Closure Requirements for Phosphogypsum Stacks/
Stack Systems

 

(1)
At least ninety (90) days before the permanent deactivation of a phosphogypsum
stack system, the owner/operator shall submit for approval a closure
application including a Permanent Stack Closure Plan, as described below, to
the Implementing State Agency and/or EPA. The Permanent Stack Closure Plan
shall include the requirements of (2) through (10) of this Section, or shall
contain an explanation of why the requirement is not applicable. Valid
information on record in an existing permit or approved groundwater monitoring
plan may be used to satisfy the

 

30

 

applicable
requirements of this Attachment.

 

(2)
General information report. This report must be submitted for approval
to the Implementing State Agency and/or EPA and shall contain:

 

(a)
Identification of the phosphogypsum stack system;

 

(b)
Name, address and phone number of primary contact persons;

 

(c)
Identification of persons or consultants preparing this report;

 

(d)
Present property owner and phosphogypsum stack system operator;

 

(e)
Location by township, range and section, and latitude and longitude of the
phosphogypsum stack system;

 

(f)
Total acreage of the phosphogypsum stack system and total acreage of the
facility property;

 

(g)
Legal description of the property on which the phosphogypsum stack system is
located; and

 

(h)
History of the phosphogypsum stack system, including construction dates and a
general description of operations.

 

(3)
Area information report. This report details the area in which the
phosphogypsum stack system is located. 
The report must use verifiable information. The term “area” means that
area that may affect or be affected by the phosphogypsum stack system, and at a
minimum includes the land within a one-mile radius of the phosphogypsum stack
system. The report shall be supplemented by maps and cross-section drawings.
The following topics shall be addressed in the report:

 

(a)
Topography;

 

(b)
Hydrology, including surface water drainage patterns and hydrologic features
such as surface waters, springs, drainage divides and wetlands;

 

(c)
Geology, including the nature and distribution of lithology, unconsolidated
deposits, major confining units and sinkholes;

 

(d)
Hydrogeology, including depth to groundwater table, groundwater flow
directions, recharge and discharge areas used by public and private wells
within one mile of the phosphogypsum stack system;

 

(e)
Ground and surface water quality;

 

(f)
Land use information. The report shall include a discussion and maps
indicating:

 

1.
Identification of adjacent landowners;

 

2.
Zoning;

 

3.
Present land uses; and

 

4.
Roads, highways, right-of-ways, or other easements.

 

(4)
Groundwater monitoring plan and site specific information.  The groundwater monitoring plan and most
recent quarterly report submitted in accordance with Attachment B, Section C
(Zone of Discharge Monitoring Requirements), and approved by the Implementing
State Agency and/or EPA.

 

(5)
Assessment report on the effectiveness of existing phosphogypsum stack
system design and operation. Based on the area information report and the
groundwater monitoring plan, a written assessment shall be prepared that
discusses the effects of the phosphogypsum stack system on adjacent ground and
surface waters, and the phosphogypsum stack system area. Specific concerns

 

31

 

to
be addressed are:

 

(a)
Effectiveness and results of the groundwater investigation; and

 

(b)
Effects of surface water runoff, drainage patterns, and existing storm water
controls.

 

(6)
Performance standards.  This
component of the Permanent Stack Closure Plan shall be developed to address the
following performance standards.

 

(a)  Closure of phosphogypsum stack systems shall
be designed to protect human health and the environment by:

 

1.
Controlling, minimizing or eliminating the post closure escape of
phosphogypsum, process wastewater, leachate, and contaminated runoff to ground
and surface waters;

 

2.
Minimizing leachate generation;

 

3.
Detecting, collecting, and removing leachate and process wastewater efficiently
from the phosphogypsum stack system and promoting drainage of process
wastewater from the phosphogypsum stack;

 

4.
Being compatible with any required groundwater or surface water corrective
action plan;

 

5.
Minimizing the need for further maintenance.

 

(b)
Closure plans for phosphogypsum stacks shall include a final cover system
designed to protect human health and the environment by:

 

1.
Promoting drainage off the stack;

 

2.
Minimizing ponding;

 

3.
Minimizing erosion;

 

4.
Minimizing infiltration into the phosphogypsum stack;

 

5.
Functioning with little or no maintenance.

 

(c)
Closure of ponds and drainage conveyances storing process wastewater shall be
designed to protect human health and the environment by:

 

1.
Treating or removing from the ponds and drainage conveyances all process
wastewater as soon as practical, either through return of the process
wastewater to the manufacturing process, transfer of process wastewater to
another pond permitted in accordance with this Attachment, in-situ treatment,
or by treatment and subsequent discharge of the process wastewater under an
appropriate discharge permit;

 

2.
Placing any sludges removed from a pond, settling basin, or drainage conveyance
into an active phosphogypsum stack permitted in accordance with this
Attachment, or an inactive stack undergoing stack closure in accordance with
this Attachment. The closure plan shall contain a detailed description of
procedures for removing or treating the sludges, methods for sampling and
testing surrounding soils, and criteria for determining the extent of removal
required to satisfy the closure performance standards.

 

(7)
Closure design plan. A closure design plan shall be prepared to meet the
performance standards specified in section II.(6), above, and shall be based on
the area information report, groundwater monitoring plan, and assessment of the
effectiveness of the existing phosphogypsum stack system design and
operation.  The closure design plan shall
consist of engineering plans and a report on closing procedures that shall
apply to the closing of the phosphogypsum stack system and the monitoring and
maintenance during the long-term care

 

32

 

period.
The closure design plan shall include the following information:

 

(a)
A plan sheet showing phases of site closing.

 

(b)
Drawings showing existing topography and proposed final elevations and grades.

 

(c)
For phosphogypsum stacks, final cover installation plans showing the sequence
of applying final cover, including thickness and type of material that will be
used. All phosphogypsum stacks shall have a final cover designed to meet the
performance standards.  Final cover shall
be placed over the entire surface of the phosphogypsum stack. The final cover
shall be vegetated with drought-resistant species to control erosion, whose
root systems will not penetrate any low-permeability barrier layer (or
alternative approved in accordance with II(7)(c)2c of this Attachment). Water
balance calculations, based on available climatic data, shall be prepared that
estimate the rates and volumes of water infiltrating the cover systems,
collected by any leachate control system, and migrating out of the bottom of
the stack or liner system. Final cover may consist of synthetic membranes,
soils, or chemically or physically amended soils or phosphogypsum.

 

1.
Side slopes and all other grades shall be designed to minimize erosion of the
final cover material. Such designs shall consider the erosion susceptibility of
the material proposed for final cover relative to historical rainfall patterns
for the area, the ability to establish and maintain vegetation and special
maintenance procedures proposed to insure that infiltration and erosion are
minimized.  If the side slopes of any
stack are steeper than a two (2)-foot horizontal run to one foot vertical rise,
the closure design plan shall include a stability analysis demonstrating the
longterm stability of the area.

 

2.
Top gradients of final cover on phosphogypsum stacks shall be designed to
prevent ponding or low spots and minimize erosion.

 

a.
The final cover on the top gradient shall consist of a barrier soil layer at
least 18 inches thick, emplaced in six (6)-inch thick lifts. A final, eighteen
(18)-inch thick layer of soil or amended phosphogypsum that will sustain
vegetation to control erosion shall be placed on top of the barrier layer. For
unlined stacks, the barrier layer shall have a maximum permeability of 1 × 10-7 cm/sec; for lined stacks,
the barrier layer shall have a maximum permeability of 1 × 10-5 cm/sec. If less permeable soils are used, the
thickness of the barrier layer may be decreased to twelve (12) inches provided
that infiltration is minimized to an equivalent degree.

 

b.
A geomembrane may be used as an alternative to the low-permeability soil
barrier for a final cover, constructed to preclude rainfall infiltration into
the stack. A geomembrane used in final cover shall be a semi-crystalline
thermoplastic at least forty (40) mils thick, or a non-crystalline
thermoplastic at least thirty (30) mils thick, with a maximum water vapor
transmission rate of 2.4 grams per square meter per day, have chemical and
physical resistance to materials it may come in contact with, and withstand
exposure to the natural environmental stresses and forces throughout the
installation, seaming process, and settlement of the phosphogypsum during the
closure and long-term care period. A protective soil or amended phosphogypsum
layer at least twenty-four (24) inches thick shall be put on top of the
geomembrane. Material specifications, installation methods, and compaction
specifications shall be adequate to protect the barrier layer from root
penetration, resist erosion, and remain stable on the final design slopes. This
layer shall

 

33

 

include
soils or amended phosphogypsum that will sustain vegetative growth.

 

c.
In areas where historically evapotranspiration exceeds precipitation, the
geomembrane option in (7)(c)2b, above may be used in conjunction with an
alternative top cover design for the twenty-four (24) inch thick layer of
protective soil or amended phosphogypsum placed above the geomembrane.  The request for an alternate top cover design
must be submitted for approval to the Implementing State Agency and EPA.

 

3.
The closure design plan shall describe provisions for cover material for
long-term care erosion control, filling other depressions, maintaining berms,
and general maintenance of the phosphogypsum stack, and shall specify the
anticipated source and amount of material necessary for proper closure of the
stack.

 

(d)
The type of leachate control system proposed. The leachate control system shall
be designed to prevent leachate from causing violations of water quality
standards beyond the approved zone of discharge for the phosphogypsum stack
system.

 

(e)
Compliance with groundwater protection requirements. The closure design plan
shall demonstrate how the phosphogypsum stack system will meet the water
quality standards of the State where the Facility is located. The groundwater
monitoring plan and sampling schedule may be adjusted for a phosphogypsum stack
system where groundwater contamination is not evident or corrective measures
have been taken to correct contamination.

 

(f)
The proposed method of stormwater control. This shall include control of
stormwater occurring on the phosphogypsum stack system. Stormwater or other
surface water that mixes with leachate shall be considered to be leachate and
shall be treated to meet the applicable water quality standards of the State
where the Facility is located, at the point of discharge. The stormwater
control plan shall meet the requirements of the State where the Facility is
located; however, nothing herein shall be construed to preclude application of
the requirements of the appropriate water management district.

 

(g)
The proposed method of access control. The closure design plan shall describe
how access to the closed phosphogypsum stack system shall be restricted to
prevent any future waste dumping or use of the phosphogypsum stack system by
unauthorized persons. Restricted access shall remain in force until the
phosphogypsum stack system is stabilized and there is no evidence that the
property is being used as an unauthorized dump site.

 

(h)
A description of any proposed final use of the phosphogypsum stack system.

 

(8)
Closure construction quality assurance plan. A detailed construction
quality assurance plan shall be developed for construction activities
associated with the closure of the phosphogypsum stack system, including each
component of the final cover system. The plan shall specify quality assurance
test procedures and sampling frequencies. Records shall be kept to document
construction quality and demonstrate compliance with plans and specifications.
Upon completion of closure activities a final construction quality assurance
report shall be submitted to the Implementing State Agency and/or EPA, prepared
by an engineer. The final report shall include at least the following
information:

 

(a)
Listing of personnel involved in closure construction and quality assurance
activities;

 

(b)
Scope of work;

 

34

 

(c)
Outline of construction activities;

 

(d)
Quality assurance methods and procedures;

 

(e)
Test results (destructive and non-destructive, including laboratory results);
and

 

(f)
Record drawings.

 

(9)
Closure operation plan. This component of the Permanent Stack Closure
Plan shall:

 

(a)
Describe the actions that will be taken to close the phosphogypsum stack
system, such as placement of cover, grading, construction of berms, ditches,
roads, retention-detention ponds, installation or closure of wells and
boreholes, installation of fencing or seeding of vegetation, protection of
on-site utilities and easements;

 

(b)
Provide a time schedule for completion of the closing and long-term care;

 

(c)
Contain appropriate references to the closure design plan, area information
report, groundwater monitoring plan, and other supporting documents;

 

(d)
Provide a revised estimate of all costs associated with stack closing, long
term care and site-specific water management activities being undertaken under
the Permanent Stack Closure Plan in accordance with Appendix II (Financial
Assurance).  Also, describe the proposed
method of demonstrating financial responsibility for the long-term monitoring
and maintenance in accordance with Appendix II;

 

(e)
Indicate any additional equipment and personnel needed to complete closure of
the phosphogypsum stack system; and

 

(f)
Describe any proposed use of the system for water storage or water management.

 

(10)
Certification by an engineer. Information, plans, and drawings presented
in support of a closure plan shall be prepared under the direction of, and
certified by, an engineer.  A letter of
appointment shall be submitted by the proper company official confirming that
the engineer is authorized to prepare plans and specifications. The engineer
shall be required to make periodic inspections during the closing of the
phosphogypsum stack system to insure closure is being accomplished according to
the Permanent Stack Closure Plan.

 

(11)
Nothing in the section is intended to preclude the construction of a lined
cooling pond or auxiliary holding pond on top of an inactive Phosphogypsum
stack, as long as the pond is constructed in accordance with the applicable
provisions of Attachment C, and as long as the design is included in the
closure plan.  Within such a cooling
pond, the requirements for minimizing ponding and establishing vegetation cover
are not applicable.

 

III.
Temporary Deactivation of Phosphogypsum Stack System(s)

 

(1)
The owner/operator of a phosphogypsum stack system may request in writing, a
determination by the Implementing State Agency and/or EPA that the provisions
of Section II of this Attachment need not apply in limited circumstances to a
specific phosphogypsum stack system, and shall request approval of a temporary
deactivation of the phosphogypsum stack system. 
This request must be submitted on a yearly basis. The Implementing State
Agency and/or EPA may authorize a temporary deactivation approval for each
individual phosphogypsum stack system in accordance with this subsection or
deny the request for such an

 

35

 

approval.

 

(2)
Each request shall set forth at least the following information:

 

(a)
The specific phosphogypsum stack system or phosphogypsum stack for which
temporary deactivation, and approval of, is sought;

 

(b)
A demonstration that current economic or other conditions justify a temporary
deactivation of the phosphogypsum stack system;

 

(c)
An estimate of the duration of the temporary deactivation of the phosphogypsum
stack system, and a demonstration that the stack system is reasonably expected
to become active within this estimated time period; and

 

(d)
The Interim Stack System Management Plan (ISSMP) prepared in accordance with
Attachment C.I.(7) of this Consent Decree.

 

(3)  If the Implementing State Agency and/or EPA
determine that other information is necessary to ascertain if a temporary
deactivation is warranted, the applicant must submit the additional information
upon request.

 

(4)  Upon approval of the temporary deactivation
and the ISSMP by the Implementing State Agency and/or EPA, the owner/operator
must implement the procedures set forth in the approved ISSMP immediately upon
phosphogypsum stack system deactivation.

 

(5)
If after review of the information submitted pursuant to (2) and (3) of this
Section, the Implementing State Agency and/or EPA determine that temporary
deactivation is not warranted, the owner/operator may continue to operate the
phosphogypsum stack system or permanently close the phosphogypsum stack system
in accordance with the provisions of Section II of this Attachment.

 

(6)  If at any time during the approved temporary
deactivation period, the Implementing State Agency and/or EPA requires
information to ascertain if the criteria under (2)(a)-(d) of this Section are
being meet, the owner or operator will provide such information within thirty
(30) days of the request by the Implementing State Agency and/or EPA.

 

(7)  If after review of the information submitted
pursuant to (6) of this Section, the Implementing State Agency and/or EPA
determines that the owner or operator no longer satisfies the criteria
specified in (2)(a)-(d), the EPA and/or the Implementing State Agency will so
notify the owner and/or operator of its determination and the provisions of
Section II of this Attachment will apply. 
Either Agency’s determination that Defendant no longer satisfies the
criteria specified in (2)(a)-(d) shall not be subject to judicial review, but
shall be subject to dispute resolution (other than judicial review) pursuant to
Section XI of the Consent Decree.

 

IV. Closure Procedures for Phosphogypsum Stacks/ Stack
Systems

 

(1)
Closing inspections. The Implementing State Agency and/or EPA may require in
the Permanent Stack Closure Plan which particular closing steps or operations
must be inspected and approved by the Implementing State Agency and/or EPA
before proceeding with subsequent closure actions.

 

(2)
Final survey and record drawings. A final survey shall be performed, after
permanent closure

 

36

 

is
complete, by an engineer or a registered third-party land surveyor to verify
that final contours and elevations of the phosphogypsum stack system are in
accordance with the plan as approved by the Implementing State Agency and/or
EPA. Aerial mapping techniques that provide equivalent survey accuracy may be
substituted for the survey.

 

(a)
The survey or aerial mapping information shall be included in a report along
with information reflecting the record drawings of the phosphogypsum stack system.
Contours should be shown at no greater than five (5)-foot intervals.

 

(b)
The owner/operator shall submit this report to the Implementing State Agency
and/or EPA in accordance with the closing schedule.

 

(3)
Certification of closure construction completion. A certification of closure
construction completion, signed, dated and sealed by a third-party engineer,
shall be provided to the Implementing State Agency and/or EPA upon completion
of closure.

 

(4)
Official date of closing. Upon receipt of the documents required in (2) and (3)
of this section, the Implementing State Agency and/or EPA shall acknowledge by
letter to the owner/operator that notice of termination of operations and
closing of the phosphogypsum stack system has been received. The date of this
letter shall be the official date of closing for purposes of determining the
beginning of the long-term care period.

 

(5)
Use of closed phosphogypsum stack systems. Closed phosphogypsum stack systems,
if disturbed, are a potential hazard to public health, groundwater and the
environment. Consultation with and approval by  the
Implementing State Agency and/or EPA is required before conducting activities
that may disturb the closed phosphogypsum stack systems.  If the Agencies determine that use of a closed
phosphogypsum stack system is not permissible, such determination shall not be
subject to judicial review, but shall be subject to dispute resolution (other
than judicial review) pursuant to Section XI of the Consent Decree.

 

V. Long-Term Care for Phosphogypsum Stacks/ Stack Systems

 

(1)
Long-term care period. The owner/operator of any phosphogypsum stack system
shall be responsible for monitoring and maintenance of the facility in
accordance with an approved Permanent Stack Closure Plan for fifty (50) years
from the date of closing  unless a reduced long-term care period is
approved by the Implementing State Agency and/or EPA in accordance with V(2),
below. Before the expiration of the long-term care monitoring and maintenance
period the Implementing State Agency and/or EPA may extend the time period if
it is determined that:

 

(a)
The closure design or closure operation plan under the Permanent Stack Closure
Plan was ineffective in meeting the standards of this Attachment, or

 

(b)
The extension of the long-term care period is necessary to protect human health
and the environment.

 

(2)
Reduced long-term care period. The owner/operator of a phosphogypsum stack
system may request, in writing, for a reduced long-term care schedule.  The Implementing State Agency and/or EPA may
approve, within its discretion, the request if the information provided by the
owner and/or operator substantiates its claim that the reduced period is
sufficient to protect

 

37

 

human
health and the environment.  The request
must, at a minimum, demonstrate that the phosphogypsum stack system meets the
criteria of (2)(a)-(d), below, and provide any other information relevant to
establishing that the reduced period is sufficient to protect human health and
the environment:

 

(a)
The phosphogypsum stack system has been constructed and operated in accordance
with approved standards, and has a leachate control system and a liner that has
controlled, minimized or eliminated releases; and

 

(b)
The phosphogypsum stack system has been closed with appropriate final cover,
that the vegetative cover (or alternative approved in accordance with
II(7)(c)2c of this Attachment) has been established, and a monitoring system
has been installed and is operating within the manufacturer’s specifications;
and

 

(c)
The Facility has a twenty (20)-year history after the date of closure of no
violations of water quality standards or criteria detected in the monitoring
system, and no increases over background water for any monitoring parameters
that may be expected to result in violations of water quality standards or
criteria; and

 

(d)
The phosphogypsum stack system has had no detrimental erosion of the cover
system.

 

(3)
Transfer of permit.  If a phosphogypsum
stack system is operated and maintained pursuant to a permit issued by the
Implementing State Agency and/or EPA, transfer of the phosphogypsum stack
system permit shall be in accordance with the provisions of the Implementing
State Agency and/or EPA.

 

(4)
Replacement of monitoring devices. If a monitoring well or other device
required by the monitoring plan is destroyed or fails to operate for any
reason, the phosphogypsum stack system owner/operator shall, immediately upon
discovery, notify the Implementing State Agency and/or EPA in writing. All
inoperative monitoring devices shall be replaced with functioning devices
within sixty (60) days of the discovery of the malfunctioning unit unless the
owner/operator is notified otherwise in writing by the Implementing State Agency
and/or EPA.

 

(5)  Certification of Long-Term Care Completion. A
certification of long-term care completion signed, dated and sealed by a
third-party engineer, shall be provided by the owner/operator to the
Implementing State Agency and/or EPA upon completion of long-term care.

 

VI. Closure of Unlined Systems in Phosphogypsum Stacks/ Stack
Systems

 

No
phosphogypsum or process wastewater shall be placed in an unlined phosphogypsum
stack system after five (5) years of the effective date of the Consent Decree;
however, such systems may be used for water storage and water management
purposes to facilitate closure. Closure or lining of each unlined system shall
be completed as expeditiously as practicable, but not to exceed five (5) years
of the effective date of the Consent Decree. For purposes of this subsection, “unlined”
means that the phosphogypsum stack system was constructed without an installed
liner meeting those standards outlined in Section VI of Attachment C, or an
equivalent liner as approved by EPA and/or the Implementing State Agency.

 

38

 

ATTACHMENT E: IMMINENT AND SUBSTANTIAL ENDANGERMENT DIAGNOSTIC
REQUIREMENTS

 

I.  Requirements for Dikes and Phosphogypsum
Stacks

 

(1) If
a critical condition is suspected or confirmed, the Implementing State Agency
and EPA shall be notified immediately and the defective area of the dike or
stack shall be inspected daily in accordance with Section VII of
Attachment C, until corrective maintenance has cured such defect. A written
report of the condition and the actions proposed for its correction shall be made
to the Implementing State Agency and EPA within seven (7) days from the
time existence of the critical condition is confirmed.  .

 

(2) Any
of the following items shall be considered as indicating a critical condition
that requires immediate investigation and may require emergency maintenance
action:

 

(a) Concentrated
seepage on the downstream slope, at the toe of slope, or downstream from
the toe of slope (e.g., boils, soil cones, springs or deltas).

 

(b) Evidence
of slope instability including sloughing, bulging or heaving of the downstream
slope, or subsidence of the dike slope or crest.

 

(c) Cracking
of surface on crest or either face of the dike or stack slope.

 

(d) General
or concentrated seepage in the vicinity of or around any conduit through
the dike.

 

(e) Observed
or suspected damage to the liner system.

 

II.  Temporary Measures for Use of Design
Freeboard to Prevent Release

 

(1) Temporary
use of the design freeboard. For purposes of this Attachment, the design
freeboard shall mean the vertical distance from the water surface, when water
levels are at the maximum design level, to the lowest elevation of the top of
the surrounding dike.

 

(a) Temporary
use of the design freeboard of a perimeter dike or a gypsum dike is authorized
when the water level is at the design freeboard and when such use is necessary
to prevent the release of untreated process water. Such use of the freeboard
shall only be allowed when a third-party engineer has approved such use and
when documentation demonstrating the continued safety and stability of the dike
is submitted to the Implementing State Agency and/or EPA.  Such documentation shall include a listing of
any operational limitations or constraints recommended by the third-party engineer
as set forth in this section together with confirmation that the owner/operator
will comply with such recommendations. The third-party engineer shall base his
or her recommendations on:

 

1.
An inspection of the facility;

 

2.
Dike design and construction information;

 

3.
Results of seepage and stability analyses (including monitoring of seepage pressures
within the dike if such monitoring is deemed necessary); and

 

4.
Wind surge and wave run-up analyses.

 

(b) The
report by the third-party engineer shall specify conditions under which such use
may be 

 

39

 

undertaken so as not to jeopardize the
integrity of the dike, such as:

 

1.
Acceptable wind speeds in forecast;

 

2.
Increased inspection frequencies; and

 

3.
Weekly monitoring of piezometric levels within the mass of the dike, if and as
needed.

 

(c) The
third-party engineer shall reevaluate the facility each time use of the design
freeboard is proposed by the owner/operator. The Implementing State Agency
and/or EPA shall be informed of the proposed use and the engineer’s
recommendations prior to or within 24 hours of each such occurrence.

 

(2) If
the perimeter dike of the phosphogypsum stack system is an above-grade dike,
the system may incorporate an emergency spillway to allow for the controlled
release of process water during emergencies and to avoid overtopping of the
perimeter dike. The spillway shall be located so as to minimize the
environmental impact of any release to the extent practicable. This provision
shall not be deemed to authorize a discharge from the spillway and shall not be
construed to limit the Implementing State Agency and/or EPA’s exercise of
enforcement discretion in the event that such discharge causes or contributes
to a violation of applicable federal and/or state regulations.

 

III.  Requirements for Actively Operated
Phosphogypsum Stack Systems

 

(1) When
a critical condition is suspected during any inspection, the inspector shall
ensure that a competent technical representative of the phosphogypsum stack
system owner/operator is made aware of the condition immediately. If the
existence of the critical condition is confirmed, the Implementing State Agency
and/or EPA shall be notified immediately. 
A written report of the condition and the actions proposed for its correction
shall be made to the Implementing State Agency and/or EPA within seven (7) days
from the time existence of the critical condition is confirmed.

 

(2) Any
of the following items shall be considered as indicating a critical condition
that requires immediate investigation and may require emergency maintenance
action:

 

(a) Concentrated
seepage (e.g., springs or boils) on the face of a stack slope, at the toe
of the slope, or beyond the toe of slope with active signs of piping at the
point of seepage (e.g., a gypsum or soil cone or delta at the point of
seepage).

 

(b) Evidence
of slope instability including sloughing, bulging or heaving of the face of the
stack or the toe of the slope.

 

(c) Lateral
movement or subsidence of the slope or crest of the stack.

 

(d) Formation
of new non-shrinkage cracks or enlargement of wide cracks in the surface of the
slope or crest of the stack.

 

(e) Observed
or suspected damage to the liner system.

 

(f) Drains
discharging turbid water.

 

(g) Concentrated
seepage (i.e., springs or boils) in the vicinity of a decant pipe.

 

40

 

ATTACHMENT
F: DEFINITIONS FOR PURPOSE OF THE CONSENT DECREE

 

“100-year
floodplain” means any land area susceptible to being inundated
by water from a flood having a one percent chance of being equaled or exceeded
in any given year.

 

“100-year
Rainfall Event” means a rainfall event which is characterized by a
mean return period of one hundred years, i.e., a rainfall event which has a 99%
probability for not being exceeded during any given year.

 

“Active” means a
phosphogypsum stack/system that currently receives phosphogypsum and/or process
wastewater.

 

“Aquifer” means a
geologic formation, group of formations, or part of a formation capable of
yielding a significant amount of groundwater to wells, springs or surface
water.

 

“Auxiliary
holding pond (AHP)” means a lined storage pond, designated by the
operator and approved by the Implementing State Agency and/or EPA, typically
used to hold untreated process water. AHPs are intended to increase system
storage above that otherwise provided by cooling/surge ponds and are typically
located within the footprint of a phosphogypsum stack system.

 

“Background” means the
condition of waters in the absence of the activity or discharge under
consideration, based on the best scientific information available to the
Implementing State Agency and/or EPA.

 

“Berm” means a shelf
that breaks the continuity of the slope of an embankment in order to arrest the
velocity of storm water flowing down the face and/or to enhance the stability
of the embankment. .

 

“Cooling/surge
pond” means impounded areas within the phosphogypsum stack system, excluding
settling compartments atop the phosphogypsum stack, that provide cooling
capacity, surge capacity, or any combination thereof, for the phosphoric acid
process water recirculation system including phosphogypsum stack transport,
runoff, and leachate water from the process watershed.

 

“Corrective action” means actions and
activities taken to address a release of hazardous waste and/or hazardous
constituents that could affect human health and/or the environment, including
those activities required pursuant to Appendix 1, Attachments A and B.

 

“Dike” means a
barrier to the flow of phosphogypsum and process water which is constructed of
naturally occurring soil (earthen dike) or of phosphogypsum and which is a
component of a phosphogypsum stack system.

 

“Disposal”
means the discharge, deposit, injection, dumping, spilling, leaking, or
placing of any solid waste into or upon any land or water so that such solid
waste or any constituent thereof may enter other lands or be emitted into the
air or discharged into any waters, including groundwaters, or otherwise enter
the environment.

 

“Drain” means a material
more pervious than the surrounding fill which allows seepage water to
drain freely while preventing piping or internal erosion of the fill material.

 

41

 

“Earthen
dike” means a barrier to the flow of phosphogypsum and process water which is
constructed of naturally occurring soil and which is a component of a
phosphogypsum stack system.

 

“Emergency
diversion impoundment (EDI)” means a storage area
designated in the facility’s site-specific water management plan to be used on
a temporary basis when necessary to avoid an unpermitted surface water
discharge resulting from dike overtopping or other imminent and substantial
endangerment identified in Attachment E.

 

“Engineer”  includes the terms “professional
engineer” and “licensed engineer” and means a person who holds a State-issued
license to engage in the practice of engineering.

 

“Erosion
control” means physical devices constructed, and management
practices utilized, to control sedimentation and soil erosion such as silt
fences, sediment basins, check dams, channels, swales, energy dissipation pads,
seeding, mulching and other similar items.

 

“Facility” means all
contiguous land and structures, other appurtenances and improvements on the
phosphate fertilizer manufacturing complex.

 

“Final
cover” means the materials used to cover the top and sides of a phosphogypsum
stack upon closure.

 

“Freeboard”
means the height of the lowest point on the dam or dike crest,
excluding the emergency spillway, above the highest adjacent liquid surface
within the impoundment [Freeboard shall be determined by generally accepted
good engineering practices and shall include, at a minimum, evaluation of wind
surge, wave height, and wave run-up analyses, erosion protection measures, and
protection of dike integrity and inner rim-ditch geometry].

 

“Geomembrane” means a
low-permeability synthetic membrane used as an integral part of a system
designed to limit the movement of liquid or gas in the system.

 

“Groundwater” means water
beneath the surface of the ground within a zone of saturation, whether or not
flowing through known and definite channels.

 

“Groundwater
Table” means the upper surface of a zone of saturation, where the body of
groundwater is not confined by an overlying impermeable zone.

 

“Gypsum
dike” means the outermost dike constructed within the perimeter formed by a
starter dike for the purpose of raising a phosphogypsum stack and impounding
phosphogypsum and/or process water. This term specifically excludes any dike
inboard of a rim ditch, any partitions separating stack compartments, or any
temporary windrows placed on the gypsum dike.

 

“Inactive” means a
phosphogypsum stack system for which a temporary deactivation has not been
requested and approved; the phosphogypsum stack system is no longer receiving
phosphogypsum and/or process wastewater, and the owner/operator does not intend
to, and in fact does not, deposit any significant quantity of phosphogypsum
there within one year.

 

“Inside
(upstream) slope” means the face of the dam or dike which will be in
contact with the impounded liquids.

 

“Installation” means any
structure, equipment, facility, or appurtenances thereto, operation or activity
which may be a source of pollution.

 

“Lateral
expansion” means the expansion, horizontally, of phosphogypsum
or process wastewater storage capacity beyond the permitted capacity (where
applicable) and design

 

42

 

dimensions
of the phosphogypsum stack, or cooling ponds, surge ponds, and perimeter
drainage conveyances at an existing facility. Any phosphogypsum stack, cooling
pond, surge pond, or perimeter drainage conveyance which is constructed within
2000 feet of an existing phosphogypsum stack system, measured from the edge of
the expansion nearest to the edge of the footprint of the existing
phosphogypsum stack system, is considered a lateral expansion.

 

“Leachate”
means liquid that has passed through or emerged from phosphogypsum.

 

“Liner” means a
continuous layer of low permeability natural or synthetic materials which
controls the downward and lateral escape of waste constituents or leachate from
a phosphogypsum stack system.

 

“Lithified
earth material” means all rock, including all naturally occurring
and naturally formed aggregates or masses of minerals or small particles of
older rock that formed by crystallization of magma or by induration of loose
sediments. This term does not include man-made materials, such as fill,
concrete, and asphalt, or unconsolidated earth materials, soil, or regolith
lying at or near the earth’s surface.

 

“Log” means a
written record maintained by the owner/operator of an earthen dam or a
phosphogypsum stack system that contains a schedule of inspections of system
components, the findings of such inspections, and any remedial measures taken
in response to such findings.

 

“Maximum
Design Level” means the maximum process water elevation when the
water level is at the operating design freeboard for an impoundment as
determined using generally accepted good engineering practices, or the minimum
freeboard allowed, for perimeter earthen dikes. For the purposes of this
Consent Decree, generally accepted good engineering practices for determining
the permitted operating design freeboard includes, at a minimum, evaluation of
wind surge, wave height, and wave run-up analyses, erosion protection measures,
and protection of dike integrity and inner rim-ditch geometry.

 

“Natural
Background” means the condition of waters in the absence of
man-induced alterations based on the best scientific information available. The
establishment of natural background may be based on historical pre-alteration
data.

 

“New
perimeter earthen dike” means a perimeter earthen dike that is
completed after the effective date of the Consent Decree.

 

“Operation
plan” means the operation plan required by this Consent Decree.

 

“Outside
(downstream) slope” means the face of the dam or dike which will not be
in contact with the impounded liquids.

 

“Permanent
Deactivation” means Stack Closure.

 

“Perimeter
dike” means the outermost earthen dike surrounding a phosphogypsum stack
system that has not been closed or any other earthen dike the failure of which
could cause a release of process water outside the phosphogypsum stack system.

 

“Permanent Stack Closure Plan” means the plan
for Stack Closure submitted at or prior to closure and prepared in accordance
with the requirements of Appendix I, Attachment D, Section II.

 

43

 

“Phosphogypsum” means calcium
sulfate and byproducts produced by the reaction of sulfuric acid with phosphate
rock to produce phosphoric acid. Phosphogypsum is a solid waste within the
definition of Section 1004(27) of RCRA, 42 U.S.C. § 6903(27).

 

“Phosphogypsum
stack” means any defined geographic area associated with a phosphoric acid
production facility in which phosphogypsum is disposed of or stored, other than
within a fully enclosed building, container or tank.

 

“Phosphogypsum
stack system” means the phosphogypsum stack (or pile, or
landfill), together with all pumps, piping, ditches, drainage conveyances,
water control structures, collection pools, cooling ponds, surge ponds,
auxiliary holding ponds, regional holding ponds and any other collection or
conveyance system associated with the transport of phosphogypsum from the plant
to the phosphogypsum stack, its management at the stack, and the process
wastewater return to the phosphoric acid production or other process. This
definition specifically includes toe drain systems and ditches and other
leachate collection systems, but does not include conveyances within the
confines of the fertilizer production plant or emergency diversion impoundments
used in emergency circumstances caused by rainfall events of high volume or
duration for the temporary storage of process wastewater to avoid discharges to
surface waters of the state.

 

“Piping”
means progressive erosion of soil or solid material within the dam or
dike, starting downstream and working upstream, creating a tunnel into the dam
or dike. Piping occurs when the velocity of the flow of seepage water is
sufficient for the water to transport material from the embankment.

 

“Pollution” means the
presence in the outdoor atmosphere or waters of the state of any substances,
contaminants, noise, or man-made or man-induced alteration of the chemical,
physical, biological or radiological integrity of air or water in quantities or
levels which are or may be potentially harmful or injurious to human health or
welfare, animal or plant life, or property, including outdoor recreation.

 

“Process
wastewater” means “Process wastewater from
phosphoric acid production.”

 

44

 

“Process
wastewater from phosphoric acid production” means waters used or
generated in one or more production operations that have accumulated
contaminants to such an extent that they must be removed.  This includes the following process streams
resulting from phosphoric acid plant operations: water from phosphoric acid
production operations through concentration to merchant grade acid(3);
phosphogypsum transport water; phosphogypsum stack runoff; process wastewater
generated from the uranium recovery step of phosphoric acid production; process
wastewater from animal feed production operations that qualify as mineral
processing operations based on the definition of mineral processing that the
Agency finalized on September 1, 1990(4); and process wastewater from
superphosphate production(5).

 

“Process
Watershed” means the aggregate of all areas that contribute to
or generate additional process water from direct precipitation, rainfall
runoff, or leachate to a phosphogypsum stack, process water cooling/surge
ponds, or any other storage, collection, or conveyance system associated with
the transport of phosphogypsum or process water for a particular phosphogypsum
stack system.

 

“Qualified
Company Employee” means an employee trained specifically in the area
of their job duties.

 

“Related
company” or “related” means affiliates of the enterprise; entities
for which investments are accounted by the equity method by the enterprise;
trusts for the benefit of employees, such as pension and profit-sharing trusts
that are managed by or under the trusteeship of management; principal owners of
the enterprise; its management; members of the immediate families of principal
owners of the enterprise and its management; and other parties with which the
enterprise may deal if one party controls or can significantly influence the
management or operating policies of the other to an extent that one of the
transacting parties might be prevented from fully pursuing its own separate
interests. Another party also is a related party if it can significantly
influence the management or operating policies of the transacting parties or if
it has an ownership interest in one of the transacting parties and can
significantly influence the other to an extent that one or more of the
transacting parties might be prevented from fully pursuing its own separate
interests.

 

“Run-Off”
means any rainwater, leachate, or other liquid that drains over land
from any part of a facility.

 

“Run-On” means any
rainwater, leachate, or other liquid that drains over land onto any part of a
facility.

 

(3) 
Water from phosphoric acid production operations through concentration means
operations to: (1) an ultimate saleable product below 54% phosphoric acid;
or (2) merchant grade acid (i.e., 54%). Wastewaters generated from the
production of any concentration of phosphoric acid that is diverted to chemical
manufacturing (i.e. MAP, DAP, superphosphate5, FSA, SPA) is not included within the scope of
phosphoric acid production operations.

(4) 
Process wastewater from animal feed production includes de-fluorination but
excludes ammoniated animal feed production.

(5) 
Process wastewater from superphosphate production includes process wastewater
generated from the production process that involves the direct reaction of
phosphate rock with dilute, not merchant grade, phosphoric acid [55 Fed. Reg.
2328, January 23, 1990].

 

45

 

“Seismic
impact zone” means an area with a ten percent or greater
probability that the maximum horizontal acceleration in lithified earth
material, expressed as a fraction of the earth’s gravitational pull (g), will
exceed 0.10g in 250 years.

 

“Soil
Liner” means a liner constructed from naturally occurring earthen
material.  This definition expressly
excludes any liner constructed of synthetic material or phosphogypsum.

 

“Solid
waste” means any garbage, or refuse, sludge from a wastewater treatment
plant, water supply treatment plant, or air pollution control facility and
other discarded material, including solid, liquid, semi-solid, or contained
gaseous material resulting from industrial, commercial, mining, and
agricultural operations.

 

“Stack Closing” means the time at which a
phosphogypsum stack system ceases to accept wastes, and includes those actions
taken by the owner/operator of the facility to prepare the system for any
necessary monitoring and maintenance after closing.

 

“Stack Closure” means the cessation of
operation of a phosphogypsum stack system and the act of securing such a
system, including the installation of a liner, so that it will pose no
significant threat to human health or the environment. This includes stack
closing, long-term care (i.e., monitoring and maintenance) and water management
activities associated with stack closing and long-term care activities.

 

“Stack Closure Plan” means the conceptual
closure plan that includes the basic design details and is prepared in
accordance with the requirements of Appendix I, Attachment D, Section I.

 

“Stack
system configuration” means the maximum physical dimensions of the
phosphogypsum stack system as provided by the Defendant in a general plan and
schedule for closure or a closure plan submitted to the Implementing State
Agency and/or EPA.

 

“Starter
Dike” means the initial dike constructed at the base of a phosphogypsum
stack to begin the process of storing phosphogypsum.

 

“Statistically
Significant” means that a result is not likely to be due to
chance alone. For purposes of this Attachment, a significance level of 0.05 or
0.01 should be used in determining statistical significance.

 

“Storage”
means the containment of wastes, either on a temporary basis or for a
period of years, in such a manner as not to constitute disposal of such wastes.

 

“Surface
Water” means water upon the surface of the earth, whether contained in bounds
created naturally or artificially or diffused. Water from natural springs shall
be classified as surface water when it exits from the spring onto the earth’s
surface.

 

“Temporary
Deactivation” means a phosphogypsum stack system that will cease
or has ceased to accept deposits of phosphogypsum and/or process wastewater on
a temporary basis and for which a demonstration has been made in writing to,
and approved by, the EPA and/or the Implementing State Agency, that the
phosphogypsum stack system is reasonably expected to become active within an
estimated time period.

 

“Third-party
engineer” means an engineer who is not an employee of any
entity that owns or operates a phosphate mine or phosphate fertilizer
manufacturing facility.

 

“Third-party liability” means a demonstration of
financial responsibility to address bodily injury and property damage caused by
sudden and non-sudden accidental occurrences.

 

46

 

“Toe” means the toe
of the dam or dike is the junction between the face of the dam or dike and the
adjacent terrain.

 

“Toe drain” is a
wedge-shaped drain supporting the downstream toe of the dam.

 

“Transport” means the
movement of wastes from the point of generation to any intermediate points, and
finally to the point of ultimate storage or disposal.

 

“Waters” include, but
are not limited to, rivers, lakes, streams, springs, impoundments, and all
other waters or bodies of water, including fresh, brackish, saline, tidal,
surface or underground waters. Waters owned entirely by one person other than
the state are included only in regard to possible discharge on other property
or water. Underground waters include, but are not limited to, all underground
waters passing through pores of rock or soils or flowing through in channels,
whether manmade or natural.

 

“Wave run-up” means the difference
in vertical height between the maximum elevation attained by wave run up or
uprush on a slope and the still water elevation at the inboard toe of the
slope.

 

“Wetlands” means those
areas that are defined in 40 CFR 232.2. Wetlands include, but are not limited
to, swamps, marshes, bogs, and similar areas.

 

“Wind surge or setup” means the
vertical rise in base water-surface elevation, exclusive of the wave height,
above the still water elevation, caused by wind-induced stresses and mounding
of the water surface in the leeward direction.

 

“Zone of Discharge” means a
volume underlying or surrounding the site and extending to the base of a
specifically designated aquifer or aquifers, within which an opportunity for
the treatment, mixture or dispersion of wastes into receiving groundwater is
afforded.

 

47

 

APPENDIX
2:  FINANCIAL ASSURANCE

 

This Appendix sets forth the
obligations of Defendant to secure and maintain Financial Assurance as required
under Paragraph 26 of the Consent Decree, including schedules and notice
requirements.  Submittals requiring EPA
approval shall be submitted pursuant to Section V (Compliance), Paragraphs
27-31, and Section XIV (Notices) of the Consent Decree.  “EPA approval” or “determination” as used in
this Appendix shall encompass approval or determination by any Implementing State
Agency and shall not be subject to judicial review, but shall be subject to
dispute resolution (other than judicial review) pursuant to Section X
(Dispute Resolution) of the Consent Decree, unless specified otherwise in this
Appendix.  Any time period specified by
this Appendix may be increased by written agreement of the Parties.

 

I.  Definitions

 

Except as otherwise provided
in this Appendix, definitions for the terms presented herein shall be
incorporated from 40 C.F.R. § 264.141.(1) 
Whenever the terms set forth below are used in this Appendix, the definitions
set forth below shall apply.  However,
the Parties are not bound by these definitions in connection with any matter
not relating to Financial Assurance under this Consent Decree.

 

“Affiliate” shall have the
same meaning as set forth in the Statement of Financial Accounting Standards No. 57,
Appendix B (Glossary) (Financial Accounting Standards Board - Original
Pronouncements, as amended): “A party that, directly or indirectly, through one
or more intermediaries, controls, is controlled by, or is under common control
with the enterprise.”

 

“Anniversary Date” shall
mean the annual anniversary of the date that Financial Assurance is provided
unless otherwise stated in this Appendix. 
The Anniversary Date for a Self-Assurance Mechanism shall be ninety (90)
days after the end of the Defendant’s fiscal year.

 

“Assets” shall mean all
existing and all probable future economic benefits obtained or controlled by a
particular entity, as represented on the company’s Independently Audited
balance sheet.

 

“Assets located within the
United States” shall mean the sum of all Assets located in the United States.

 

“Certified Public Accountant”
or “CPA” shall mean an accountant who has demonstrated the requisite certification
requirements of the American Institute of Certified Public Accountants

 

(1) Florida has promulgated
financial assurance regulations by adopting by reference 40 C.F.R. Part 264,
Subpart H (including all appendices), except as otherwise provided by the
Florida Administrative Code (“F.A.C.”).  See
F.A.C. R.62-730.180(1).  FDEP has
incorporated by reference all federal regulations cited in this Appendix
(except for some federal citations specified in the definition of
“Environmental Obligations”).

 

1

 

(“AICPA”) and met all
statutory and licensing requirements of the State in which (s)he works.

 

“Closure Plan” shall mean
the plan prepared for Phosphogypsum Stack System Closure, Long Term Care, and
associated Water Management activities, in accordance with the requirements of
Appendix 1, Attachment D (including, as applicable, Stack Closure Plan and
Permanent Stack Closure Plan).

 

“Control” shall have the
same meaning as set forth in the Statement of Financial Accounting Standards No. 57,
Appendix B (Glossary) (Financial Accounting Standards Board - Original
Pronouncements, as amended): “The possession, direct or indirect, of the power
to direct or cause the direction of management and policies of an enterprise
through ownership, by contract, or otherwise.”

 

“Corrective Action” shall
mean actions and activities taken to address a release of hazardous waste
and/or hazardous constituents that could affect human health and the
environment including those activities required pursuant to Appendix 1,
Attachments A and B.

 

“Cost Estimates” shall mean
the EPA-approved cost estimates for Phosphogypsum Stack System Closure and Long
Term Care, or for work performed pursuant to a Risk Assessment Plan,  Interim Measures Plan, or Corrective Action
Plan, as applicable under the various Sections of this Appendix.

 

“Current Assets” or “CA”
shall mean cash or other assets or resources reasonably expected to be realized
within one (1) year during the normal operating cycle of the business, as
represented on the company’s Independently Audited balance sheet.

 

“Current Dollars” shall mean
U.S. dollars in the year actually received or paid, unadjusted for price
changes or inflation.

 

“Current Liabilities” or “CL”
shall mean obligations that are reasonably expected to be repaid within one (1) year
using existing resources classified as Current Assets, as represented on the
company’s Independently Audited balance sheet.

 

“Current Ratio” shall mean
Current Assets divided by Current Liabilities (“CA/CL”).

 

“Debt-to-Equity Ratio” shall
mean the total Liabilities divided by Net Worth (“TL/NW”).

 

“Defendant” shall mean CF
Industries, Incorporated, and as applicable, any Guarantor.

 

“Environmental Obligations”
shall mean obligations both in programs that EPA directly operates, and in
programs where EPA has delegated authority to the State or approved a State’s
program that are assured through the use of a corporate financial test.  These obligations include, but are not
limited to: liability, closure, post-closure and corrective action cost
estimates for

 

2

 

hazardous waste treatment,
storage, and disposal facilities pursuant to 40 C.F.R. §§ 264.101, 264.142,
264.144, 264.147, 265.142, 265.144 and 265.147; cost estimates for municipal
solid waste management facilities pursuant to 40 C.F.R. §§ 258.71, 258.72 and
258.73; current plugging and abandonment cost estimates for underground
injection control facilities pursuant to 40 C.F.R. § 144.62; cost estimates for
petroleum underground storage tanks pursuant to 40 C.F.R. § 280.93; cost
estimates for PCB facilities pursuant to 40 C.F.R. § 761.65; any financial
assurance required under, or as part of an action under, the Comprehensive
Environmental Response, Compensation, and Liability Act; and any other
environmental obligation assured through a financial test.

 

“Exchange” shall mean a
place where securities are traded (e.g., New York Stock Exchange).

 

“Financial Assurance” shall
mean a written demonstration of financial capability, in compliance with the
terms of this Appendix, to implement Phosphogypsum Stack System Closure and
Long Term Care in an amount at least equal to the approved Cost Estimates, and
to provide for Third-party Liability and Corrective Action as required under
this Appendix.

 

“Financial Mechanism” shall
mean those mechanisms or instruments specified in this Appendix used to secure
funding for an obligation under the Consent Decree.

 

“GAAP” shall mean U.S.
Generally Accepted Accounting Principles.

 

“Guarantee” shall mean
agreements where a second entity assumes responsibility for the payment of a
debt or performance of an obligation if the entity primarily liable fails to
perform.  The entity providing the
Guarantee is the Guarantor.

 

“Immediate Family”  shall have the same meaning as set forth in
the Statement of Financial Accounting Standards No. 57, Appendix B
(Glossary) (Financial Accounting Standards Board - Original Pronouncements, as
amended): “Family members whom a principal owner or a member of management
might control or influence or by whom they might be controlled or influenced
because of a family relationship.”

 

“Independent Attorney” shall
mean an attorney hired by Defendant to provide the opinion required by
Paragraph 11.f of this Appendix.  The
Independent Attorney must be licensed and in good standing, have expertise in
the areas of law for which the opinion is being rendered, free of control by
Defendant (or Defendant’s Guarantor or Related Party), and able to exercise his
or her judgment as to the required opinion. 
Defendant shall waive any claim of attorney-client privilege or
work-product doctrine in connection with the Independent Attorney’s provision
of the opinion required by Paragraph 11.f of this Appendix, and shall provide
EPA with any requested support for the Independent Attorney’s opinion.

 

“Independently Audited”
shall mean an independent assessment (audit) of the fairness by which a company’s
financial statements are presented by its management in conformance with GAAP.

 

3

 

The audit must be performed
by an independent Certified Public Accountant and conform to U.S. Generally
Accepted Auditing Standards (GAAS).

 

“Intangible Assets” or “IA”
shall mean identifiable non-monetary assets lacking physical substance, as
defined under GAAP and as accounted for in the company’s Independently Audited
financial statements, including but not limited to patents, copyrights,
franchises, goodwill, trademarks, and trade names.

 

“Liabilities” shall mean all
probable future sacrifices of economic benefits arising from present
obligations to transfer assets or provide services to other entities in the
future as a result of past transactions or events, as represented on the
company’s Independently Audited balance sheet.

 

“Long Term Care” shall mean
those activities required pursuant to Appendix 1, Attachment D, including
associated Water Management activities, and shall be substituted for “post-closure”
in 40 C.F.R. Part 264, Subpart H.

 

“Management”  shall have the same meaning as set forth in
the Statement of Financial Accounting Standards No. 57, Appendix B
(Glossary) (Financial Accounting Standards Board - Original Pronouncements, as
amended): “Persons who are responsible for achieving the objectives of the
enterprise and who have the authority to establish policies and make decisions
by whose objectives are to be pursued. 
Management normally includes members of the board of directors, the chief
executive officer, chief operating officer, vice president in charge of the
principal business functions (such as sales, administration, or finance), and
other persons who perform similar policymaking functions.  Persons without formal titles also may be
members of management.”

 

“Net Present Value” or “NPV”
shall mean the total present value of a time series of cash flows.

 

“Net Worth” shall mean total
Assets minus total Liabilities and is equivalent to shareholder’s (or owner’s)
equity, as represented on the company’s Independently Audited balance sheet.

 

“Non-U.S. Corporation” shall
mean a legal entity, chartered by a State or government outside the continental
United States, Alaska, Hawaii, or U.S. territories.

 

“Operating Cash Flow” shall
mean the net cash provided by operating activities, as determined on a
consolidated basis, as accounted for pursuant to GAAP, and as represented on a
company’s Independently Audited consolidated statements of cash flows (also
referred to as “cash flows provided by operations” or “cash flow from operating
activities”).

 

“Plan Work” shall mean, as
applicable in the context of this Appendix, the work required to implement any
Risk Assessment Plan, Corrective Action Plan, or Interim Measures Plan pursuant
to Paragraphs 17 through 19 of Attachment A of Appendix 1, or any corrective
action assessment for the Zone of Discharge, pursuant to Section D of
Attachment B of Appendix 1.

 

4

 

“Principal Owners” shall
have the same meaning as set forth in the Statement of Financial Accounting
Standards No. 57, Appendix B (Glossary) (Financial Accounting Standards
Board - Original Pronouncements, as amended): “Owners of record or known
beneficial owners of more than 10 percent of the voting interest of the
enterprise.”

 

“Related Party” or “Related
Parties” shall have the same meaning as set forth in the Statement of Financial
Accounting Standards No. 57, Appendix B (Glossary) (Financial Accounting
Standards Board - Original Pronouncements, as amended): “Affiliates of the
enterprise; entities for which investments in their equity securities would,
absent the election of the fair value option under FASB Statement No. 159,
The Fair Value Option for Financial Assets
for Financial Assets and Financial Liabilities, be required to be
accounted for by the equity method by the enterprise; trusts for the benefit of
employees, such as pension and profit-sharing trusts that are managed by or
under the trusteeship of management; principal owners of the enterprise; its
management; members of the immediate families of principal owners of the
enterprise and its management; and other parties with which the enterprise may
deal if one party controls or can significantly influence the management or
operating policies of the other to an extent that one of the transacting
parties might be prevented from fully pursuing its own separate interests.
Another party also is a related party if it can significantly influence the
management or operating policies of the transacting parties or if it has an
ownership interest in one of the transacting parties and can significantly
influence the other to an extent that one or more of the transacting parties
might be prevented from fully pursuing its own separate interests.”

 

“Phosphogypsum Stack System
Closure” shall mean the closure of the Phosphogypsum Stack System and
associated Water Management activities required pursuant to Appendix 1,
Attachment D, which term shall be substituted for “closure” as referenced in 40
C.F.R. Part 264, Subpart H.

 

“Substantial Business Relationship”
shall mean the extent of a business relationship necessary under applicable
State law to make a guarantee contract issued incident to that relationship
valid and enforceable.  A “substantial
business relationship” must arise from a pattern of recent or ongoing business
transactions, in addition to the guarantee itself, such that a currently
existing business relationship between the guarantor and the owner or operator
is demonstrated to the satisfaction of the EPA.

 

“Tangible Assets” shall mean
total Assets minus Intangible Assets.

 

“Tangible Assets located
within the United States” shall mean the sum of all Tangible Assets located in
the United States.

 

“Tangible Net Worth” or “TNW”
shall mean total Assets minus Intangible Assets and minus total Liabilities (“(TA-IA)-
TL”).

 

5

 

“Third Party” shall mean a
party that is not a Related Party nor a party with a Substantial Business
Relationship.

 

“Third-Party Mechanism”
shall mean a trust fund, surety bond, letter of credit, or insurance.

 

“Self-Assurance Mechanism”
shall mean a corporate financial test or a corporate guarantee.

 

“Water Management” shall
mean the water management and groundwater monitoring activities described in
Appendix 1, Attachment D.

 

II.  Cost Estimates

 

1.             Within thirty
(30) days of the Lodging of this Consent Decree, Defendant shall provide to EPA
for approval its initial Cost Estimate submission, which shall include a
detailed written Cost Estimates for Phosphogypsum Stack System Closure and Long
Term Care (which include respective associated Water Management activities) for
the Facility, including but not limited to the cost of cover material, topsoil,
seeding, fertilizing, mulching, labor, land surface care, and groundwater monitoring,
collection and analysis and any other costs of compliance with Appendix 1,
Attachment D.

 

a.             The Cost
Estimates shall be calculated based on the point in time when the extent and
manner of the operation of the Phosphogypsum Stack System would make Phosphogypsum
Stack System Closure and Long Term Care and the associated Water Management
activities the most expensive, and based on what it would cost to hire a Third
Party to complete Phosphogypsum Stack System Closure and Long Term Care.

 

(1)           Defendant may
propose, for EPA’s approval in its unreviewable discretion, an alternate
estimate of labor costs associated with Long Term Care Water Management
activities, together with a demonstration that the alternative estimate is a
reasonable substitute for what the cost would be to hire a Third Party to
perform the Long Term Care Water Management activities.  If approved by EPA, such cost estimates shall
be clearly identified as alternative labor costs in the documentation required
for the annual cost estimate update (as provided for in Attachment A).

 

(2)           If Defendant’s
Cost Estimates include a cost to close the Phosphogypsum Stack System that is
based upon the availability of soil from the borrow pits at the Facility and/or
the use of the ball mills at the Facility to crush limestone, Defendant agrees
that the United States, FDEP and their representatives, in addition to their
other rights to Financial Assurance as set forth in this Consent Decree, shall
have the same legal right of access to and use of such soil, and any equipment
necessary to access and process such soil, and/or the use of the ball mills to
crush limestone as Defendant would have. 
Defendant shall confirm in the annual Cost Estimate required under
Paragraph 4, below, that the United States, FDEP and their representatives
continue to have a right to access and use the ball mills (and any other
associated equipment) to process limestone, to access and use the soil, and
that the soil available is sufficient for closure of the Phosphogypsum Stack System,
and that Defendant knows of no reasons as

 

6

 

to why the United States,
FDEP and their representatives could not have access to and use of the ball
mills, borrow pits and soil.  If, for any
reason, Defendant or EPA determines that such access cannot be had, or that the
available soil in the borrow pit is insufficient for closure of the
Phosphogypsum Stack System, then Defendant within thirty (30) days of such
determination shall submit to EPA a revised Cost Estimate recalculating the
soil cost as a cost of a third-party buying the soil for closure of the
Phosphogypsum Stack System and/or lime (to substitute for the limestone) to
treat the wastewater, and shall provide any additional or alternative Financial
Assurance necessary to cover this cost. 
Nothing in this Paragraph 1.a(2) shall be construed as transferring
to the United States, FDEP or their representatives any obligation that
Defendant may have under the law, including permit requirements, to properly
manage, close and/or remediate the soil borrow pits and/or the ball mills, or
otherwise creating such obligations for the United States and/or FDEP.

 

b.             Defendant shall
also include Attachment A and B of this Appendix in its initial Cost Estimate
submission to EPA. Defendant shall provide the information required in
Attachment A, in its initial Cost Estimate submission, as follows:

 

(1)           Defendant may
elect to provide the initial Cost Estimate information in Attachment A based,
in whole or in part, on cost estimates for the various components comprising
Phosphogypsum Stack System Closure and Long Term Care that were used in
connection with submissions to the FDEP (i.e., Form 62-673.900(4)(j))
in 2010, adjusted using the inflationary factor as specified in Paragraph 4 and
Attachment A.  If Defendant elects to
provide the Cost Estimate information using the inflationary factor in its
initial Cost Estimate submission, Defendant shall in it first annual submission
pursuant to Paragraph 4, below, provide the Cost Estimate information in
Attachment A by recalculating the costs, in Current Dollars, for Phosphogypsum
Stack System Closure and Long Term Care.

 

(2)           Defendant may
elect, in it initial Cost Estimate submission, to not include the cost
information required by the following items in Attachment A: (a) the
contingency for closure costs and administrative costs specified in Exhibit 1
of Attachment A-1; and (b) the contingency for water treatment in Exhibit 3,
Attachment A-1.  If Defendant elects not
to include the costs in its initial Cost Estimate submission, Defendant shall
include such costs in its first annual submission pursuant to Paragraph 4 of
this Appendix.

 

2.             The Cost
Estimates shall be calculated as follows:

 

a.             In Current
Dollars if Defendant provides Financial Assurance under Subsection III.A.,
below; or

 

b.             In Current
Dollars for Phosphogypsum Stack System Closure and Net Present Value for Long
Term Care if Defendant provides the Financial Assurance pursuant to Subsection
III.B., below.  NPV shall be calculated
using the 30-Year Treasury Constant Maturity Rate, averaged for the previous
twelve (12) months (using the average spot rate for each month) from the date
of the annual Cost Estimates, and discounted over the time period for which
Long Term Care is required.

 

7

 

3.             Defendant shall
not include in the Cost Estimates any credit for salvage value or a zero cost
for handling hazardous waste with potential future value, as set forth in 40
C.F.R. § 264.142(a)(3)&(4).

 

4.             Defendant shall
submit annually to EPA for review revised written Cost Estimates, together with
supporting documentation, reflecting inflationary adjustments, significant cost
adjustments and/or changes to the Phosphogypsum Stack System.  Defendant shall submit the annual updates
sixty (60) days prior to the Anniversary Date of the establishment of the
Financial Mechanism.  If more than one
Financial Mechanism is being used to provide Financial Assurance, the updated
Cost Estimates shall be submitted sixty (60) days prior to the earliest
Anniversary Date, for a given calendar year, of a Financial Mechanism.  When submitting the annual Cost Estimate
update, Defendant shall:

 

a.             Submit as part
of the annual updates the information required in Attachments A and B of this
Appendix.

 

b.             When adjusting
the Cost Estimates for inflation annually, except as provide below in Paragraph
4.c or, if applicable, Paragraph 4.f, the adjustment shall be made by either:

 

(1)           Recalculating
the costs, in Current Dollars, in conformity with 40 C.F.R. §§ 264.142(b) and
264.144(b) (see also OSWER Directive No. 9476.00-5); or

 

(2)           Using the
inflationary factor derived from the most recent Implicit Price Deflator for
the Gross National Product published by the U.S. Department of Commerce in its Survey
of Current Business, in the manner as specified by 40 C.F.R. §§ 264.142(b) and
264.144(b).

 

c.             The Cost
Estimates shall be adjusted for inflation every five years by recalculating the
costs, in Current Dollars, as specified in Paragraph 4.b(1), above.

 

d.             If the Cost
Estimates are due January 31st, use the Implicit Price Deflator for the Gross
National Product published for the 3rd quarter of
the previous year

 

e.             If providing
Financial Assurance under Subsection III.B., submit with the annual updates the
calculation and documentation for the average discount rate used for the NPV.

 

f.              For purposes of calculations set forth in this
Paragraph 4.f, the Gross Domestic Product (“GDP”) Deflator is as specified in
the “GDP (Chained) Price Index” of the Gross Domestic Product Deflators Used
in the Historic Tables (Table 10.1), published by the Office of Management
and Budget (“OMB”).  If Defendant provides Financial Assurance
pursuant to Section III.B, the inflation factor to be used to inflate Long
Term Care costs (including Water Management costs) for purposes of deriving the
NPV of Long Term Care shall be the mathematical average of the calculated
inflation factors for each year over a five-year period.  Each year’s
calculated inflation factor shall be the product of dividing the GDP Deflator
for the relevant year by the GDP Deflator for the year immediately prior,
beginning with the first year in which the GDP Deflator is an estimate and for
each year thereafter until the fifth year.  If the OMB publication is
unavailable, in a written agreement not subject to Court approval under Section XVII
(Modification) of the Consent Decree, EPA and Defendant shall identify another
method to derive the inflation factor.

 

8

 

5.             Notwithstanding
the provisions of Section XI (Information Collection and Retention) of the
Consent Decree, Defendant shall maintain at the Facility for the duration of
this Consent Decree the latest approved Cost Estimates prepared in accordance
with this Appendix.

 

III.  Financial Assurance for Phosphogypsum
Stack System Closure and Long Term Care

 

6.             Within thirty
(30) days of the Entry of the Consent Decree or within thirty (30) days of EPA’s
approval of Defendant’s initial Cost Estimates, whichever is later, and on the
first Anniversary Date and annually thereafter, Defendant shall provide to EPA
an originally signed certification by Defendant’s Chief Financial Officer (“CFO”),
together with supporting documentation, confirming that it has secured
Financial Assurance for Phosphogypsum Stack System Closure and Long Term Care,
in an amount no less than the approved Cost Estimates and pursuant to the
requirements of either Subsection III.A. (“Type A Financial Assurance”) or
III.B. (“Type B Financial Assurance”), of this Appendix, at Defendant’s
election.

 

a.             Notwithstanding
Paragraph 7, below, if Defendant initially elects to provide Type A Financial
Assurance, Defendant shall have the one-time option, but not the obligation, to
change to Type B Financial Assurance in 2011 after the preparation of Defendant’s
audited financial statements for the fiscal year-end December 31,
2010.  Defendant shall notify EPA of this
election by April 15, 2011, and within thirty (30) days of such notice
provide the demonstration required by Subsection III.B.   Defendant shall continue to be subject to
the Financial Assurance requirements under Subsection III.A., until EPA
approves the request to change to Type B Financial Assurance.

 

7.             Once Defendant
establishes either Type A or Type B Financial Assurance for Phosphogypsum Stack
System Closure and Long Term Care, it shall maintain such Financial Assurance
pursuant to the requirements of the applicable Subsection unless EPA approves a
request to provide Financial Assurance pursuant to the other Subsection.  If Defendant wishes to request such a change,
Defendant shall submit to EPA for approval: (a) an originally signed
certification by Defendant’s CFO, together with supporting documentation, explaining
in detail the reasons for the request; and (b) proposed Financial
Assurance, compliant with the applicable Subsection’s requirements, that can
become effective within thirty (30) days of EPA’s approval.  Defendant shall not cancel its existing Financial
Assurance for Phosphogypsum Stack System Closure and Long Term Care until it
receives EPA’s written approval of Defendant’s request and the alternate
Financial Assurance is in effect (e.g., trust fund is funded; insurance
policy is in effect).  EPA’s
determination whether to approve Defendant’s request to provide Financial
Assurance pursuant to the other Subsection may take into account Defendants’
ability to promptly comply with the requirements of the other Subsection, its
financial stability, and other such factors and proposals as Defendant may
advance in requesting the change.

 

8.             If Defendant
establishes a trust fund to meet its Financial Assurance obligations under
either Subsection III.A. or III.B. of this Appendix and the value of the funds
placed in a trust fund is equal to or greater than the amount that would be
required to comply with FDEP financial assurance regulations for terminal
closure of the Facility (F.A.C. R.62-673.640), the

 

9

 

funding of the trust fund
will be considered as a cash deposit arrangement under F.A.C.
R.62-673.640(4)(a).  If EPA approves a
request by Defendant to provide alternate Financial Assurance in lieu of the
established trust fund, such approval by EPA shall not be construed to waive or
subordinate Defendant’s obligation to comply with F.A.C. R.62-673.640.

 

A.  Type “A” Financial Assurance for
Phosphogypsum Stack System Closure and Long Term Care

 

9.             Financial
Assurance for Phosphogypsum Stack System Closure and Long Term Care under this
Subsection must comply with the requirements of 40 C.F.R.
§§ 264.143(a)-(i), 264.145(a)-(i), and 264.148, except as clarified and
modified in this Subsection.

 

10.           Defendant shall
use the Cost Estimates generated pursuant to Section II, above, in lieu of
the cost estimates required pursuant to 40 C.F.R. §§ 264.142 and
264.144 to establish Financial Assurance under this Subsection.  Defendant shall provide Type A Financial
Assurance in an amount at least equal to the latest Cost Estimates.

 

11.           Defendant shall
choose from the Financial Mechanisms specified in 40 C.F.R. §§ 264.143(a)-(f) and
264.145(a)-(f) to establish Type A Financial Assurance, provided that, if
Defendant is using Third-Party Mechanisms (a trust fund, letter of credit,
surety bond, or insurance), the Trustee of any trust fund, or the provider of
any letter of credit, surety bond, or insurance shall not be a Related Party to
Defendant.  Defendant shall word the
Financial Mechanism as specified in 40 C.F.R. § 264.151 unless EPA
provides an alternate form, e.g., to address more than one beneficiary
of the Financial Mechanism (i.e., EPA and the State).

 

a.             For a trust
fund, Defendant shall comply with 40 C.F.R. §§ 264.143(a) and 264.145(a),
except that:

 

(1)           In lieu of
complying with 40 C.F.R. §§ 264.143(a)(3)-(4) and
264.145(a)(3)-(4), Defendant shall fully fund the trust within thirty (30) days
unless one of the following two subparagraphs apply:

 

(i)            If Defendant is
unable to fully fund the trust fund, as specified above, except as provided in
Paragraph 11.a(1)(ii), below, Defendant within ten (10) days of EPA’s
approval of the Cost Estimates shall submit to EPA for approval an originally
signed certification by Defendant’s CFO, together with supporting
documentation, explaining in detail Defendant’s inability to immediately fund
the trust fund, and including a proposal for a pay-in period of no longer than
three (3) years, with at least fifty percent (50%) of the Phosphogypsum
Stack System Closure and Long Term Care Cost Estimates to be funded in the
first year.  Any subsequent request for
an extension to an approved pay-in period shall be made at least 180 days
before the close of an approved pay-in period, and shall include an originally
signed certification by Defendant’s CFO explaining in detail why a longer
pay-in period is needed, together with supporting documentation.

 

10

 

(ii)           If Defendant
initially elects to provide fully funded Financial Assurance under the Consent
Decree through the sole use of a trust fund under this Subsection, and does not
elect to provide Financial Assurance under Subsection III.B. pursuant to Paragraph
6.a, above, Defendant shall fund the trust fund in three installments: (1) fifty
percent (50%) of the initial Cost Estimate shall be provided at the time of the
Entry of the Consent Decree; (2) fifty percent (50%) of the difference
between the subsequent Cost Estimate and the value of the assets in the trust
fund shall be provided one year later on the Anniversary Date; and (3) the
full difference between the subsequent Cost Estimate and the value of the
assets in the trust fund shall be provided in the second year on the
Anniversary Date.

 

(2)           In lieu of 40
C.F.R. § 264.151(a), Defendant shall use the exact wording specified in
Attachment E-1 to this Appendix for the trust agreement.  The trust agreement must be accompanied by a
formal certification of acknowledgment as set forth in Attachment E-1.  Defendant shall update Schedule A of the
trust agreement within sixty (60) days after a change in the amount of the Cost
Estimates.

 

(3)           In addition to
the requirements of 40 C.F.R. § 264.143(a), Defendant shall pay all expenses
incurred by the Trustee in connection with the administration of the trust
fund, including fees for legal services rendered to the Trustee and
compensation of the Trustee.

 

b.             For a surety
bond guaranteeing payment or performance, Defendant shall comply with 40 C.F.R.
§§ 264.143(b)&(c) and 264.145(b)&(c), except that:

 

(1)           In addition to
the requirements of 40 C.F.R. §§ 264.143(b)(1)&(c)(1) and
264.145(b)(1)&(c)(1), Defendant shall provide an originally signed
certification by Defendant’s CFO or an officer of A.M. Best or a
Nationally Recognized Statistical Ratings Organization (“NRSRO”), documenting
that the surety has at least a “secured” financial strength rating of “A” by A.M.
Best or an equivalent rating by the NRSRO.

 

(2)           In lieu of 40
C.F.R. §§ 264.143(b)(4)(ii)&(c)(5) and 264.145(b)(4)(ii)&(c)(5),
upon notice to Defendant and the Surety of a determination by EPA that
Defendant has failed to perform Phosphogypsum Stack System Closure and/or Long
Term Care as required by Appendix 1 of this Consent Decree, and following the
conclusion of any dispute resolution (other than judicial review) under Section X
(Dispute Resolution) of the Consent Decree, the Surety under the terms of the
bond will perform Phosphogypsum Stack System Closure and/or Long Term Care as
directed by EPA or will deposit the amount of the penal sum into the stand-by
trust fund.

 

c.             For a letter of
credit, Defendant shall comply with 40 C.F.R. §§ 264.143(d) and
264.145(d), except that:

 

(1)           In addition to
the requirements of 40 C.F.R. §§ 264.143(d)(1) and 264.145(d)(1),
Defendant shall provide an originally signed certification by Defendant’s CFO
documenting that the provider of the letter of credit is a federally insured
financial institution.

 

(2)           In lieu of 40
C.F.R. § 264.143(d)(8) and 264.145(d)(9), upon

 

11

 

notice to Defendant of a
determination by EPA that Defendant has failed to perform Phosphogypsum Stack
System Closure and/or Long Term Care as required by Appendix 1 of this
Consent Decree, and following the conclusion of any dispute resolution (other
than judicial review) under Section X (Dispute Resolution) of the Consent
Decree, EPA may draw on the letter of credit.

 

d.             For insurance,
Defendant shall comply with 40 C.F.R. §§ 264.143(e) and 264.145(e), and
shall provide an originally signed certification by Defendant’s CFO or an
officer of A.M. Best or an NRSRO, documenting that the insurer has at
least a “secured” financial strength rating of “A” by A.M. Best or an
equivalent rating by the NRSRO. 
Defendant also shall:

 

(1)           Comply with 40
C.F.R. §§ 264.143(e)(8) and 264.145(e)(8), except that in lieu of 40
C.F.R. §§ 264.143(e)(8)(i)-(v) and 264.145(e)(8)(i)-(v) the
following conditions are substituted: (a) EPA determines that the Facility
has been abandoned; (b) the Work required under this Consent Decree is
undertaken by EPA; (c) Phosphogypsum Stack System Closure, partial
Phosphogypsum Stack System Closure, or Long Term Care is ordered by EPA or by a
U.S. District Court or other court of competent jurisdiction; (d) Defendant
is named as debtor in a voluntary or involuntary proceeding under Title 11
(Bankruptcy), U.S. Code; or (e) the premium due is paid.

 

(2)           Submit annually a
Certificate of Insurance and a complete copy of the insurance policy, including
amendments and endorsements.

 

(3)           Notify EPA if
it has cause to believe that it will not be able to make a premium payment.

 

(4)           Ensure the
assignment requirements of 40 C.F.R. §§ 264.143(e)(7) and 264.145(e)(7) are
incorporated into the insurance policy exactly as written, with no additional
qualifying conditions.

 

(5)           Ensure that the
policy does not allow or offer coverage for liabilities other than those
contemplated by the Consent Decree.

 

e.             For the corporate
financial test and corporate guarantee, Defendant (including Defendant’s
Guarantor), shall comply with 40 C.F.R. §§ 264.143(f) and 264.145(f),
except that:

 

(1)           In lieu of
complying with 40 C.F.R. §§ 264.143(f)(1)(ii)(A) and 264.145(f)(1)(ii)(A),
Defendant shall use the current rating of either Standard & Poor’s (“S&P”)
long-term issuer credit rating or Moody’s long-term corporate family rating,
which assesses a company’s capacity to meet its long-term (greater than one (1) year)
financial commitments, as they come due. 
The rating must be BBB or greater as issued by S&P, or Baa or
greater as issued by Moody’s.  If
Defendant has more than one rating, the lower of the two will be used to meet
the criteria in 40 C.F.R. §§ 264.143(f) and 264.145(f).  If Defendant with multiple ratings
discontinues a rating that is below BBB (S&P) or Baa (Moody’s), or a rating
agency discontinues a rating that is below BBB (S&P) or Baa (Moody’s), such
that the remaining rating(s) subsequently would enable the Defendant to satisfy
the corporate financial test criteria, Defendant shall provide alternate
Financial Assurance and shall be disqualified from using the corporate
financial test for two (2) years.

 

12

 

(2)           The term “assets”
specified in 40 C.F.R. §§ 264.143(f)(1)(i)(D)&(ii)(D) and
264.145(f)(1)(i)(D)&(ii)(D) shall be replaced by the term “tangible assets.”

 

(3)           The phrase “all
Environmental Obligations” is substituted for “current closure and post-closure
cost estimates and current plugging and abandonment cost estimates” found in 40
C.F.R. §§ 264.143(f)(1) and 264.145(f)(1).

 

(4)           In lieu of
complying with 40 C.F.R. §§ 264.143(f)(3) and 264.145(f)(3), Defendant
shall document its satisfaction of the corporate financial test by submitting
to EPA within ninety (90) days after the close of Defendant’s fiscal year, for
each year Defendant is providing a Self-Assurance Mechanism:

 

(a)           A letter signed
by Defendant’s CFO worded as specified by the appropriate Form in
Attachment C of this Appendix. [Note: Form C-1 corresponds to CFO letter
for Subsection III.A.]

 

(b)           A copy of the
independent CPA report on examination of Defendant’s audited financial
statements for the latest completed fiscal year that Defendant is using for the
basis of the financial test.

 

(c)           A copy of the audited
financial statements for the last completed year.

 

(d)           A report of
procedures and findings from Defendant’s independent CPA, resulting from an
agreed-upon procedures engagement performed in accordance with the AICPA Statement
on Standards for Attestation Engagements and Related Attestation
Interpretations, AT Section 201 - Agreed Upon Procedures Engagements,
as updated, that describes the procedures performed and related findings,
including whether or not differences or discrepancies were found in the
comparison of financial information set out in the letter (including
attachments and exhibits) from Defendant’s CFO and Defendant’s Independently
Audited, year-end financial statements for the last fiscal year, including all
attachments.  Where differences or
discrepancies exist between Defendant’s CFO letter and Defendant’s
Independently Audited year-end financial statements, the report of procedures
and findings will reconcile any differences or discrepancies between the values
or information represented in Defendant’s CFO letter and Defendant’s
Independently Audited financial statements. 
Procedures to be performed by the independent CPA shall be in accordance
with AT Section 201.

 

(5)           In addition to
complying with 40 C.F.R. §§ 264.143(f)(6) and 264.145(f)(6), if Defendant
determines at any time during the fiscal year that it no longer meets or will
not meet the requirements of this Paragraph 11.e, Defendant shall provide
alternate Financial Assurance pursuant to the requirements of Subsection III.A.
and Section VII of this Appendix.

 

(6)           Within thirty
(30) days of notice by EPA that EPA, pursuant to 40 C.F.R. §§ 264.143(f)(7) and
264.145(f)(7), no longer believes that Defendant meets the requirements of the
corporate financial test criteria of this Paragraph 11.e, or that EPA disallows
the use of the corporate financial test based on qualifications in the opinion
expressed by the independent CPA as set out in 40 C.F.R.
§§ 264.143(f)(8) and

 

13

 

264.145(f)(8), Defendant
shall provide alternate Financial Assurance as required by 40 C.F.R. §§
264.143(f)(7)&(8) and 264.145(f)(7)&(8) pursuant to this
Subsection.  Defendant’s failure to
timely provide alternate Financial Assurance is not subject to Section VII
of this Appendix.

 

(7)           In addition to
complying with 40 C.F.R. §§ 264.143(f) and 264.145(f), Defendant shall:

 

(a)           If more than
sixty percent (60%) of Defendant’s tangible assets are in the form of one or
more note receivables from one or more Related Parties, submit to EPA, when
providing the information required by Paragraph 11.e(4), above, and 40 C.F.R.
§§ 264.143(f)(5) and 264.145(f)(5), an originally signed
certification by Defendant’s CFO together with a list of each note receivable,
the name of the Related Party and a description (along with any necessary
documentation) of the Related Party’s financial strength, to demonstrate that
each Related Party maintains the financial strength to meet its obligation to
the Defendant.

 

(b)           On a quarterly
basis, using the sum of the most recent four (4) quarters’ financial
statements (including balance sheets, income statements, and cash flow
statements), reviewed by a independent CPA, evaluate Defendant’s ability to
meet the criteria of the corporate financial test.

 

f.              For the
corporate guarantee, Defendant shall comply with 40 C.F.R. §§ 264.143(f)(10) and
264.145(f)(11), and shall meet the requirements specified below, if applicable.

 

(1)           Defendant may
use a Non-U.S. Corporation as Guarantor only if the following conditions are
met: (a) the Non-U.S. Corporation has identified a registered agent for
service of process in the State in which the facility covered by the guarantee
is located and in the State in which it has its principal place of business; (b) Defendant
submits to EPA a written legal opinion from an Independent Attorney, prior to
the execution of the guarantee, confirming that a guarantee executed as
required under this Section by the Non-U.S. Guarantor is a legally valid
and an enforceable obligation in the State(s); (c) the Non-U.S.
Corporation provides Independently Audited financial statements in conformance
with GAAP; (d) the total amount of the Non-U.S. Corporation’s present and
proposed guarantee’s (including self-guarantees) to cover all Environmental
Obligations in the United States shall not exceed twenty-five percent (25%) of
the Non-U.S. Corporation’s tangible net worth in the United States; and (e) the
written guarantee reflects the Non-U.S. Corporation’s (Guarantor’s) agreement
to comply with the reporting requirements required under the Consent Decree and
that within thirty (30) days of executing the guarantee the Guarantor will
establish a stand-by trust with a financial institution within the continental
United States, Alaska, or Hawaii.

 

(2)           Defendant shall
use the exact wording specified in Attachment E-2 to this Appendix for the
corporate guarantee.  The certified copy
of the corporate guarantee must accompany the items sent to EPA and FDEP, in accordance
with Section XIV (Notices) of the Consent Decree, as specified in
Paragraph 11.e(4) of this Appendix.

 

14

 

12.           If Defendant
seeks to provide:

 

a.             More than one
Third-Party Mechanism to demonstrate Financial Assurance for Phosphogypsum
Stack System Closure and Long Term Care, pursuant to 40 C.F.R. §§ 264.143(g) and
264.145(g), Defendant shall submit to EPA an originally signed certification by
Defendant’s CFO verifying that the Third-Party Mechanisms do not incorporate
terms subrogating one Financial Mechanism to another, i.e., designating
a prioritization for the release of the funds or the payment of a claim.  EPA, if the need arises, will determine the
priority for the release of funds or payment of a claim.

 

b.             A Financial
Mechanism ensuring Financial Assurance at more than one Facility pursuant to 40
C.F.R. §§ 264.143(h) and 264.145(h), Defendant:

 

(1)           Shall not
provide a single trust fund or insurance policy to cover the multiple
Facilities in different States, but shall provide each affected State with its
own distinct trust fund or insurance policy;

 

(2)           May use
the same letter of credit or surety bond for multiple Facilities provided that
the following conditions are meet: (i) the Facilities’ EPA Identification
Numbers, names, addresses, and the Phosphogypsum Stack System Closure and Long
Term Care costs associated with each particular Facility are clearly specified
in the Financial Mechanism; and (ii) the Financial Mechanism clearly
states that there can be a release of funds for a specified Facility without
requiring the entire obligation covered by the Financial Mechanism to be placed
in the associated stand-by trusts; and

 

(3)           Shall not
release funds designated for one or more Facilities in another State except
upon written agreement of EPA, Defendant, and the affected State(s).

 

B.  Type B Financial Assurance for
Phosphogypsum Stack System Closure and Long Term Care

 

13.           Financial
Assurance under this Subsection must comply with the requirements of 40 C.F.R.
§§ 264.143(a)-(b)&(d)-(i), 264.145(a)-(b)&(d)-(i), and 264.148,
except as clarified and modified in this Subsection (including Attachment
D).  Defendant shall use the Cost
Estimates generated pursuant to Section II, above, in lieu of the cost
estimates required pursuant to 40 C.F.R. §§ 264.142 and 264.144, to
establish Financial Assurance under this Subsection.  Defendant shall provide Type B Financial
Assurance in an amount at least equal to the latest Cost Estimates.

 

14.           The options and
requirements for Type B Financial Assurance depend upon Defendant’s threshold
rating, which shall be based on: (i) current S&P long-term issuer
credit rating of AAA through BB-; (ii) current Moody’s long-term corporate
family rating of Aaa though Ba3; or (iii) an equivalent current rating
from an NRSRO that assesses a company’s capacity to meet its long-term (greater
than one (1) year) financial commitments, as they come due.  If Defendant has more than one rating, it
shall use the lowest rating to determine its threshold rating.  If Defendant does not have a publicly
available rating to establish its threshold rating under Attachment D,
Defendant may provide an originally signed letter from the appropriate official
at S&P, Moody’s, or an NRSRO stating what rating would be issued by that
rating agency.  The

 

15

 

rating provided (i.e.,
current S&P long-term issuer credit rating, current Moody’s long-term
corporate family rating, or an equivalent current rating from an NRSRO that
assesses a company’s capacity to meet its long-term (greater than one (1) year)
financial commitments) must address the credit-worthiness of Defendant
inclusive of the fiscal year-end audited financial statements for the current
year.  The letter must confirm that: (i) the
rating is derived from information that the rating agency uses in the normal
course of business to generate such a rating, and (ii) the rating is the
same rating that would be issued if the rating were public.  Defendant shall attach this letter to the CFO’s
letter submitted to EPA.

 

15.           A Defendant
that qualifies to use a Self-Assurance Mechanism based on its threshold rating
and Attachment D shall use only one Self-Assurance Mechanism.  When required under Attachment D to provide a
Third-Party Mechanism in combination with a Self-Assurance Mechanism, Defendant
shall use a trust fund unless permitted to substitute another type of
Third-Party Mechanism pursuant to Paragraphs 17 and 18, below.  Defendant shall meet the minimum threshold
amount specified in Attachment D to be funded in or covered by a Third-Party
Mechanism.

 

16.           Defendant shall
use the Financial Mechanisms specified in 40 C.F.R.
§§ 264.143(a)-(b)&(d)-(f) and 264.145(a)-(b)&(d)-(f) to
establish Type B Financial Assurance as provided by Attachment D, provided
that, if Defendant is using Third-Party Mechanisms (a trust fund, letter of
credit, surety bond guaranteeing payment, or insurance), the Trustee of any
trust fund, or the provider of any letter of credit, surety bond guaranteeing
payment, or insurance shall not be a Related Party to Defendant.  Defendant shall word the Financial Mechanism
as specified in 40 C.F.R. § 264.151, unless EPA provides an alternate
form, e.g., to address more than one beneficiary of the Financial
Mechanism (i.e., EPA and the State). 
Defendant shall also comply with the requirements of 40 C.F.R.
§§ 264.143(a)(7)-(8), (b)(7), (d)(7) & (e)(9) and 264.145
(a)(7)-(8), (b)(7), (d)(7) & (e)(9), except that the corpus of the
trust fund, the penal sum of the payment surety bond, the value of the letter
of credit, or the limit of liability of the insurance policy shall not be
reduced to reflect reductions in the Cost Estimates until such time as the
annual Cost Estimate is equivalent to the corpus of the trust fund, the penal
sum of the payment surety bond, the value of the letter of credit, or the limit
of liability of the insurance policy.  In
addition, Defendant shall comply with the requirements of 40 C.F.R.
§§ 264.143(a)(10) & (e)(5) and 264.145 (a)(11) &
(e)(9), except as provided for in Paragraph 20 of this Appendix.  If Financial Assurance is provided by
multiple Third-Party Mechanisms pursuant to Paragraph 18 of this Appendix, the
individual value of the Third-Party Mechanisms shall not be reduced to reflect
any reductions in the Cost Estimates until such time as the annual Cost
Estimate is equivalent to the sum of the total obligations covered by the
Third-Party Mechanisms.

 

a.             For a trust
fund, Defendant shall comply with 40 C.F.R. §§ 264.143(a) and 264.145(a),
except that:

 

(1)           In lieu of
complying with 40 C.F.R. §§ 264.143(a)(3)-(4) and
264.145(a)(3)-(4), Defendant shall fully fund the trust unless Defendant seeks
a pay-in period pursuant to Paragraph 16.a(1)(i), below, and EPA approves such
a request.

 

(i)            If Defendant is
unable to fully fund the trust fund, Defendant within ten

 

16

 

(10) days of EPA’s
approval of the Cost Estimates shall submit to EPA for approval an originally
signed certification by Defendant’s CFO, together with supporting
documentation, explaining in detail Defendant’s inability to immediately fund
the trust fund, and including a proposal for a pay-in period of no longer than
three (3) years, with at least fifty percent (50%) of the Phosphogypsum
Stack System Closure and Long Term Care Cost Estimates to be funded in the
first year.  Any subsequent request for
an extension to an approved pay-in period shall be made at least 180 days
before the close of an approved pay-in period, and shall include an originally
signed certification by Defendant’s CFO explaining in detail why a longer
pay-in period is needed, together with supporting documentation.

 

(2)           In lieu of 40
C.F.R. § 264.151(a), Defendant shall use the exact wording specified in
Attachment E-1 to this Appendix for the trust agreement.  The trust agreement must be accompanied by a
formal certification of acknowledgment as set forth in Attachment E-1.  Defendant shall update Schedule A of the
trust agreement within sixty (60) days after a change in the amount of the Cost
Estimates.

 

(3)           In addition to
the requirements of 40 C.F.R. § 264.143(a), 
Defendant shall pay all expenses incurred by the Trustee in connection
with the administration of the trust fund, including fees for legal services
rendered to the Trustee and compensation of the Trustee.

 

(4)           Defendant shall
use March 30th, after the
initial funding of the trust fund, as the Anniversary Date of the trust fund

 

b.             For a surety
bond guaranteeing payment, Defendant shall comply with 40 C.F.R. §§
264.143(b) and 264.145(b), except that:

 

(1)           In addition to
the requirements of 40 C.F.R. §§ 264.143(b)(1) and 264.145(b)(1),
Defendant shall provide an originally signed certification by Defendant’s CFO
or an officer of A.M. Best or an NRSRO, documenting that the surety has at
least a “secured” financial strength rating of “A” by A.M. Best or an
equivalent rating by the NRSRO.

 

(2)           In lieu of 40
C.F.R. §§ 264.143(b)(4)(ii) and 264.145(b)(4)(ii), upon notice to
Defendant and the Surety of a determination by EPA that Defendant has failed to
perform Phosphogypsum Stack System Closure and/or Long Term Care as required by
Appendix 1 of this Consent Decree, and following the conclusion of any dispute
resolution (other than judicial review) under Section X (Dispute
Resolution) of the Consent Decree, the Surety under the terms of the bond will
deposit the amount of the penal sum into the stand-by trust fund.

 

c.             For a letter of
credit, Defendant shall comply with 40 C.F.R. §§ 264.143(d) and
264.145(d), except that:

 

(1)           In addition to
the requirements of 40 C.F.R. §§ 264.143(d)(1) and 264.145(d)(1),
Defendant shall provide an originally signed certification by Defendant’s CFO
documenting that the provider of the letter of credit is a federally insured
financial institution.

 

(2)           In lieu of 40
C.F.R. §§ 264.143(d)(8) and 264.145(d)(9), upon

 

17

 

notice to Defendant of a
determination by EPA that Defendant has failed to perform Phosphogypsum Stack
System Closure and/or Long Term Care as required by Appendix 1 of this Consent
Decree and following the conclusion of any dispute resolution (other than
judicial review) under Section X (Dispute Resolution) of the Consent
Decree, EPA may draw on the letter of credit.

 

d.             For insurance,
Defendant shall comply with 40 C.F.R. §§ 264.143(e) and 264.145(e), and
shall provide an originally signed certification by Defendant’s CFO or an
officer of A.M. Best or an NRSRO, documenting that the insurer has at least
a “secured” financial strength rating of “A” by A.M. Best or an equivalent
rating by the NRSRO.  Defendant also
shall:

 

(1)           Comply with 40
C.F.R. §§ 264.143(e)(8) and 264.145(e)(8), except that in lieu of 40
C.F.R. §§ 264.143(e)(8)(i)-(v) and 264.145(e)(8)(i)-(v) the
following conditions are substituted: (a) EPA determines that the Facility
has been abandoned; (b) the Work required under this Consent Decree is
undertaken by EPA; (c) Phosphogypsum Stack System Closure, partial
Phosphogypsum Stack System Closure, or Long Term Care is ordered by EPA or by a
U.S. District Court or other court of competent jurisdiction; (d) Defendant
is named as debtor in a voluntary or involuntary proceeding under Title 11
(bankruptcy), U.S. Code; or (e) the premium due is paid.

 

(2)           Submit annually a
Certificate of Insurance and a complete copy of the insurance policy, including
amendments and endorsements.

 

(3)           Notify EPA if
it has cause to believe that it will not be able to make a premium payment.

 

(4)           Ensure that the
assignment requirements of 40 C.F.R. §§ 264.143(e)(7) and 264.145(e)(7) are
incorporated into the insurance policy exactly as written, with no additional
qualifying conditions.

 

(5)           Ensure that the
policy does not allow or offer coverage for liabilities other than those
contemplated by the Consent Decree.

 

e.             For the
corporate financial test and corporate guarantee, Defendant (including
Defendant’s Guarantor) shall comply with 40 C.F.R. §§ 264.143(f) and
264.145(f), except that:

 

(1)           The phrase “all
Environmental Obligations” is substituted for “current closure and post-closure
cost estimates and current plugging and abandonment cost estimates” found in 40
C.F.R. §§ 264.143(f)(1) and 264.145(f)(1).

 

(2)           In lieu of
complying with 40 C.F.R. §§ 264.143(f)(1)(i)-(ii) and
264.145(f)(1)(i)-(ii), Defendant shall:

 

(a)           Meet the
corporate financial test criteria specified in Attachment D which corresponds
to Defendant’s rating threshold as specified in Paragraph 14, above.  If a Defendant with multiple ratings
discontinues, or S&P, Moody’s, or an NRSRO discontinues, the lower of the
ratings, Defendant shall for a period of two (2) years commencing on
Defendant’s fiscal year-end apply the criteria and requirements of Attachment D
(and this Paragraph) as if the lower rating were in effect.  If during that two year period, a change in
Defendant’s other rating(s) results in Defendant not satisfying the
corporate financial test or becoming subject to a more stringent set of
corporate financial test criteria under

 

18

 

Attachment D, Defendant
shall provide Financial Assurance as specified in Paragraphs 16.e(4)(a) and
19, below.

 

(b)           Calculate the
three (3)-year rolling average specified in Attachment D for the Debt-to-Equity
Ratio (TL/NW), Current Ratio, or the Operating Cash Flow metric (“OCF metric”)
as follows: (i) TL/NW is a three (3)-year rolling average of total
liabilities divided by three (3)-year rolling average of net worth;
(ii) CA/CL is a three (3)-year rolling average of current assets divided
by three (3)-year rolling average of current liabilities; and (iii) OCF
metric is a three (3)-year rolling average of operating cash flow, except for a
Defendant with an S&P rating of BB-, Moody’s rating of Ba3 or an equivalent
rating from an NRSRO who shall calculate the OCF metric annually.

 

(c)           Not use the OCF
metric to demonstrate Financial Assurance if Defendant has a negative cash flow
for that fiscal year.

 

(3)           In lieu of
complying with 40 C.F.R. §§ 264.143(f)(3) and 264.145(f)(3), Defendant
shall document its satisfaction of the corporate financial test by submitting
to EPA within ninety (90) days after the close of Defendant’s fiscal year, for
each year Defendant is providing a Self-Assurance Mechanism:

 

(a)           A letter signed
by Defendant’s CFO worded as specified by the appropriate Form in
Attachment C of this Appendix. [Note: Form C-2 corresponds to the CFO
letter for this Subsection III.B.]

 

(b)           A copy of the
independent CPA report on examination of Defendant’s audited financial
statements for the latest completed fiscal year that Defendant is using for the
basis of the financial test.

 

(c)           A copy of the audited
financial statements for the last completed year.

 

(d)           A report of
procedures and findings from Defendant’s independent CPA, resulting from an
agreed-upon procedures engagement performed in accordance with the AICPA Statement
on Standards for Attestation Engagements and Related Attestation
Interpretations, AT Section 201 - Agreed Upon Procedures Engagements,
as updated, that describes the procedures performed and related findings,
including whether or not differences or discrepancies were found in the
comparison of financial information set out in the letter (including
attachments and exhibits) from Defendant’s CFO and Defendant’s Independently
Audited, year-end financial statements for the last fiscal year, including all
attachments.  Where differences or
discrepancies exist between Defendant’s CFO letter and Defendant’s
Independently Audited year-end financial statements, the report of procedures
and findings will reconcile any differences or discrepancies between the values
or information represented in Defendant’s CFO letter and Defendant’s
Independently Audited financial statements. 
Procedures to be performed by the independent CPA shall be in accordance
with AT Section 201.

 

(4)           In addition to
complying with 40 C.F.R. §§ 264.143(f)(6) and 264.145(f)(6), if Defendant
determines at any time during the fiscal year that:

 

(a) It no longer meets
or will not meet the requirements of this

 

19

 

Paragraph 16.e (including
the loss of a threshold rating except as provided by Paragraph 16.e(2)(a),
above), Defendant shall within ten (10) days send written notice to EPA of
this determination, by certified mail, stating the basis for such a
determination.  If Defendant cannot
re-establish compliance with the requirements of this Paragraph 16.e pursuant
to Sections VII and/or VIII of this Appendix, then Defendant, within thirty
(30) days of its notice to EPA as specified above, shall provide alternate
Financial Assurance for Phosphogypsum Stack System Closure and Long Term Care
pursuant to Paragraph 19, below.

 

(b) Its threshold
rating requires Defendant to change from one set of corporate financial test
criteria under Paragraph 16.e(2), above, and Attachment D (e.g., CFT
Criteria A) to a more stringent set of corporate financial test criteria (e.g.,
CFT Criteria C), Defendant shall notify EPA within ten (10) days of the
change in corporate financial test criteria and within thirty (30) days of such
notice shall submit to EPA a revised corporate financial test or corporate
guarantee based on the most recent evaluation conducted under Paragraph
16.e(6)(c), below, demonstrating compliance with the more stringent corporate
financial test criteria.  To the extent
necessary, Defendant shall at the same time make a contribution to the
Third-Party Mechanism to comply with the minimum threshold amount specified in
the corporate financial test requirements in Paragraph 16.e(2), above.

 

(5)           Within thirty
(30) days of notice by EPA that EPA, pursuant to 40 C.F.R. §§ 264.143(f)(7) and
264.145(f)(7), no longer believes that Defendant meets the corporate financial
test criteria in Paragraph 16.e(2), above, or that EPA disallows the use of the
corporate financial test based on qualifications in the opinion expressed by
the independent CPA as set forth in 40 C.F.R. §§ 264.143(f)(8) and
264.145(f)(8), Defendant shall provide alternate Financial Assurance as required
by 40 C.F.R. §§ 264.143(f)(7)&(8) and 264.145(f)(7)&(8) pursuant
to Paragraph 19 of this Appendix. 
Defendant’s failure to timely provide alternate Financial Assurance is
not subject to Section VII of this Appendix.

 

(6)           In addition to
complying with 40 C.F.R. §§ 264.143(f) and 264.145(f), Defendant shall:

 

(a)           If Defendant
with an S&P rating of BB-, Moody’s rating of Ba3 or an equivalent NRSRO
rating, receives a negative outlook posted on one or more of its ratings, or
receives a qualified opinion from an independent CPA, or is delisted from an
Exchange for any reason other than: (i) Defendant’s decision to take the
company into private ownership, or (ii) a transaction which results in the
acquisition of Defendant (or Defendant’s ultimate parent corporation) by
another company subjecting Defendant to Section IX of this Appendix, then
Defendant shall within ten (10) days of such an event send written notice
by certified mail of such event to EPA, and within thirty (30) days of such
notice shall provide an alternate form of Financial Assurance, in compliance
with Paragraph 19 of this Appendix.  In
the event that the delisting is due to Defendant’s decision to take the company
into private ownership Defendant may continue to provide Financial Assurance using
the Financial Mechanism(s) already in place if, within twenty (20)

 

20

 

days of the delisting, it
provides documentation to EPA from S&P, Moody’s or the NRSRO confirming
that Defendant meets a current S&P long-term issuer credit rating, Moody’s
long-term corporate family rating, or equivalent current rating from an NRSRO,
as specified in Paragraph 14.

 

(b)           If more than
sixty percent (60%) of Defendant’s tangible assets are in the form of one or
more note receivables from one or more Related Parties, submit to EPA, when
providing the information required by Paragraph 16.e(3), above, and 40 C.F.R.
§§ 264.143(f)(5) and 264.145(f)(5), an originally signed
certification by Defendant’s CFO together with a list of each note receivable,
the name of the Related Party and a description (along with any necessary
documentation) of the Related Party’s financial strength, to demonstrate that
each Related Party maintains the financial strength to meet its obligation to
the Defendant.

 

(c)           On a quarterly
basis prepare and use financial statements (including balance sheets, income
statements, and cash flow statements), reviewed by a independent CPA, to
evaluate Defendant’s ability to meet the criteria of the corporate financial
test.  To meet the criteria involving
rolling averages, the averages shall be based on the results as of the end of
the same quarter for the prior years (i.e., a three (3)-year rolling
average evaluated at the end of the first quarter for Year X shall include the
results from the first quarter of Year X-2 and X-1).  In addition, Operating Cash Flow for this
evaluation shall be based on the results from the most recent four (4) quarters
(i.e., for a first quater analysis, the Operating Cash Flow shall be
based on the results from the second quater of the previous year through the
first quarter of the current year).  The
same adjustment shall be made for the OCF metric for prior periods if the
criteria involves the use of a rolling average.

 

(d)           If Defendant
with a S&P rating of BBB- through BB, a Moody’s rating of Baa3 through Ba2,
or an equivalent rating from an NRSRO receives a negative outlook posted on one
or more of its ratings, or receives a qualified opinion rendered by an
independent CPA, Defendant within twenty (20) days of such event shall submit
to EPA a revised corporate financial test based on the most recent evaluation
conducted under Paragraph 16.e(6)(c), above.

 

f.              For the
corporate guarantee, Defendant shall comply with 40 C.F.R. §§ 264.143(f)(10) and
264.145(f)(11), and shall meet the requirements specified below, if applicable.

 

(1)           Defendant may
use a Non-U.S. Corporation as a Guarantor only if the following conditions are
met: (a) Non-U.S. Corporation meets the requirements of Paragraph 11.f of
this Appendix, and (b) Non-U.S. Corporation has a current rating for
either the S&P long-term issuer credit rating of AAA through BBB, Moody’s
long-term corporate family rating of Aaa though Baa, or an equivalent rating
from an NRSRO that assesses a company’s capacity to meet its long-term (greater
than one (1) year) financial commitments, as they come due.

 

(2)           Defendant shall
use the exact wording specified in Attachment E-2

 

21

 

to this Appendix for the
corporate guarantee.  The certified copy
of the corporate guarantee must accompany the items sent to EPA and FDEP, in
accordance with Section XIV (Notices) of the Consent Decree, as specified
in Paragraph 16.e(3) of this Appendix.

 

17.           Defendant may
submit annually, for EPA approval, a request to use a letter of credit, surety
bond guaranteeing payment, or insurance in lieu of the trust find required
under Paragraph 15, above.  Defendant
shall include in its request documentation demonstrating compliance with
Financial Assurance under this Subsection. 
Defendant may not rely upon the letter of credit, payment surety bond,
or insurance to establish compliance with this Appendix until EPA has approved
the Third-Party Mechanism.  Defendant
shall comply with the letter of credit, payment surety bond or insurance
requirements of Paragraph 16 of this Appendix, as applicable.  Defendant shall also demonstrate compliance
with Paragraph 12 of this Appendix.

 

18.           Defendant may
submit annually, for EPA approval, a request to use multiple Third-Party
Mechanisms (i.e., trust fund, letter of credit, surety bond guaranteeing
payment, and insurance) in conjunction with a Self-Assurance Mechanism (i.e.,
corporate financial test or corporate guarantee), together with supporting
documentation, to demonstrate Financial Assurance for Phosphogypsum Stack
System Closure and Long Term Care.  Defendant
shall not rely upon the additional Third-Party Mechanism to establish
compliance with this Consent Decree until EPA has approved the additional
Third-Party Mechanism.  Defendant shall
also demonstrate compliance with Paragraph 12 of this Appendix.

 

19.           If Defendant at
any time becomes ineligible to rely on a Self-Assurance Mechanism pursuant to
this Subsection, and cannot re-establish such eligibility pursuant to Sections
VII and/or VIII of this Appendix, then Defendant shall establish alternate
Financial Assurance based on Current Dollars by: (a) maintaining the
existing Financial Assurance in the trust fund (or as approved, other
Third-party Mechanism) as established pursuant to Paragraph 15, above; (b) providing
additional Financial Assurance using Third-party Mechanism(s) pursuant to
Paragraphs 11.a-d, above; and (c) meeting the requirements of Paragraph
12, above, when providing more than one Financial Mechanism.  If Defendant meets the above requirements and
EPA approves the alternate Financial Assurance (including the termination of a
corporate guarantee if provided), Defendant does not need to meet the
requirements of Paragraph 16 of this Appendix. 
Defendant shall continue to be subject to Subsection III.B., as set
forth in this Paragraph, unless EPA approves a request to change to Type A
Financial Assurance pursuant to Paragraph 7 of this Appendix.

 

20.           If the Cost
Estimates at the commencement of Defendant’s fiscal year are less than or equal
to the value of the following Third-Party Mechanisms, trust fund or insurance,
then Defendant may draw upon the Third-Party Mechanism(s) to pay for
Phosphogypsum Stack System Closure and Long Term Care.  Otherwise, Defendant shall first draw upon
the resources of the Self-Assurance Mechanism before drawing upon a Third-Party
Mechanism to pay for Phosphogypsum Stack System Closure or Long Term Care.  If EPA approves the use of multiple

 

22

 

Third-Party Mechanisms under
Paragraph 18, above, EPA in its unreviewable discretion will designate the
priority for drawing on the Third-Party Mechanisms.

 

IV.  Financial Assurance for Corrective Action

 

21.           Within thirty
(30) days of receiving approval by EPA of any Risk Assessment Plan or Interim
Measures Plan required pursuant to Paragraphs 17 or 19 in Attachment A of
Appendix 1, Defendant shall provide a detailed written Cost Estimate for
the work required under the applicable Plan (“Plan Work”).  Defendant shall, within twenty (20) days of
EPA’s approval of the Cost Estimate, demonstrate and provide to EPA Financial
Assurance for the Plan Work in accordance with the requirements of Subsection
III.A of this Appendix as applied to the Plan Work.  If Defendant wishes to seek a waiver of all
or part of the Financial Assurance, or wishes to propose an alternative form or
reduced amount of Financial Assurance, Defendant shall submit a request to EPA
explaining the basis for the proposed waiver, or alternative or reduced
Financial Assurance, together with supporting documentation.  Until such time as EPA approves the proposed
waiver, or alternate or reduced Financial Assurance in writing, Defendant shall
provide Financial Assurance in the amount of the approved Cost Estimate in
accordance with Subsection III.A of this Appendix as applied to the Plan Work.

 

22.           Within thirty
(30) days of receiving written approval by EPA of any Corrective Action Plan
required pursuant to Paragraph 18 of Attachment A of Appendix 1, or any
corrective action assessment by EPA for the Zone of Discharge required pursuant
to Section D of Attachment B of Appendix 1, Defendant shall submit to EPA
for approval a proposed Financial Assurance Plan to implement the applicable
Plan Work.  The proposed Financial
Assurance Plan shall include, as appropriate:

 

a.             Estimated costs
for each stage of the Plan Work.

 

b.             A proposed
Financial Mechanism, or set of Mechanisms, to provide Financial Assurance for
the Plan Work, selected from the options set forth in Subsection III.A. of this
Appendix (e.g., trust fund, surety bond, insurance, letter of credit,
corporate financial test, or corporate guarantee) as applied to the Plan
Work.  If Defendant wishes to propose an
alternate form or reduced amount of Financial Assurance, wishes to provide
Financial Assurance in phases corresponding to the estimated costs for each
stage of Plan Work or wishes to seek a waiver of all or part of the Financial
Assurance required under this Subsection, Defendant shall submit a request to
EPA explaining the basis for the proposed alternate, reduced or phased
Financial Assurance, or the waiver of all or part of the Financial Assurance,
together with supporting documentation.

 

c.             A proposed
schedule (on at least a semi-annual basis) to update the Cost Estimates
required pursuant to Paragraph 22.b, above, to reflect inflationary adjustments
and/or changes to the Plan Work.

 

23.           Within thirty
(30) days of EPA’s approval of Defendant’s Financial Assurance Plan, Defendant
shall provide Financial Assurance for the Plan Work in an amount no less than
the approved Cost Estimate, and in accordance with the Financial Assurance Plan
approved by

 

23

 

EPA.

 

V.  Financial Assurance for Third-Party
Liability

 

24.           Defendant shall
provide Financial Assurance to compensate third-parties for bodily injury or
property damage that might result from sudden accidental or non-sudden
accidental occurrences associated with the Phosphogypsum Stack System Closure,
Long Term Care, or Corrective Action at the Facility (“Financial Assurance for
Third-party Liability”).  The Financial
Assurance for Third-party Liability shall comply with 40 C.F.R. § 264.147,
except as provided in Paragraph 25, below, and in lieu of complying with
40 C.F.R. § 264.147(e) Defendant shall maintain such Financial
Assurance for the duration of Phosphogypsum Stack System Closure, Long Term
Care and, if required, Corrective Action. 
If Defendant wishes to propose an adjustment to the amount of
Financial Assurance pursuant to 40 C.F.R. § 264.147(c), Defendant shall submit
to EPA for approval an originally signed certification by Defendant’s CFO and,
as set forth in 40 C.F.R. § 264.147(c), explaining the basis for the proposed
adjustment, together with supporting documentation.  Until such time as EPA approves the adjusted
Financial Assurance in writing, Defendant shall provide Financial Assurance for
Third-party Liability as required herein. 
Nothing in this Paragraph shall be construed to waive or limit EPA’s
right, pursuant to 40 C.F.R. § 264.147(d), to adjust the level of Financial
Assurance required in 40 C.F.R. § 264.147(a)&(b).

 

25.           Defendant’s
Financial Assurance for Third-party Liability shall comply with 40 C.F.R.
§§ 264.147(a)-(b)&(f)-(j) and 264.151(g), (h)(2) &
(i)-(n), except as modified by this Paragraph. 
If Defendant is using a trust fund, letter of credit or surety bond, the
Trustee of any trust fund, or the provider of any letter of credit, or surety
bond shall not be a Related Party to Defendant. 
Defendant shall word the Financial Mechanism as specified in 40 C.F.R. §
264.151, except that the term “facility” shall substitute for the phrase “hazardous
waste facility,” and unless EPA provides an alternate form, e.g., to
address more than one beneficiary of the Financial Mechanism (i.e., EPA
and the State).

 

a.             For a surety
bond or for insurance, Defendant shall demonstrate that the Surety and the
Insurer have at least a “secured” financial strength rating of “A” by A.M.
Best or an equivalent rating by an NRSRO. 
Such demonstration shall be in the form of an originally signed
certification by Defendant’s CFO or an officer of A.M. Best or the NRSRO.

 

b.             For a letter of
credit, Defendant shall ensure that the provider of the letter of credit is a
federally insured financial institution.

 

c.             For the corporate
financial test, Defendant shall:

 

(1)           In lieu of 40
C.F.R. § 264.147(f)(1)(ii)(A), use the current rating for either the S&P
long-term issuer credit rating or Moody’s long-term corporate family rating
which assesses a company’s capacity to meet its long-term (greater than one (1) year)
financial commitments, as they come due.

 

(2)           In lieu of the
provision at 40 C.F.R. § 264.147(f)(3), demonstrate that it meets the corporate
financial test by submitting the following to EPA within ninety (90) days after
the close of Defendant’s fiscal year:

 

(a)           A letter signed
by Defendant’s CFO and as worded in

 

24

 

40 C.F.R. § 264.151(g).

 

(b)           A copy of the
independent CPA’s report on examination of Defendant’s audited financial
statements for the latest completed fiscal year.

 

(c)           A copy of the
Independently Audited financial statements for the last completed year.

 

(d)           A report of
procedures and findings from Defendant’s independent CPA, resulting from an
agreed-upon procedures engagement performed in accordance with the AICPA Statement
on Standards for Attestation Engagements and Related Attestation
Interpretations, AT Section 201 - Agreed Upon Procedures Engagements,
as updated, that describes the procedures performed and related findings,
including whether or not differences or discrepancies were found in the
comparison of financial information included in the letter (including
attachments and exhibits) from Defendant’s CFO and Defendant’s Independently
Audited, year-end financial statements for the last fiscal year, including all
attachments.  Where differences or
discrepancies exist between Defendant’s CFO letter and Defendant’s
Independently Audited year-end financial statements, the report of procedures
and findings will reconcile any differences or discrepancies between the values
or information represented in Defendant’s CFO letter and Defendant’s
Independently Audited financial statements. 
Procedures to be performed by the independent CPA shall be in accordance
with AT Section 201.

 

VI.   Reporting and Information Gathering

 

26.           Defendant shall
provide to EPA upon request any information or reports regarding the financial
status of Defendant, the Financial Mechanism(s) provided by Defendant to
meet its obligations for Financial Assurance, and the financial institution(s) or
Guarantor(s) providing the Financial Mechanism(s) to secure Defendant’s
obligations under this Appendix to the Consent Decree.  Such information shall be provided within
twenty (20) days of the request unless otherwise stipulated by EPA.  Defendant may assert Confidential Business
Information (“CBI”) or trade secret under 40 C.F.R. Part 2 and/or Section 403.73,
F.S., except for information provided pursuant to Paragraphs 11.e and 16.e,
above.  Defendant shall follow the
procedures set forth in 40 C.F.R. Part 2, Subpart B and/or F.A.C.
R.62-730.100(3), to assert any claim of CBI or trade secret.    If Defendant claims information in a
Self-Assurance Mechanism is CBI or a trade secret under 40 C.F.R. Part 2
and/or Section 403.73, F.S., Defendant shall submit two (2) Financial
Assurance submissions to EPA, one submission with the CBI or trade secret
information redacted, and so identified in the submission, which will be
publically available, and the second submission that will contain the CBI or
trade secret information.

 

VII.  Temporary Non-Compliance

 

27.           If Defendant
violates, or determines that it will violate, any requirement of this Appendix,
Defendant within ten (10) days shall submit to EPA an originally signed
certification by Defendant’s CFO, together with supporting documentation,
explaining in detail the nature of

 

25

 

the violation, and stating
whether or not the non-compliance can be rectified by Defendant within thirty
(30) days.  If Defendant does not believe
that it can rectify the non-compliance within thirty (30) days, then within ten
(10) days of its notice Defendant shall submit to EPA for approval a plan
and schedule for correcting the violation which, if applicable, shall include
providing additional or alternative Financial Assurance.  Any dispute raised by Defendant regarding EPA’s
refusal to approve such a plan shall not prohibit EPA from accessing or
collecting on the existing Financial Assurance.

 

28.           Defendant shall
not be subject to stipulated penalties pursuant to Section VIII
(Stipulated Penalties) of the Consent Decree for temporary non-compliance with
this Appendix provided that: (a) Defendant complies with the notice and
submittal requirements of Paragraph 27, above; (b) EPA approves the plan
and schedule for correcting the violation, including any additional or
alternative Financial Assurance; (c) Defendant within ten (10) days
of EPA’s approval commences the correction of the violation in accordance with
the approved schedule, including if applicable, the establishment of any
additional or an alternate form of Financial Assurance; and (d) EPA
determines that Defendant’s violation is not due to Defendant’s lack of
diligence or good faith (the burden of proving this shall rest with
Defendant).  Defendant shall be deemed to
be without Financial Assurance for purposes of enforcement (but not for
accessing or collecting Financial Assurance should it be necessary) if
Defendant fails to meet any of the requirements of this Appendix and does not
rectify such violation in compliance with this Paragraph.

 

VIII.  Compliance Schedule

 

29.           In the event
that a Defendant providing Financial Assurance pursuant to Subsection III.B.
notifies EPA pursuant to Paragraph 16.e(4), above, that Defendant (or Defendant’s
Guarantor) no longer satisfies the corporate financial test criteria due to
information that has come to its attention pursuant to Paragraph 16.e(6)(c),
above, Defendant within ten (10) days of such notice shall provide
additional or alternate Financial Assurance as set forth below.

 

a.             If Defendant
fails to satisfy the corporate financial test criteria and requirements of
Paragraph 16.e, above, for each quarter in a given fiscal year (not including
the fourth quarter (i.e., fiscal year-end)), except as provided in
Paragraph 29.b, below, Defendant shall increase the face value or the corpus of
the Third-Party Mechanism by twenty-five percent (25%).  If Defendant can satisfy the corporate financial
test criteria by the fiscal year-end (i.e., in its annual submission
pursuant to Paragraph 16.e(3), above) and Defendant’s quarterly review under
Paragraph 16.e(6)(b) for the following fiscal year does not result in
notification from Defendant that it does not satisfy the corporate financial
test, Defendant can request and EPA will authorize the release of funds or a
reduction in the value of the Third-Party mechanism commensurate with the
contemporaneous Cost Estimates and requirements of Paragraph 16.e of this
Appendix.

 

b.             If Defendant
fails to satisfy the corporate financial test criteria and requirements of
Paragraph 16.e, above, for any two (2) consecutive quarters in a given
fiscal year (not including the fourth quarter (i.e., fiscal year-end)),
Defendant shall provide alternate Financial Assurance in accordance with
Paragraph 19 of this Appendix.  If
Defendant can satisfy

 

26

 

the corporate financial test
criteria by the fiscal year-end (i.e., in its annual submission pursuant
to Paragraph 16.e(3), above) and its annual submissions pursuant to Paragraph
16.e(3) for the following two (2) fiscal years do not trigger
Paragraphs 16.e(4) or 16.e(5), above, EPA upon Defendant’s request will
authorize a release of the funds or a reduction in the value of the Third-Party
Mechanism(s) so that the value of the Third-Party Mechanism is
commensurate with the minimum threshold funding for a Third-Party Mechanism as
specified in Attachment D plus an additional twenty-five (25%) of the Cost
Estimate.

 

c.             Defendant shall
be deemed to be without Financial Assurance for purposes of enforcement (but
not for accessing or collecting Financial Assurance should it be necessary) if
Defendant fails to meet a compliance schedule. 
Failure to timely comply with a compliance schedule or to provide
alternate Financial Assurance pursuant to this Section is not subject to
the provisions of Section VII of this Appendix.

 

IX.  Business Transactions

 

30.           No transfer of
ownership or operation of the Facility shall relieve Defendant of its Financial
Assurance obligations under this Consent Decree, except as provided by this Section and
Section II (Applicability) of the Consent Decree.

 

31.           At least thirty
(30) days prior to any transfer, Defendant shall submit to EPA information
explaining the proposed transfer in detail and stating whether Defendant
requests the transfer of its Financial Assurance responsibilities to the
Transferee pursuant to Section II (Applicability) of the Consent Decree
and Paragraph 32.b, below.

 

32.           In the event of
a transfer of the Facility’s ownership or operation:

 

a.             If Defendant is
to retain its Financial Assurance obligations upon the transfer of the
Facility, Defendant shall establish a trust fund in accordance with this
Appendix into which Defendant shall fully fund, in Current Dollars, the
Financial Assurance.  Defendant shall
establish and fund the trust fund, as well as provide EPA the appropriate
documentation evidencing the trust fund, by the date of the Facility
transfer.  The portion of funds vested in
the trust fund that are not required to meet annual withdrawals shall be
invested in U.S. Treasury Bills, or market-based notes and bills that achieve
an investment goal or preservation of principle and guarantee an
inflation-adjusted rate of return no less than the 30-Year Treasury Constant
Maturity Rate average for the previous twelve (12) months from the date of the
annual cost estimate.  If Defendant
wishes to propose alternate Financial Mechanism(s) in lieu of the trust
fund, Defendant at least thirty (30) days prior to the transfer shall submit an
originally signed certification by Defendant’s CFO, together with supporting
documentation, explaining the compelling reasons why the proposed alternate
Financial Mechanism is being requested and is an equivalent substitute for the
trust fund.  If EPA approves Defendant’s
request, Defendant shall establish the approved Financial Assurance.  If by the date of the transfer EPA does not
approve such a request or the Defendant has not put in place the approved
Financial Assurance, then e4Defendant shall fully fund the trust fund as
described above.

 

b.             If Transferee
agrees to assume Defendant’s Financial Assurance

 

27

 

obligations, Defendant shall
submit to EPA for approval an originally signed certification by Transferee’s
CFO, together with supporting documentation, explaining in detail its ability
to provide Financial Assurance pursuant to the requirements of this Appendix
and agreeing to provide the Financial Assurance if approved by EPA pursuant to Section II
(Applicability) of the Consent Decree. 
Defendant shall comply with the requirements of Paragraph 32.a, above,
until: (1) EPA has approved Transferee’s proposed Financial Assurance;
(2) the United States, after consultation with FDEP, consents to the
transfer of obligations pursuant to Section II (Applicability) of the
Consent Decree; (3) Transferee has established the approved Financial
Assurance; and (4) EPA has given its consent for Defendant to cancel its
Financial Assurance.

 

33.           If Defendant is
providing Financial Assurance through the use of any Financial Mechanism other
than the exclusive use of a fully fund trust fund in Current Dollars, in the
event of a business transaction that results, or Defendant determines will
result, in an adverse material change to Defendant’s financial or corporate
structure such that Defendant or its successor (or a Guarantor of defendant or
its successor) has insufficient operating cash flow or tangible assets to cover
the long-term (greater than one (1) year) financial liabilities as
represented on the Defendant’s or successor’s audited balance sheet and to
comply with the Financial Assurance requirements of this Consent Decree,
Defendant shall provide notice to EPA within fourteen (14) days of identifying
such adverse material change and comply with the with the requirements for
Financial Assurance in Paragraph 32.a, above.

 

X.  Reservation of Rights

 

34.           EPA reserves the
right to determine at any time that the Financial Assurance provided by
Defendant no longer satisfies the requirements of this Consent Decree or the
referenced provisions of 40 C.F.R. Part 264.  EPA may base this determination on Defendant’s
failure to provide notices or documentation required by this Appendix as well
as on a substantive evaluation of Defendant’s Financial Assurance.  Within thirty (30) days of written notice
from EPA that Defendant’s Financial Assurance no longer satisfies the requirements
of this Consent Decree or the referenced regulations, Defendant shall submit to
EPA for approval revised or alternate Financial Assurance that satisfies the
requirements of this Consent Decree. 
Defendant shall not cancel the existing Financial Assurance until the
revised or alternate Financial Assurance has been approved by EPA and EPA has
provided written consent permitting Defendant to cancel the existing Financial
Assurance.  Failure to timely provide
alternative Financial Assurance as required by this Section (or any
Paragraph of this Appendix that references this Section) is not subject to the
provisions of Section VII of this Appendix.  EPA’s determination shall be subject to
dispute resolution (other than judicial review) pursuant to Section X (Dispute
Resolution) of this Consent Decree, except that the time frames for notices and
submissions shall be reduced by half (e.g., under Informal Dispute
Resolution Defendant shall submit its Notice of Dispute within ten (10) days).

 

28

 

Attachment A

 

PHOSPHOGYPSUM STACK SYSTEM

CLOSURE AND LONG TERM CARE COST
ESTIMATES

 

	
  Date:

  	
   

  	
   

  	
  Date of Review:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Reviewer Signature:

  	
   

  

 

INSTRUCTIONS:

 

1.             The
Phosphogypsum Stack System Closure and Long Term Care Cost Estimates are to be
adjusted for inflation and, if needed, re-estimated to address a change to the
Phosphogypsum Stack System Closure or Long Term Care Plans, significant
adjustments or revisions to the materials or labor costs specified in the
plans, or modification to the Consent Decree that effects the Phosphogypsum
Stack System Closure or Long Term Care plans or Cost Estimates.  This form shall be used to provide the
information regarding the adjustments to the Cost Estimates and submitted annually.

 

2.             Fill
in all sections, below, as appropriate. To adjust the Phosphogypsum Stack
System Closure and Long Term Care Cost Estimates for inflation one of two
methods can be used: (1) an inflationary factor; or (2) recalculate
costs in Current Dollars.  If using the
inflationary factor, fill in Section II.A, below.  If recalculating the costs in Current
Dollars, fill in Section II.B, below.

 

3.             Notwithstanding
the option to update the Cost Estimates annually by using an inflationary
factor, the Cost Estimates must be updated every five years by recalculating
the costs in Current Dollars for Phosphogypsum Stack System Closure and Long
Term Care.

 

4.             This
form is to be sent to the appropriate individual(s) identified in Section XIV
(Notices) of the Consent Decree.

 

I.                                         GENERAL INFORMATION

 

	
  Facility Name:

  	
   

  	
   

  	
  EPA ID #: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Address:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Owner/Operator:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mailing Address: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

II.                                     COST ESTIMATE ADJUSTMENT

 

Please check below the appropriate
boxes identifying the type of Cost Estimate adjustment under this Section.  In addition, Defendant shall complete
Attachments A-1 and, if needed, Attachments A-2 and A-3.  Requirements under the Consent Decree for
Cost Estimates are found in Appendix 2, Section II, of the Consent Decree.

 

o            A.            Use
of an Inflation Factor

 

The Cost Estimates may be adjusted
for inflation by using an inflation factor. 
Please follow the instructions below in each subsection to derive the
inflation factor that must be used when adjusting the Cost Estimates for
inflation.  If providing Financial Assurance
pursuant to Appendix 2, Subsection III.A, of the Consent Decree, complete
subsections A(1)-(2), below.  If
providing Financial Assurance pursuant to Appendix 2, Subsection III.B of the Consent
Decree, complete subsections A(1) & (3), below.  Use of an inflation factor may only occur
when approved Phosphogypsum Stack System Closure and Long Term Care Cost
Estimates exist and there have been no changes to the Phosphogypsum Stack
System Closure or Long Term Care Plans, no significant adjustments or revisions
to 

 

 

the materials or labor costs
specified in the plans, or modification to the Consent Decree that effects the
Phosphogypsum Stack System Closure or Long Term Care plans or Cost Estimates.

 

Inflation Factor

 

When adjusting for inflation to update
the current dollar Cost Estimates in subsection A(1) and A(2), below,, the
inflation factor must be derived from the most recent Implicit Price Deflator
for Gross National Product (“Deflator”) published by the U.S. Department of
Commerce in its Survey of Current Business.  The inflation factor is the result
of dividing the latest published annual Deflator by the Deflator for the
previous year.  See Appendix 2,
Paragraphs 4.b(2) and 4(d), of the Consent Decree. (For additional
information and guidance see 40 C.F.R. §§ 264.142(b)(1)&(2) and
264.144(b)(1)&(2).)

 

	
  Latest Published Annual Deflator:

  	
   

  	
   

  
	
  Annual Deflator for Previous Year:

  	
   

  	
   

  
	
  Inflation Factor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

o            (1)           Adjusted Phosphogypsum Stack
System Closure Cost Estimate — Current Dollars

 

The adjustment under this subsection
is based on the latest Phosphogypsum Stack System Closure  Cost
Estimate dated           .  Phosphogypsum Stack System Closure and
associated Water Management costs represented in this subsection are in Current
Dollars.  To update the Phosphogypsum
Stack System Closure Cost Estimate for inflation take the latest Phosphogypsum
Stack System Closure and the associated Water Management costs, multiplying
each cost by the most recent inflation factor, then add together the two
resulting costs.  Complete the steps as
instructed, placing the information in the line items designated below.  See Appendix 2, Paragraphs 4.b(2) and
4(d), of the Consent Decree. (For additional information and guidance see 40
C.F.R. §§ 264.142(b)(1)&(2).)

 

	
  Phosphogypsum Stack System
  Closure cost (latest):

  	
   

  	
   

  
	
  Associated Water
  Management cost (latest):

  	
   

  	
   

  

 

	
  Phosphogypsum Stack System Closure
  cost (latest)

  	
   

  	
  Inflation Factor

  	
   

  	
  Inflation Adjusted Phosphogypsum Stack
  System Closure cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  X

  	
   

  	
  =

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Associated Water Management cost
  (latest)

  	
   

  	
  Inflation Factor

  	
   

  	
  Inflation Adjusted Associated Water
  Management cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  X

  	
   

  	
  =

  	
   

  	
   

  

 

	
  Inflation Adjusted Phophogypsum Stack
  System Closure cost

  	
   

  	
  Inflation Adjusted Associated Water
  Management cost

  	
   

  	
  Phosphogypsum Stack System Closure
  Cost Estimate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  +

  	
   

  	
  =

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

o            (2)           Adjusted Long Term Care Cost
Estimate — Current Dollars

 

The adjustment under this subsection
is based on the latest Long Term Care Cost Estimate dated
           , for all
years of Long Term Care remaining.   Long
Term Care and associated Water Management costs represented in this subsection
are in Current Dollars.  To update the
Long Term Care Cost Estimate for inflation take the latest Long Term Care and
the associated Water Management costs, multiplying each cost by the most recent
inflation factor, then add together the two resulting costs.  Complete the steps as instructed, placing the
information in the line items designated below. 
See Appendix 2, Paragraphs 4.b(2) and 4(d), of the Consent
Decree. (For additional

 

 

information and guidance see 40
C.F.R. §§ 264.144(b)(1)&(2).)

 

	
  Long Term Care cost (latest):

  	
   

  	
   

  
	
  Associated Water Management cost
  (latest):

  	
   

  	
   

  

 

	
  Long Term Care cost (latest)

  	
   

  	
  Inflation Factor

  	
   

  	
  Inflation Adjusted Long Term Care
  cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  X

  	
   

  	
  =

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Associated Water Management cost
  (latest)

  	
   

  	
  Inflation Factor

  	
   

  	
  Inflation Adjusted Associated Water
  Management cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  X

  	
   

  	
  =

  	
   

  	
   

  

 

	
  Inflation Adjusted Long Term Care
  cost

  	
   

  	
  Inflation Adjusted Associated Water
  Management cost

  	
   

  	
  Long Term Care Cost Estimate (Current
  Dollars) 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  +

  	
   

  	
  =

  	
   

  	
   

  

 

o            (3)           Adjusted
Long Term Care Cost Estimate — Net Present Value

 

The adjustment is based on the
latest Long Term Care Cost Estimate dated           ,
for all years of Long Term care remaining. 
Long Term Care and associated Water Management costs represented in this
subsection are in NPV.  To update the
Long Term Care Cost Estimate for inflation, complete the following steps as
instructed and place the information in the line items designated below:

 

(i)                                     To determine the Long Term Care and associated Water
Management Costs in Current Dollars, calculate the costs as instructed in
subsection A(2), above, filling in the necessary information.

(ii)                                  To inflate forward the current Long Term Care and associated
Water Management costs for all remaining years of Long Term Care, adjust the
costs as instructed in Attachment A-2, adjusting each year’s costs by the
inflation factor specified in Attachment A-2. 
(For additional reference information, see Paragraph 4.f, Appendix 2, of
the Consent Decree.)

(iii)                               Using each year’s adjusted costs due to inflation, place the
information from Attachment A-2 in the corresponding line items located in
Attachment A-3.

(iv)                              Following the instructions for Attachment A-3 to determine
the present value of Long Term Care and associated Water Management costs for
each year.  To derive the net present
value dollars for inflation adjusted Long Term Care, add each year’s present
value for Long Term Care costs; to derive the net present value dollars for the
inflation adjusted associated Water Management, add each year’s present value
for the associated Water Management costs.

(v)                                 Insert, below, the inflation adjusted Long Term Care and
associated Water Management costs in net present value; these totals must be
taken from Attachment A-3.  To obtain the
Long Term Care Cost Estimate (NPV), add together the inflation adjusted Long
Term Care and associated Water Management costs in net present value.

 

	
  Inflation
  Adjusted Long Term Care costs (NPV)

  	
   

  	
   

  	
   

  
	
  (total
  of Column [C] of Attachment A-3):

  	
   

  	
   

  	
   

  
	
  Inflation
  Adjusted Associated Water Management costs (NPV)

  	
   

  	
   

  	
   

  
	
  (total
  of Column [E] of Attachment A-3):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Long Term Care Costs Estimate (NPV):

  	
   

  	
   

  	
   

  

 

 

Cost Estimate Using Inflation Factor

 

To determine the totals costs to be
covered by Financial Assurance, add together the Phosphogypsum Stack System
Closure Cost Estimate and the appropriate Long Term Care Cost Estimate
(subsection A(2) or A(3) of this Attachment).  The sum of the two Cost Estimates will
provide the Total Cost Estimate.

 

	
  Phosphogypsum
  Stack System Cost Estimate:

  	
   

  	
   

  	
   

  
	
  Long
  Term Care Cost Estimate

  	
   

  	
   

  	
   

  
	
  ([identify the subsection]):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Cost Estimate Financial Assurance Under [identify Subsection of
  Appendix 2]:

  	
   

  	
   

  	
   

  

 

o            B.            Recalculate
Cost Estimates

 

Inflation adjustment can be achieved
by recalculating the costs for the Phosphogypsum Stack System Closure and Long
Term Care.  See Paragraph 4, Appendix 2,
of the Consent Decree.  If recalculating
the costs in Current Dollars, and providing Financial Assurance pursuant to Section III.A,
Appendix 2, of the Consent Decree, submit the certification from the
independent qualified professional engineer (box 1).  If recalculating the costs in Current
Dollars, and providing Financial Assurance pursuant to Section III.B,
Appendix 2, of the Consent Decree, submit the certification from the
independent qualified professional engineer (box 1) and the
certification from CF Industries (box 2), with the calculations underpinning
Long Term Care and associated Water Management costs in present value.

 

o            (1)           Certification by Third-party
Engineer

 

This is to certify that the
Phosphogypsum Stack System Closure and Long Term Care costs specified below and
in Attachment A-1, pertaining to the engineering features of this Phosphogypsum
Stack System, have been examined by me and found to conform to engineering
principles applicable to such systems. 
In my professional judgment, the Cost Estimates are a true, correct and
complete representation of the financial liabilities for Phosphogypsum Stack
System Closure and Long Term Care of the facility and comply with the
requirements of the Consent Decree, [insert case designation].  It is understood that the Phosphogypsum Stack
System Closure and Long Term Care Cost Estimates shall be submitted to the EPA
and FDEP, annually, revised or adjusted as required by the Consent Decree.

 

	
  (a)   Phosphogypsum
  Stack System Closure Cost Estimate:

  	
   

  	
   

  	
   

  
	
  1.   Phosphogypsum
  Stack System Closure costs ($ [insert current costs])

  	
   

  	
   

  	
   

  
	
  2.   Associated
  Water Management costs ($ [insert current costs])

  	
   

  	
   

  	
   

  
	
  (b)   Long
  Term Care Cost Estimate:

  	
   

  	
   

  	
   

  
	
  1.   Long
  Term Care costs ($ [insert current costs])

  	
   

  	
   

  	
   

  
	
  2.   Associated
  Water Management costs ($ [insert current costs])

  	
   

  	
   

  	
   

  
	
  (c)   Total Cost Estimate:

  	
   

  	
   

  	
   

  
	
  (Add
  lines (a) and (b), above.)

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
  Signature of Engineer

  	
   

  	
  Florida Registration Number (affix
  seal)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name & Title (please
  type)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Mailing Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Engineer E-Mail Address

  	
   

  	
   

  

 

 

o            (2)           Certification
by CF Industries

 

The present value for the Long Term
Care and associated Water Management costs, as represented below and in
Attachments A-2 and A-3, has been calculated by CF Industries is in accordance
with the requirements of the Consent Decree and is represented in the Chief
Financial Officer’s letter (Attachment C, Appendix 2, of the Consent Decree),
as calculated in this Attachment. It is understood that Attachment A-2
(Adjusting Long Term Care and Associated Water Management Costs to Calculate
Current (Then-Year) Dollars) and Attachment A-3 (Present Value of Long Term
Care and Associated Water Management), shall be submitted to the EPA and FDEP,
whenever CF Industries is required to, or determines to, recalculate the Cost
Estimates.  [Note:  The independent Certified Public Accountant (“CPA”)
has, as part of the CPA’s report under Paragraph 16.e(3)(d), Appendix 2,
reviewed calculations in Attachment A-2 and A-3.]

 

The costs to be used in Attachments
A-2 and A-3 have been based on the Long Term Care and associated Water
Management costs certified by the independent qualified professional engineer,
above, in subsection B(1).

 

[Instructions:   To fill in the information below, obtain the
Long Term Care Cost Estimate by adding together, from Attachment A-3, the total
present value dollars for Long Term Care costs (column [C] of Attachment A-3)
and to total present value dollars for associated Water Management costs
(column [E] of Attachment A-3).  Insert
the Long Term Care and associated Water Management costs as parenthetical
information.]

 

	
  (a)   Long
  Term Care Cost Estimate (NPV):

  	
   

  	
   

  	
   

  
	
  1.   Long
  Term Care costs ([insert total from column
  [C] of Attachment A-3])

  	
   

  	
   

  	
   

  
	
  2.   Associated
  Water Management costs ([insert total from column
  [E] of Attachment A-3])

  	
   

  	
   

  	
   

  
	
  (b)   Total Cost Estimate:

  	
   

  	
   

  	
   

  
	
  (Add line B(1)(a),
  Phosphogypsum Stack System Closure Cost Estimate and line B(2)(a), Long Term
  Care Cost Estimate (NPV).)

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
  Signature of CF Industries
  Representative

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name & Title (please type)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Mailing Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  E-Mail Address

  	
   

  	
   

  

 

 

Attachment
A-1:  Instructions

 

Attachment
A-1 (and associated Exhibits 1-3) provide the costs for Phosphogypsum Stack
System Closure (Exhibit 1), Long Term Care (Exhibit 2) and associated Water
Management activities (Exhibit 3).  The
costs for the associated Water Management activities are broken out based on
which activities are associated with Phosphogypsum Stack System Closure and
which activities are associated with Long Term Care.  In additions to the costs and the year the
costs were estimated being identified in the Exhibits, any assumptions,
comments descriptions or relevant information needed to explain the costs shall
be included.  For example, specifying the
estimated hours per week for an activity; yearly salary for an on-site engineer
tasked with Long Term Care activities; assumptions for mowing the grassed
stacks; assumptions for the identified contingency; and what costs are captured
by administrative costs.

 

 

	
  ATTACHMENT A-1

  	
   

  	
  Exhibit 1

  

 

A. GYPSUM STACK AT CLOSURE

 

	
  Activity

  	
   

  	
  Quantity

  	
   

  	
  Unit

  	
   

  	
  Unit Cost

  	
   

  	
  Total Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Top Grading and Cover

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1a. General Excavation and Fill

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  1b. Dewatering, Fine Grading & Compaction

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  1c. 40-mil HDPE Liner Materials

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  1d. 40-mil HDPE Liner Installation

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  1e. 24” Thick Soil Cover

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  1f. Grassing by Seeding

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  1g. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Side Slope Grading and Cover

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2a. General Excavation and Fill

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2b. Fine Grading & Compaction

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2c. Dolomite Addition

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2d. Grassing by Seeding Incl.Maint. &
  Watering

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2e. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Side Slope Drains

  	
   

  	
   

  	
   

  	
  lineal ft

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  4. Toe Drain

  	
   

  	
   

  	
   

  	
  lineal ft

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. Side Slope Drainage Swale

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5a. Grading & Compaction

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  5b. 40-mil HDPE Textured Liner Materials

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  5c. 40-mil HDPE Textured Liner Installation

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  5d. 24” Thick Soil Cover

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  5e. Grassing by Seeding & Sodding

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  5f. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. Toe Drainage Swale

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6a. Grading & Compaction

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  6b. 40-mil HDPE Textured Liner Materials

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  6c. 40-mil HDPE Textured Liner Installation

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  6d. 24” Thick Soil Cover

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  6e. Grassing by Seeding & Sodding

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  6f. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7. Surface Water Control

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8. Security Fence (includes
  cooling pond)

  	
   

  	
   

  	
   

  	
  lineal ft

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9. Security Fence Gates and
  Signage

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11. Permitting

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12. Design, Construction Management &
  QA/QC [%]

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  13. Construction Surveying [%]

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL GYPSUM STACK CLOSURE

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  

 

 

B. COOLING CHANNEL CLOSURE COST

 

	
  1. Sluiced Gypsum Filling

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Grading and Cover

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2a. General Excavation and Fill

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2b. Fine Grading & Compaction

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2c. 40-mil HDPE Liner Materials

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2d. 40-mil HDPE Liner Installation

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2e. 24” Thick Soil Cover

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2f. Grassing by Seeding

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2g. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Stack Drain Header Pipe

  	
   

  	
   

  	
   

  	
  lineal ft

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Sumps and Pump Stations

  	
   

  	
   

  	
   

  	
  each

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  5. Surface Water Control

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7. Design, Construction
  Management & QA/QC [%]

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  8. Construction Surveying [%]

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL COOLING CHANNEL

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  

 

 

C. COOLING POND CLOSURE COST

 

	
  1. Sluiced Gypsum Filling

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Grading and Cover

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2a. General Excavation and Fill

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2b. Fine Grading & Compaction

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2c. 40-mil HDPE Liner Materials

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2d. 40-mil HDPE Liner Installation

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2e. 24” Thick Soil Cover

  	
   

  	
   

  	
   

  	
  yd3

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2f. Grassing by Seeding

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2g. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Surface Water Control

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Subtotal

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. Design, Construction
  Management & QA/QC [%]

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  6. Construction Surveying [%]

  	
   

  	
   

  	
   

  	
  lump

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL COOLING POND CLOSURE

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  

 

D. 5-YEAR CLOSURE PERIOD O&M AND MONITORING

 

	
  1. Operation &
  Maintenance

  	
   

  	
   

  	
   

  	
  years

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2. Surface Water Monitoring

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  3. Groundwater Monitoring

  	
   

  	
   

  	
   

  	
  wells

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL O&M AND MONITORING
  COSTS

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  

 

E. ADMINISTRATIVE COSTS

 

	
  1. E.g., Construction Management

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  2. E.g., Administrative
  Management

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  3. E.g., Staff Salaries

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
  4. E.g., Reports, Permits,
  Filings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL ADMINISTRATIVE COSTS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONTINGENCY FOR CLOSURE COSTS
  (5%)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CLOSURE CONSTRUCTION COST

  	
   

  	
   

  	
   

  	
  acres

  	
   

  	
   

  	
   

  	
  $

  	
  0

  	
   

  

 

Notes and Assumptions

1.  List any
assumption/comments for activities and costs related to closure.

(a) 
E.g., Side slope drain costs for 12” HDPE pipe running vertically and spaced at
50’ intervals

(b) 
E.g., Toe drain costs unit pricing installation only; grading/excavation in
Swale activities.

(c) 
E.g., O&M costs include mowing, etc. 
Administrative and labor costs related to O&M activities captured
in  . . .

 

 

(d) 
The Cooling Pond Closure cost is treated as a Long Term Care costs for purposes
of Section II, Appendix 2.

 

 

	
  Attachment A-1

  	
  Exhibit 2

  

 

LONG TERM
CARE COST ESTIMATE

 

	
   

  	
   

  	
  Estimated Cost ([Insert Year] Dollars)

  	
   

  
	
  Long Term Care Item

  	
   

  	
  [    YEARS]

  	
   

  	
  [    YEARS]

  	
   

  	
  [    YEARS]

  	
   

  
	
  1. Administrative, Etc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. Inspections

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Site Security/Fence Maintence

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Monitoring Wells Sampling and Testing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5. Surface Water Sampling and Testing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6. Mowing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7. Land Surface Care & Contingency
  Repairs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8. Contingency (5% Items 1 & 2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL ANNUAL COST

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
											

 

NOTES AND ASSUMPTIONS:

 

1. E.g., Positions, wages, time, materials, overhead, etc

 

2. Description of inspections and costs.  If a particular cost associated with activity
is captured by another element of the Cost Estimate, provide information.

 

3. Description of costs.  If a
cost is captured by another element of the Cost Estimate, provide information.

 

4. Description of costs,. If a cost is captured by another element of
the Cost Estimate, provide inforrmation; e.g., pump and operation maintenance.

 

5 & 6.  Description of
costs.  If a cost is captured by another
element of the Cost Estimate, provide information.

 

7. Description of costs.  If a
cost is captured by another element of the Cost Estimate, provide inofrmation.

 

8.  Provide basis for the
contingency.

 

 

	
  Attachment A-1

  	
  Exhibit 3

  

 

COST FOR
PROCESS WATER TREATMENT

 

	
   

  	
   

  	
  Process Water

  	
   

  
	
   

  	
   

  	
  Quantity

  	
   

  
	
  Item

  	
   

  	
  Acre - Feet

  	
   

  	
  Billion Gal.

  	
   

  
	
  1. Ponded Water

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
  2. Drainable Pore Water

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
  3. Total Infiltration Above Liner for 50 Years

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
  4. Total Infiltration Below Liner for 50 Years

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
  5. Water Balance During Closure

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL WATER QUALITY

  	
   

  	
  0

  	
   

  	
  0.00

  	
   

  

 

	
  Expenditure Period

  	
   

  	
  Water Treated

  Billion Gallons

  	
   

  	
  Treatment Cost

  (MM$)

  	
   

  	
  Avg. Unit Cost

  ($/1000 Gal)

  	
   

  
	
  Phosphogypsum Stack System Closure (Years*)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long Term Care (Years*)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL QUANTITY AND TREATMENT COST

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  —

  	
   

  

 

 

Appendix 2:  Attachment A-2

 

ADJUSTING LONG TERM CARE AND ASSOCIATED WATER
MANAGEMENT COSTS TO CALCULATE CURRENT (THEN-YEAR) COSTS

 

Instructions:

 

1.               Use the
information and formulas, below, to determine the current (then-year) dollars
for Long Term Care and associated Water Management costs (i.e., columns
[C] and [E], below).

2.               The Long Term
Care and associated Water Management costs in Current Dollars to be used in
columns [B] and [D], below, shall be obtained, as appropriate, by calculating
the inflation adjusted Long Term Care and associated Water Management costs
pursuant to Section II.A(2) of Attachment A or from the information
provided in Section II.B(1)(b) of Attachment A.

3.               For purposes of
determining the inflation factor, the Gross Domestic Product (GDP) Deflator is
as specified in the “GDP (Chained) Price Index” of the Gross Domestic Product
Deflators Used in the Historic Tables, published by the Office of Management
and Budget (“OMB”).  The inflation factor
used to inflate the costs in this attachment shall be derived from the
mathematical average of the calculated inflation factors for each year over a
five-year period.  Each year’s calculated
inflation factor shall be the product of dividing the GDP for the relevant year
by the GDP for the year immediately prior, beginning with the first year in
which the GDP Deflator is an estimate and for each year thereafter until the
fifth year.  (See Paragraph 4.f,
Appendix 2, of the Consent Decree.)

4.               The inflated
costs, as calculated in this Attachment A-2, shall be used to calculate the
present value for Long Term Care and associated Water Management costs in
Attachment A-3 and to provide information in Section II.A(3) and Section II.B(2) of
Attachment A. [Note: Each year’s adjusted costs due to inflation as specified
in columns [C] and [E], below, shall be placed in the corresponding line items
designated by year in columns [B] and [D] in Attachment A-3.]

 

	
  r =

  	
   

  	
  Inflation Factor

  	
   

  	
  As specified in Paragraph 4.f,
  Appendix 2, of the Consent Decree. Note: Item 3, above, provides the criteria
  from Paragraph 4.f to calculate the inflation factor.

  
	
  t =

  	
   

  	
  Year

  	
   

  	
  Year in which costs are incurred.

  
	
  CE date =

  	
   

  	
  Year

  	
   

  	
  Year in which costs are estimated.

  

 

	
   

  	
   

  	
  Long Term
  Care Costs

  	
   

  	
  Associated
  Water Management Costs

  	
   

  
	
  Year

  	
   

  	
  Current
  (Today’s)

  Dollars

  	
   

  	
  Inflated
  Annual Dollars

  (as of year
  in which cost

  incurred)

  	
   

  	
  Current
  (Today’s)

  Dollars

  	
   

  	
  Inflated
  Annual Dollars

  (as of year
  in which cost

  incurred)

  	
   

  
	
  [A]

  	
   

  	
  [B]

  	
   

  	
  [C] = [B]* (r) ([t] – [CE Date])

  	
   

  	
  [D]

  	
   

  	
  [E] = [D]* (r) ([t] – [CE Date])

  	
   

  
	
  2010

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2013

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2014

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2015

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2016

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2017

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2018

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2019

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2020

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  Long Term
  Care Costs

  	
   

  	
  Associated
  Water Management Costs

  	
   

  
	
  Year

  	
   

  	
  Current
  (Today’s)

  Dollars

  	
   

  	
  Inflated
  Annual Dollars

  (as of year
  in which cost

  incurred)

  	
   

  	
  Current
  (Today’s)

  Dollars

  	
   

  	
  Inflated
  Annual Dollars

  (as of year
  in which cost

  incurred)

  	
   

  
	
  [A]

  	
   

  	
  [B]

  	
   

  	
  [C] = [B]* (r) ([t] – [CE Date])

  	
   

  	
  [D]

  	
   

  	
  [E] = [D]* (r) ([t] – [CE Date])

  	
   

  
	
  2021

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2022

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2023

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2024

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2025

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2026

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2027

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2028

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2029

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2030

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2031

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2032

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2033

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2034

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2035

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2036

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2037

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2038

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2039

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2040

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2041

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2042

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2043

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2044

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2045

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2046

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2047

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2048

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2049

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2050

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2051

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2052

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2053

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2054

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2055

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2056

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2057

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2058

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  Long Term
  Care Costs

  	
   

  	
  Associated
  Water Management Costs

  	
   

  
	
  Year

  	
   

  	
  Current
  (Today’s)

  Dollars

  	
   

  	
  Inflated
  Annual Dollars

  (as of year
  in which cost

  incurred)

  	
   

  	
  Current
  (Today’s)

  Dollars

  	
   

  	
  Inflated
  Annual Dollars

  (as of year
  in which cost

  incurred)

  	
   

  
	
  [A]

  	
   

  	
  [B]

  	
   

  	
  [C] = [B]* (r) ([t] – [CE Date])

  	
   

  	
  [D]

  	
   

  	
  [E] = [D]* (r) ([t] – [CE Date])

  	
   

  
	
  2059

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2060

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2061

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2062

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2063

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2064

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2065

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2066

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2067

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2068

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2069

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2070

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2071

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2072

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2073

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2074

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2075

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2076

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2077

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2078

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2079

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2080

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2081

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2082

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2083

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2084

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2085

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2086

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2087

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2088

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2089

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2090

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [...]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Appendix 2: Attachment A-3

 

PRESENT VALUE OF LONG TERM CARE AND
ASSOCIATED WATER MANAGEMENT

 

Instructions:

 

1.               Use the
information and formulas, below, to calculate the present value of Long Term
Care and associated Water Management costs. 
[Note: Present value is to be calculated only when providing Financial
Assurance under Section III.B, Appendix 2, of the Consent Decree.]

2.               In columns [B]
and [D], insert the inflation-adjusted annual costs beginning in the year when
Long Term Care is expected to begin. 
These costs have been generated in Attachment A-2, representing
inflation adjusted (then-year) dollars in the year that the cost are expected
to be incurred.  [Note: The values in
columns [B] and [D], below, are the same as those represented in columns [C]
and [E] from Attachment A-2.]

3.               Following the
formula listed below, calculate the present value of the Long Term Care and
associated Water Management costs in each year.

4.               The present
value, as calculated in this Attachment A-3, shall be used, as instructed, to
fill in Sections II.A(3) and II.B(2) of Attachment A.

 

	
  r =

  	
   

  	
  Discount Rate

  	
   

  	
  30-Year Treasury Constant Maturity
  Rate, averaged for the previous twelve (12) months from the date of the
  annual cost estimate

  
	
  t =

  	
   

  	
  Year

  	
   

  	
  Year in which costs will be incurred

  
	
  PV Date =

  	
   

  	
  Year

  	
   

  	
  Year in which present value is
  calculated

  

 

	
   

  	
   

  	
  Long Term
  Care Costs

  	
   

  	
  Associated
  Water Management Costs

  	
   

  
	
  Year

  	
   

  	
  Current
  (Then-Year)

  Dollars

  (as of year
  in which

  cost incurred)

  [Note: These
  values

  are equivalent to

  Column [C] from

  Attachment A-2.]

  	
   

  	
  Present Value
  Dollars

  (as of PV
  Date)

  	
   

  	
  Current
  (Then-Year)

  Dollars

  (as of year
  in which

  cost incurred)

  [Note: These
  values

  are equivalent to

  Column [E] from

  Attachment A-2.]

  	
   

  	
  Present Value
  Dollars

  (as of PV
  Date)

  	
   

  
	
  [A]

  	
   

  	
  [B]

  	
   

  	
  [C] = [B] / [(1 + r) ([t] – [PV Date])]

  	
   

  	
  [D]

  	
   

  	
  [E] = [D] / [(1 + r) ([t] – [PV Date])]

  	
   

  
	
  2010

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2012

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2013

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2014

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2015

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2016

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2017

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2018

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2019

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2020

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2021

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2022

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2023

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  CF Industries

  	
   

  
	
  Attachment A-3, Appendix 2, of the Consent Decree

  	
  August 3, 2010

  

 

 

	
   

  	
   

  	
  Long Term
  Care Costs

  	
   

  	
  Associated
  Water Management Costs

  	
   

  
	
  Year

  	
   

  	
  Current
  (Then-Year)

  Dollars

  (as of year
  in which

  cost incurred)

  [Note: These
  values

  are equivalent to

  Column [C] from

  Attachment A-2.]

  	
   

  	
  Present Value
  Dollars

  (as of PV
  Date)

  	
   

  	
  Current
  (Then-Year)

  Dollars

  (as of year
  in which

  cost incurred)

  [Note: These
  values

  are equivalent to

  Column [E] from

  Attachment A-2.]

  	
   

  	
  Present Value
  Dollars

  (as of PV
  Date)

  	
   

  
	
  [A]

  	
   

  	
  [B]

  	
   

  	
  [C] = [B] / [(1 + r) ([t] — [PV Date])]

  	
   

  	
  [D]

  	
   

  	
  [E] = [D] / [(1 + r) ([t] — [PV Date])]

  	
   

  
	
  2024

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2025

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2026

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2027

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2028

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2029

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2030

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2031

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2032

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2033

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2034

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2035

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2036

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2037

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2038

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2039

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2040

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2041

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2042

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2043

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2044

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2045

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2046

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2047

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2048

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2049

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2050

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2051

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2052

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2053

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2054

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2055

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2056

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2057

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2058

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  Long Term
  Care Costs

  	
   

  	
  Associated
  Water Management Costs

  	
   

  
	
  Year

  	
   

  	
  Current
  (Then-Year)

  Dollars

  (as of year
  in which

  cost incurred)

  [Note: These
  values

  are equivalent to

  Column [C] from

  Attachment A-2.]

  	
   

  	
  Present Value
  Dollars

  (as of PV
  Date)

  	
   

  	
  Current
  (Then-Year)

  Dollars

  (as of year
  in which

  cost incurred)

  [Note: These
  values

  are equivalent to

  Column [E] from

  Attachment A-2.]

  	
   

  	
  Present Value
  Dollars

  (as of PV
  Date)

  	
   

  
	
  [A]

  	
   

  	
  [B]

  	
   

  	
  [C] = [B] / [(1 + r) ([t] — [PV Date])]

  	
   

  	
  [D]

  	
   

  	
  [E] = [D] / [(1 + r) ([t] — [PV Date])]

  	
   

  
	
  2059

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2060

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2061

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2062

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2063

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2064

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2065

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2066

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2067

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2068

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2069

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2070

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2071

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2072

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2073

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2074

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2075

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2076

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2077

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2078

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2079

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2080

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2081

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2082

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2083

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2084

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2085

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2086

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2087

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2088

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2089

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2090

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Attachment
B: Instructions

 

As
part of the annual update of the Phosphogypsum Stack System Closure and Long
Term Care Cost Estimates, Defendant shall submit Attachment B.  The costs represented in Attachment B are in
Current Dollars for the year in which the annual submittal is required.  When filling out Attachment B, use the
information and definition specified below. 
Note: The Cost Estimate for
Phosphogypsum Stack System Closure includes the associated Water Management
activities and the Cost Estimate for Long Term Care includes its associated
Water Management activities (see Section I, Appendix 2, Consent Decree).

 

A.                                   Columns 1-7

 

The
information required by columns 1-7 must appear, at a minimum, in Attachment
B.  Use the definitions specified, below,
and provide any assumptions utilized to provide the information.   If it is determined that additional columns
are required to accurately represent the water to be treated during
Phosphogypsum Stack System Closure or Long Term Care, insert such information
providing appropriate notes and assumptions for the additional information.

 

1.               Pore Water is the volume of
water contained within the pores of the phosphogypsum that gravity drains from
the phosphogypsum during and after closure of the Phosphogypsum Stack.

2.               Free Standing Process Water
is the volume of water in the cooling pond, in the sedimentation ponds on the
Phosphogypsum Stack, in the return canal, and in other storage or surge ponds
associated with the Phosphogypsum Stack System (such water is also known as “process
water inventory”).

3.               Infiltration Water is the
water that infiltrates into the slide slopes of the closed Phosphogypsum Stack(1) and
is calculated as follows:

Infiltration
= Rainfall-Evapotranspiration-Runoff-∆Storage.

4.               Net Rainfall Water is the
average rainfall that is captured in the Phosphogypsum Stack System minus the
evaporation from the process water system.

5.               Total Water to be Treated is
the summation of pore water, freestanding water, infiltration water and net
rainwater.

6.               Water to Storage is the
excess water above what can be treated at a specified estimated rate of gallons
per minute.  Specify in “assumptions” the
rate of gallons per minute (e.g., 1000 gallons per minute).

7.               Average Water Treatment Rate
is the yearly average treatment rate to treat all the available water with a
maximum treatment rate of gallons per 

 

(1)   The area of the side slopes of the
Phosphogypsum Stack is the horizontal projection of the grassed slopes.  The lined ditches and roads are not included
in the slope area.

 

 

minute and a 95% on stream factor. 
Specify in “assumptions” the rate of gallons per minute (e.g., 1000
gallons per minute).

 

B.                                     Columns 8-12

 

The
information required by columns 8-12 reflects the treatment methods and
associated costs being utilized during Phosphogypsum Stack System Closure and
Long Term Care. When providing the information in Attachment B, use the
definitions and information specified, below, identifying any assumptions used
in the costs calculations.   When information
needs to be updated to accurately represent the treatment activities and
associated costs during Phosphogypsum Stack System Closure or Long Term Care,
insert such information providing appropriate notes and assumptions for the
additional information.  Note:
Underlying information used to generate the cost information shall be available
upon request.

 

8.               First Stage
Lime Chemical Costs represent the cost of lime treatment needed to raise the
treated water pH to the appropriate level, e.g., 4.5.  Provide the costs and amount of lime (and/or
limestone) used in the calculation in the comment column in Attachment B.(2)

9.               Second State
Lime Chemical Costs represents the cost of lime needed to raise the treated
water to the appropriate level, e.g., from pH 4.5 to pH 6.7. Provide the costs
and amount of lime used in the calculation in the comment column in Attachment
B.(3)

10.         Maintenance Materials and Power costs are based on
the actual operating costs (non-labor) of equipment that would be used for
liming.  Costs are based on an average of
the prior 3 years.

11.         RO Pre-treatment and Operating Costs are based on
latest data available for the chemical costs of pre-treatment and operating
costs.(4)  Provide cost data in the comment column of Attachment B (or attach
written information to Attachment B).

12.         Evaporative Spray Fields Operating and Maintenance
Costs are based on 5% of estimated installed cost for maintenance costs of
spray field plus power costs estimated from design flow and pressure.(5) 
Provide power and 

 

(2)   CF Industries provided formula to calculate
first stage lime chemical costs in an e-mail to Christine McCulloch, Department
of Justice, on July 19, 2010 (Subject: “Lime Treatment Cost
Calculations”).

 

(3)   CF Industries provided formula to calculate
second stage lime chemical costs in an e-mail to Christine McCulloch,
Department of Justice, on July 19, 2010 (Subject: “Lime Treatment Cost
Calculations”).

 

(4)   The following formula is to be used to
calculate the costs for RO pre-treatment and operating costs.

[(Gallons
of water treated)/1000] X ($/1000 gals.) = RO Pre-treatment and Operating Costs

 

(5)   The estimated installed costs based on the
actual installed costs for similar systems. 
The following formula calculates the costs for evaporative spray field
operating and maintenance costs.

[(No. nozzles
in sprayfield) X ($/nozzle) X (0.5)] + [(Gallons of water pumped per minute) X
(Kilowatt hrs. per GPM) X ($/KWH)] = 
Evaporative Spray Fields Operating and Maintenance Costs

 

 

installed costs for spray
nozzles in the comment column of Attachment B (or attach written information to
Attachment B).

 

C.                                     Columns 13-18

 

The
information required by columns 13-18 must appear, at a minimum, in Attachment
B.  Use the definitions specified, below,
and provide any assumptions utilized to provide the information.   If it is determined that additional columns
are required to accurately represent the activities or costs associated with
Phosphogypsum Stack System Closure and Long Term Care, insert such information
providing appropriate notes and assumptions for the additional
information.  Note: Underlying
information used to generate the cost information shall be available upon
request.

 

13.         Water Treatment Labor Costs are based on hourly
manning and labor costs.(6)

14.         Attenuation Cost Factor represents the reduction in
the chemical costs due to chemical reaction between acidic process water and
unreacted phosphate rock.(7)

15.         Total Water Treatment Costs represent the total of
all water treatment costs (e.g., columns 8-13) with the Attenuation Cost Factor
applied to the lime treatment costs (e.g., columns 8 and 9).(8)

16.         Construction and Phophogypsum Stack System Closure
Costs represent the cost of purchasing and installing the units and/or
processes for water treatment plus any other additional closure construction
costs, and the operating and maintenance (O&M) costs for the closure.  Construction and closure of the cooling pond
at the end of the Long Term Care period is considered a Long Term Care Cost.

17.         Long Term Care and Maintenance Costs are based on
costs for on-site personnel to conduct maintenance and care activities during
the Long Term Care period, monitoring costs, analysis costs, mowing and land
surface costs, contingency repairs (e.g., restoration of eroded areas) and pump
operation and maintenance (e.g., convey water from seepage collection
system to water treatment).

18.         Total Water Treatment and Closure Costs represent
the sum of the Total Water Treatment Costs, Construction and Phosphogypsum Stack
System Closure, and Long Term Care and Maintenance Costs.

 

(6)   The following formula calculates the water
treatment labor costs.

(No. people
working) X (No. hours worked per person) X ($/hour for labor) = Water
Treatment Labor Costs

 

(7)   This factor is based on the chemical analysis
of seepage from the Phosphogypsum Stack and in-stack piezometers.

 

(8)   The following formula calculates the total
water treatment costs.

[(First
Stage Lime Chemical Costs + Second Stage lime Chemical Costs) X (Attenuation
Cost Factor)] + Maintenance Materials and Power Costs + RO Pre-treatment and
Operating Costs + Evaporative Spray Fields Operating and Maintenance Costs +
Water Treatment Labor Costs = Total Water Treatment Costs.

 

 

Stack
Closure: Example

Summary of costs

 

	
   

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
   

  	
   

  	
  Cost
  per

  1000 gal

  Pond

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Treatment

  	
   

  	
  Treatment

  	
   

  	
  Spray fields

  	
   

  	
  Labor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Water

  	
   

  
	
  Yr

  	
   

  	
  Pore

  Water

  	
   

  	
  Free

  Standing

  Process

  Water

  	
   

  	
  Infiltration

  Water

  	
   

  	
  Net Rain

  Water

  	
   

  	
  Total

  Water to

  be

  Treated

  	
   

  	
  Water To

  Storage

  	
   

  	
  Average

  Water

  Treatment

  Rate

  	
   

  	
  First

  Stage

  Lime

  Chemical

  cost

  	
   

  	
  #NAME?

  	
   

  	
  Maint.

  Materials 

  & Power

  	
   

  	
  RO

  Treatment

  &

  Operating

  Costs

  	
   

  	
  Evaporative

  Spray fields

  Operating and

  Maintenance

  costs

  	
   

  	
  Water

  Treatment

  Labor

  Costs

  	
   

  	
  Attenuation

  Cost Factor

  	
   

  	
  Total
  Water

  Treatment

  Costs

  	
   

  	
  Const.&

  Gypsum

  Stack

  Closure

  	
   

  	
  Long

  Term

  Care &

  Maint.

  Costs

  	
   

  	
  Total
  Water

  Treatment

  & Closure

  Costs/Yr

  	
   

  	
  Comments

  	
   

  	
  Treated

  (does not

  include

  Capital

  costs)

  	
   

  
	
   

  	
   

  	
  Acre-Ft

  	
   

  	
  Acre-Ft

  	
   

  	
  Acre-Ft

  	
   

  	
  Acre-Ft

  	
   

  	
  Acre-Ft

  	
   

  	
  Acre-Ft

  	
   

  	
  GPM

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
   

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
  Million/Yr

  	
   

  	
   

  	
   

  	
  $/1000
  gal

  	
   

  
	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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CORPORATE FINANCIAL TEST

Letter from Chief Financial Officer

 

Instructions:  The letter from the Chief Financial officer,
as specified in Subsection III.A of Appendix 2 of the Consent Decree, must be
worded as follows, except that instructions in the brackets are to be replaced
with the relevant information and the brackets deleted.

 

[Address to Regional Administrator of every Region in which facilities
for which financial responsibility is to be demonstrated through the corporate
financial test are located].

 

I
am the Chief Financial Officer (“CFO”) of [insert name and address of
firm] (hereinafter, “the firm”). This letter is in support of this
firm’s use of the corporate financial test to demonstrate Financial Assurance
for costs associated with Phosphogypsum Stack System Closure and/or Long Term
Care.

 

[Fill out paragraphs 1-14, below, and provide supporting documentation,
when required. If your firm has no facilities that belong in a particular
paragraph, write “None” in the space indicated.]

 

1.
This firm is the owner or operator of the facilities, listed below, for which
Financial Assurance for Phosphogypsum Stack System Closure and/or Long Term
Care is demonstrated through the corporate financial test specified in
Subsection III.A of Appendix 2 of the Consent Decree [case
name/docket information for the Consent Decree]. The current
Phosphogypsum Stack System Closure and/or Long Term Care Cost Estimates covered
by the corporate financial test are provided for each listed facility below in
Schedule A, attached to this letter.  [Attach Schedule A.  For
informational purposes, see Schedule A, Example 1.]

 

[List facilities and include the EPA Identification Number, name,
address, and total current Cost Estimate for Phosphogypsum Stack System Closure
and/or Long Term Care for each facility.]

 

2.
This firm guarantees, through the guarantee specified in Subsection III.A of
Appendix 2 of the Consent Decree [case name/docket
information for the Consent Decree], the Phosphogypsum Stack System
Closure and/or Long Term Care of the facilities, listed below, owned or
operated by the guaranteed party. The current Cost Estimates for the
Phosphogypsum Stack System Closure and/or Long Term Care so guaranteed are
provided for each facility listed below in Schedule A, attached to this
letter.  [Attach
Schedule A.  For informational purposes,
see Schedule A, Example 2.]

 

[List facilities and include the EPA Identification Number, name,
address, and total current Cost Estimate for Phosphogypsum Stack System Closure
and/or Long Term Care for each facility.]

 

3.
The firm identified above is : [insert one or more:
(1) The direct or higher-tier parent corporation of the owner or operator; (2)
owned by the same parent corporation as the parent corporation of the owner or
operator, and receiving the following value in consideration of this guarantee         
[insert description of value received];
or (3) engaged in the following substantial business relationship with the
owner or operator          [insert brief characterization of relationship], and
receiving the following value in consideration of this guarantee         
[insert value received]]. [Attach a written description of the business relationship or a copy of
the contract establishing such relationship to this letter].

 

 

4.
The firm, as owner or operator or guarantor, is using a corporate financial
test to secure the obligations of the facilities listed in Schedule B for which
financial assurance is required under programs that EPA directly operates and
obligations where EPA has delegated authority to the State or approved a State’s
program.  These obligations include, but
are not limited to: liability, closure, post-closure and corrective action cost
estimates for hazardous waste treatment, storage and disposal facilities under
40 C.F.R. §§ 264.101, 264.142, 264.144, 264.147, 265.142, 265.144 and 265.147;
cost estimates for municipal solid waste management facilities under 40 C.F.R.
§§ 258.71, 258.72 and 258.73; current plugging and abandonment cost estimates
for underground injection control facilities under 40 C.F.R. § 144.62; cost
estimates for underground storage tanks under 40 C.F.R. § 280.93; cost
estimates for facilities handling polychlorinated biphenyls under 40 C.F.R. §
761.65; any financial assurance required under, or as part of an action under,
the Comprehensive Environmental Response, Compensation, and Liability Act; and
any other environmental obligation assured through a financial test, excluding
those costs represented in paragraphs1 and 2 listed above.  The cost estimates by obligation are provided
for each facility in Schedule B, attached to this letter. [Attach
Schedule B.  For informational purposes,
see Schedule B, Example 1.]

 

A.           The firm
represents the total of all such environmental obligations in Current Dollars
for the listed facilities in Schedule B of $                    
[insert amount], as of                   
[insert date].

 

5. Are there guarantees disclosed in accordance
with FASB Interpretation No. 45 for which the firm is liable, but which are not
explicitly accounted for on the balance sheet of the firm’s latest completed
independently audited financial statements? 
(Yes/No)           

 

A.                       [If yes:] The firm discloses the information shown below for
each such guarantee, as of the firm’s latest completed fiscal year ended [insert date]:

 

i.                  [The name of
the entity for which the guarantee has been granted];

ii.               [The nature
of the relationship of the entity to the firm];

iii.            [A
description of the guarantee]; and

iv.           [The fair
value of the guarantee.  If the fair
value cannot be determined and in the alternative a range of the expected
values cannot be provided, so indicate by stating “cannot be determined” with a
brief explanation.].

 

6.
Are there asset retirement obligations, under FASB Statement No. 143 or FASB
Interpretation No. 47, which are not
explicitly accounted for on the balance sheet of the firm’s latest completed
independently audited financial statements? (Yes/No)                   

 

A.           [If yes:] The firm discloses for each such obligation, a
description of the obligation and a current cost estimate [if current
cost estimate is not available, and in the alternative a range of the expected
values cannot be provided, so indicate by stating “cannot be determined” with a
brief explanation] in Schedule C, attached to this letter.  [Attach Schedule. For
informational purposes, see Schedule C, Example 1.]

 

7.
Are there significant estimates and material concentrations known to management
that are required to be disclosed in accordance with AICPA’s SOP 94-6, Disclosure of Certain Significant Risks and
Uncertainties, related to the firm’s
environmental obligations?  (Yes/No)                         [Significant
estimates are estimates as of the last completed fiscal year-end that could
change materially during the up-coming fiscal year..]

 

 

A.           [If yes:] The firm discloses the following significant
estimates and material concentrations, as of the firm’s latest completed fiscal
year ended [insert date]:                               .

 

8.
Does the company provide post-retirement benefits other than pensions?  (Yes/No): 
                      

 

A.           Has the company
explicitly accounted for its accrued pension and post-retirement benefits on the balance sheet of the firm’s latest
completed independently audited financial statements?  (Yes/No)                        

 

B.             If not, the
firm discloses the following estimate, as of the firm’s latest completed fiscal
year ended [insert date]:  $                    
[insert value]

 

9.
Does the firm file a Form 10K with the Securities and Exchange Commission (“SEC”)
for the latest fiscal year? (Yes/No)                       

 

10.
Does the firm comply with Sarbanes-Oxley Section 404? (Yes/No)                     

 

A.           Did the firm’s
independent auditors’ report on of the firm’s internal controls identify any
material weaknesses? (Yes/No)                    [Attach a copy of the
independent auditors’ report on of the company’s internal controls].

 

11.
The fiscal year of the firm ends on [month, day].  [Attach a copy of the firm’s
independently audited financial statements for the latest completed fiscal
year.]

 

A.           The firm’s
financial statements are independently audited by an independent certified
public accountant?  (Yes/No)                               

 

B.             Is the firm
relying on audited consolidated financial statements. (Yes/No)                                 [If the response is yes,
please attach to this letter a list of the companies (with addresses) which are
covered by the audited consolidated financial statements.]

 

C.             The firm has
received a qualified or adverse accountant’s opinion for the latest completed
fiscal year ended [insert date].
(Yes/ No)                                   [If response is yes, attach
a copy of the accountant’s opinion.]

 

*  *  *

 

12.
The firm represents that the figures marked with an asterisk below are:

 

A.           Exactly as
represented in the firm’s independently audited, year-end financial statements
(as attached). (Yes/No)                

 

B.             In accordance
with U.S. Generally Accepted Accounting Principles (GAAP). (Yes/No)                

 

C.             As of the
latest completed fiscal year ended [insert date].
(Yes/No)                  

 

[If one or more of the responses to paragraph 12 is no, attach a
line-by-line reconciliation of each discrepancy that crosswalks the value
represented in this letter to the company’s independently audited year-end
financial statements.]

 

 

13.
The firm represents that as of the latest completed fiscal year-end [insert date], the Assets located in the United States in the
amount of $             is at least 90% of the firm’s total assets.
(Yes/No)

 

14.
The firm represents that no more than sixty percent (60%) of the firm’s
tangible assets are in the form of one or more note receivables from one or
more Related Parties. (Yes/No)                  

 

[If the response to paragraph 14 is no, attach an originally signed
certification by the firm’s CFO as specified in Paragraph 11.e(6)(a) of
Appendix 2 of the Consent Decree [case
name/docket information for the Consent Decree], together with a list of
each note receivable, the name of the Related Party and a description (along
with any necessary documentation) of the Related Party’s financial strength and
capability to meet its obligations to the firm. 
Attach a line-by-line reconciliation that crosswalks the value(s)
represented in this letter to the company’s independently audited year-end
financial statements.]

 

[Fill in Alternative I if the criteria of Paragraph 11.e of Appendix 2
(incorporating 40 C.F.R. §§ 264.143(f)(1)(A)(i) and 264.145(f)(1)(A)(i)) are
being used.  Fill in Alternative II if
the criteria of Paragraph 11.e(1) of Appendix 2 (referencing  40 C.F.R. §§ 264.143(f)(1)(A)(ii) and 264.145(f)(1(A)(ii))
are being used.]

 

Alternative
I

 

1.
Sum of current Cost Estimates (total of all cost estimates shown in paragraphs
1 or 2, and 4, above) $                                          

 

*2.
Total liabilities $        

 

*3.
Total assets $           

 

4.  Net worth [line 3 minus line 2] $        

 

*5.
Intangible assets $            

 

6.
Tangible Net worth [line 4 minus line 5] $        

 

*7.
Current assets $        

 

*8.
Current liabilities $        

 

9.
Net working capital [line 7 minus line 8] $        

 

*10.  Net Income$          

 

*11.  Depreciation, Depletion and Amortization $        

 

12.
Net income plus depreciation, depletion, and amortization (line 10 plus line
11) $        

 

*13.
Total tangible assets in United States 
(required only if less than 90% of firm’s assets are located in    the 
U.S.) $        

 

14.
Is line 6 at least $10 million? (Yes/No)         

 

 

15.
Is line 6 at least 6 times line 1? (Yes/No)         

 

16.
Is line 9 at least 6 times line 1? (Yes/No)         

 

17.
Are at least 90% of firm’s tangible assets located in the U.S.? If not,
complete line 18 (Yes/No)         

 

18.
Is line 13 at least 6 times line 1? (Yes/No)         

 

19.
Is line 2 divided by line 4 less than 2.0? (Yes/No)         

 

20.
Is line 12 divided by line 2 greater than 0.1? (Yes/No)         

 

21.
Is line 7 divided by line 8 greater than 1.5? (Yes/No)         

 

Alternative
II

 

1.               Sum of current Cost
Estimates (total of all cost estimates shown in paragraphs 1 or 2, and 4 above)
$                                    

 

2.               The firm’s represents:

 

A.           A Long-Term Issuer Credit
Rating with Standard and Poor’s of:                 
[insert rating] as of               
[insert date]. [Attach
documentation evidencing the rating.]

 

B.             A Long-Term Corporate Family
Rating with Moody’s Investor Services of: 
                
[insert rating] as of               
[insert date].  [Attach documentation
evidencing the  rating.]

 

*3.
Total liabilities $        

 

*4.
Total assets $           

 

5.  Net worth [line 4 minus line 3] $        

 

*6.
Intangible assets $            

 

7.
Tangible Net worth [line 5 minus line 6] $        

 

*8.
Total tangible assets in U.S. (required only if less than 90% of firm’s
tangible assets are located in the U.S.) $        

 

9.
Is line 7 at least $10 million ? (Yes/No)         

 

10.
Is line 7 at least 6 times line 1? (Yes/No)         

 

11.
Are at least 90% of firm’s tangible assets located in the U.S.? If not,
complete line 12 (Yes/No)         

 

12.
Is line 8 at least 6 times line 1? (Yes/No)         

 

 

I
hereby certify in my capacity as the Chief Financial Officer of the firm, based
on my knowledge after reasonable due diligence, that the information included
in this letter, including all attachments and exhibits, is true and
accurate.  I further certify in my
capacity as the Chief Financial Officer of the firm, that the language of this
letter is identical to the wording specified in Appendix 2, Attachment C-1, of
the Consent Decree [insert case name/docket
information of the Consent Decree].

 

Attached
is a special report of procedures and findings from the firm’s independent certified
public accountant resulting from an agreed-upon procedures performed in
accordance with the AICPA Statement on Standards for Attestation Engagements
and Related Attestation Interpretations, AT Section 201 — Agreed Upon
Procedures Engagements, that describes the procedures performed and related
findings.  The CPA’s report discloses
whether or not differences and/or discrepancies were found in the comparison of
financial information disclosed in this letter (including all attachments and
exhibits) with the independently audited financial statements (including
attachments), as of the firm’s latest completed fiscal year end [insert date].  Where
differences or discrepancies exist between the financial information disclosed
in this letter (including all attachments and exhibits) with the firm’s
independently audited financial statements (including attachments), the CPA’s
report of procedures and findings identifies and reconciles any difference or
discrepancy between the values or information represented in this letter and
the firm’s independently audited year-end financial statements.

 

 

	
  [Signature]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Name]

  	
   

  	
   

  
	
   

  	
   

  
	
  [Title]
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
  [Date]

  	
   

  	
   

  
					

 

 

Schedule A: Corporate Financial Test or Corporate
Guarantee Cost Estimate Information

 

Example A.1:  Corporate Financial
Test

 

	
  Facility
  Name (EPA ID)

  	
   

  	
  Activity

  (CL, WM-CL, LTC,

  WM-LTC)

  	
   

  	
  Cost Estimate

  Current $

  	
   

  
	
  EPA123456789

  	
   

  	
  CL

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  EPA123456789

  	
   

  	
  WM-CL

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  EPA123456789

  	
   

  	
  LTC

  	
   

  	
  $

  	
  100,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  111,000,000

  	
   

  

 

Example A.2:  Corporate Guarantee

 

	
  Facility
  Name (EPA ID)

  	
   

  	
  Activity

  (CL, WM-CL, LTC,

  WM-LTC)

  	
   

  	
  Cost Estimate

  Current $

  	
   

  
	
  EPA123456789

  	
   

  	
  CL

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  EPA123456789

  	
   

  	
  WM-CL

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  EPA123456789

  	
   

  	
  LTC

  	
   

  	
  $

  	
  100,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  111,000,000

  	
   

  

 

Schedule B: Other Environmental Obligations Cost
Estimate Information

 

Example B.1

 

	
  Facility
  Name (EPA ID,

  Permit Number, or Site ID)

  	
   

  	
  Statutory Obligation

  	
   

  	
  Cost Estimate

  (Current $)

  	
   

  
	
  EPA123456789

  	
   

  	
  CERCLA

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  EPA123456789

  	
   

  	
  SDWA (UIC)

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  11,000,000

  	
   

  

 

Schedule
C: Asset Retirement Obligations Disclosure

 

Example C.1

 

	
  Type
  of

  	
   

  	
  Cost Estimate

  	
   

  	
  Discount

  	
   

  	
   

  	
   

  
	
  Obligation

  	
   

  	
  Current $

  	
   

  	
  NPV $

  	
   

  	
  Rate (Date)

  	
   

  	
  Time

  	
   

  
	
  Property A

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  $

  	
  758,999

  	
   

  	
  4.71% (May 2008)

  	
   

  	
  2008-2013

  	
   

  
	
  Property B

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  4,372,445

  	
   

  	
  —

  	
   

  	
  2008-2013

  	
   

  
	
  Property C

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  $

  	
  19,118,278

  	
   

  	
  —

  	
   

  	
  2014-2064

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  111,000,000

  	
   

  	
  $

  	
  24,249,722

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

CORPORATE FINANCIAL TEST

Letter of the Chief Financial Officer

 

Instructions:  The letter from the Chief Financial officer,
as specified in Subsection III.B of Appendix 2 of the Consent Decree, must be
worded as follows, except that instructions in the brackets are to be replaced
with relevant information and the brackets deleted.

 

[Address to Regional Administrator of every Region in which facilities
for which financial responsibility is to be demonstrated through the financial
test are located.]

 

I
am the Chief Financial Officer of [name and address of firm]
(hereinafter, “the firm”).  This letter
is in support of this firm’s use of the corporate financial test to demonstrate
Financial Assurance for costs associated with Phosphogypsum Stack System
Closure and/or Long Term Care.

 

[Fill out Schedule A for paragraphs 1 or 2, paragraphs 3 through 12, and
Exhibit 1.  Based on the information
in Schedule A for paragraph 1 or 2, paragraphs 3 through 12, and Exhibit 1,
fill out paragraphs 1 or 2, 13 through 15, and Exhibit 2.  If your firm has no information that belongs
in a particular paragraph, write “None” in the space indicated.  For each facility, include its EPA
Identification Number, name, address and Cost Estimates for Phosphogypsum Stack
System Closure and/or Long Term Care].

 

1.               The firm is the owner or
operator of the facilities listed in Schedule A for which Financial Assurance
for Phosphogypsum Stack System Closure and/or Long Term Care is demonstrated
through the corporate financial test specified in Subsection III.B of Appendix
2 of the Consent Decree [case name/docket
information of the Consent Decree]. 
[Attach Schedule A. 
For informational purposes, see Schedule A, Example 1.]

 

A.           The firm
represents the total Phosphogypsum Stack System Closure Cost Estimate in
Current Dollars for the listed facilities in Schedule A of $                    
[insert amount], as of                   
[insert date].

 

B.             The firm
represents the total Water Management Cost Estimate associated with
Phosphogypsum Stack System Closure in Current Dollars for the listed facilities
in Schedule A  of $                    
[insert amount],  as of                   
[insert date].

 

C.             The firm
represents the total Long Term Care Cost Estimate in Current Dollars for the
listed facilities in Schedule A of $                    
[insert amount], as of                   
[insert date].

 

D.            The firm
represents the net present value (NPV) of the total Long Term Care Cost
Estimate for the listed facilities in Schedule A as $                    
[insert amount], as of                     
[insert date].

 

E.              The firm represents the total Water Management Cost Estimate associated
with Long Term Care in Current Dollars for the listed facilities in Schedule A
of $                    
[insert amount],  as of                   
[insert date].

 

F.              The firm
represents the NPV of the total Water Management Cost Estimates associated with
Long Term Care for the listed facilities in Schedule A as $                    
[insert amount],  as of                     
[insert date].

 

2.               The firm guarantees, through
the guarantee specified in Subsection III.B of Appendix 2 of the Consent Decree
[case name/docket information of the Consent Decree],
the Phosphogypsum 

 

 

Stack System Closure and/or Long Term Care of the listed facilities in
Schedule A owned or operated by the guaranteed party.  [Attach Schedule A. For
informational purposes, see Schedule A, Example 2.]

 

A.           The firm
represents the total Phosphogypsum Stack System Closure Cost Estimate in
Current Dollars for the listed facilities in Schedule A of $                    
[insert amount], as of                   
[insert date].

 

B.             The firm
represents the total Water Management Cost Estimate associated with
Phosphogypsum Stack System Closure in Current Dollars for the listed facilities
in Schedule A of $                    
[insert amount],  as of                   
[insert date].

 

C.             The firm
represents the total Long Term Care Cost Estimate in Current Dollars for the
listed facilities in schedule A of $                    
[insert amount], as of                   
[insert date].

 

D.            The firm
represents the NPV of the total Long Term Care Cost Estimate for the listed
facilities in schedule A as $                    
[insert amount], as of                     
[insert date].

 

E.              The firm represents the total Water Management Cost Estimate associated
with Long Term Care in Current Dollars for the listed facilities in Schedule A
of $                    
[insert amount],  as of                   
[insert date].

 

F.              The firm
represents the NPV of the total Water Management Cost Estimate associated with
Long Term Care for the listed facilities in Schedule A as $                    
[insert amount],  as of                     
[insert date].

 

3.               The firm represents that the NPV of the Long Term
Care Cost Estimate and the Water Management Cost Estimate associated with Long
Term Care, as specified in Paragraph 1.D & F or Paragraph 2.D &
F, above, have been calculated in accordance with Appendix 2, Section II
and Attachments A-2 and A-3, of the Consent Decree [case name/docket information for Consent Decree].  [Attach a
copy of the 30-Year Treasury Constant Maturity Rate averaged for the previous
twelve months using the average spot rate for each month.]

 

4.               The firm, as owner or
operator or guarantor, is using a corporate financial test to secure the
obligations of the facilities listed in Schedule B for which financial
assurance is required under programs that EPA directly operates and obligations
where EPA has delegated authority to the State or approved a State’s
program.  These obligations include, but
are not limited to: liability, closure, post-closure and corrective action cost
estimates for hazardous waste treatment, storage and disposal facilities under
40 C.F.R. §§ 264.101, 264.142, 264.144, 264.147, 265.142, 265.144 and 265.147;
cost estimates for municipal solid waste management facilities under 40 C.F.R.
§§ 258.71, 258.72 and 258.73; current plugging and abandonment cost estimates
for underground injection control facilities under 40 C.F.R. §144.62; cost
estimates for underground storage tanks under 40 C.F.R. § 280.93; cost
estimates for facilities handling polychlorinated biphenyls under 40 C.F.R. §
761.65; any financial assurance required under, or as part of an action under,
the Comprehensive Environmental Response, Compensation, and Liability Act; and
any other environmental obligation assured through a corporate financial test,
excluding those costs represented in paragraphs 1 and 2 listed above.  The cost estimates by obligation are provided
for each facility in Schedule B, attached to this letter. [Attach
Schedule B.  For informational purposes,
see Schedule B, Example 1.]

 

A.           The firm
represents the total of all such environmental obligations in Current Dollars
for the listed facilities in Schedule B of $                    ,
[insert amount] as of                   
[insert date].

 

5.               The firm identified above is
[insert one or more:  (1) The direct or higher-tier parent
corporation of the owner or operator; (2) owned by the same parent
corporation as the parent corporation of the owner or operator, and receiving
the following value in consideration of this guarantee                 

 

 

[insert description of value received];
or (3) engaged in the following substantial business relationship with the
owner or operator                 
[insert brief characterization of the relationship]
and receiving the following value in consideration of this guarantee                 
[insert value received]].  [Attach a written
description of the business relationship or a copy of the contract establishing
such relationship to this letter].

 

6.               Are there guarantees disclosed in accordance with FASB Interpretation No. 45
for which the firm is liable, but which are not explicitly accounted for on the
balance sheet of the firm’s latest completed independently audited financial
statements?  (Yes/No)                      

 

A.           [If yes:] The firm discloses the information shown below for
each such guarantee, as of the firm’s latest completed fiscal year ended [insert date]:

 

i.                  [The name of
the entity for which the guarantee has been granted];

ii.               [The nature
of the relationship of the entity to the firm];

iii.            [A
description of the guarantee]; and

iv.           [The fair
value of the guarantee.  If the fair
value cannot be determined and in the alternative a range of the expected
values cannot be provided, so indicate by stating “cannot be determined” with a
brief explanation.].

 

7.               Are there asset retirement
obligations under FASB Statement No. 143 or FASB Interpretation No. 47,
which are not explicitly accounted for
on the balance sheet of the firm’s latest completed independently audited
financial statements? (Yes/No)                   

 

A.           [If yes:] The firm discloses for each such obligation, a
description of the obligation and a current cost estimate [if current
cost estimate is not available and in the alternative a range of the expected
values cannot be provided, so indicate by stating “cannot be determined” with a
brief explanation], in Schedule C, attached to this letter.  [Attach Schedule C. For
informational purposes, see Schedule C, Examples 1.]

 

8.               Are there significant
estimates and material concentrations known to management that are required to
be disclosed in accordance with AICPA’s
SOP 94-6, Disclosure of Certain Significant Risks and Uncertainties, related to the firm’s environmental
obligations?  (Yes/No)                         [Significant
estimates are estimates as of the last completed fiscal year-end that could
change materially during the up-coming fiscal year.

 

A.           [If yes:] The firm discloses the following such significant
estimates and material concentrations, as of the firm’s latest completed fiscal
year ended [insert date]:                               .

 

9.               Does the company provide
post-retirement benefits other than pensions? 
(Yes/No)                       

 

A.           Has the company
explicitly accounted for its accrued pension and post-retirement benefits on the balance sheet of the firm’s latest
completed independently audited financial statements?  (Yes/No)                        

 

B.             If not, the
firm discloses the following estimate, as of the firm’s latest completed fiscal
year ended [insert date]:  $                    
[insert value]

 

10.         Does the firm file a Form 10K
with the Securities and Exchange Commission (“SEC”) for the latest fiscal year?
(Yes/No)                       

 

11.         Does the firm comply with
Sarbanes-Oxley Section 404? (Yes/No)                     

 

 

A.           Did the firm’s
independent auditors’ report on the firm’s internal controls identify any
material weaknesses? (Yes/No)                    [Attach a copy of the
independent auditors’ report on the company’s internal controls.]

 

12.         The fiscal year of the firm
ends on [month, day].  [Attach a copy of the firm’s
independently audited financial statements for the latest completed fiscal year.]

 

A.           The firm’s
financial statements are audited by an independent certified public accountant?
(Yes/No)                               

 

B.             Is the firm
relying on audited consolidated financial statements.  (Yes/No)                         [If response is yes, attach
to the letter a list of the companies (with addresses) which are covered by the
audited consolidated financial statements. 
If no, provide a list of companies (with addresses) that make up the
corporate structure.]

 

C.             The firm has
received a qualified or adverse accountant’s opinion for the latest completed
fiscal year ended [insert date].
(Yes/ No)                                   [If response is yes, attach
a copy of the accountant’s opinion.]

 

* * *

 

13.         The firm represents that the
figures marked with an asterisk in Exhibit 1 are:

 

A.           Included as
represented in the firm’s independently audited, year-end financial statements
(as attached). (Yes/No)                

 

B.             In accordance
with U.S. Generally Accepted Accounting Principles (GAAP). (Yes/No)              

 

C.             As of the
latest completed fiscal year ended [insert date].
(Yes/No)                  

 

[If one or more of the responses to paragraph 13 is no, attach a
line-by-line reconciliation of each discrepancy that crosswalks the value
represented in this letter to the company’s independently audited year-end
financial statements.]

 

14.         The firm represents that it
has:

 

A.           A Long-Term
Issuer Credit Rating with Standard and Poor’s of                 
[insert rating] as of               
[insert date].  [Attach documentation or
certified letter from S&P, as appropriate, evidencing the rating.]

 

B.             A Long-Term
Corporate Family Rating with Moody’s Investor Services of                  
[insert rating] as of               
[insert date].  [Attach documentation or
certified letter from Moody’s, as appropriate, evidencing the rating.]

 

C.             An equivalent
rating, which assesses a company’s capacity to meet its long-term (greater than
one (1) year) financial commitments, as they come due, from a nationally
recognized statistical rating organization (“NRSRO”) of               
[insert rating] as of               
[insert date] from                   
[insert NRSRO].  [Attach documentation or
certified letter from NRSRO, as appropriate, evidencing the rating.]

 

15.         The firm represents that no
more than sixty percent (60%) of the firm’s tangible assets (or consolidated
tangible assets, as the case may be) are in the form of one or more note
receivables from one or more Related Parties: (Yes/No)                      

 

 

[If the response to paragraph 15 is no, attach an originally signed
certification by the firm’s CFO as specified in Paragraph 16.e(6)(b) of
Appendix 2 of the Consent Decree [case
name/docket information for the Consent Decree] together
with a list of each note receivable, the name of the Related Party and a
description (along with any necessary documentation) of the Related Party’s
financial strength and  capability to meet its
obligations to the firm.  Attach a
line-by-line reconciliation that crosswalks the value(s) represented in
this letter to the company’s independently audited year-end financial
statements.]

 

I
hereby certify in my capacity as the Chief Financial Officer of the firm, based
on my best knowledge after reasonable due diligence, that the information
included in this letter, including all attachments and exhibits, is true and
accurate.  I further certify in my
capacity as the Chief Financial Officer of the firm, that the language of this
letter is identical to the wording specified in Appendix 2, Attachment C-2, of
the Consent Decree [case name/docket
information for the Consent Decree].

 

Attached
is a special report of procedures and findings from the firm’s independent
certified public accountant resulting from an agreed-upon procedures performed
in accordance with the AICPA Statement on Standards for Attestation
Engagements and Related Attestation Interpretations, AT Section 201 — Agreed
Upon Procedures Engagements, that describes the procedures performed and
related findings.  The CPA’s report
discloses whether or not differences and/or discrepancies were found in the
comparison of financial information disclosed in this letter (including all
attachments and exhibits) with the independently audited financial statements
(including attachments), as of the firm’s latest completed fiscal year end
[insert date] and in the calculation of NPV for the Long Term Care Cost Estimate (and the associated Water Management
costs) as calculated pursuant to Appendix 2, Section II and Attachments
A-2 and A-3, of the Consent Decree  [case name/docket information for the Consent Decree].  Where differences or discrepancies exist
between the financial information disclosed in this letter (including all
attachments and exhibits) with the firm’s independently audited financial
statements (including attachments), and in the calculation of NPV for Long Term
Care cost estimates and the Water Management cost estimates associated with
Long Term Care, the CPA’s report of procedures and findings identifies and
reconciles any difference or discrepancy between the values or information
represented in this letter and the firm’s independently audited year-end
financial statements, or this letter and the NPV  for the Long Term Care Cost Estimate (and the associated Water Management
costs) as calculated pursuant to Appendix 2, Section II and Attachments
A-2 and A-3, of the Consent Decree  [case name/docket information for the Consent Decree].

 

 

	
  [Signature]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Name]

  	
   

  	
   

  
	
   

  	
   

  
	
  [Title] Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
  [Date]

  	
   

  	
   

  
					

 

 

Exhibit 1. 
Financial Information

 

	
   

  	
   

  	
   

  	
   

  	
  Amount in U. S. Dollars

  
	
  Item

  	
   

  	
  Description

  	
   

  	
  [A]

  Most Recent

  Fiscal Year(n)

  	
   

  	
  [B[

  Fiscal Year(n-1)

  	
   

  	
  [C]

  Fiscal Year(n-2)

  
	
  1

  	
   

  	
  Sum of Stack Closure costs in Current Dollars and
  net present value (NPV) of Long Term Care costs

  (Sum of cost estimates listed in Paragraphs 1A,
  1B, 1D, 1F, 2A, 2B, 2D, and 2F)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Sum of cost estimates in current dollars for
  environmental obligations, not represented in Item 1

  (Sum of cost estimates listed in Paragraph 4A)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Sum of Items 1 and 2 above

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Sum of all environmental obligations in Current
  Dollars

  (Sum of cost estimates shown in Paragraphs 1A, 1B, 1C, 1E, 2A, 2B, 2C, 2E,
  and 4A)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  The firm’s most recent S&P long-term issuer
  credit rating, Moody’s long-term corporate family rating, or equivalent
  rating from an NRSRO

  (As represented in Paragraphs 13A, 13B, or 13C)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Amount of funds held in all Third-party Mechanisms
  (e.g., trust fund, letter of credit), pursuant to this Consent Decree [insert case name/docket information for the Consent Decree]

  (Attach a copy of the Third-party Mechanism
  listing its current (within 10 days of the date of this letter) market value,
  or in the case of insurance its limit of liability, or in the case of surety
  bond its penal sum)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Sum of Stack Closure costs in Current Dollars and
  NPV of Long-Term Care costs, minus current value of funds held in all third
  party financial mechanisms pursuant to the Consent Decree [insert case name/docket information for the Consent Decree]

  (Item 1 minus Item 6)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8*

  	
   

  	
  Total Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9*

  	
   

  	
  Total Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Net Worth 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Amount in U. S. Dollars

  
	
  Item

  	
   

  	
  Description

  	
   

  	
  [A]

  Most Recent

  Fiscal Year(n)

  	
   

  	
  [B[

  Fiscal Year(n-1)

  	
   

  	
  [C]

  Fiscal Year(n-2)

  
	
   

  	
   

  	
  (Item 9 minus Item 8)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Three Year Rolling Average of Total Liabilities
  Divided by Three-Year Rolling Average of Net Worth

  (Three-Year Average of Item 8, Columns [A], [B],
  [C] Divided by Three-Year Average of Line 10, Columns [A], [B], [C])

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12*

  	
   

  	
  Intangible Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Tangible Net Worth

  (Item 10 minus Item 12)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14*

  	
   

  	
  Current Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15*

  	
   

  	
  Current Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Three Year Rolling Average of Current Assets
  Divided by Three-Year Rolling Average of Current Liabilities

  (Three-Year Average of Item 14, Columns [A], [B],
  [C] Divided by Three-Year Average of Item 15, Columns [A], [B], [C])

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17*

  	
   

  	
  Operating Cash Flow

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  Three Year Rolling Average of Operating Cash Flow

  (Three-Year Average of Item 17, Columns [A], [B],
  [C])

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19*

  	
   

  	
  U.S. Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  Tangible U.S. Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

n = Most recent fiscal year.

* = Values are as
represented on the Company’s independently audited financial statements.

 

 

Exhibit 2.  Corporate
Financial Test Criteria

 

Part 1.  Ratings Threshold

 

1.                                       Based on rating
listed in Exhibit 1, Item 5, select the applicable Corporate
Financial Test (“CFT”) Criteria (see Schedule D, Part 1A).  Note: 
If there is more than one rating (e.g., an S&P and Moodys rating),
shall use the lowest rating to determine rating threshold in Schedule D.                        
[insert issued rating]

 

If
CFT Criteria  A is identified, proceed to
Line 9 below.

 

Part 2.  Third-Party
Financial Assurance Instrument

 

2.                                       Percentage of
current Phosphogypsum Stack System Closure costs and NPV of Long Term Care
costs held in a Third-party Mechanism Pursuant to the Consent Decree (Exhibit 1, Item
6 divided by Exhibit 1, Item 1): 
           [insert
percentage]

 

3.                                       Is the
percentage specified by Line 2 greater than or equal to the percentage
threshold applicable to the Alternative identified by Line1 (and as specified
in table below)? (Yes/No)                   

 

	
  CFT
  Criteria

  	
   

  	
  Percentage Threshold

  
	
  A

  	
   

  	
  Not applicable

  
	
  B

  	
   

  	
  At least 20%

  
	
  C

  	
   

  	
  At least 25%

  
	
  D

  	
   

  	
  At least 30%

  

 

Part 3.  Financial Metrics
Threshold

 

4.                                       Is TL/NW (Exhibit 1, Item
11) less than the ratio threshold applicable to the CFT Criteria identified in
Line 1 (and as specified in table below)? (Yes/No)                 

 

5.                                       Is CA/CL (Exhibit 1, Item
16) greater than the ratio threshold applicable to the CFT Criteria identified
in Line 1(and as specified in table below)? (Yes/No)           

 

	
  CFT Criteria

  	
   

  	
  Line 4: Applicable

  TL/NW Ratio

  Threshold

  	
   

  	
  Line 5: Applicable

  CA/CL Ratio

  Threshold

  
	
  A

  	
   

  	
  Not applicable

  	
   

  	
  Not applicable

  
	
  B

  	
   

  	
  < 2.0

  	
   

  	
  > 1.5

  
	
  C

  	
   

  	
  < 1.5

  	
   

  	
  > 1.5

  
	
  D

  	
   

  	
  < 1.5

  	
   

  	
  > 2.0

  

 

6.                                       If CFT Criteria
B is identified in Line 1, answer the following questions.

 

A.  Is the 3-year rolling average for the
operating cash flow (Exhibit 1, Item 18) greater than or equal to 1.5
times the sum of Phosphogypsum Stack System Closure costs in Current Dollars
and NPV of Long Term Care costs minus 

 

 

current
value of funds held in third-party instruments (Exhibit 1, Item 7)?
(Yes/No)           

 

B.  Is the most recent fiscal year’s operating
cash flow (Exhibit 1, Item 17 Column A) greater than zero? (Yes/No)

 

7.                                       If CFT Criteria
C is identified by Line 1, answers the following questions.

 

A.  Is the 3-year rolling average for the
operating cash flow (Exhibit 1, Item 18) greater than or equal to 2.0
times the sum of Phosphogypsum Stack System Closure costs in Current Dollars
and NPV for Long Term Care costs (in NPV) minus current value of funds held in
Third-party Mechanisms  (Exhibit 1, Item
7)? (Yes/No)                   

 

B.  Is the most recent fiscal year’s operating
cash flow (Exhibit 1, Item 17 Column A) greater than zero?
(Yes/No)                  

8.                                       If CFT Criteria
D is identified by Line 1, answer the following questions.

 

A.  Is the most recent fiscal year’s operating
cash flow (Exhibit 1, Item 17, Column A) greater than or equal to 2.0
times the sum of Phosphogypsum Stack Closure costs in Current Dollars and NPV
for Long Term Care costs (in NPV) minus current value of funds held in
Third-party Mechanisms  (Exhibit 1, Item
7)? (Yes/No)                   

 

B.  Is the most recent fiscal year’s operating
cash flow (Exhibit 1, Item 17 Column A) greater than zero?
(Yes/No)                  

 

Part 4.  Coverage Thresholds

 

9.                                       Is TNW (Exhibit 1, Item
13) greater than or equal to six (6) times the sum of Phosphogypsum Stack
System Closure costs in Current Dollars, NPV of Long Term Care and costs in
Current Dollars for environmental obligations (Exhibit 1, Item 3)?
(Yes/No)                    

 

If
“Yes,” proceed to Line 12 below.

 

10.                                 Is Line 2 greater than or equal
to 40 percent?  (Yes/No)                    

 

10a.                           If “Yes,” is TNW (Exhibit 1, Item
13) greater than or equal to four (4) times the sum of Phosphogypsum Stack
System Closure costs in Current Dollars, NPV of Long Term Care and costs in
Current Dollars for environmental obligations (Exhibit 1, Item
3)?  (Yes/No)                    

 

If
“Yes,” proceed to Line 12.

 

11.                                 Is Line 2 greater than or
equal to 60 percent?  (Yes/No)                    

 

 

11a.                           If “Yes,” is TNW (Exhibit 1, Item
13) greater than or equal to two (2) times the sum of Phosphogypsum Stack
System Closure costs in Current Dollars, NPV of Long Term Care and costs in
Current Dollars for environmental obligations (Exhibit 1, Item
3)?  (Yes/No)                    

 

12.                                 Is TNW (Exhibit 1, Item
13) greater than or equal to $20 million? 
(Yes/No)          

 

13.                                 Is Tangible U.S. Assets (Exhibit 1, Item
20) greater than or equal to 90 percent of the  
sum of all environmental obligations in Current Dollars (Exhibit 1, Item
4)?  (Yes/No)                    

 

Summary

 

14.                                 Did you answer “Yes” for
Lines 3, 12, and 13?  (Yes/No)                    

 

15.                                 Did you answer “Yes” for
Lines 9, 10a, or 11a?  (Yes/No)                    

 

16.                                 If CFT Criteria B, did you
answer “Yes” for Line 4 and “Yes” for Line 5 or Line 6A and 6B?  (Yes/No) 
                  

 

17.                                 If CFT Criteria C, did you
answer “Yes” for Line 4 and “Yes” for Line 5 or Line 7A and 7B?  (Yes/No) 
                  

 

18.                                 If CFT Criteria D, did you
answer “Yes” for Line, 4, Line 5, and Line 8A and 8B?  (Yes/No) 
                

 

 

Schedule A: Corporate Financial Test and Corporate
Guarantee Cost Estimate Information

 

For
each facility, generate a separate table for the information being
provided.  If information required in
Schedule A is not applicable, please indicate by entering N/A.

 

Example A.1: Corporate Financial Test

 

	
  Facility
  Name

  	
   

  	
  Activity

  (CL, WM-CL, LTC,

  	
   

  	
  Cost Estimate

  	
   

  	
  Discount Rate

  	
   

  	
   

  	
   

  
	
  (EPA
  ID)

  	
   

  	
  WM-LTC)

  	
   

  	
  Current $

  	
   

  	
  NPV $

  	
   

  	
  (Date)

  	
   

  	
  Time

  	
   

  
	
  EPA123456789

  	
   

  	
  CL

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  2008-2013

  	
   

  
	
  EPA123456789

  	
   

  	
  WM-CL

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  2008-2013

  	
   

  
	
  EPA123456789

  	
   

  	
  LTC

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  $

  	
  19,118,278

  	
   

  	
  4.71% (May 2008)

  	
   

  	
  2014-2064

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  111,000,000

  	
   

  	
  $

  	
  19,118,278

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Example A.2:  Corporate Guarantee

 

	
  Facility
  Name 

  	
   

  	
  Activity

  (CL, WM-CL, LTC, 

  	
   

  	
  Cost Estimate

  	
   

  	
  Discount Rate 

  	
   

  	
   

  	
   

  
	
  (EPA
  ID)

  	
   

  	
  WM-LTC)

  	
   

  	
  Current $

  	
   

  	
  NPV $

  	
   

  	
  (Date)

  	
   

  	
  Time

  	
   

  
	
  EPA987654321

  	
   

  	
  CL

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  2008-2013

  	
   

  
	
  EPA987654321

  	
   

  	
  WM-CL

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  2008-2013

  	
   

  
	
  EPA987654321

  	
   

  	
  LTC

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  $

  	
  19,118,278

  	
   

  	
  4.71% (May 2008)

  	
   

  	
  2014-2064

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  111,000,000

  	
   

  	
  $

  	
  19,118,278

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Schedule B: Other Environmental Obligations Cost
Estimate Information

 

Example B.1

 

	
  Facility
  Name (EPA ID,

  Permit Number, or Site ID)

  	
   

  	
  Statutory Obligation

  	
   

  	
  Cost Estimate

  (Current $)

  	
   

  
	
  EPA123456789

  	
   

  	
  CERCLA

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  EPA987654321

  	
   

  	
  SDWA (UIC)

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  11,000,000

  	
   

  

 

Schedule
C: Asset Retirement Obligations Disclosure

 

Example C.1

 

	
  Type
  of 

  	
   

  	
  Cost Estimate

  	
   

  	
  Discount Rate

  	
   

  	
   

  	
   

  
	
  Obligation

  	
   

  	
  Current $

  	
   

  	
  NPV $

  	
   

  	
  (Date)

  	
   

  	
  Time

  	
   

  
	
  Property A

  	
   

  	
  $

  	
  1,000,000

  	
   

  	
  $

  	
  758,999

  	
   

  	
  4.71%  (May 2008)

  	
   

  	
  2008-2013

  	
   

  
	
  Property B

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  4,372,445

  	
   

  	
  —

  	
   

  	
  2008-2013

  	
   

  
	
  Property C

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  $

  	
  19,118,278

  	
   

  	
  —

  	
   

  	
  2014-2064

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  111,000,000

  	
   

  	
  $

  	
  24,249,722

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Corporate
Financial Test (“CFT”) Criteria for Appendix 2, Section III, Subsection B

 

	
  Part

  	
   

  	
  CFT
  Criteria A

  	
   

  	
  CFT
  Criteria B

  	
   

  	
  CFT
  Criteria C

  	
   

  	
  CFT
  Criteria D

  
	
  1

  	
   

  	
  Ratings Threshold *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1A

  	
   

  	
  ·

  	
  >A

  	
   

  	
  ·

  	
  A-, BBB+ BBB

  	
   

  	
  ·

  	
  BBB-, BB+, BB

  	
   

  	
  ·

  	
  BB-

  
	
   

  	
   

  	
  ·

  	
  >A2

  	
   

  	
  ·

  	
  A3, Baa1, Baa2

  	
   

  	
  ·

  	
  Baa3, Ba1, Ba2

  	
   

  	
  ·

  	
  Ba3

  
	
  2

  	
   

  	
  Third-Party
  Financial Assurance Mechanism (Trust Fund, Letter of Credit) 

  
	
  2A

  	
   

  	
  None
  Required

  	
   

  	
  ·  

  	
  At
  least 20% of sum of total costs for Stack Closure in current dollars and Long
  Term Care in NPV.

  	
   

  	
  ·  

  	
  At
  least 25% of sum of total costs for Stack Closure in current dollars and Long
  Term Care in NPV.

  	
   

  	
  ·

  	
  At
  least 30% of sum of total costs for Stack Closure in current dollars and Long
  Term Care in NPV.

  
	
  3

  	
   

  	
  Financial Metrics Threshold

  
	
  3A

  	
   

  	
  None
  Required

  	
   

  	
  ·  

  	
  TL
  / NW < 2.0 (rolling)

  	
   

  	
  · 

  	
  TL
  / NW < 1.5 (rolling)

  	
   

  	
  ·  

  	
  TL
  / NW < 1.5 (rolling)

  
	
   

  	
   

  	
   

  	
   

  	
  AND

  	
   

  	
  AND

  	
   

  	
  AND

  
	
  3B-1

  	
   

  	
  None
  Required

  	
   

  	
  1.
  CA / CL > 1.5 (rolling)

  	
   

  	
  1.
  CA / CL > 1.5 (rolling)

  	
   

  	
  1.
  CA / CL > 2.0 (rolling)

  
	
   

  	
   

  	
   

  	
   

  	
  OR

  	
   

  	
  OR

  	
   

  	
  AND

  
	
  3B-2

  	
   

  	
  None
  Required

  	
   

  	
  2. Operating Cash Flow  > 1.5 times [the sum of total costs
  for Stack Closure in current dollars and Long Term Care in NPV, minus the
  current market value of third-party financial assurance mechanism ]
  (rolling)**

  	
   

  	
  2. Operating Cash Flow  > 2.0 times [the sum of total costs
  for Stack Closure in current dollars and Long Term Care In NPV, minus the
  current market value of third-party financial assurance mechanism ]
  (rolling)**

  	
   

  	
  2. Operating Cash Flow  > 2.0 times [the sum of total costs
  for Stack Closure in current dollars and Long Term Care, minus the face value
  of third-party financial assurance mechanism ] (annual)**

  
	
  4

  	
   

  	
  Coverage Thresholds

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4A-1

  	
   

  	
  ·

  	
  TNW
  > Six times the sum of total costs for Stack Closure in current
  dollars and Long Term Care, plus the sum of all other environmental obligations
  in current dollars.

  	
   

  	
  ·  

  	
  TNW
  > Six times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV, plus the sum of all other environmental
  obligations in current dollars.

  	
   

  	
  ·  

  	
  TNW
  > Six times the sum of total costs for Stack Closure in current
  dollars and Long Term care in NPV, plus the sum of all other environmental
  obligations in current dollars.

  	
   

  	
  ·  

  	
  TNW
  > Six times the sum of total costs for Stack Closure in current
  dollars and Long Term care in NPV, plus the sum of all other environmental
  obligations in current dollars.

  
	
   

  	
   

  	
  OR

  	
   

  	
  OR

  	
   

  	
  OR

  	
   

  	
  OR

  
	
  4A-2

  	
   

  	
  · 

  	
  TNW
  > Four times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV, plus the sum of all other environmental
  obligations in current dollars, plus 40% in a third-party mechanism.

  	
   

  	
  · 

  	
  TNW
  > Four times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV, plus the sum of all other environmental
  obligations in current dollars, plus 40% in a third-party mechanism .

  	
   

  	
  · 

  	
  TNW
  > Four times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV , plus the sum of all environmental
  obligations in current dollars, plus 40% in a third-party mechanism .

  	
   

  	
  · 

  	
  TNW
  > Four times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV, plus the sum of all other environmental
  obligations in current dollars, plus 40% in a third-party mechanism .

  
	
   

  	
   

  	
  OR

  	
   

  	
  OR

  	
   

  	
  OR

  	
   

  	
  OR

  

 

 

	
  4A-3

  	
   

  	
  ·

  	
   TNW >
  Two times the sum of total costs for Stack Closure in current dollars and
  Long Term Care in NPV, plus the sum of all other environmental obligations in
  current dollars, plus 60% in a third-party mechanism .

  	
   

  	
  ·

  	
  TNW
  > Two times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV, plus the sum of all other environmental
  obligations in current dollars, plus 60% in a third-party mechanism .

  	
   

  	
  ·

  	
  TNW
  > Two times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV, plus the sum of all other environmental
  obligations in current dollars, plus 60% in a third-party mechanism .

  	
   

  	
  ·

  	
  TNW
  > Two times the sum of total costs for Stack Closure in current
  dollars and Long Term Care in NPV, plus the sum of all other environmental
  obligations in current dollars, plus 60% in a third-party mechanism .

  
	
   

  	
   

  	
  AND

  	
   

  	
  AND

  	
   

  	
  AND

  	
   

  	
  AND

  
	
  4B

  	
   

  	
  ·  

  	
  TNW
  of at least $20M

  	
   

  	
  ·  

  	
  TNW
  of at least $20M

  	
   

  	
  ·  

  	
  TNW
  of at least $20M

  	
   

  	
  ·  

  	
  TNW
  of at least $20M

  
	
   

  	
   

  	
  AND

  	
   

  	
  AND

  	
   

  	
  AND

  	
   

  	
  AND

  
	
  4C

  	
   

  	
  ·  

  	
  Tangible
  assets located in the United States > at least 90% of the sum of
  all environmental obligations in current dollars.

  	
   

  	
  ·  

  	
  Tangible
  assets located in the United States > at least 90% of the sum of
  all environmental obligations in current dollars.

  	
   

  	
  ·  

  	
  Tangible
  assets located in the United States > at least 90% of the sum of
  all environmental obligations in current dollars.

  	
   

  	
  ·  

  	
  Tangible
  assets located in the United States > at least 90% of the sum of
  all environmental obligations in current dollars.

  

 

*
Rating shall consist of at least one of the following: (1) Standard &
Poor’s long-term issuer credit rating; (2) Moody’s long-term corporate
family rating; or (3) equivalent rating from a nationally recognized
statistical rating organization (“NRSRO”). 
See Appendix 2, Subsection III.B, Paragraph 14.

 

**  Cannot use the Operating Cash Flow (“OCF”)
financial metric to demonstrate Financial Assurance for a specific fiscal year
if during that fiscal year there is a negative cash flow.  See Appendix 2, Subsection III.B, Paragraph
16.e(2)(b).

 

 

TRUST
AGREEMENT

 

Instructions:  The trust agreement for a trust fund, as
specified in Appendix 2 of the Consent Decree, must be worded as follows,
except that instructions in brackets are to be replaced with the relevant
information and the brackets deleted.  
The Grantor may enter into an addendum to the Trust Agreement (“Addendum”)
required by the Trustee, provided that: (1) the Addendum supplements and does
not contain terms that conflict, supersede, revise or alter the terms of the
Trust Agreement (or the requirements of Appendix 2), and (2) the Addendum is
approved by EPA in advance, such approval is within EPA’s unreviewable
discretion.

 

Trust
Agreement

 

Trust Agreement, the “Agreement,”
entered into as of [date] by and between [name of the owner or operator], a
[name of State] [insert “corporation,” “partnership,” “association,” or “proprietorship”],
the “Grantor,” and [name of corporate trustee], [insert “incorporated in the
State of ----” or “a national bank”], the “Trustee.”

 

Whereas, the United States
Environmental Protection Agency, “EPA,” an agency of the United States
Government, [and name of State Agency, an agency of name of State], “[abbreviation
for state agency]” have entered into a Consent Decree with [name of the owner
or operator] requiring [name of the owner or operator] to provide assurance
that funds will be available when needed for Phosphogypsum Stack System Closure
and/or Long Term Care [and/or Corrective Action] of its facility[ies] covered
under the Consent Decree [need to insert additional description of the Consent
Decree].

 

Whereas, the Grantor has
elected to establish a trust to provide all or part of such financial assurance
for the facilities identified herein,

 

Whereas, the Grantor, acting
through its duly authorized officers, has selected the Trustee to be the
trustee under this agreement, and the Trustee is willing to act as trustee,

 

Now, Therefore, the Grantor
and the Trustee agree as follows:

 

Section 1. Definitions. As
used in this Agreement:

 

(a) The term “Grantor” means
the owner or operator who enters into this Agreement and any successors or
assigns of the Grantor.

 

(b) The term “Trustee” means
the Trustee who enters into this Agreement and any successor Trustee.

 

Section 2. Identification of
Facilities and Cost Estimates. This Agreement pertains to the facilities and
cost estimates identified on attached Schedule A [on Schedule A, for each
facility list the EPA and [abbreviation for state agency] Identification
Number, name, 

 

 

address, and the current
Phosphogypsum Stack System Closure and/or Long Term Care [and/or Corrective
Action] cost estimates, or portions thereof, for which financial assurance is
demonstrated by this Agreement].

 

Section 3. Establishment of
Fund. The Grantor and the Trustee hereby establish a trust fund, the “Fund,”
for the benefit of EPA and [abbreviation for State Agency]. The Grantor and the
Trustee intend that no third party have access to the Fund except as herein
provided. The Fund is established initially as consisting of the property, which
is acceptable to the Trustee, described in Schedule B attached hereto. Such
property and any other property subsequently transferred to the Trustee is
referred to as the Fund, together with all earnings and profits thereon, less
any payments or distributions made by the Trustee pursuant to this Agreement.
The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided. The
Trustee shall not be responsible nor shall it undertake any responsibility for
the amount or adequacy of, nor any duty to collect from the Grantor, any
payments necessary to discharge any liabilities of the Grantor established by
EPA and [abbreviation for State Agency].

 

Section 4. Payment for
Phosphogypsum Stack System Closure and Long Term Care [and Corrective Action].
The Trustee shall make payments from the Fund only as directed in writing by
the appropriate EPA Regional Administrator and/or [State Agency Head] in
accordance with Section 14, to provide for reimbursements to the Grantor or
other persons from the Fund for the payment of the costs of Phosphogypsum Stack
System Closure and/or Long Term Care [and/or Corrective Action] of the
facilities covered by this Agreement.  In
addition, the Trustee shall refund to the Grantor only such amounts as the EPA
Regional Administrator and/or [State Agency Head] specifies in writing.  Upon refund, such funds shall no longer
constitute part of the Fund as defined herein.

 

Section 5. Payments
Comprising the Fund. Payments made to the Trustee for the Fund shall consist of
cash or securities acceptable to the Trustee.

 

Section 6. Trustee
Management. The Trustee shall invest and reinvest the principal and income of
the Fund and keep the Fund invested as a single fund, without distinction
between principal and income, in accordance with general investment policies
and guidelines which the Grantor may communicate in writing to the Trustee from
time to time, subject, however, to the provisions of this Section. In
investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee
shall discharge his/her duties with respect to the trust fund solely in the
interest of the beneficiary and with the care, skill, prudence, and diligence
under the circumstances then prevailing which persons of prudence, acting in a
like capacity and familiar with such matters, would use in the conduct of an
enterprise of a like character and with like aims; except that:

 

(i) Securities or other
obligations of the Grantor, or any other owner or operator of the facilities,
or any of their affiliates as defined in the Investment Company Act of 1940, as
amended, 15 U.S.C. 80a-2.(a), shall not be acquired or held, unless they are
securities or 

 

 

other obligations of the
Federal or a State government;

 

(ii) The Trustee is
authorized to invest the Fund in time or demand deposits of the Trustee, to the
extent insured by an agency of the Federal or State government; and

 

(iii) The Trustee is
authorized to hold cash awaiting investment or distribution un-invested for a
reasonable time and without liability for the payment of interest thereon.

 

Section 7. Commingling and
Investment. The Trustee is expressly authorized in its discretion:

 

(a) To transfer from time to
time any or all of the assets of the Fund to any common, commingled, or
collective trust fund created by the Trustee in which the Fund is eligible to
participate, subject to all of the provisions thereof, to be commingled with
the assets of other trusts participating therein; and

 

(b) To purchase shares in
any investment company registered under the Investment Company Act of 1940, 15
U.S.C. 80a-1 et seq., including one which may be created, managed,
underwritten, or to which investment advice is rendered or the shares of which
are sold by the Trustee. The Trustee may vote such shares in its discretion.

 

Section 8. Express powers of
Trustee. Without in any way limiting the powers and discretions conferred upon
the Trustee by the other provisions of this Agreement or by law, the Trustee is
expressly authorized and empowered:

 

(a) To sell, exchange,
convey, transfer, or otherwise dispose of any property held by it, by public or
private sale. No person dealing with the Trustee shall be bound to see to the
application of the purchase money or to inquire into the validity or expediency
of any such sale or other disposition;

 

(b) To make, execute,
acknowledge, and deliver any and all documents of transfer and conveyance and
any and all other instruments that may be necessary or appropriate to carry out
the powers herein granted;

 

(c) To register any
securities held in the Fund in its own name or in the name of a nominee and to
hold any security in bearer form or in book entry, or to combine certificates
representing such securities with certificates of the same issue held by the
Trustee in other fiduciary capacities, or to deposit or arrange for the deposit
of such securities in a qualified central depositary even though, when so
deposited, such securities may be merged and held in bulk in the name of the
nominee of such depositary with other securities deposited therein by another
person, or to deposit or arrange for the deposit of any securities issued by
the United States Government, or any agency or instrumentality thereof, with a
Federal Reserve bank, but the books and records of the Trustee shall at all
times show that all such securities are part of the Fund;

 

(d) To deposit any cash in
the Fund in interest-bearing accounts maintained or savings 

 

 

certificates issued by the
Trustee, in its separate corporate capacity, or in any other banking
institution affiliated with the Trustee, to the extent insured by an agency of
the Federal or State government; and

 

(e) To compromise or
otherwise adjust all claims in favor of or against the Fund.

 

Section 9. Taxes and
Expenses. All taxes of any kind that may be assessed or levied against or in
respect of the Fund and all brokerage commissions incurred by the Fund shall be
paid from the Fund. All other expenses incurred by the Trustee in connection
with the administration of this Trust, including fees for legal services rendered
to the Trustee, the compensation of the Trustee to the extent not paid directly
by the Grantor, and all other proper charges and disbursements of the Trustee
shall be paid from the Fund.

 

Section 10. Semiannual
Accounting. The Trustee shall, every six (6) months from the date of
establishment of the Fund, furnish to the Grantor and to the appropriate EPA
Regional Administrator (or the designee) and [State Agency Head (or the
designee)], a statement confirming the value of the Trust and a cumulative and
calendar year accounting of the amount the Trustee has released from the Fund
for reimbursement of Phosphogypsum Stack System Closure and Long Term Care [and
Corrective Action] expenditures.  The
Trustee shall furnish additional valuation statements and accountings of the
released funds to the Grantor and to the appropriate EPA Regional Administrator
and [State Agency Head], as instructed in writing by the EPA Regional
Administrator or [State Agency Head]. 
Any securities in the Fund shall be valued at market value as of no more
than sixty (60) days prior to the anniversary date of establishment of the Fund
or sixty (60) days prior to a semi-annual accounting. The failure of the
Grantor to object in writing to the Trustee within ninety (90) days after the
statement has been furnished to the Grantor and the EPA Regional Administrator
and the [State Agency Head] shall constitute a conclusively binding assent by
the Grantor, barring the Grantor from asserting any claim or liability against
the Trustee with respect to matters disclosed in the statement.

 

Section 11. Advice of
Counsel. The Trustee may from time to time consult with counsel, who may be
counsel to the Grantor, with respect to any question arising as to the
construction of this Agreement or any action to be taken hereunder. The Trustee
shall be fully protected, to the extent permitted by law, in acting upon the
advice of counsel.

 

Section 12. Trustee
Compensation. The Trustee shall be entitled to reasonable compensation for its
services as agreed upon in writing from time to time with the Grantor.

 

Section 13. Successor
Trustee. The Trustee may resign or the Grantor may replace the Trustee, but
such resignation or replacement shall not be effective until the Grantor has
appointed a successor trustee and this successor accepts the appointment. The
successor trustee shall have the same powers and duties as those conferred upon
the Trustee hereunder. Upon the successor trustee’s acceptance of the
appointment, the Trustee shall 

 

 

assign, transfer, and pay
over to the successor trustee the funds and properties then constituting the
Fund. If for any reason the Grantor cannot or does not act in the event of the
resignation of the Trustee, the Trustee may apply to a court of competent
jurisdiction for the appointment of a successor trustee or for instructions.
The successor trustee shall specify the date on which it assumes administration
of the trust in a writing sent to the Grantor, the EPA Regional Administrator,
and the [State Agency Head], and the present Trustee by certified mail 10 days
before such change becomes effective. Any expenses incurred by the Trustee as a
result of any of the acts contemplated by this Section shall be paid as
provided in Section 9.

 

Section 14. Instructions to
the Trustee.

 

(a) All orders, requests,
and instructions by the Grantor to the Trustee shall be in writing, signed by
such persons as are designated in the attached Exhibit A or such other
designees as the Grantor may designate by amendment to Exhibit A. The Trustee
shall be fully protected in acting without inquiry in accordance with the
Grantor’s orders, requests, and instructions.

 

(b) All orders, requests,
and instructions by the EPA Regional Administrator and the [State Agency Head]
to the Trustee shall be in writing, signed by both the appropriate EPA Regional
Administrator and [State Agency Head], unless otherwise indicated in
instructions to the Trustee as signed by both the EPA Regional Administrator
and the [State Agency Head].  Initial
instructions by the EPA Regional Administrator and the [State Agency Head] to
the Trustee are attached as Exhibit B.  New,
revised or amended instructions by the EPA Regional Administrator and the
[State Agency Head] to the Trustee will be dated and appended hereto in this
Exhibit and shall be designated Exhibit B followed by a numeric designation (e.g.,
Exhibit B-1, Exhibit B-2).  The Trustee
shall act and shall be fully protected in acting in accordance with the EPA
Regional Administrator’s and/or the [State Agency Head’s] orders, requests, and
instructions.

 

(c) The Trustee shall have
the right to assume, in the absence of written notice to the contrary, that no
event constituting a change or a termination of the authority of any person to
act on behalf of the Grantor, EPA or [State Agency] hereunder has
occurred.  The Trustee shall have no duty
to act in the absence of such orders, requests, and instructions from the
Grantor, EPA and/or the [State Agency], except as provided for herein and found
in Exhibit B.

 

Section 15. Notice of
Nonpayment. The Trustee shall notify the Grantor, the appropriate EPA Regional
Administrator and the [State Agency Head], by certified mail within ten (10)
days following the expiration of the thirty (30)-day period after the
anniversary of the establishment of the Trust, if no payment is received from
the Grantor during that period. After the pay-in period is completed, the
Trustee shall not be required to send a notice of nonpayment.

 

Section 16. Amendment of
Agreement. This Agreement may be amended by an instrument in writing executed
by the Grantor, the Trustee, the appropriate EPA Regional Administrator, and
the [State Agency Head], or by the Trustee, the appropriate EPA 

 

 

Regional Administrator, and
the [State Agency Head] if the Grantor ceases to exist.

 

Section 17. Irrevocability
and Termination. Subject to the right of the parties to amend this Agreement as
provided in Section 16, this Trust shall be irrevocable and shall continue
until terminated at the written agreement of the Grantor, the Trustee, the EPA
Regional Administrator, and the [State Agency Head], or by the Trustee, the EPA
Regional Administrator, and the [State Agency Head] if the Grantor ceases to
exist. Upon termination of the Trust, all remaining trust property, less final
trust administration expenses, shall be delivered to the Grantor.

 

Section 18. Immunity and
Indemnification. The Trustee shall not incur personal liability of any nature
in connection with any act or omission, made in good faith, in the
administration of this Trust, or in carrying out any directions by the Grantor,
the EPA Regional Administrator and/or the [State Agency Head] issued in
accordance with this Agreement. The Trustee shall be indemnified and saved
harmless by the Grantor or from the Trust Fund, or both, from and against any
personal liability to which the Trustee may be subjected by reason of any act
or conduct in its official capacity, including all expenses reasonably incurred
in its defense in the event the Grantor fails to provide such defense.

 

Section 19. Choice of Law.
This Agreement shall be administered, construed, and enforced according to the
laws of the State of [insert name of State].

 

Section 20. Interpretation.
As used in this Agreement, words in the singular include the plural and words in
the plural include the singular. Whenever the terms “EPA Regional Administrator”
and “[State Agency Head]” are used, they shall be construed to include the term
“or his/her designee”. The descriptive headings for each Section of this
Agreement shall not affect the interpretation or the legal efficacy of this
Agreement.

 

In Witness Whereof the
parties have caused this Agreement to be executed by their respective officers
duly authorized and their corporate seals to be hereunto affixed and attested
as of the date first above written: The parties below certify that the wording
of this Agreement is identical to the wording specified in Attachment E-1 of
Appendix 2 of the Consent Decree [need to insert more information regarding the
description of the CD, such as the name of the case, the case number, etc].

 

[Signature
of Grantor]

 

[Title]

 

Attest:

 

[Title]

 

[Seal]

 

 

[Signature
of Trustee]

 

Attest:

 

[Title]

 

[Seal]

 

(2) The following is an
example of the certification of acknowledgment which must accompany the trust
agreement for a trust fund as specified Appendix 2 of the Consent Decree.

 

State of

 

 

County of

 

 

On this [date], before me
personally came [owner or operator] to me known, who, being by me duly sworn,
did depose and say that she/he resides at [address], that she/he is [title] of
[corporation], the corporation described in and which executed the above
instrument; that she/he knows the seal of said corporation; that the seal
affixed to such instrument is such corporate seal; that it was so affixed by
order of the Board of Directors of said corporation, and that she/he signed
her/his name thereto by like order.

 

[Signature
of Notary Public]

 

 

CORPORATE GUARANTEE

 

Instructions:  The corporate guarantee, as specified in
Appendix 2 of the Consent Decree, must be worded as follows, except the
instructions in the brackets are to be replaced with the relevant information,
if applicable, and the brackets deleted.

 

Corporate Guarantee for Phosphogypsum Stack System Closure and Long
Term Care [or/and Corrective Action]

 

Guarantee
made this [date] by [name of guaranteeing entity], a business corporation
organized under the laws of the State of [insert name of State], herein
referred to as guarantor. This guarantee is made on behalf of the [owner or
operator] of [business address], which is [one of the following: “our
subsidiary”; “a subsidiary of (insert name and address of common parent
corporation), of which guarantor is a subsidiary”; or “an entity with which
guarantor has a ‘Substantial Business Relationship,’” as defined in Section I,
Appendix 2, of the Consent Decree (insert citation/docket information of
Consent Decree)] to the United States Environmental Protection Agency (“EPA”)
[and State].

 

Recitals

 

1.
Guarantor meets or exceeds the financial test criteria and agrees to comply
with the reporting requirements for guarantors as specified in Appendix 2 of
the Consent Decree [insert citation/docket information of Consent Decree] (“Consent
Decree” or “Decree”), as applicable.

 

2.
[Owner or operator] owns or operates the following facility(ies) covered by
this guarantee: [List for each facility: EPA Identification Number, name, and
address. Indicate for each whether guarantee is for Phosphogypsum Stack Closure
System, Long Term Care,  or both
Phosphogypsum Stack Closure System and Long Term Care [and/or Corrective
Action].]

 

3.
“Stack Closure Plan” and “Permanent Stack Closure Plan” [and/or “Risk Assessment
Plan,” “Interim Measures Plan” and/or “Corrective Action Plan”], as
applicable,  as used below refer to the
plans maintained as required by the Consent Decree for the Phosphogypsum Stack
System Closure and Long Term Care [and/or Corrective Action]of the
facility(ies) identified above.

 

4.
For value received from [owner or operator], guarantor guarantees to EPA [and
State] that in the event that [owner or operator] fails to perform [insert “Phosphogypsum
Stack System Closure,” “Long Term Care,” or both “Phosphogypsum Stack System
Closure and Long Term Care” [and/or “Corrective Action”] ]of the above
facility(ies) in accordance with the Stack Closure Plan or Permanent Stack
Closure Plan [or and/or Risk Assessment Plan, Interim Measures Plan and/or
Corrective Action Plan], as applicable, the guarantor shall do so or establish
a trust fund as specified in Appendix 2 of the Consent Decree, as applicable,
in the name of [owner or operator] in the amount of the current Phosphogypsum
Stack System Closure and Long Term Care [and/or Corrective Action] Cost
Estimates as specified in the Consent Decree, Appendix 2.

 

 

5.
Guarantor agrees that if, at the end of any fiscal year before termination of
this guarantee, the guarantor fails to meet the financial test criteria,
guarantor shall send within 90 days, by certified mail, notice to the EPA [and
State] as provided for in Section XIV (Notices) of the Consent Decree, the EPA
Regional Administrator for Region 4, and to [owner or operator] that the
guarantor intends to provide alternate Financial Assurance as specified in
Appendix 2 of the Consent Decree, as applicable, in the name of [owner or
operator]. Within 120 days after the end of such fiscal year, the guarantor
shall establish such Financial Assurance unless [owner or operator] has done
so.  Guarantor also agrees that if it
determines that it no longer meets the financial test criteria, it shall notify
the EPA [and State] as provided for in Section XIV (Notices) of the Consent
Decree, the EPA Regional Administrator for Region 4, and [owner or operator]
that it intends to provide alternate Financial Assurance as specified in
Appendix 2 of the Consent Decree, as applicable, in the name of [owner or
operator]. Within 30 days after the guarantor provides notice, the guarantor
shall establish such Financial Assurance unless [owner or operator] has done
so.

 

6.
The guarantor agrees to notify the EPA [and State] as provided for in Section
III, Appendix 2 of the Consent Decree (Paragraph 11 or Paragraph 16, as
applicable), and the EPA Regional Administrator for Region 4, by certified
mail, of a voluntary or involuntary proceeding under Title 11 (Bankruptcy),
U.S. Code, naming guarantor as debtor, within 10 days after commencement of the
proceeding.

 

7.
Guarantor agrees that within 30 days after being notified by the EPA [(or
State)] of a determination that guarantor no longer meets the financial test
criteria or that it is disallowed from continuing as a guarantor of
Phosphogypsum Stack System Closure and/or Long Term Care [and/or Corrective
Action], it shall establish alternate Financial Assurance as specified in
Appendix 2 of the Consent Decree, as applicable, in the name of [owner or
operator] unless [owner or operator] has done so.

 

8.
Guarantor agrees to remain bound under this guarantee notwithstanding any or
all of the following: amendment or modification of the Stack Closure Plan or
Permanent Stack Closure Plan [and/or Risk Assessment Plan, Interim Measures
Plan and/or Corrective Action Plan], as applicable, amendment or modification
of the Consent Decree, the extension or reduction of the time of performance of
Phosphogypsum Stack System Closure or Long Term Care [or Corrective Action], or
any other modification or alteration of an obligation of the owner or operator pursuant
to the Consent Decree.

 

9.
Guarantor agrees to remain bound under this guarantee for as long as [owner or
operator] must comply with the applicable Financial Assurance requirements of
the Consent Decree, including  Appendix 2
of the Decree, for the above-listed facility, except as provided in paragraph
10 of this agreement.

 

10.
(Insert the following language if the guarantor is (a) a direct or higher-tier
corporate parent, or (b) a firm whose parent corporation is also the parent
corporation of the owner or operator):

 

Guarantor
may terminate this guarantee by sending notice to EPA and the State of Florida
as provided for under Section XIV (Notices) of the Consent Decree, the EPA
Regional 

 

 

Administrator
for Region 4, and to [owner or operator], by certified mail, provided that this
guarantee may not be terminated unless and until [owner or operator] obtains,
and the EPA [and State] approve(s), alternate Financial Assurance for
Phosphogypsum Stack System Closure and/or Long Term Care [and/or Corrective
Action] in compliance with the Consent Decree, including Appendix 2.

 

[Insert
the following language if the guarantor is a firm qualifying as a guarantor due
to its “substantial business relationship” with its owner or operator]

 

Guarantor
may terminate this guarantee 120 days following the receipt of notification,
through certified mail, by the EPA [and State] and by [owner or operator].

 

11.
Guarantor agrees that if [owner or operator] fails to provide alternate
Financial Assurance as specified in the Consent Decree, Appendix 2, as
applicable, and obtain written approval of such Financial Assurance from the
EPA [and State] within 90 days after a notice of cancellation by the guarantor
is received by the notificants in paragraph 10, above, from guarantor,
guarantor shall provide such alternate Financial Assurance in the name of
[owner or operator].

 

12.
Guarantor expressly waives notice of acceptance of this guarantee by the EPA
[and State] or by [owner or operator]. Guarantor also expressly waives notice
of amendments or modifications of the Stack Closure Plan or Permanent Stack
Closure Plan [and/or Risk Assessment Plan, Interim Measures Plan and/or
Corrective Action Plan], as applicable and of amendments or modifications of
the Consent Decree.

 

I
hereby certify that the wording of this guarantee is identical to the wording
required under the Consent Decree.

 

Effective
date:

 

Name
of guarantor

 

Authorized
signature for guarantor

 

Name
of person signing

 

Title
of person signing

 

Signature
of witness or notary:

 

 

	
  

  	
  CF Industries,
  Inc., Plant City Facility  82-10 W 82-9
  W 82-8 W 82-7 W 82-6 W  28-11 N 28-11
  N  Legend shp39138.shp Interstates US
  Highways State Highways Local Roads Cities (census places)  28-10 N 28-10 N  28-9 N 28-9 N  82-10 W 82-9 W 82-8 W 82-7 W 82-6 W  0 4000 8000 12000 ft. Scale: 1: 40,000 Map
  center: 582571, 463089  [Florida
  Department of Environmental Protection] Disclaimer: This map is intended for
  display purposes only. It was created using data from different sources
  collected at different scales, with different levels of accuracy, and/or
  covering different periods of time. 
  Notes: Plant City Phosphoric Acid and Ammoniated Facility; Vicinity
  Latitude: 28Â° 10' 8.49”, Longitude: 82Â° 8' 31.89”

  

 

 

EXHIBIT “A”

 

DESCRIPTION:
(WRITTEN)

 

BEING
A PART OF SECTIONS 5, 6, 7 AND 8 OF TOWNSHIP 27 SOUTH, RANGE 22 EAST,
HILLSBOROUGH COUNTY, FLORIDA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: FOR A
POINT OF BEGINNING COMMENCE AT THE SOUTHEAST CORNER OF SECTION 5, TOWNSHIP
27 SOUTH, RANGE 22
EAST,  THENCE
PROCEED NORTH 00 DEGREES 40 MINUTES 52 SECONDS WEST ALONG THE EAST BOUNDARY OF
SAID SECTION 5, FOR A DISTANCE OF 634.38 FEET, THENCE SOUTH 89 DEGREES 19
MINUTES 08 SECONDS WEST FOR A DISTANCE OF 38.04 FEET, THENCE SOUTH 56 DEGREES 04
MINUTES 58  SECONDS WEST FOR A DISTANCE
OF 1042.23 FEET, THENCE NORTH 77 DEGREES 56 MINUTES 54 SECONDS WEST FOR A DISTANCE OF 765.27 FEET, THENCE
NORTH 78 DEGREES 36 MINUTES 45 SECONDS WEST FOR A DISTANCE OF 117.85 FEET,
THENCE NORTH 83 DEGREES 07 MINUTES 26 SECONDS WEST FOR A DISTANCE OF 90.06
FEET, THENCE SOUTH 89 DEGREES 44 MINUTES 15 SECONDS WEST FOR A DISTANCE OF
142.58 FEET, THENCE SOUTH 77 DEGREES 21 MINUTES 31 SECONDS WEST FOR A DISTANCE
OF 103.66 FEET, THENCE SOUTH 70 DEGREES 58 MINUTES 02 SECONDS WEST FOR A
DISTANCE OF 206.70 FEET, THENCE SOUTH 72 DEGREES 51 MINUTES 45 SECONDS WEST FOR A DISTANCE OF 133.10
FEET, THENCE SOUTH 86 DEGREES 01 MINUTES 35 SECONDS WEST FOR A DISTANCE OF
816.70 FEET, THENCE NORTH 89 DEGREES 25 MINUTES 48 SECONDS WEST FOR A DISTANCE
OF 279.13 FEET, THENCE NORTH 84 DEGREES 11 MINUTES 13 SECONDS WEST FOR A DISTANCE
OF 199.57 FEET, THENCE NORTH 89 DEGREES 16 MINUTES 40 SECONDS WEST FOR A DISTANCE OF 229.45
FEET, THENCE SOUTH 89 DEGREES 51 MINUTES 43 SECONDS WEST FOR A DISTANCE OF 1699.02
FEET, THENCE NORTH 00 DEGREES 36 MINUTES 35 SECONDS EAST FOR A DISTANCE OF 512.23
FEET, THENCE NORTH 82 DEGREES 46 MINUTES 45 SECONDS WEST FOR A DISTANCE OF
29.05 FEET, THENCE SOUTH 72 DEGREES 10 MINUTES 32 SECONDS WEST FOR A DISTANCE
OF 216.73 FEET, THENCE  NORTH 89 DEGREES 09
MINUTES 55 SECONDS WEST FOR A DISTANCE OF 769.31 FEET, THENCE NORTH 47 DEGREES
33 MINUTES 50 SECONDS WEST FOR A DISTANCE OF 267.08 FEET, THENCE NORTH 31
DEGREES 32 MINUTES 59 SECONDS WEST FOR A DISTANCE OF 202.24 FEET, THENCE SOUTH
87 DEGREES 33 MINUTES 17 SECONDS WEST FOR A DISTANCE OF 415.38 FEET, THENCE
SOUTH 75 DEGREES 34 MINUTES 47
SECONDS WEST FOR A DISTANCE OF 225.88 FEET, ‘THENCE SOUTH 73 DEGREES 53 MINUTES
00 SECONDS WEST FOR A DISTANCE OF 139.02 FEET, THENCE SOUTH 01 DEGREES 30
MINUTES 26 SECONDS WEST FOR A DISTANCE OF 880.65 FEET TO A POINT ON A LINE
BEING 100.00 FEET SOUTH OF AND PARALLEL WITH THE NORTH BOUNDARY OF THE
NORTHEAST 1/4 OF AFORESAID SECTION 7,
THENCE SOUTH 89 DEGREES 24 MINUTES 51 SECONDS EAST ALONG SAID LINE, FOR A
DISTANCE OF  1724.14 FEET TO A POINT ON A LINE
BEING 675.00 FEET WEST  OF AND PARALLEL WITH THE EAST
BOUNDARY OF AFORESAID  SECTION 7, THENCE SOUTH 00
DEGREES 05 MINUTES 55 SECONDS  WEST ALONG SAID LINE,
FOR A DISTANCE OF 510.00 FEET,  THENCE SOUTH 89 DEGREES 24 MINUTES
51 SECONDS EAST FOR A  DISTANCE OF 425.00 FEET TO A POINT
ON A LINE BEING 250.00 FEET WEST OF AND PARALLEL WITH THE EAST BOUNDARY OF SAID  SECTION 7, THENCE
SOUTH 00 DEGREES 05 MINUTES 55 SECONDS  WEST ALONG SAID LINE,
FOR A DISTANCE OF 3407.54 FEET TO A  POINT ON A LINE BEING
1320.00 FEET NORTH OF AND PARALLEL  WITH THE  SOUTH
BOUNDARY OF THE SOUTHEAST 1/4 OF SAID  SECTION 7, THENCE
SOUTH 89 DEGREES 50 MINUTES 23 SECONDS  EAST ALONG SAID LINE,
FOR A DISTANCE OF 250.00 FEET TO THE  EAST BOUNDARY OF SAID SECTION 7.
THENCE NORTH 89 DEGREES  17 MINUTES 05 SECONDS EAST ALONG A
LINE BEING 1320.00 FEET  NORTH OF AND PARALLEL WITH THE SOUTH
BOUNDARY OF AFORESAID  SECTION 8, FOR A DISTANCE
OF 5319.49 FEET TO THE EAST  BOUNDARY OF SAID SECTION 8,
THENCE NORTH 00 DEGREES 27 MINUTES 40 SECONDS EAST ALONG SAID EAST BOUNDARY,
FOR A  DISTANCE OF 3972.17 FEET TO THE POINT OF BEGINNING.

 

 

APPENDIX 4

FACILITY REPORT

EXECUTIVE SUMMARY

 

These summary charts provide
an overview of the Upstream, Downstream, and Mixed-Use Units at CF Industries’
Plant City Facility. They do not substitute for the diagrams or text in the
Facility Report, and in case of any conflict between these summary charts and
the diagrams/text, the diagrams shall control.

 

“A” Phosphoric Acid Plant (APAP) Designations

 

APAP Upstream

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit ID

  	
   

  
	
  A-Reactors

  	
   

  	
  n/a

  	
   

  
	
  Filter Feed Tank

  	
   

  	
  n/a

  	
   

  
	
  Bird Filter

  	
   

  	
  n/a

  	
   

  
	
  Belt Filter

  	
   

  	
  n/a

  	
   

  
	
  Gypsum Repulp Tank

  	
   

  	
  n/a

  	
   

  
	
  A-40 Evaporators

  	
   

  	
  n/a

  	
   

  
	
  B-Aging Tank

  	
   

  	
  332B

  	
   

  
	
  A-Aging Tank

  	
   

  	
  332A

  	
   

  
	
  A-54 Evaporators

  	
   

  	
  n/a

  	
   

  

 

 

APAP Mixed-Use

 

	
  Unit Name (Alternative Name)

  	
   

  	
  Unit ID

  	
   

  
	
  North 28 Tank

  	
   

  	
  32006

  	
   

  
	
  South 28 Tank

  	
   

  	
  32007

  	
   

  
	
  Gyp Settler

  	
   

  	
  331

  	
   

  
	
  APAP Acid Fume Scrubber (APAP Air Pollution
  Control Device (APCD))

  	
   

  	
  APCD

  	
   

  

 

APAP Downstream Co-managed with Upstream (Grandfathered)

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit/Line ID

  
	
  Transport
  pipes from 54 Holding or Gyp Settler Tank to XYZ DAP

  	
   

  	
  54%
  Receiving Line and 54% Transfer Line

  
	
  Transport
  Pipes from Gyp Settler to A DAP

  	
   

  	
  54%
  Transfer APAP to A DAP

  
	
  54
  Holding Tank (54 Acid Tank )

  	
   

  	
  234

  
	
  Transport
  Pipes from 54 Holding Tank to North 54 Tank in BPAP

  	
   

  	
  54%
  Receiving Line

  
	
  Transport
  Pipes from 54 Holding Tank to South 54 Tank in BPAP

  	
   

  	
  54%
  Receiving Line

  
	
  Transport
  Pipes from 54 Holding Tank to #3 54 Aging Tank in BPAP

  	
   

  	
  54%
  Receiving Line

  
	
  Transport
  Pipes from 54 Holding Tank to A DAP 54 Storage Tank

  	
   

  	
  54%
  Transfer APAP to A DAP

  
	
  Transport
  Pipes from North 28/South 28 Tanks to A DAP East 28/West 28 Tanks

  	
   

  	
  28%
  Transfer to A DAP

  
	
  Transport
  Pipes from Lamella Clarifiers to A DAP 54 storage tank (532A)

  	
   

  	
   

  

 

	
  CF Industries, Inc

  	
   

  
	
  Facility Report

  	
   

  

 

2

 

APAP Downstream

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit ID

  	
   

  
	
  XYZ DAP North 26 Tank

  	
   

  	
  563B

  	
   

  
	
  XYZ DAP South 26 Tank

  	
   

  	
  561B

  	
   

  
	
  XYZ DAP North 54 Tank

  	
   

  	
  563A

  	
   

  
	
  XYZ DAP South 54 Tank

  	
   

  	
  561A

  	
   

  
	
  A DAP 54 Storage Tank

  	
   

  	
  532A

  	
   

  
	
  All Associated Equipment XYZ DAP

  	
   

  	
  n/a

  	
   

  
	
  All Associated Equipment A DAP

  	
   

  	
  n/a

  	
   

  
	
  A DAP East 26 Tank

  	
   

  	
  431B

  	
   

  
	
  A DAP West 26 Tank

  	
   

  	
  431A

  	
   

  
	
  XYZ DAP S-274 Tank

  	
   

  	
  na

  	
   

  

 

“B” Phosphoric Acid Plant (BPAP)
Designations

 

BPAP Upstream

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit ID

  	
   

  
	
  B-Attack Tank

  	
   

  	
  n/a

  	
   

  
	
  #1 Filtrate Tank

  	
   

  	
  n/a

  	
   

  
	
  Bird Filter

  	
   

  	
  n/a

  	
   

  
	
  Belt Filter

  	
   

  	
  n/a

  	
   

  
	
  Gypsum Repulp Tank

  	
   

  	
  n/a

  	
   

  
	
  B-40 Evaporators

  	
   

  	
  n/a

  	
   

  
	
  40-Aging Tank

  	
   

  	
  2321

  	
   

  
	
  40-Clarifier

  	
   

  	
  2322

  	
   

  
	
  B-54 Evaporators

  	
   

  	
  n/a

  	
   

  

 

3

 

BPAP Mixed-Use

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit ID

  	
   

  
	
  East 28 Tank

  	
   

  	
  32613

  	
   

  
	
  West 28 Tank

  	
   

  	
  32634

  	
   

  
	
  #3 54 Aging Tank

  	
   

  	
  33450

  	
   

  
	
  BPAP Acid Fume Scrubber (BPAP Air Pollution
  Control Device (APCD))

  	
   

  	
  APCD

  	
   

  

 

BPAP
Downstream Co-managed with Upstream (Grandfathered)

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit/Line ID

  
	
  Transport
  Pipes from East 28 Tank/West 28 Tank to XYZ DAP North 26 Tank

  	
   

  	
  New
  28 Line/Old 28 Line

  
	
  Transport
  Pipes from East 28 Tank/West 28 Tank to XYZ DAP South 26 Tank

  	
   

  	
  New
  28 Line/Old 28 Line

  
	
  North
  54 Tank

  	
   

  	
  2351A

  
	
  Transport
  Pipes from North 54 Tank to XYZ DAP North 54 Tank

  	
   

  	
  54%
  Transfer Line

  
	
  Transport
  Pipes from North 54 Tank to XYZ DAP S-274 Tank

  	
   

  	
  54%
  Transfer Line

  
	
  Transport
  Pipes from North 54 Tank to XYZ DAP South 54 Tank

  	
   

  	
  54%
  Transfer Line

  
	
  South
  54 Tank

  	
   

  	
  2351B

  
	
  Transport
  Pipes to South 54 and North 54 Tanks from 54 Holding Tank in APAP

  	
   

  	
  54%
  Receiving Line

  
	
  Transport
  Pipes from South 54 Tank to XYZ DAP North 54 Tank

  	
   

  	
  54%
  Transfer Line

  
	
  Transport
  Pipes from South 54 Tank to XYZ DAP S-274 Tank

  	
   

  	
  54%
  Transfer Line

  
	
  Transport
  Pipes from South 54 Tank to XYZ DAP South 54 Tank

  	
   

  	
  54%
  Transfer Line

  

 

4

 

	
  Transport
  Pipes from #3 54 Aging Tank to XYZ DAP North 54 Tank,
  XYZ DAP South 54 Tank and XYZ DAP
  S-274 Tank

  	
   

  	
  54%
  Transfer Line

  
	
  Transport
  Pipes to #3 54 Aging Tank from APAP 54 Holding Tank

  	
   

  	
  54%
  Receiving Line

  
	
  Transport
  Pipes from East 28 Tank/ West 28 Tank to XYZ DAP S-274 Tank

  	
   

  	
  New
  28 Line/ Old 28 Line

  

 

BPAP Downstream

 

	
  Unit Name (Alternative Name)

  	
   

  	
  Unit ID

  
	
  XYZ
  DAP North 26 Tank

  	
   

  	
  563B

  
	
  XYZ
  DAP South 26 Tank

  	
   

  	
  561B

  
	
  XYZ
  DAP North 54 Tank

  	
   

  	
  563A

  
	
  XYZ
  DAP South 54 Tank

  	
   

  	
  561A

  
	
  All
  Associated Equipment XYZ DAP

  	
   

  	
  n/a

  
	
  All
  Associated Equipment A DAP

  	
   

  	
  n/a

  
	
  XYZ
  DAP S-274 Tank

  	
   

  	
  n/a

  

 

Acid Clean-up (ACU) Plant
Designations

 

ACU Upstream

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit ID

  
	
  North
  26 Tank (26% Storage Tank)

  	
   

  	
  11000A

  
	
  North
  Clarifier (26% Clarifier )

  	
   

  	
  11026A

  
	
  A
  Carbon Column Tank (A CC)

  	
   

  	
  ACC
  Feed or 11021N

  
	
  South
  40 Tank (40% Storage Tank)

  	
   

  	
  110008

  
	
  South
  Clarifier (40% Clarifier)

  	
   

  	
  11026B

  
	
  B
  Carbon Column Tank (B CC)

  	
   

  	
  BCC
  or 11021S

  

 

5

 

ACU Mixed-Use

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit ID

  
	
  Green
  Acid Tank

  	
   

  	
  10-58325

  
	
  ACU
  Fume Scrubber (ACU Air Pollution Control Device (APCD))

  	
   

  	
  APCD

  

 

ACU Downstream Co-managed with Upstream (Grandfathered)

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit/Line ID

  
	
  Transport
  Pipes from Green Acid Tank to A DAP East 26 and West 26 Tanks

  	
   

  	
  “C”
  Green Acid Line

  
	
  Transport
  Pipes from Green Acid Tank to XYZ DAP South 26 Tank

  	
   

  	
  New
  “A” Green Acid Line and “B” Green Acid Line and “C” Green Acid Line

  
	
  Transport
  Pipes from Green Acid Tank to XYZ DAP North 26 Tank

  	
   

  	
  New
  “A” Green Acid Line and “B” Green Acid Line and “C” Green Acid Line

  
	
  Transport
  Pipes from Green Acid Tank to XYZ DAP S-274 Tank

  	
   

  	
  New
  “A” Green Acid Line and “B” Green Acid Line and “C” Green Acid Line

  

 

ACU Downstream 

 

	
  Unit Name
  (Alternative Name)

  	
   

  	
  Unit ID

  
	
  A
  DAP West 26 Tank

  	
   

  	
  431A

  
	
  XYZ
  DAP North 26 Tank

  	
   

  	
  563B

  
	
  XYZ
  DAP South 26 Tank

  	
   

  	
  561B

  
	
  All
  Associated Equipment XYZ DAP

  	
   

  	
  n/a

  
	
  All
  Associated Equipment A DAP

  	
   

  	
  n/a

  
	
  A
  DAP East 26 Tank

  	
   

  	
  431B

  
	
  XYZ
  DAP S-274 Tank

  	
   

  	
  n/a

  

 

6

 

APPENDIX 4

FACILITY REPORT

 

CF INDUSTRIES, INC

PLANT CITY, FLORIDA COMPLEX

EPA ID NO. FLD 046 088 829

 

I. Purpose

 

The purpose of this Facility
Report is to:

 

1.               Identify CF
Industries, Inc’s (CF) current Upstream and Downstream Operations at its Plant
City Facility, its Mixed-Use air pollution control devices (APCDs), and its
Mixed-Use tanks, pipes, and other ancillary equipment involved in the
production of phosphoric acid.

2.               Identify
certain units in Downstream Operations, the cleaning wastes from which may be
managed with wastes from Upstream Operations due to the particular
configuration of the Facility (Grandfathered Units).

3.               Address
phosphoric acid product and sulfuric acid leaks and spills within the
phosphoric acid plants.

4.               Address certain
proposed changes to CF’s operations to reinstate uranium extraction and
recovery, as well as a new phosphoric acid recovery system, at the CF Facility.

5.               Identify
categories of future equipment installations, the wastes from which may be
co-managed with Bevill-exempt wastes when meeting the conditions set forth in
Section VIII of this Facility Report.

 

Hazardous wastes generated
from the production of sulfuric acid and its transport to the phosphoric acid
plants are not within the scope of this Report.

 

II. Background

 

CF’s primary commercial
products are the solid ammoniated phosphate fertilizers, monoammonium phosphate
(MAP) and diammonium phosphate (DAP). DAP is manufactured in four production
trains designated as A-DAP/MAP (A DAP), X-DAP/MAP (X DAP), Y-DAP/MAP (Y DAP),
and Z-DAP/MAP (Z DAP). MAP is also produced in A-DAP/MAP and/or Y-DAP/MAP, and
is permitted at X-DAP/MAP and Z-DAP/MAP. Ammonia and phosphoric acid (P2O5) are the primary reactants for MAP and DAP and are
consumed in the production of ammoniated fertilizers on-site.

 

Phosphoric acid is produced
by the digestion of phosphate rock with sulfuric acid. CF manufactures
phosphoric acid in two production plants on-site designated as “A” Phosphoric
Acid Plant (APAP) and “B” Phosphoric Acid Plant (BPAP). Acid is clarified in a
separate production area designated as “Acid Clean-up (ACU).” The reaction
yields phosphoric acid and phosphogypsum (gypsum). Gypsum is filtered from the
phosphoric acid on a belt filter or tilting pan filter (bird filter), slurried
with process wastewater in a Gypsum Repulp Tank, and the resultant slurry is
pumped to a lined phosphogypsum storage stack (“gypstack”). Because the

 

 

production of phosphoric
acid is a water-intensive process and water is used throughout the process (e.g.,
as phosphoric acid dilution water, in boilers, ball mills, evaporators, and as
a pipe and tank cleaning agent), approximately 806 million gallons of pond
water is constantly stored in and circulating throughout the facility’s
production processes, internal process water ditches, and the cooling ponds and
ditches associated with the gypstack (cooling pond system).

 

CF disposes of slurried
gypsum in a 197-acre, 60-mil high density polyethylene (HDPE) lined gypstack
expansion located south of the closed 410-acre gypstack. CF also disposes of
slurried gypsum in a 111-acre vertical expansion gypstack lined with 60-mil
HDPE. The 111-acre vertical expansion is located between the 410-acre gypstack
and the 197-acre expansion gypstack. The two lined gypsum disposal areas
provide a combined 308-acre lined gypstack base. The combined lined expansion
area operates in conjunction with the 60-mil HDPE existing lined cooling pond
system. The gypstack and associated cooling pond system is collectively
referred to as the phosphogypsum stack system.

 

CF’s cooling pond system
encompasses 93-acres and is lined with 60-mil HDPE. The cooling pond system
consists of an 80-acre main cooling pond located directly east of the
production complex, a 13-acre lined emergency holding pond, and the ponds’
connecting ditches. CF operates the phosphogypsum stack system under an
Industrial Wastewater Facility Permit issued by the Florida Department of
Environmental Protection (FDEP).

 

III. First
Saleable Products at CF

 

The line marking the
division between Upstream and Downstream Operations lies at the point of
generation of the First Saleable Product. CF does not currently manufacture or
sell Merchant Grade Acid. It generates two First Saleable Products used as
direct feedstocks to MAP or DAP production: 26% P2O5(1) that is routed to MAP/DAP rather than to further concentration
steps, and 54% P2O5. All Downstream Operations
at CF are associated with the storage, transport or use of these First Saleable
Products in MAP/DAP operations.

 

IV. Current
Phosphoric Acid Production

 

Diagram 13 identifies
Upstream Operations, Downstream Operations, Mixed-Use Units for APAP, BPAP and
ACU, and certain Downstream Operations generating cleaning wastes that may be
managed with wastes from Upstream Operations.

 

(1) Note that although the
terms P2O5 and phosphoric acid (H3PO4) are used interchangeably,
the concentrations are not interchangeable. CF manufactures phosphoric acid,
however, in this document we refer to the concentration of the acid in terms of
P2O5 concentration, rather than
phosphoric acid concentration. P2O5 concentration can converted to an approximate concentration of
phosphoric acid by multiplying by 1.3808. Phosphoric acid is converted to an
approximate concentration of P2O5 by multiplying by 0.7242.

 

8

 

APAP Including ACU

 

CF’s APAP is fully concrete
paved and approximately 50% of it has 60-mil HDPE liner installed below the
concrete. Below-grade concrete trenches throughout APAP convey process water
from the plant to the phosphogypsum stack system at a flow rate of
approximately 20,000 — 30,000 gallons per minute (gpm). The main process water
return ditches to the cooling pond system within the plant are lined with
stainless steel and/or acid-resistant brick over concrete.

 

Standard
Acid Flow Configuration

 

APAP currently produces
three concentrations of P2O5 for use in
fertilizer manufacturing- 26% P2O5 (interchangeably referred to as
28% P2O5), 40% P2O5 and 54% P2O5. The 26% P2O5 that is not used directly as
feedstock to fertilizer manufacturing is further processed to 54% P2O5 in Upstream Operations (note that
interchangeable acid flow routes are denoted in brackets and described in
further detail later in this Report).

 

The current phosphoric acid
manufacturing process described below is illustrated in process block flow
Diagram 1.

 

Post-Reactor, unclarified
26% P2O5 is pumped through the Filter Feed Tank to
either the Belt Filter or the Bird Filter. From the Belt Filter and Bird Filter,
the unclarified 26% P2O5 is either transferred to DAP or processed for
26% acid clarification or processed for concentration to 40% P2O5 and
eventually to 54% P2O5.

 

26% Acid Processed for 26%
Acid Clarification

·                   26% P2O5 from the #1 Filtrate Tanks is pumped to the
ACU North 26 Tank (11000A) [or to the APAP North 28 Tank (32006) or APAP South
28 Tank (32007), as described below] and then from the ACU North 26 Tank to the
ACU North Clarifier (11026A) for clarification; 

·                   Overflow (clarified 26% P2O5 from the ACU
North Clarifier is pumped to the A Carbon Column (A CC, 11021N) Tank and then
to the ACU Green Acid Tank (10-58325);

·                   Clarified 26% P2O5 is pumped
from the ACU Green Acid Tank to any of the following tanks: 1) A DAP West/East
26 Tank (431A/B); or 2) the XYZ DAP North 26 Tank (563B); or 3) XYZ DAP South
26 Tank (561B); or 4) XYZ DAP S-274 Tank; or 5) to the APAP North 28 Tank or
APAP South 28 Tank; or 6) to BPAP East 28 Tank (32613) or BPAP West 28 Tank
(32634).

·                   Underflow (solids) from the
ACU North Clarifier is fed to two 15 m2elt filters located in ACU (ACU belt filters). The
solids are rinsed to recover residual phosphoric acid. The acidic rinsate is
pumped back into the ACU North 26 Tank or to the ACU Green Acid Tank. 

·                   Rinsed solids from the ACU
belt filters are then either pumped to the APAP or BPAP Bird Filters for a
second stage of phosphoric acid recovery or pumped to the gypsum repulp tank
for disposal on the gypstack.

 

26%
Acid Processed to 40% Acid and then to 54% Acid

·                  26% P2O5 from the #1 Filtrate Tanks is pumped to the
APAP North 28 Tank or APAP South 28 Tank [or to ACU as described above];

 

9

 

·                  From the APAP North 28 Tank
or APAP South 28 Tank, 26% P2O5 is fed to the A-40 (evaporators (A, B, C, D,
or E) for concentration to 40% P2O5 [or is transferred to BPAP East
or BPAP West 28 Tanks or to A,X,Y or Z DAP]; 

·                  The 40% P2O5 is piped from
the evaporators to the B-Aging Tank (332B); 

·                  From the B-Aging (Tank), 40%
P2O5 is pumped to the ACU South 40 Tank (110008)
and is then fed to the ACU South Clarifier (110008); 

·                  Underflow (solids) from the
ACU South Clarifier is pumped to the ACU North Clarifier and the combined
solids from both clarifiers are pumped back to the Reactor or to the ACU Belt
Filter for phosphoric acid recovery; 

·                  Overflow (clarified 40% P2O5) from the ACU South Clarifier is pumped to the
B-Carbon Column (B CC, 11021S) Tank then to the A-Aging Tank (332A) and then to
the A-54 Evaporators; 

·                  After the evaporators have
concentrated the 40% P2O5 to 54% P2O5 the 54% P2O5 is pumped to
the 54 Holding Tank (234) or to the Gyp Settler Tank (331); 

·                  The 54% P2O5 is
transferred from the 54 Holding Tank or Gyp Settler Tank to: 1) the North 54
Tank (2351A) or the South 54 Tank (2351B) or the BPAP #3 54 Aging Tank (33450);
or 2) the A DAP 54 Storage Tank (532A); or 3) the XYZ DAP North 54 Tank (563A)
and/or XYZ DAP S-274 Tank and/or the XYZ DAP South 54 Tank (561A). Prior to
transferring the 54% P2O5 (to the above tanks), the 54% P2O5 may be pumped
to the Lamella clarifiers for clarification. (2)

 

Note: Solids settled from
the APAP North 28 Tank and APAP South 28 Tank are pumped to the filter feed
tank or directly back to either the Bird or Belt Filter to recover phosphoric
acid values.

 

Alternative
to Standard Acid Flow Configuration

 

When the ACU North Clarifier
is not functioning or maintenance/cleaning is being performed on the ACU North
26 Tank, CF routes unclarified 26% P2O5 (that would typically be
directed to the evaporators for concentration to 40% P2O5) directly to DAP operations from the APAP North 28
Tank or APAP South 28 Tank through the confines of the BPAP to the XYZ DAP
North 26 Tank or to the XYZ DAP S-274 Tank or to the XYZ DAP South 26 Tank.

 

If the 54 Holding Tank is
down for service or maintenance, CF uses the Gyp Settler Tank as an alternate
swing tank for storage of 54% P2O5. The Gyp Settler Tank may also serve as alternate storage for 26% P2O5 and 40% P2O5.

 

When the ACU South Clarifier
is not functioning or maintenance/cleaning is being performed on the South 40
Tank, CF routes unclarified 40% P2O5 directly from B-Aging Tank to
A-Aging Tank

 

(2) EPA acknowledges that at
times, the 54% P2O5 exiting CF’s Lamella
clarifiers may contain less than 1% solids and therefore, during those times,
would meet the definition of Merchant Grade Acid (MGA). If, along with the
conditions provided in the Consent Decree, CF completes the pre-approved
projects to segregate APAP and BPAP cleaning wastes from downstream cleaning
wastes and does not consistently manufacture MGA for on-site use and does not
sell MGA, then the grandfathered units identified in this report will maintain
their designations.

 

10

 

 

Diagram 1. Block flow
diagram of the production of phosphoric acid in APAP.

 

 

Phosphoric
Acid Transfer Lines

 

Upstream
Cross-Transfer between APAP and BPAP

CF currently has one primary
transfer line (approximately 734 total feet in length) that serves to transport
26% P2O5 between APAP and BPAP. The line is designated
as the New-New 28% line. The line is cleaned with pond water and/or condensate
approximately twice per month to remove precipitated solids and scale to
maintain acceptable pressure levels and acid flow rates. The location of the
transfer line is illustrated in Diagram 2. The line designation and cleaning
frequency listed in Table 1.

 

APAP
& BPAP Upstream Transfers

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cleaning

  	
   

  	
  Length

  
	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Frequency

  	
   

  	
  (ft)

  
	
  26%
  acid

  	
   

  	
  New-New
  28% Line

  	
   

  	
  Transfers 26% P2O5 between APAP and BPAP

  	
   

  	
  2x/
  month

  	
   

  	
  612

  
	
  Estimate for Existing Lines

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
   

  	
   

  	
  612

  
	
   

  	
   

  	
   

  	
   

  	
  Estimated
  Vertical Runs- Basis 20% Factor (Ft)

  	
   

  	
   

  	
   

  	
  122

  
	
   

  	
   

  	
   

  	
   

  	
  Total
  Estimated Piping Length (Ft)

  	
   

  	
   

  	
   

  	
  734

  

 

Table 1.  Pipe designation associated with the upstream
transfer of phosphoric acid between APAP and BPAP.

 

 

 

Diagram 2. Pipes
designated for the upstream transfer of phosphoric acid between APAP and BPAP.

 

 

Upstream
Cross-Transfer between APAP and BPAP to/from ACU

 

CF currently has eight
transfer lines (approximately 17,372 total feet in length) that serve to
transport 26% P2O5, 40% P2O5, and clarifier underflow between the APAP and BPAP
to/from ACU. The lines are cleaned with pond water and/or condensate once per
day to once per week to remove precipitated solids and scale to maintain
acceptable pressure levels and acid flow rates. The locations of the transfer
lines are illustrated in Diagram 3. The line designations and cleaning
frequencies are listed in Table 2.

 

PAP-
ACU Upstream Transfers

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cleaning

  	
   

  	
  Length

  
	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Frequency

  	
   

  	
  (ft)

  
	
  26%

  	
   

  	
  “A”
  28% Line

  	
   

  	
  Transfers 26% P2O5 from APAP and BPAP to ACU

  	
   

  	
  1x/
  week

  	
   

  	
  1,898

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40%

  	
   

  	
  “B”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from APAP and BPAP to ACU

  	
   

  	
  1x/
  week

  	
   

  	
  1,994

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40%

  	
   

  	
  “D”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from APAP and BPAP to ACU

  	
   

  	
  1x/
  week

  	
   

  	
  1,946

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40%

  	
   

  	
  “F”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from ACU to APAP

  	
   

  	
  1x/
  week

  	
   

  	
  1,033

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40%

  	
   

  	
  “A”
  40 % Line

  	
   

  	
  Transfers 40% P2O5 from ACU to APAP and BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  2,053

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40%

  	
   

  	
  “C”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from ACU to APAP and BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  1,996

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Underflow

  	
   

  	
  Old
  Clarifier Underflow Line

  	
   

  	
  Transfers Clarifier Underflow
  from ACU to BPAP

  	
   

  	
  1x/
  day

  	
   

  	
  1,921

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Underflow

  	
   

  	
  New
  Clarifier Underflow Line

  	
   

  	
  Transfers Clarifier
  Underflow from ACU to BPAP

  	
   

  	
  1x/
  day

  	
   

  	
  1,636

  
	
  Estimate for Existing Lines

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
   

  	
   

  	
  14,477

  
	
   

  	
   

  	
   

  	
   

  	
  Estimated
  Vertical Runs- Basis 20% Factor (Ft)

  	
   

  	
   

  	
   

  	
  2,895

  
	
   

  	
   

  	
   

  	
   

  	
  Total
  Estimated Piping Length (Ft)

  	
   

  	
   

  	
   

  	
  17,372

  

 

Table 2.    Pipe designations associated with the
upstream transfer of phosphoric acid between APAP, BPAP and ACU.

 

 

 

Diagram 3. The upstream
transfer of phosphoric acid between APAP, BPAP and ACU.

 

 

Grandfathered
Transfer Lines Between APAP, BPAP, ACU, and A, X, Y, and Z DAP

 

CF currently has thirteen
transfer lines (approximately 14,656 total feet in length) that primarily serve
to transport 26% and 54% P2O5 between the APAP, BPAP, ACU and A, X, Y, and Z
DAP. Three of the lines transfer 40% or 54% P2O5 or clarifier underflow between
APAP and BPAP. The lines are cleaned with pond water and/or condensate once per
week to ten times per week to remove precipitated solids and scale to maintain
acceptable pressure levels and acid flow rates. The locations of the transfer
lines are illustrated in Diagram 4. The line designations and cleaning
frequencies are listed in Table 3. In addition, shown on Diagram 4, additional
piping will be installed to transport 54% P2O5 from BPAP to A DAP.

 

Grandfathered
Transfer Lines

 

	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Cleaning

  Frequency

  	
   

  	
  Length

  (ft)

  	
   

  
	
  26%

  	
   

  	
  New
  28% Line

  	
   

  	
  Transfers 26% P2O5 from BPAP to XYZ DAP North and South Tank
  Farms

  	
   

  	
  1x/
  week

  	
   

  	
  1,295

  	
   

  
	
  26%

  	
   

  	
  Old
  28% Line

  	
   

  	
  Transfers 26% P2O5 from BPAP to XYZ DAP North and South Tank
  Farms

  	
   

  	
  1x/
  week

  	
   

  	
  1,201

  	
   

  
	
  26%

  	
   

  	
  “C”
  Green Acid Line

  	
   

  	
  Transfers 26% P2O5 from ACU to the New 28% Line

  	
   

  	
  5-10x/
  week

  	
   

  	
  1,405

  	
   

  
	
  26%

  	
   

  	
  “B”
  Green Acid Line

  	
   

  	
  Transfers 26% P2O5 from ACU to the Old 28% Line

  	
   

  	
  5-10x/
  week

  	
   

  	
  1,398

  	
   

  
	
  26%

  	
   

  	
  New
  “A” Green Acid Line

  	
   

  	
  Transfers 26% P2O5 from ACU to the Old 28% Line (ties into the
  “B” Green Acid Line)

  	
   

  	
  1x/
  week

  	
   

  	
  1,331

  	
   

  
	
  26%

  	
   

  	
  28%
  Transfer to ADAP

  	
   

  	
  Transfers 26% P2O5 from APAP to A DAP

  	
   

  	
  1-2x/
  week

  	
   

  	
  574

  	
   

  
	
  54%

  	
   

  	
  54%
  Receiving Line

  	
   

  	
  Transfers 54% P2O5 from APAP to BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  503

  	
   

  
	
  54%

  	
   

  	
  54%
  Transfer Line

  	
   

  	
  Transfers 54% P2O5 from BPAP to XYZ DAP North and South Tank
  Farms

  	
   

  	
  2-3x/
  week

  	
   

  	
  1,098

  	
   

  
	
  54%

  	
   

  	
  54%
  Transfer APAP to A DAP

  	
   

  	
  Transfers 54% P2O5 from APAP to A DAP

  	
   

  	
  1-2x/
  week

  	
   

  	
  690

  	
   

  
	
  54%

  	
   

  	
  New
  54% Transfer to A DAP

  	
   

  	
  Transfers 54% P2O5 from APAP to A DAP

  	
   

  	
  2-3x/
  week

  	
   

  	
  188

  	
   

  
	
  54%

  	
   

  	
  Proposed
  54% line to A DAP

  	
   

  	
  Transfers 54% P2O5 from BPAP to A DAP

  	
   

  	
  2-3x/
  week

  	
   

  	
  257

  	
   

  
	
  40%
  and 54%

  	
   

  	
  54%
  Transfer to APAP

  	
   

  	
  Transfers 54% P2O5 from BPAP to APAP

  	
   

  	
  1-2x/
  week

  	
   

  	
  1,110

  	
   

  
	
  40%
  and 54%

  	
   

  	
  40%/54%
  Acid Line

  	
   

  	
  Transfers 40% P2O5 from APAP to BPAP and also transfers 54%
  Clarifier Underflow from APAP to BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  1,164

  	
   

  
	
  Estimate for Existing Lines

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
   

  	
   

  	
  12,214

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Estimated
  Vertical Runs- Basis 20% Factor (Ft)

  	
   

  	
   

  	
   

  	
    2,442

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total
  Estimated Piping Length (Ft)

  	
   

  	
   

  	
   

  	
  14,656

  	
   

  

 

Table 3. Pipe
designations associated with the grandfathered transfer lines.

 

 

 

Diagram 4. The transfer of
phosphoric acid between APAP, BPAP, ACU, and A, X, Y and Z DAP.

 

 

Current Configuration - Upstream Units - APAP and ACU

 

The following processes,
tanks and associated equipment used in the production, concentration,
transport,  and storage of 26% and
40% P2O5, and the concentration of
40% P2O5 to 54% P2O5, serve only Upstream Operations.

 

·      The Reactor through
filtration, recovery, and storage of 26% P2O5 when the acid is not diverted to XYZ or A DAP Plants(3): A-Reactor,
Filter Feed Tank, Bird and Belt Filters, #1 Filtrate Tanks, and Gypsum Repulp
Tank;

·      Clarification and storage of
the 26% P2O5: ACU North 26 Tank, ACU
North Clarifier, and A CC Tank;

·      Concentration of 26% P2O5 to 40% P2O5: A-40 Evaporators (A, B, C, D, E);

·      Clarification and storage of
40% P2O5: B-Aging Tank, ACU South 40
Tank, ACU South Clarifier, B-CC Tank, and A-Aging Tank;

·      Concentration of 40% P2O5 to 54% P2O5: A-54 Evaporators (C, D, E);

·      The phosphoric acid transfer
lines from the A-54 Evaporators up to, but excluding the 54 Holding Tank.

 

Current Configuration- Mixed-use Units — APAP and ACU

 

The following air pollution
control devices (APCD) and tanks with associated equipment in APAP are
Mixed-Use.

 

APCD

 

APAP has one APCD that uses
once-thru pond water to scrub vapors from the entire phosphoric acid process in
APAP. The APCD generally serves Upstream and Mixed-Use Operations but currently
also serves the Downstream 54 Holding Tank.

 

ACU has one APCD that uses
once-thru pond water to scrub vapors from the entire phosphoric acid process in
ACU. The APCD generally serves Upstream and Mixed-Use Operations.

 

Tanks

 

The following tanks
identified as Mixed-Use units in APAP primarily serve Upstream Operations but
may also serve as storage for feedstocks to Downstream Operations:

 

·      APAP North 28 Tank (32006)-
used routinely to store feedstock for DAP;

·      APAP South 28 Tank (32007)-
used routinely to store feedstock for DAP;

·      Green Acid Tank (10-58325) in
ACU - used to store feedstock for DAP or may feed APAP North/South 28 Tanks or
BPAP East/West 28 Tanks;

 

(3) If 26% acid can be
further processed or can be diverted to XYZ or A DAP, the storage tanks are
considered Mixed-Use. While the pipes that serve to transfer the 26% acid to
the MAP/DAP plants are part of Downstream Operations, wastes from the cleaning
of these pipes may be managed with wastes from Upstream Operations.

 

 

·      Gyp Settler (331)- swing
tank for storage of all concentrations of phosphoric acid.

 

Current Configuration-Downstream Units

 

Diagram 5 and Table 4 is a
conceptual plan for new piping at CF that will enable CF to clean the pipes
that run from APAP to MAP/DAP and return the cleaning wastes back to APAP. The
final detailed plan may include additional parallel piping to facilitate
extended wash cycles. The new installed piping will be Grandfathered Units, the
cleaning wastes from which may be managed with Upstream wastes. The new piping
will afford complete segregation of chemical manufacturing wastes (MAP/DAP)
from wastes generated from Upstream Operations. The schedule for the
installation of the new piping is set forth in Appendix 8 to the Consent
Decree.

 

Contingent upon the
installation of the aforementioned piping, cleaning wastes from the following
Downstream Operations tanks and/or associated piping in APAP may be managed
with wastes from Upstream Operations (Grandfathered Units):

 

·      Pipes that serve to
transport 26% P2O5 from the North 28 and South 28 Tanks to the A
DAP East/West 28 Tanks;

·      Pipes that serve to transfer
26% P2O5 to XYZ or A DAP Plants from the Green Acid
Tank (10-58325) in ACU;

·      The 54 Acid Tank (54 Holding
Tank) and associated pipes that serve to transfer 54% P2O5 to: 1) the
North 54% Tank (2351A) or the South 54% Tank (2351B) or #3 Aging Tank in BPAP;
or 2) the 54 Storage Tank (532-A) in A DAP; or 3) the North 54 Tank (563A)
and/or Tank S-274 in XYZ DAP and the South 54 Tank (561A) in XYZ;

·      Pipe that serves to transfer
54% P2O5 from the lamella clarifiers (54 transfer
lines) to 54 storage tank (532A) in A DAP

 

Proposed
Transfer/ Cleaning Lines

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cleaning

  	
   

  	
  Length

  	
   

  
	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Frequency

  	
   

  	
  (ft)

  	
   

  
	
  Wash/

  28%

  	
   

  	
  Proposed
  28%

  Transfer/ Cleaning

  Lines

  	
   

  	
  To Return wash water to
  PAP

  	
   

  	
  NA

  	
   

  	
  4,131

  	
   

  
	
  Wash/

  54%

  	
   

  	
  Proposed
  54%

  Transfer/ Cleaning

  Lines

  	
   

  	
  To Return wash water to
  PAP

  	
   

  	
  NA

  	
   

  	
  1,421

  	
   

  
	
  Estimate for Existing Lines

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
  5,552

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Estimated
  Vertical Runs- Basis 20% Factor (Ft)

  	
   

  	
  1,110

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total
  Estimated Piping Length (Ft)

  	
   

  	
  6,662

  	
   

  

 

Table 4. CF’s proposed
transfer/cleaning lines to segregate MAP/DAP cleaning wastes from Upstream
Operations.

 

19

 

 

Diagram 5.  CF’s proposed transfer/cleaning lines

 

 

During the period in which
the new piping is installed and put into service, CF may continue to manage
wastewaters generated from Grandfathered Units with wastes from Upstream
Operations, until such time as set forth in Appendix 8 to the Consent Decree.

 

Containment
of Phosphoric Acid Product and Sulfuric Acid Feedstock Spills and Leaks

 

Approximately 50% of CF’s
APAP has 60-mil HDPE liner installed beneath the concrete pad underlying the
battery limits of the Plant. The concrete pad is sloped towards stainless
steel-lined and/or acid-resistant brick-lined trenches (denoted by orange
dashed lines in Diagram 6A). Process water flows through the trenches at a rate
of approximately 20,000 — 30,000 gpm to the HDPE-lined phosphogypsum stack
system. Due to the engineered slope of the concrete pad and the configuration
of APAP, small spills and leaks of phosphoric acid and incoming sulfuric acid
used as a feedstock to phosphoric acid production operations (transfer lines
denoted by orange lines in Diagram 6B) onto the concrete pad cannot be
segregated and are commingled in the trenches with the process water flowing to
the phosphogypsum stack system and managed pursuant to CF’s Best Management
Practices Program (“BMP”). So long as the phosphogypsum stack system remains
fully lined and CF complies with the BMP and Consent Decree, CF may manage
small spills and leaks of phosphoric acid or sulfuric acid within the concrete
areas of APAP (delineated by red lines in Diagram 6B). This does not apply to
spills and leaks of phosphoric acid or sulfuric acid outside of containment
which must be managed in full compliance with RCRA.

 

 

 

Diagram 6A. APAP current
containment trenches and curbing.

 

 

 

Diagram 6B.
Sulfuric acid lines in PAP containment. Containment area delineated in
red, sulfuric acid lines delineated in orange.

 

 

BPAP

 

CF’s BPAP is fully concrete
paved, and approximately 40% of BPAP has 60-mil HDPE liner installed below the
concrete. Below-grade concrete trenches throughout BPAP convey process water
from the plant being returned to the phosphogypsum stack system at a flow rate
of approximately 20,000 — 30,000 gpm. The main process water return ditches
within the confines of the plant are lined with stainless steel and/or
acid-resistant brick over concrete.

 

Standard
Acid Flow Configuration

 

BPAP currently produces three
concentrations of phosphoric acid for use in fertilizer manufacturing- 26% P2O5, 40% P2O5, and 54% P2O5. The 26% P2O5 that is not
used directly as feedstock to fertilizer manufacturing is further processed to
54% P2O5 in Upstream Operations (note that
interchangeable acid flow routes are denoted in brackets and described in
further detail later in this Report).

 

The current phosphoric acid
manufacturing process described below is illustrated in process block flow
Diagram 7.

 

Post-Attack Tank, unclarified
26% P2O5 is pumped from the Attack
Tank to either the Bird Filter or the Belt Filter. From the Bird and Belt
Filters, the unclarified 26% P2O5 is either transferred to DAP or
processed for 26% clarification or processed for concentration to 40% P2O5 and
eventually to 54% P2O5.

 

26% Acid Processed to 40%
Acid and then to 54% Acid

 

·                  26% P2O5 from the #1
Filtrate Tanks is pumped to the BPAP East 28 Tank (32613) and the BPAP West 28
Tank (32634) [or to the ACU North 26 Tank (11000A) as described below];

·                  From the BPAP East 28 Tank
and BPAP West 28 Tank, phosphoric acid is fed to the B-40 Evaporators [or to
APAP North 28 Tank (32006) and/or APAP South 28 Tank (32007) or to A,X,Y, or
Z-DAP  26 Tanks (A DAP East 26 Tank
(431B), A DAP West 26 Tank (431A), XYZ DAP North 26 Tank (563B), XYZ DAP South
26 Tank (561B)] for concentration to 40% P2O5;

·                  40% P2O5 is piped from
the B-40 Evaporators to the 40-Aging Tank (2321) and then to the  ACU South 40 Tank (110008);

·                  40% P2O5 is pumped
from the ACU South 40 Tank to the ACU South Clarifier (11026B);

·                  Underflow (solids) from the
ACU South Clarifier is pumped to the ACU North Clarifier;

·                  Overflow (clarified 40% P2O5 from the
South Clarifier is pumped through the B CC Tank to the BPAP 40-Clarifier Tank
(2322);

·                  The BPAP 40 Clarifier Tank
serves as the B-54 Evaporators’ feed tank;

·                  After the
Evaporators have concentrated the 40% P2O5 to 54% P2O5 the 54% P2O5 is pumped to
either the North 54 Tank (2351A) or the South 54 Tank (2351B) or #3 54 Aging
Tank (33450);

·                  54% P2O5 from the
North 54 Tank and South 54 Tank or #3 54 Aging Tank supply phosphoric acid to
1) the A DAP 54 Storage Tank (532 A); or 2) to the XYZ DAP North 54 Tank (563
A) or XYZ DAP S-274  Tank or to the XYZ
DAP South 54 Tank (561 A).

 

 

26% Acid Processed for 26%
Acid Clarification

 

·                  26% P2O5 from the #1
Filtrate Tanks is pumped to the ACU North 26 Tank [or to the BPAP West 28 Tank
or BPAP East 28 Tank, as described above] and then from the ACU North 26 Tank
to the ACU North Clarifier for clarification;

·                  Overflow (clarified 26% P2O5) from the ACU North Clarifier is pumped to the A CC
Tank and then to the ACU Green Acid Tank (10-58325);

·                  Clarified 26% P2O5 is pumped
from the ACU Green Acid Tank to any of the following tanks: A DAP East/West 26
Tanks (431B/A) or the XYZ DAP North 26 Tank (563B) or XYZ DAP South 26 Tank
(561B) or XYZ DAP S-274  Tank or to APAP
North/South 28 Tanks or to BPAP East/West 28 Tanks.

·                  Underflow (solids) from the
ACU North Clarifier is fed to two 15 m2 belt filters
located in ACU (ACU belt filters). The solids are rinsed to recover residual
phosphoric acid. The acidic rinsate is pumped back into the ACU North 26 Tank
or to the ACU Green Acid Tank.

·                  Rinsed solids from the ACU
belt filters are then either pumped to the APAP or BPAP Bird Filters for a
second stage of phosphoric acid recovery or pumped to the gypsum repulp tank
for disposal on the gypstack.

 

Note: Solids settled from
the BPAP East 28 Tank and BPAP West 28 Tanks are pumped to the Filter Feed Tank
or directly to either the Bird or Belt Filter to recover phosphoric acid
values.

 

Alternative
to Standard Acid Flow Configuration

 

When the ACU North Clarifier
is not functioning or maintenance/cleaning is being performed on the ACU North
26 Tank, CF routes unclarified 26% P2O5 (that would typically be
directed to the evaporators for concentration to 40% P2O5) directly to DAP operations from the BPAP East 28
Tank (2315A East) or BPAP West 28 Tank (2315B West) to the XYZ DAP North 26
Tank (563B) or to the XYZ DAP S-274 Tank or to the XYZ DAP South 26 Tank
(561B).

 

If either of the BPAP East
28 or West 28 Tanks or either of the BPAP North 54 or South 54 Tanks are
off-line when operationally necessary (e.g., cleaning, maintenance), CF uses an
alternate tank (swing tank), # 3 54 Aging (33450), for storage of either 26%,
40%, or 54% P2O5. The 26% P2O5 is
transferred from the # 3 54 Aging tank to the XYZ DAP North 26 Tank (563B) or
to the XYZ DAP South 26 Tank (561B) or to the XYZ-DAP S-274 Tank via the
New-New 28% Line, the New 28% line to XYZ, or the Old 28% line. These lines
route directly to XYZ DAP or to A DAP from a point located near the BPAP East
28 and West 28 Tanks and are marked as such. The piping that serves to transfer
26% P2O5 from # 3 54 Aging Tank to the New-New 28% line
also serves as the transfer line from the BPAP East 28 and West 28 Tanks to the
evaporators (mixed use). When the # 3 54 Aging Tank stores 54% P2O5, the acid is transferred from the # 3 54 Aging Tank
to 1) the A DAP 54 Storage Tank (532 A) or 2) to the XYZ DAP North 54 Tank (563
A) or XYZ DAP S-274 Tank or to the XYZ DAP South 54 Tank (561 A).

 

When the #3 54 Aging Tank
stores 40% P2O5, the acid is transferred to
the BPAP 40-Clarifer Tank.

 

25

 

When the ACU South Clarifier
is not functioning or maintenance/cleaning is being performed on the ACU South
40 Tank, CF routes unclarified 40% P2O5 directly from the 40-Aging Tank
to BPAP 40-Clarifier Tank.

 

26

 

 

Diagram 7. Block flow
diagram of the production of phosphoric acid in BPAP

 

 

 

Phosphoric
Acid Transfer Lines

 

Upstream
Cross-Transfer between APAP and BPAP

 

CF currently has one primary
transfer line (approximately 734 total feet in length) that serves to transport
26% P2O5 between APAP and BPAP. The
line is designated as the New-New 28% line. The line is cleaned with pond water
and/or condensate approximately twice per month to remove precipitated solids
and scale to maintain acceptable pressure levels and acid flow rates. The
location of the transfer line is illustrated in Diagram 8. The line designation
and cleaning frequency is listed in Table 5.

 

APAP &
BPAP

Upstream
Transfers

 

	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Cleaning

  Frequency

  	
   

  	
  Length

  (ft)

  	
   

  
	
  26%

  	
   

  	
  New-New
  28% Line

  	
   

  	
  Transfers 26% P2O5 between APAP and BPAP

  	
   

  	
  2x/
  month

  	
   

  	
  612

  	
   

  
	
  Estimate for
  Existing Lines

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
  612

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Estimated
  Vertical Runs- Basis 20% Factor (Ft)

  	
   

  	
  122

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total
  Estimated Piping Length (Ft)

  	
   

  	
  734

  	
   

  

 

Table 5.  Pipe designations associated with the upstream
transfer of phosphoric acid between APAP and BPAP.

 

 

 

 

Diagram 8. Pipes
designated for the upstream transfer of phosphoric acid between APAP and BPAP.

 

 

 

Upstream
Cross- Transfer between APAP and BPAP to/from ACU

 

CF currently has eight
transfer lines (approximately 17,372 total feet in length) that serve to
transport 26%, 40%, and clarifier underflow between APAP and BPAP and ACU. The
lines are cleaned with pond water and/or condensate once per day to once per
week to remove precipitated solids and scale to maintain acceptable pressure
levels and phosphoric acid flow rates. The locations of the transfer lines are
illustrated in Diagram 9. The line designations and cleaning frequencies are
listed in Table 6.

 

PAP-
ACU Upstream Transfers

 

	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Cleaning

  Frequency

  	
   

  	
  Length

  (ft)

  	
   

  
	
  26%

  	
   

  	
  “A”
  28% Line

  	
   

  	
  Transfers 26% P2O5 from APAP and BPAP to ACU

  	
   

  	
  1x/
  week

  	
   

  	
  1,898

  	
   

  
	
  40%

  	
   

  	
  “B”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from APAP and BPAP to ACU

  	
   

  	
  1x/
  week

  	
   

  	
  1,994

  	
   

  
	
  40%

  	
   

  	
  “D”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from APAP and BPAP to ACU

  	
   

  	
  1x/
  week

  	
   

  	
  1,946

  	
   

  
	
  40%

  	
   

  	
  “F”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from ACU to APAP

  	
   

  	
  1x/
  week

  	
   

  	
  1,033

  	
   

  
	
  40%

  	
   

  	
  “A”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from ACU to APAP and BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  2,053

  	
   

  
	
  40%

  	
   

  	
  “C”
  40% Line

  	
   

  	
  Transfers 40% P2O5 from ACU to APAP and BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  1,996

  	
   

  
	
  Underflow

  	
   

  	
  Old
  Clarifier Underflow Line

  	
   

  	
  Transfers Clarifier
  Underflow from ACU to BPAP

  	
   

  	
  1x/
  day

  	
   

  	
  1,921

  	
   

  
	
  Underflow

  	
   

  	
  New
  Clarifier Underflow Line

  	
   

  	
  Transfers Clarifier
  Underflow from ACU to BPAP

  	
   

  	
  1x/
  day

  	
   

  	
  1,636

  	
   

  
	
  Estimate
  for Existing Lines 

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
  14,477

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Estimate Length Runs- Basis 20%
  Factor (Ft)

  	
   

  	
  2,895

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total Estimated Piping Length
  (Ft)

  	
   

  	
  17,372

  	
   

  

 

Table 6. Pipe
designations associated with the upstream transfer of phosphoric acid between
APAP, BPAP and ACU.

 

 

 

 

Diagram 9. The upstream
transfer of phosphoric acid between APAP, BPAP and ACU.

 

 

Grandfathered
Transfer Lines to A, X, Y,and Z DAP

 

CF currently has thirteen
transfer lines (approximately 14,656 total feet in length) that primarily serve
to transport 26% and 54% P2O5 between the APAP, BPAP and ACU to A, X, Y, and
Z DAP. Three of the lines transfer 40% or 54% P2O5 between APAP and BPAP. The lines
are cleaned with pond water and/or condensate once per week to ten times per
week to remove precipitated solids and scale to maintain acceptable pressure
levels and acid flow rates. The locations of the transfer lines are illustrated
in Diagram 10. The line designations and cleaning frequencies are listed in
Table 7. In addition, shown on Diagram 10, additional piping will be installed
to transport 54% P2O5 from BPAP to A DAP.

 

Grandfathered
Transfer Lines

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cleaning

  	
   

  	
  Length

  	
   

  
	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Frequency

  	
   

  	
  (ft)

  	
   

  
	
  26%

  	
   

  	
  New
  28% Line

  	
   

  	
  Transfers 26% P2O5 from BPAP to XYZ DAP North and South Tank
  Farms

  	
   

  	
  1x/
  week

  	
   

  	
  1,295

  	
   

  
	
  26%

  	
   

  	
  Old
  28% Line

  	
   

  	
  Transfers 26% P2O5 from BPAP to XYZ DAP North and South Tank
  Farms

  	
   

  	
  1x/
  week

  	
   

  	
  1,201

  	
   

  
	
  26%

  	
   

  	
  “C”
  Green Acid Line

  	
   

  	
  Transfers 26% P2O5 from ACU to the New 28% Line

  	
   

  	
  5-10x/
  week

  	
   

  	
  1,405

  	
   

  
	
  26%

  	
   

  	
  “B”
  Green Acid Line

  	
   

  	
  Transfers 26% P2O5 from ACU to the Old 28% Line

  	
   

  	
  5-10x/
  week

  	
   

  	
  1,398

  	
   

  
	
  26%

  	
   

  	
  New
  “A” Green Acid Line

  	
   

  	
  Transfers 26% P2O5 from ACU to the Old 28% Line (ties into the
  “B” Green Acid Line)

  	
   

  	
  1x/
  week

  	
   

  	
  1,331

  	
   

  
	
  26%

  	
   

  	
  28%
  Transfer to ADAP

  	
   

  	
  Transfers 26% P2O5 from APAP to A DAP

  	
   

  	
  1-2x/
  week

  	
   

  	
  574

  	
   

  
	
  54%

  	
   

  	
  54%
  Receiving Line

  	
   

  	
  Transfers 54% P2O5 from APAP to BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  503

  	
   

  
	
  54%

  	
   

  	
  54%
  Transfer Line

  	
   

  	
  Transfers 54% P2O5 from BPAP to XYZ DAP North and South Tank
  Farms

  	
   

  	
  2-3x/
  week

  	
   

  	
  1,098

  	
   

  
	
  54%

  	
   

  	
  54%
  Transfer APAP to A DAP

  	
   

  	
  Transfers 54% P2O5 from APAP to A DAP

  	
   

  	
  1-2x/
  week

  	
   

  	
  690

  	
   

  
	
  54%

  	
   

  	
  New
  54% Transfer to A DAP

  	
   

  	
  Transfers 54% P2O5 from APAP to A DAP

  	
   

  	
  2-3x/
  week

  	
   

  	
  188

  	
   

  
	
  54%

  	
   

  	
  Proposed
  54% line to A DAP

  	
   

  	
  Transfers 54% P2O5 from BPAP to A DAP

  	
   

  	
  2-3x/
  week

  	
   

  	
  257

  	
   

  
	
  40%
  and 54%

  	
   

  	
  54%
  Transfer to APAP

  	
   

  	
  Transfers 54% P2O5 from BPAP to APAP

  	
   

  	
  1-2x/
  week

  	
   

  	
  1,110

  	
   

  
	
  40%
  and 54%

  	
   

  	
  40%/54%
  Acid Line

  	
   

  	
  Transfers 40% P2O5 from APAP to BPAP and also transfers 54%
  Clarifier Underflow from APAP to BPAP

  	
   

  	
  1x/
  week

  	
   

  	
  1,164

  	
   

  
	
  Estimate for Existing Lines

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
  12,214

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Estimated
  Vertical Runs- Basis 20% Factor (Ft)

  	
   

  	
  2,442

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total
  Estimated Piping Length (Ft)

  	
   

  	
  14,656

  	
   

  

 

Table 7. Pipe designations associated
with the grandfathered transfer lines.

 

 

 

 

Diagram 10. Grandfathered
transfer lines to A, X, Y, and Z DAP.

 

 

During the period in which
the new piping is installed and put into service, CF may continue to manage
wastewaters generated from Grandfathered Units with wastes from Upstream
Operations, until such time as set forth in Appendix 8 to the Consent Decree.

 

Current Configuration - Upstream Units - BPAP and ACU

 

The following processes,
tanks and associated equipment used in the production, concentration up to 54%
P2O5, and storage of 26% and 40%
P2O5 serve only Upstream Operations.

 

·               Attack Tank through
filtration and recovery and storage of 26% P2O5 when the phosphoric acid is not
diverted to XYZ or A DAP Plants(4): -Attack Tank, Bird and Belt Filters, #1
Filtrate Tanks, Gypsum Repulp Tank;

·               Clarification and storage of
26% P2O5: ACU North 26 Tank, ACU
North Clarifier, ACU A CC;

·               Concentration of 26% P2O5 to 40% P2O5: B-40 Evaporators (5, 1, 2, 3);

·               Clarification and storage of
40% P2O5: 40-Aging Tank, ACU South
40 Tank, ACU South Clarifier, ACU B CC, BPAP 40-Clarifier Tank;

·               Concentration of 40% P2O5 to 54% P2O5: B-54 Evaporators (2, 3, 4, 6);

·               The phosphoric acid transfer
pipes from the B-54 Evaporators up to, but excluding the North 54 Tank (2351A)
and South 54 Tank (2351B).

 

Current Configuration- Mixed-use Units - BPAP

 

The following air pollution
control devices (APCD) and tanks with associated equipment in BPAP are
Mixed-Use.

 

APCD

 

BPAP has one APCD that uses
once-thru pond water to scrub vapors from the entire phosphoric acid process in
BPAP. The APCD generally serves Upstream and Mixed-Use Operations but currently
also serves the Downstream North 54 Tank (2351A) and the South 54 Tank (2351B).

 

Tanks

 

The following tanks
identified as Mixed-Use units in BPAP primarily serve Upstream Operations but
may also serve as storage for feedstocks to Downstream Operations:

 

East 28 Tank (32613)- used
routinely to store feedstock for DAP; 

West 28 Tank (32634)- used
routinely to store feedstock for DAP;

# 3 54 Aging Tank (33450)-
Swing tank for storage of all concentrations of phosphoric acid.

 

(4) Since 26% acid can be
further processed or can be diverted to XYZ or A DAP, the storage tanks are
considered Mixed-Use. While the pipes that serve to transfer the acid to the
MAP/DAP plants are part of Downstream Operations, wastes from the cleaning of
these pipes may be managed with wastes from Upstream Operations.

 

 

Current Configuration-Downstream Units

 

Diagram 11 and Table 8 is a
conceptual plan for new piping at CF that will enable CF to clean the pipes
that run from BPAP to MAP/DAP and return the cleaning waste back to BPAP. The
final detailed plan may include additional parallel piping to facilitate
extended wash cycles. The new installed piping will be Grandfathered Units, the
cleaning wastes from which may be managed with Upstream wastes. The new piping
will afford complete segregation of chemical manufacturing wastes (MAP/DAP)
from wastes generated from Upstream Operations. The schedule for the
installation of the new piping is set forth in Appendix 8 to the Consent
Decree.

 

Contingent upon the
installation of the aforementioned piping, cleaning wastes from the following
Downstream Operations tanks and/or associated piping in BPAP may be managed
with wastes from Upstream Operations (Grandfathered Units):

 

·                  Pipes that serve to
transport 26% P2O5 from the BPAP East 28 Tank and West 28 Tank to
the XYZ DAP North 26 Tank or XYZ DAP South 26 Tank or XYZ DAP S-274 Tank;

·                  The North 54 Tank (2351A)
and associated pipes that serve to transfer 54% P2O5 to the A DAP 54 Storage Tank
(532A) or to the XYZ DAP North 54 Tank (563A) or XYZ DAP S-274 Tank or the XYZ
DAP South 54 Tank (561A) [To route to A DAP, CF must first route 54% P2O5 to APAP];

·                  The South 54 Tank (2351B)
and associated pipes that serve to transfer 54% P2O5 to the A DAP 54 Storage Tank
(532A) or to the XYZ DAP North 54 Tank (563A) or XYZ DAP S-274 Tank or the XYZ
DAP South 54 Tank (561 A) [To route to A DAP, CF must first route 54% P2O5 to APAP].

·              Transfer lines between the
APAP 54 Holding Tank (234) and APAP North 54 and South 54 Tanks to/from #3 54
Aging Tank in BPAP.

 

Proposed
Transfer/ Cleaning Lines

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Cleaning

  	
   

  	
  Length

  	
   

  
	
  Service

  	
   

  	
  Name

  	
   

  	
  Description

  	
   

  	
  Frequency

  	
   

  	
  (ft)

  	
   

  
	
  Wash/

  28%

  	
   

  	
  Proposed
  28%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Transfer/
  Cleaning

  	
   

  	
  To Return wash water to
  PAP

  	
   

  	
  NA

  	
   

  	
  4,131

  	
   

  
	
   

  	
  Lines

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wash/

  54%

  	
   

  	
  Proposed
  54%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Transfer/
  Cleaning

  	
   

  	
  To Return wash water to
  PAP

  	
   

  	
  NA

  	
   

  	
  1,421

  	
   

  
	
   

  	
  Lines

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Estimate for Existing Lines

  	
   

  	
  Estimate
  Length- Plan View (Ft)

  	
   

  	
  5,552

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Estimated
  Vertical Runs- Basis 20% Factor (Ft)

  	
   

  	
  1,110

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total
  Estimated Piping Length (Ft)

  	
   

  	
  6,662

  	
   

  

 

Table 8. CF’s proposed
transfer/cleaning lines to segregate MAP/DAP wastes from Upstream Operations.

 

35

 

 

 

Diagram 11.
CF’s proposed transfer/cleaning lines

 

 

During the period in which
the new piping is installed and put into service, CF may continue to manage
wastewaters generated from Grandfathered Units with wastes from Upstream
Operations, until such time as set forth in Appendix 8 to the Consent Decree.

 

Containment
of Phosphoric Acid Product and Sulfuric Acid Feedstock Spills and Leaks

 

Approximately 40% of CF’s
BPAP has 60-mil HDPE liner installed beneath the concrete pad underlying the
battery limits of the plant. The concrete pad is sloped towards stainless
steel-lined and/or acid-resistant brick lined trenches (denoted by orange
dashed lines in Diagram 12A). Process water flows through the trenches at
approximately 20,000 — 30,000 gpm to the HDPE-lined phosphogypsum stack system.
Due to the engineered slope of the concrete pad and the configuration of the
BPAP, small spills and leaks of phosphoric acid and incoming sulfuric acid used
as a feedstock to phosphoric acid production operations (transfer lines denoted
by orange lines in Diagram 12B) onto the concrete pad cannot be segregated and
are commingled in the trenches with the pond water flowing to the phosphogypsum
stack system and managed pursuant to CF’s Best Management Practices Program
(“BMP”). So long as the Phosphogypsum Stack System remains fully lined and CF
complies with the BMP and Consent Decree, CF may manage small spills and leaks
of phosphoric acid or sulfuric acid within the concrete areas of BPAP
(delineated by red lines in Diagram 12B). This does not apply to spills and
leaks of phosphoric acid or sulfuric acid outside of containment which must be
managed in full compliance with RCRA.

 

 

 

Diagram 12A. BPAP current
containment trenches and curbing.

 

 

 

Diagram
12B. Sulfuric acid lines in PAP containment. Containment area delineated in
red, sulfuric acid lines delineated in orange.

 

 

V.  Temporary
Acid Transfer and Storage

 

Equipment maintenance and
repair activities occasionally require CF to temporarily store or transport
various phosphoric acid products in tanks or pipes associated with Upstream
Operations during tank repairs or other emergent conditions in Downstream
units. Provided that such use of Upstream units as temporary Downstream units
is shorter than three months and the use of the units does not exceed four
months cumulatively per calendar year, cleaning wastes generated from such
tanks and/or pipes may be managed with wastes from Upstream Operations. Notice
of such temporary use of Upstream tanks or pipes must be given to EPA and FDEP
within 7 days of being placed into service, but advance approval will not be
required.

 

VI. Planned
Phosphoric Acid Production Operations

 

CF has advised EPA and FDEP
that it is considering reinstating uranium extraction at the CF Facility, but
to date has provided only limited information regarding the design of the
intended uranium extraction and recovery project.

 

CF also advises that it
plans to install additional clarifiers in APAP and BPAP or ACU.

 

Furthermore, CF is
considering the option of converting one of the new clarifiers in PAP to 54%
acid clarification. Both the clarified 54% P2O5 (overflow) and underflow will
serve as feedstock for MAP and DAP production. There may be a need for
additional storage tanks to separate the clarified 54% P2O5 (overflow)
and underflow. Once put into service, the clarified 54% P2O5 (overflow)
tanks and 54% underflow tanks are Grandfathered Units.

 

As set forth in Diagram 14,
the proposed uranium extraction operations qualify as Upstream Operations, and
Diagram 14 designates Upstream Operations, Mixed-Use units, and Downstream
Operations for the proposed uranium extraction and recovery process if
constructed as depicted in that Diagram. Diagram 14 also identifies
Grandfathered Units. In the event that CF reconfigures its Facility in
accordance with Diagram 14, Diagram 14 will replace Diagram 13 as identifying
Upstream Operations, Downstream Operations, Mixed-Use Units for APAP, BPAP and
ACU, and Grandfathered Units.

 

However, the Consent Decree
does not bind CF to implement the proposed uranium extraction and recovery
project as depicted in Diagram 14. If CF chooses to implement uranium
extraction and recovery through a different process than that depicted in
Diagram 14, this Facility Report may be modified pursuant to Section XVII
(Modifications) of the Consent Decree. At that time, EPA and FDEP will determine
whether the uranium extraction and recovery process as built involves Upstream
Operations, Mixed-use units or Downstream Operations and amend the Facility
Report to memorialize those determinations.

 

VII.
Granulation (MAP/DAP) Plants

 

MAP and/or DAP manufacturing
operations are Downstream Operations.

 

 

VIII.
Authorized Future Installations

 

This section applies to
future installations that were not grandfathered based on current or proposed
projects. The following projects will be deemed Grandfathered or Mixed-use
Units, as applicable, when installed within lined areas that drain to Plant
City’s phosphogypsum stack system and will not require prior approval by FDEP
or EPA provided that: (i) said phosphogypsum stack system is in compliance
with the requirements of Appendix 1, Attachment B (Groundwater and Zone of
Discharge Requirements), Attachment C (Phosphogypsum Stack System Construction
and Operational Requirements) of the Consent Decree, and that CFI is in
compliance with the Financial Assurance requirements of the Consent Decree
(Paragraph 26 and Appendix 2); and (ii) CFI provides EPA and FDEP with
written notice at least ninety (90) days in advance of the reconfiguration or
installation of said project. However, if as a result of circumstances that
require CFI to install or reconfigure such equipment in less than ninety (90)
days from the time a decision is made to undertake such action, CFI shall
provide written notice to FDEP and EPA as soon as possible and in all events
prior to the installation or reconfiguration of such equipment; and (iii) CFI
obtains and/or modifies any permit(s) required by local, state, or federal
agencies; and (iv) CFI submits to FDEP and EPA for approval a modified
version of this Facility Report with the changes identified at least sixty (60)
days in advance of the reconfiguration or installation of said project; and (v) if
applicable, CF submits to FDEP and EPA for approval any modified section(s) of
Appendix 5 (Best Management Practices Plan) at least forty-five (45) days in
advance of the reconfiguration or installation of said project.

 

1.               Any existing
tank within the battery limits of APAP (Diagram 6B), BPAP (Diagram 12B), or ACU
(Diagram 15) which may or may not be currently storing phosphoric acid, can be
converted to phosphoric acid storage service up to, but excluding Merchant
Grade Acid. Any tank placed into phosphoric acid storage service must be
structurally adequate and physically compatible with the contents of the tank.

 

2.               Up to a total
of three (3) new phosphoric acid tanks storing First Saleable Product may
be added within the battery limits of APAP (Diagram 6B), BPAP (Diagram 12B), or
ACU (Diagram 15), where the stored phosphoric acid product in the new tank(s) will
be used as a feedstock for MAP/DAP production in a manner identical to existing
or grandfathered First Saleable Product tanks identified in this Facility
Report. The installation of more than three (3) such tanks shall require
advance approval by EPA and FDEP in order to be considered Grandfathered units.

 

3.               APCDs
(scrubbers) may be newly installed, replaced, or modified if they are servicing
Upstream units, Mixed-use, and/or Grandfathered units identified in this
Facility Report. Scrubbers may not be reconfigured to service any Downstream
processes located outside the battery limits of APAP (Diagram 6B), BPAP (Diagram
12B), or ACU (Diagram 15) or any chemical processes not identified in this
Facility Report.

 

41

 

4.               Phosphoric acid
piping systems and underflow piping systems associated with Mixed-use Units and
Grandfathered Units identified in this Facility Report may be installed,
replaced, or modified provided that the replacement or modified systems are
located within the battery limits of APAP (Diagram 6B), BPAP (Diagram 12B), or
ACU (Diagram 15) and serve only the phosphoric acid production operations
identified in this Facility Report for those Mixed-use and Grandfathered units.

 

5.               Acid
transfer/cleaning solution piping between APAP, BPAP, and ACU (up to, but
excluding Merchant Grade Acid) and the MAP/DAP plants may be installed,
replaced, or modified so long as cleaning wastes from the piping systems remain
segregated from MAP/DAP plant wastes.

 

42

 

 

Diagram 13.
Current designations for Upstream Units, Mixed-use Units, and
Downstream Units (including the subset of Grandfathered Units, the wastes from
which may continue to be managed with wastes from Upstream Units).

 

 

 

Diagram 14.
Proposed designations (post installation of planned projects) for
Upstream Units, Mixed-use Units, and Downstream Units (including the subset of
Grandfathered Units, the wastes from which may continue to be managed with
wastes from Upstream Units).

 

 

 

Diagram 15.
 ACU current containment trenches
and curbing.

 

 

 

CF Industries, Inc.

Plant City Phosphate Complex

 

BMP Program for Management of Phosphoric Acid Plant
and Granulation Plant Wastes

 

(Revised February 16, 2010)

 

1

 

BACKGROUND

 

Phosphoric Acid Plants

 

As part of a regulatory settlement with the U.S. Environmental
Protection Agency (EPA) and the Florida Department of Environmental Protection
(FDEP), CF has agreed to implement specific Best Management Practices (BMPs) to
address the proper management, tracking, and reporting of phosphoric acid leaks
and spills in contained areas of the phosphoric acid plants, including the Acid
Cleanup Unit (ACU). The purpose of these BMPs is to minimize leaks and spills
of phosphoric acid within the phosphoric acid production facilities. The
existing leak and spill detection procedures (i.e., acidity titrations,
differential conductivities, and operator inspections) will be augmented with
new data collection requirements. Leak/spill duration will be minimized by
recording the discovery and tracking the correction via computer logs. Larger
leaks and spills that are above threshold quantities established in the BMP
program will be reported to EPA and FDEP and may require additional measures
based on relative frequency. As part of this BMP program, CF will also
implement revised procedures for (1) phosphoric acid tank heel
minimization; (2) phosphoric acid process control sample recovery; and (3) cleaning
of piping, tanks, and filters, in which certain aqueous solutions used for
cleaning will be co-managed with Bevill exempt wastes, while other aqueous
solutions (e.g., dilute sulfuric acid) used for cleaning will be transferred to
the granulation plants for continued use in cleaning, where such aqueous
solutions will ultimately be neutralized as needed in a new Wastewater
Treatment Unit (WTU) to be installed within the contained area of the
granulation plants.

 

Granulation Plants

 

The purpose of the BMP as applied to the granulation plants is to
eliminate contributions of phosphoric acid to the process water system within
granulation plant operations, and to further collect and treat leaks and spills
of phosphoric acid that fall onto the contained areas of the granulation
plants, as well as any hazardous waste streams that result from floor, tank or
pipe cleaning. As part of the BMP Program, CF will install a new WTU within the
contained area of the granulation plants to manage such wastes. All hazardous
wastes generated from cleaning activities and phosphoric acid leaks/spills
within the granulation plants will be collected in impervious sumps and pumped
or otherwise piped directly to a new WTU. The WTU will treat corrosive and
potentially toxic wastewater through neutralization and precipitation (if
required), resulting in a non-hazardous effluent with pH above 2. A sampling
program will be established to determine wastewater characteristics and to
demonstrate proper and effective treatment.

 

2

 

SECTION 1

 

LEAK/SPILL DETECTION SYSTEMS AND PROCEDURES FOR
PHOSPHORIC ACID PLANTS

 

Process Water Acidity Titrations

 

As part of the phosphoric acid plant P2O5 loss monitoring program, the
operators collect samples of several key return process water streams every two
hours. These samples are titrated with sodium hydroxide to measure the acidity
of the process water sample as described in plant operating procedures. A
sodium hydroxide solution is slowly added to the sample/indicator solution,
until the mixture holds a pinkish color. The volume of sodium hydroxide
solution added is converted to a total acidity value. This value is compared
with the value measured from the in-coming pond water sample, which is used as
the reference point. These values are logged in the operator electronic log
sheets, which are archived on the Plant City Phosphate Complex (Complex)
server. If the acidity of the process water stream is higher than the acidity
of the pond water coming into the plant, then the operators are trained to
recognize that there is a problem with that equipment or area of the plant and
that acid is being released into the process water system. The process streams
in both phosphoric acid plants that are sampled include: the cooling pond water
coming into the plant, each of the evaporator hot wells, the cooling pond water
sumps, the flash cooler hot wells, each of the vacuum seal tanks (one per
filter), and the fume scrubbers. When an acidity value is above the reference
point, the operator reports it to the shift supervisor, and appropriate action
is taken to investigate and correct the condition.

 

At ACU two process streams are sampled every four hours, the incoming
cooling pond water and the Area 10 sump, which is the sump that sends the
process water out to the cooling pond. These values are monitored the same way
as in the phosphoric acid plants.

 

Differential Conductivity System

 

In addition to the titration of key process water samples, each key
stream is monitored continuously with a differential conductivity system. Each
monitored process water stream has a conductivity probe to continuously measure
the conductivity of the process water, as well as the incoming cooling pond
water as a reference. The difference between the conductivity of the return
process water stream and the incoming cooling pond water is automatically
calculated and displayed on the operators’ computer control panels (see Figures
1 and 2). Operators shall monitor positive differential conductivities through
the use of trends, which are automatically generated from the computer control
panels when the display value is “clicked” (see Figure 3). These trends assist
the operator in identifying positive differentials that indicate acid leaks or
spills.

 

If acid leaks or spills into a process water stream, the conductivity
of the process water will increase due to the higher conductivity of the acid.
An alarm will sound in each control room (top and bottom floor) if the
differential conductivity increases beyond the historical normal difference
relative to the reference point. When an alarm sounds, the operator will
inspect that piece of equipment or area of the plant for any problems and the
appropriate response will be taken. In addition to the process water streams
that are sampled for acidity analysis, there are other locations that are
monitored by the differential conductivity system. These include all trenches,
evaporator hot wells, flash cooler hot wells, fume scrubbers, vacuum seal
tanks, cooling pond water sumps, and

 

3

 

the cooling pond water reference. At ACU, there is only one location
where the conductivity is monitored; the ACU sump. This process water stream is
monitored for increases and decreases in conductivity since there is no
reference point measured in this area for comparison.  The entire system is maintained by the
Instrumentation/Electrical Maintenance Shop and is calibrated and maintained
based on the preventative maintenance documentation shown in Appendix A. The
most current version of this document will be maintained in the
Instrument/Electrical Maintenance Shop.

 

4

 

Figure 1 — A-PAP Conductivity Schematic

 

 

5

 

Figure 2 — B-PAP Conductivity System Schematic

 

 

6

 

Figure 3 —Sample Differential Conductivity Trend

 

 

7

 

Inspections

 

In addition to the differential conductivity titrations and
conductivity measurements, the operators will inspect the plant whenever they
collect samples. Every two hours in the phosphoric acid plants and every four
hours at ACU, the operators make rounds while collecting their samples and
inspecting the plant areas for leaking equipment or other conditions in need of
correction, maintenance or repair. During these rounds, operators shall
immediately correct any leaks from valves, flanges, pumps, or any other piece
of equipment that are readily and safely correctible at the time of discovery.
Any leaks, spills, or defective equipment that cannot be immediately corrected
will be reported to the shift supervisor and recorded in the electronic log
sheet to create a permanent record for tracking and correction. Leaks or spills
that are immediately corrected by the operator will also be recorded in the
electronic log sheet to create a permanent record.

 

8

 

SECTION 2

 

PHOSPHORIC ACID PLANT CLEANING PROCEDURES

 

General

 

Sulfuric acid shall not be added to any aqueous solution for the
washing of lines, filters, or other equipment within phosphoric acid or acid
cleanup areas without the written approval of the General Manager or
Engineering Manager. Upon authorization, if any potentially hazardous cleaning
solution, such as condensate/sulfuric acid cleaning solution, is used in the
cleaning of lines, tanks, filters or other process equipment, the resulting wastewater
shall not be commingled with process water prior to characterization and
treatment if hazardous. Such cleaning solutions shall be routed to granulation
for further use and/or treatment, as required.

 

Line Cleaning

 

All lines will be washed with an aqueous Cleaning Solution (e.g.,
condensate, pond water, non-process water, fresh water, etc.). The
Cleaning Solution may be processed through the lines and filters and returned
to the process water system without neutralization.  This line and filter cleaning guidance
applies to A Phosphoric Acid Plant (A-PAP), B Phosphoric Acid Plant (B-PAP),
and ACU. It may also apply to future plant areas, such as uranium recovery, as
authorized by the Engineering Manager

 

Cleaning Solutions used to clean transfer piping from A-PAP, B-PAP, and
ACU to the Granulation Plants may be returned to the point of origination or
other point inside the boundary of A-PAP, B-PAP or ACU. These solutions may be
discharged to the process water cooling pond within the boundaries of A-PAP, B-PAP,
or ACU without neutralization.

 

Evaporator Cleaning

 

A Phosphoric Acid Plant:

 

Evaporators will be washed using a two-step process as described below:

 

Step One, high-level boil,
will be performed with a Cleaning Solution, typically condensate with sulfuric
acid added. If sulfuric acid or other corrosive additive are added during the
high-level boil, the Cleaning Solution from this step shall be transferred to
the granulation area for reuse and neutralization prior to discharge to the
process water system.

 

Step Two, condensate/sulfuric acid boil, will be performed with
sulfuric acid added to the Cleaning Solution from Step One. A new Evaporator
Wash Collection Tank (AWCT) will be installed for Step Two washing purposes.
Because the Step Two cleaning solution is corrosive due to the addition of
sulfuric acid, this solution must be retained in the evaporator, the AWCT, or
associated piping. New pipelines will be installed originating from the 28%,
40%, and 54% tank splitter-boxes and back to the AWCT. This will create a
closed loop wash system. Once completed, 28%, 40%, and 54% evaporator pipelines
can be washed with a dilute condensate/sulfuric acid solution by circulating
the solution between the evaporator and the AWCT. Once Step Two is complete, the
resulting cleaning solution must be transferred to the AWCT. Excess
condensate/sulfuric acid 

 

9

 

cleaning solution from the AWCT shall be transferred to the Area IV
granulation plants for use in further cleaning activities prior to
neutralization/treatment. Condensate/sulfuric acid cleaning solution shall not
be discharged to the process water system without proper characterization and
treatment. Per the schedule for the implementation of the Granulation Plant
Neutralization Project (see Section 12 herein), CF may continue to
discharge condensate/sulfuric acid evaporator cleanout wastes to the
Phosphogypsum Stack System until the earlier of: (i) the date the
Granulation Neutralization Project is completed or (ii) the “Project
Completed” date for this project as set forth in Section 12 herein.

 

B Phosphoric Acid Plant:

 

Evaporators will be washed using a two-step process as described below:

 

Step One, high-level boil,
will be performed with a Cleaning Solution, typically condensate with sulfuric
acid added. If sulfuric acid or another corrosive additive is added during the
high-level boil, the Cleaning Solution from this step shall be transferred to
the granulation area for reuse and neutralization prior to discharge to the
process water system.

 

Step Two, condensate/sulfuric acid boil, will be performed with
sulfuric acid added to the Cleaning Solution from Step One. The existing
Evaporator Wash Collection Tank (BWCT) will be used to collect and reuse the
condensate/sulfuric acid cleaning solution. Because the Step Two cleaning
solution is corrosive due to the addition of sulfuric acid, this solution must
be retained in the evaporator, the BWCT, or associated piping. New pipelines
will be installed originating from the 28%, 40%, and 54% tank splitter-boxes
and back to the BWCT. This will create a closed loop wash system. Once
completed, 28%, 40%, and 54% evaporator pipelines can be washed with a dilute
condensate/sulfuric acid solution by circulating the solution between the
evaporator and the BWCT. Once Step Two is complete, the resulting cleaning
solution must be transferred to the BWCT. Excess condensate/sulfuric acid
cleaning solution from the BWCT shall be transferred to the Area IV granulation
plants for use in further cleaning activities prior to neutralization.
Condensate/sulfuric acid cleaning solution shall not be discharged to the
process water system without proper characterization and treatment. Per the
schedule for the implementation of the Granulation Plant Neutralization Project
(see Section 12 herein), CF may continue to discharge condensate/sulfuric
acid evaporator cleanout wastes to the Phosphogypsum Stack System until the
earlier of: (i) the date the Granulation Neutralization Project is completed
or (ii) the “Project Completed” date for this project as set forth in Section 12
herein.

 

Tank and Equipment Cleaning

 

The following steps will be used in the cleaning of any phosphoric acid
tank in A-PAP, B-PAP, or ACU:

 

Step 1 —           Empty tank by recovering
phosphoric acid and solids back to process or surge tanks.

Step
2 —           If Step 1 does
not adequately remove residuals, a contractor may be used to recover remaining
residual phosphoric acid and solids back to process. The contractor process may
use high pressure phosphoric acid provided by CF to wash solids from the tank
to CF process equipment.

Step 3 —           Wash tank with Cleaning
Solution to process water system.

 

10

 

Step 4 —           High pressure cleaning with
Cleaning Solution can be used to remove hard phosphogypsum scale and buildup or
to strip rubber from the tank.

Step 5 —           Phosphogypsum solids shall
be transferred to gypsum stack using payloaders and/or dump trucks.

 

Filter Cleaning

 

A Phosphoric Acid Plant:

 

A non-hazardous Cleaning Solution will be used to wash filter pans.
Typically, condensate will be used to clean filters, filtrate lines, and
filtrate vessels. No sulfuric acid shall be added to filter cleaning solutions
except as discussed in the General Statement above on page 7.

 

B Phosphoric Acid Plant (B-PAP):

 

A non-hazardous Cleaning Solution will be used to wash filter pans.
Typically, condensate will be used to clean filters, filtrate lines, and
filtrate vessels. No sulfuric acid shall be added to filter cleaning solutions
except as discussed in the General Statement above on page 7.

 

Plant Wash Down

 

Non- hazardous Cleaning Solution may be used for washing the floors,
building, equipment, etc.

 

11

 

SECTION 3

 

PHOSPHORIC ACID PLANT LEAK/SPILL RECORDING, TRACKING,
AND CORRECTIVE ACTION

 

General

 

Leaks or spills of phosphoric acid and sulfuric acid
within A-PAP, B-PAP and ACU will be managed as set forth below. A record of
leaks and spills detected and their corrective action will be maintained in
Aspen or other applicable software.

 

Operator Inspections

 

Operators in the A-PAP, B-PAP, and ACU will make rounds to complete
periodic inspections, obtain samples, and perform other production tasks.
Visual inspections in A-PAP and B-PAP are performed every two hours and in ACU
every four hours. During these inspections, the operator will take note of the
presence of leaks, spills or process upsets resulting in the non-routine
addition of phosphoric acid or any sulfuric acid to the plant’s containment
area.

 

Inspection of piping between A-PAP, B-PAP, and ACU will be performed by
supervisors or operators once per shift. Results of the inspections will be
logged on the electronic Spill Recording, Tracking, and Correction (SRTC) form.

 

Recording

 

Whenever
an operator or other plant personnel identifies a leak or spill resulting in
the release of phosphoric acid or sulfuric acid, the release will be
communicated to a plant operator located in one of the Area 2 control rooms,
and the operator will be responsible for taking any practicable immediate and
safe corrective action. The control room operator will be responsible for
logging the leak/spill into the electronic SRTC form. A description of the
leak/spill will be entered into the software system. The system will
automatically generate a time stamp for the event and create a permanent record
in the database (refer to SRTC Form, Figure 4). The system will automatically
generate a notification email to the Area Maintenance Supervisor. The Area
Maintenance Supervisor will be responsible for initiating further corrective
action for the item if necessary.

 

Reportable
Leak/Spill Volume Thresholds

 

Any
leak or spill of phosphoric acid within the contained areas of the phosphoric
acid plants (including ACU) with a reasonable potential to approach 5,000
gallons within any 24-hour period shall (a) be subject to immediate
response and correction, and (b) logged as a potentially reportable leak
or spill, to include an initial estimate of the volume of the leak or spill at
the time of discovery. Engineering and environmental staff will be notified of
such leaks or spills as quickly as possible in order to verify the volume of
the leak or spill and ensure that, if the contained leak or spill exceeds 5,000
gallons in 24 hours, it is properly documented and corrected, and subsequently
reported in accordance with Section 10.

 

Any
leak or spill of sulfuric acid within the contained areas of the phosphoric
acid plants (including ACU) with a reasonable potential to approach 1,000
gallons within any 24 hour period shall (a) be

 

12

 

subject
to immediate response and correction, and (b) logged as a potentially
reportable leak or spill, to include an initial estimate of the volume of the
leak or spill at the time of discovery. Engineering and environmental staff
will be notified of such leaks or spills as quickly as possible in order to
verify the volume of the leak or spill and ensure that, if the contained leak
or spill exceeds 1,000 gallons in 24 hours, it is properly documented and
corrected, and subsequently reported in accordance with Section 10.

 

Any
leak or spill of phosphoric acid or sulfuric acid that is not contained within
the impervious areas of the plant shall be reported in accordance with
applicable state and federal laws and the specific procedures set forth in Section 4.16
of the CF Environmental Compliance Plan contained in the CF Plant City
Phosphate Complex E-Manual.

 

Tracking

 

The
Aspen Data Historian or other applicable software will be used to track the
leak or spill. The area production and maintenance supervisors, engineers, and
environmental personnel will have the capability to monitor plant operations
through the software. Updates on the event and corrective actions can be added
to the SRTC form by anyone with access to a computer with access software. The
recorded event will remain active on the daily SRTC form until the Area
Production Supervisor electronically signs off in the software that the matter
has been resolved. On a quarterly basis, a summary report of the leaks and
spills recorded and tracked in the software will be generated for review.

 

Corrective Action Plan

 

All CF personnel are responsible for initiating appropriate
corrective action immediately upon identification of a leak or spill.

 

Production Department Responsibilities

 

The area Production Department will be responsible for troubleshooting
and correcting operational upsets such as evaporator pullover, flash cooler
pullover, and tank overflows. The operator covering the plant operation
involving the leak, spill or upset will notify his supervisor and begin taking
immediate corrective measures.

 

Leaks or spills due to mechanical failures will be recorded in the
software system to initiate the appropriate corrective measure.

 

Maintenance Department Responsibilities

 

If the leak or spill is the result of a mechanical failure, the area
operator recording the event will be responsible for notifying the Area
Maintenance Supervisor. When the Maintenance Department completes the repairs,
the Area Production Supervisor will be notified. After confirming that the
needed repairs have been completed and the leak/spill has been eliminated, the
Area Production Supervisor will electronically sign off on the SRTC log that
the matter has been resolved.

 

13

 

Figure 4 — Sample Phosphoric Acid Plants Spill/Leak
Recording, Tracking, and Correction Log Sheet

 

 

14

 

SECTION 4

 

GRANULATION PLANTS CLEANING PROCEDURES

 

General

 

The preferred cleaning solution for the granulation
plants is condensate/sulfuric acid which is derived from the cleaning of
phosphoric acid plant evaporators. Process water/sulfuric acid cleaning
solution may be substituted to clean the scrubber system when
condensate/sulfuric acid cleaning solution is unavailable. However, any
Cleaning Solution including process water is permissible for use and may be
supplemented with sulfuric acid as needed to sustain cleaning effectiveness.
All cleaning wastes from the granulation plants will be treated as needed in
the WTU prior to transfer to the cooling pond.

 

Line Cleaning

 

A tank will be installed in XYZ granulation plant to receive and store
condensate/sulfuric acid cleaning solutions from A-PAP and B-PAP evaporator
boil-outs. Pumps on the tank will supply condensate/sulfuric acid cleaning
solution to the 28% and 54% acid feed line to the preneutralizers, scrubber
liquor tanks, and Y-MAP granulator.  A cross
transfer line will be installed to transfer condensate/sulfuric acid cleaning
solution to the A-DAP 28% and 54% feed lines. In addition to the condensate/
sulfuric acid cleaning solution, Cleaning Solution can also be used to wash
lines and equipment. All line cleaning wastewater will report to the
centralized effluent systems and will be neutralized in the WTU to a pH>2.0,
as needed, prior to transfer to the process water cooling pond.

 

As noted above, Cleaning Solution from A-PAP, B-PAP, and ACU transfer
piping may be returned to the point of origin or other point inside the
boundary of A-PAP, B-PAP, or ACU. If these solutions enter granulation plant
areas downstream of the associated splitter box, they will be neutralized prior
to transfer to the process water cooling pond.

 

Currently, CF uses condensate and/or process water to clean the lines.
CF shall continue to attempt to minimize the use of process water and may
continue to discharge line cleaning wastewater to the Phosphogypsum Stack
System until the Granulation Neutralization Project is completed as set forth
in Section 12 herein.

 

Tank Cleaning

 

The following steps will be used in the cleaning of any phosphoric acid
tank in the granulation plant areas:

 

Step 1 —           Empty tank by recovering
phosphoric acid and solids back to process or surge tanks.

Step
2 —           If Step 1 does
not adequately remove residuals, a contractor may be used to recover remaining
residual phosphoric acid and solids back to process. The contractor process may
use high pressure phosphoric acid provided by CF to wash solids from the tank
to CF process equipment...

Step 3 —           Wash tank with Cleaning
Solution or condensate/sulfuric acid cleaning solution.

Step 4 —           High pressure water cleaning
with fresh water or non-process water to remove hard phosphogypsum scale and
buildup or to strip rubber from the tank.

 

15

 

Step 5 —           Phosphogypsum solids shall
be transferred to gypsum stack using payloaders and/or dump trucks after being
allowed to drain and de-water.

 

All tank cleaning wastewater will be routed to the centralized
wastewater collection system and will be treated by neutralization in the WTU
to a pH>2.0 prior to final transfer to the process water cooling pond.

 

Upon completion of the Granulation Plant Neutralization Project as set
forth in Section 12, all tank cleaning wastewater and spills will be
routed to the centralized wastewater collection system and will be treated by
neutralization in the WTU to a pH>2.0 prior to final transfer to the process
water cooling pond. In the interim, the tank cleaning wastewater and spills
will continue to be discharged to the Phosphogypsum Stack System.

 

Scrubber System Cleaning

 

The scrubbers are cleaned weekly with a condensate/sulfuric acid cleaning
solution. Pumps on the above-referenced storage tank will supply
condensate/sulfuric acid cleaning solution to the scrubber liquor tank through
the 28% acid feed line. When the scrubber liquor tank is filled, the low and
high pressure scrubber liquor pumps are started and the condensate/sulfuric
acid cleaning solution is circulated though the venturi scrubbers, acid
cyclonic scrubbers, and the dryer and fume secondary cyclonic scrubbers.
Cleaning wastewater from the scrubbers returns by gravity to the scrubber
liquor tank. At the conclusion of the scrubber cleaning process, wastewater is
transferred to the centralized effluent system and neutralized in the WTU to a
pH>2.0 prior to transfer to the process water cooling pond.

 

Wash Down

 

Cleaning Solutions and condensate/sulfuric acid cleaning solution may
be used for wash down of the floors, conveyor belts, and other equipment (Wash
Down). All Wash Down water will report to the centralized effluent systems and
will be neutralized in the WTU to a pH>2.0 prior to final transfer to the
process water cooling pond.

 

As an interim measure until
the Granulation Plant Neutralization Project is completed as set forth in Section 12
herein, CF may: (i) use process water or fresh water for Wash Down; and (ii) continue
to wash to the Phosphogypsum Stack System leaks or spills of phosphoric acid
within the granulation plant scrubber system area where such leaks or spills
cannot be neutralized due to the presence of the preneutralizer sump, acid
sumps and process water ditch system

 

Reduction of Ammonia Inputs to Process Water System

 

Ammonia inputs to the CF process water system will be reduced by the
implementation of the following improvements:

 

·        Converting from
ammonia to lime as the neutralizing agent for scrubber system cleaning
solutions.

 

16

 

·        Installation of
DAP/MAP scrubber system modifications to eliminate the use of process water for
gas scrubbing.

 

17

 

SECTION 5

 

GRANULATION PLANTS LEAK/SPILL IDENTIFICATION,
RECORDING, TRACKING, AND CORRECTIVE ACTION

 

General

 

Leaks or spills of phosphoric acid within the
granulation plants will be managed as set forth below. Leaks or spills of
sulfuric acid will be managed in accordance with the procedures set forth in Section 4.16
of the CF Environmental Compliance Plan in the CF EManual. In addition, all
leaks and spills of phosphoric acid and sulfuric acid to containment areas will
be collected and neutralized in the Granulation Plant Neutralization System as
described in Section 7.

 

Inspections

 

Operators
for each of the granulation plants (Area 4) will complete an area walk-through
every two hours to obtain samples and record field temperatures and pressures.
During these inspections, the operator will take note of leaks, spills or
process upsets resulting in the release of phosphoric acid or sulfuric acid to
the Area 4 containment area. The employee’s supervisor has the initial
responsibility for initiating corrective action with appropriate Production or
Maintenance personnel.

 

Recording

 

When
an operator or other plant personnel identifies a leak, spill or potential
process upset resulting in the release of phosphoric acid or sulfuric acid, the
release incident will be communicated to a plant operator located in one of the
Area 4 control rooms. The control room operator will be responsible for logging
the release into the electronic SRTC form found on the Aspen or other
applicable software system. A description of the condition will be entered into
the system. The system will automatically generate a time stamp for the event
and record it into the database (see Sample SRTC Form, Figure 5). The database
software will automatically generate a notification email to the Area
Maintenance Supervisor. The Area Maintenance Supervisor will be responsible for
initiating corrective action for the item.

 

Tracking

 

The
Aspen Data Historian database or other applicable software will be used to
track corrective action related to the leak or spill. The area superintendent,
management, engineering, and environmental departments will use the database
system to monitor the plant operations and will have access to the SRTC forms
throughout the Complex. The recorded event will remain active on the daily SRTC
form until the Area Production Supervisor electronically signs off in database
system that the matter has been resolved. On a quarterly basis, a summary
report of the leaks and spills recorded and tracked will be generated for
review.

 

18

 

Corrective Action Plan

 

Production Department Responsibilities

 

The Area Production Department will be responsible for troubleshooting
and correcting operational upsets such as tank overflows. The operator covering
the plant operation at which the leak, spill or upset occurred will notify his
supervisor and begin taking immediate corrective action. When the leak, spill
or operating upset has been corrected, the Area Production Supervisor will
electronically sign off on the SRTC form that the matter has been resolved.

 

Maintenance Department Responsibilities

 

If the leak or spill is the result of a mechanical failure, the area
operator recording the event will be responsible for notifying the Area Maintenance
Supervisor. When the Maintenance Department completes the repairs, the Area
Production Supervisor will be notified. After confirming that the needed
repairs have been completed and the leak/spill has been eliminated, the Area
Production Supervisor will electronically sign off on the SRTC form that the
matter has been resolved.

 

19

 

Figure 5 —Sample Granulation Plants Spill Recording,
Tracking, and Correction Log Sheet

 

 

20

 

SECTION 6

 

GRANULATION PLANT SECONDARY SCRUBBERS

 

The X and Z granulation plants utilize a secondary scrubber within the
dryer scrubber and fume scrubber. The X and Z granulation plants also utilize
product cooler scrubbers. Each of the previously mentioned scrubbers uses
process water as the scrubbing media. The DAP/MAP Scrubber System Modifications
Project will install piping, seal tanks, valves, and instrumentation to convert
from process water gas scrubbing to acid and fresh water gas scrubbing in X, Y,
and Z granulation plants.  CF may
continue to discharge process water used in the aforementioned scrubbers within
X and Z granulation plants to the Phosphogypsum Stack System until the DAP/MAP
Scrubber System Modifications Project is completed as set forth in Section 12
herein.

 

21

 

SECTION 7

 

GRANULATION PLANTS NEUTRALIZATION TREATMENT SYSTEM
OPERATION

 

Description

 

The granulation plants (Area 4) consists of two production centers
(A-DAP and XYZ DAP/MAP). Wastewater, area wash down, process spills, and
rainfall within the battery limits of each of these production centers report
to centralized water return systems. Upon installation of the new
neutralization WTU, all the A-DAP effluent water will be transferred to the XYZ
effluent water system.  Pumps will then
transfer the combined water from the XYZ water return system to the WTU. Lime
or other neutralizing agents will be added as needed to treat wastewater through
neutralization and precipitation (as required), resulting in a non-hazardous
wastewater with pH above 2 (see Figure 6). A sampling program will be
established to determine wastewater characteristics and to demonstrate proper
and effective treatment. Treated wastewater from the WTU will be transferred to
the process water cooling pond.

 

Operating Parameters

 

The A-DAP and XYZ DAP/MAP wastewater systems will be designed to
collect rainfall, spills, leaks, and cleaning solutions within plant areas. The
WTU discharge pumps will in turn be designed to pump 100% of the capacity from
the A-DAP and XYZ water return systems. The WTU  discharge
pH will be continuously recorded in the Aspen Data Historian or other
applicable software.

 

22

 

Figure 6

 

 

23

 

SECTION 8

 

MINIMIZATION OF OPERATIONAL ACID INPUTS

 

Background

 

During normal operation of the Phosphoric Acid Plants and ACU
facilities, various activities may result in the operational input of
phosphoric acid to the containment areas or process water system. These
activities include sample collection, slide gate valve operation, clearing
plugged underflow piping, and similar operations. Operators should take
appropriate practicable measures to minimize the volume of such inputs. The
intermittent operational inputs of phosphoric acid to containment areas or the
process water system are unavoidable in connection with the operation of the
phosphoric acid plants and shall not be considered leaks or spills as they are
not malfunctions requiring correction unless the volume from one of these
inputs to the process water system exceeds 5,000 gallons. Any continuing
release resulting from these activities may indicate the need for maintenance
activity and will be logged into the electronic SRTC form for correction.

 

Operational Input Minimization

 

Sample Collection

 

Samples of phosphoric acid or reactor slurry collected for purposes of
plant process control will be returned to the process. Totes or similar
containers will be located in A-PAP, B-PAP, and ACU as necessary to provide a
centralized collection point.

 

Clarifier/Valve Operational Releases

 

Operational inputs of phosphoric acid from clarifier unplugging and
gate valve operation will be minimized to the extent practicable.

 

Releases Outside Containment Areas

 

All reasonable measures will be taken to avoid releases of phosphoric
acid outside plant containment areas. Releases that occur outside the
impervious surface containment areas will be responded to in accordance with
all state and federal laws and the specific procedures established in the
Environmental Compliance Plan as contained in the CF Plant City Phosphate
Complex E-Manual.

 

Emergency Response

 

The E-Manual also contains guidance for management of environmental
spills or releases that may require emergency response measures. Refer to the
CF Plant City E-Manual for guidance.

 

24

 

SECTION 9

 

CONTAINMENT INTEGRITY PLAN

 

Background

 

The
mechanical integrity of containment systems for phosphoric acid leaks or spills
will be managed in accordance with CF Plant City Engineering Specifications
V-06 “Specification for Rubber Lined Tank Inspection and Repair” and Q-03 “Concrete
Acid Pads”. The current version of these specifications will be maintained by
the Complex’s Engineering Department. Copies of the V-06 and Q-03
specifications are shown in Appendices B and C for general reference only.

 

Tanks

 

The
mechanical integrity of rubber lined Phosphoric Acid Tanks will be managed in
accordance with the current version of CF Plant City Engineering Specification
V-06 “Specification for Rubber Lined Tank Inspection and Repair”. This
specification was initiated to provide increased inspection frequency for
rubber lined tanks, or as an option, banding to the tanks with appropriately
designed high strength steel bands to prevent a tank failure. The Complex has
historically opted to band rubber lined tanks. Currently, 29 of 35 rubber lined
tanks have been banded.

 

Concrete Acid Pads and Ditches

 

The mechanical integrity of concrete acid pad containment systems for
phosphoric acid leaks or spills will be managed in accordance with CF Plant
City Engineering Specifications Q-03 “Concrete Acid Pads”. The Engineering
Department will be responsible for conducting annual inspections of concrete
acid pads in A-PAP, B-PAP, ACU, and granulation plant areas. Ditch systems will
be inspected during scheduled turnaround periods. Inspection results will be
documented in a written report with recommendations.

 

25

 

SECTION 10

 

BMP PERFORMANCE STANDARDS

 

Performance Criteria(1)

 

The intent of the BMP is to minimize non-operating input contributions
of phosphoric acid to the process water system, such as those that can occur
from leaks, spills and releases of phosphoric acid due to equipment
deficiencies occurring in A-PAP, B-PAP, and ACU. Therefore, the primary
measures of BMP effectiveness will be trends associated with the number of open
repair items and the average item repair time(1). These two performance criteria
will be electronically tracked by the SRTC system. The SRTC system will
maintain a continuous graph of the number of open repair items and the average
completion time for each repair activity logged. The SRTC system will be
available to all persons in the plant with the applicable software.

 

Operators will manually enter data associated with each repair item,
and each item will be time-stamped when this entry is made. The SRTC entry will
automatically initiate the corrective action process by notifying the
appropriate Maintenance Supervisor via email that an item which needs
correction has been identified in the plant. The SRTC will automatically
generate graphs of the average daily number of events and the average response
time per event. A graph of these averages can be displayed on the SRTC log
sheet by pressing the “Rolling Average” button.

 

BMP Review

 

An initial data collection period of twelve months will be used to
establish baseline performance criteria. After the initial data collection
period, performance data will continue to be reviewed quarterly. Review of the
BMP Program will be initiated under either of the following circumstances:

 

·                                    At any time
after the baseline period when the daily average number of repair items and  the
average response time show a quarter to quarter increase of 50%, or an annual
overall increase of 30%.

·                                    At any time
during a calendar quarter when two or more leak or spill events of phosphoric
acid within contained areas of the phosphoric acid plants (including ACU) have
occurred that exceed 10,000 gallons in a 24-hour period.

·                                    At any time
during a calendar quarter when two or more leak or spill events of sulfuric
acid within contained areas of the phosphoric acid plants (including ACU) have
occurred that exceed 1,000 gallons in a 24-hour period.

 

Reporting/Auditing

 

Reporting will be conducted in accordance with applicable frequencies
established in the CF-EPA/FDEP Consent Decree.

 

(1) The performance criteria set forth herein are not being
applied to the granulation plants because the plan for the granulation plants
is to capture and manage spills, leaks, and other potentially acidic wastes
generated within the granulation plants in accordance with RCRA before such
materials are conveyed to the cooling pond system.

 

26

 

Compliance with internal BMP procedures and performance criteria will
be audited in accordance with the CF Environmental, Health, and Safety’s (EHS)
audit policy.  Current policy requires a
facility-wide audit of all EHS related issues every three years.

 

Any leak or spill of phosphoric acid to the contained areas of the
phosphoric acid plants (including ACU) with a reasonable potential to approach
5,000 gallons within 24 hours shall be reported as soon as possible upon
discovery to the employee’s supervisor for corrective action. The employee will
also record the leak or spill in the SRTC system as an item that has the
potential to exceed 5,000 gallons in 24 hours. The employee’s supervisor has
the first responsibility for initiating corrective action with appropriate
Production or Maintenance Department personnel. Any leaks or spills that are
determined to exceed the 5,000 gallon volume in 24 hours will be reported to
EPA and FDEP as outlined in the CF-EPA/FDEP Consent Decree.

 

Any leak or spill of sulfuric acid within the contained areas of the
phosphoric acid plants (including ACU) with a reasonable potential to approach
or exceed 1,000 gallons within 24 hours shall be reported immediately upon
discovery to the employee’s supervisor for corrective action. The employee will
also record the leak or spill in the SRTC system as an item that has the
potential to exceed 1,000 gallons in 24 hours. The employee’s supervisor has
the first responsibility for initiating corrective action with appropriate
Production or Maintenance Department personnel. Any leaks or spills that are
determined to exceed the 1,000 gallon volume in 24 hours will be reported to
EPA and FDEP as outlined in the CF-EPA/FDEP Consent Decree.

 

27

 

SECTION 11

 

BMP TRAINING

 

Overview Training

 

An overview of RCRA and BMP issues and procedures will be conducted
annually as part of environmental compliance training conducted by the Complex’s
Environmental and Engineering staff.

 

Area Specific Employee Training

 

Employees will receive initial training on RCRA and the BMP through
classes and materials developed by the Environmental and Engineering
Departments. Refresher training on RCRA and the BMP will be conducted and
documented for all Complex employees every three years. This training will be
the responsibility of employee supervisors. Updated training will be provided
as BMP Projects are completed.

 

Contractors

 

BMP training will be incorporated into the Contractors Site Specific
class, which all contractors must complete upon initial entry to the Complex.
The Contractors Site Specific training is renewed annually.

 

28

 

SECTION 12

 

BMP AND PROJECT IMPLEMENTATION SCHEDULE

 

All milestone timeframes outlined below are established relative to May 1,
2010, prior to the Effective Date of the CF-EPA/FDEP Consent Decree.

 

Extension Provision: If CF has reason to believe that it will exceed
the timeframes set forth in this Appendix to complete the projects detailed
herein, CF may request an extension for project completion and implementation
in accordance with Paragraph 89 of the Consent Decree.

 

Project 1

Cleaning Solution Transfer Piping

 

Description:    The Cleaning
Solution Transfer Piping Project will install new piping to enable CF to clean
piping that transfers phosphoric acid from A-PAP, B-PAP, and ACU to the
Granulation Plants, and return the cleaning solutions to the Phosphoric Acid
Plants. In addition, new or upgraded pumps, motors, small pump tanks, and
instrumentation may be needed to ensure the return of the cleaning solution to
the Phosphoric Acid Plants.

 

Milestones:     The following
milestones provide a general plan for the implementation and completion of piping
systems to return cleaning solutions used to clean transfer piping from A-PAP,
B-PAP, and ACU to the Granulation Plants

 

	
  ·  Select
  engineering contractor/initiate permitting as appropriate

  	
   

  	
  2 mos.

  
	
  ·  AFE issued for
  Board approval

  	
   

  	
  8 mos.

  
	
  ·  AFE
  approved/permit(s) issued

  	
   

  	
  11 mos.

  
	
  ·  Initiate field
  construction

  	
   

  	
  18 mos.

  
	
  ·  Field
  construction 50% complete

  	
   

  	
  24 mos.

  

 

Completion:    The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
construction and implement Project 1.

 

	
  ·  Project
  completed

  	
   

  	
  30 mos.

  
	
  ·  Documentation
  of training completed

  	
   

  	
  32 mos.

  

 

Project 2

DAP/MAP Scrubber System Modifications

 

Description:    The DAP/MAP
Scrubber System Modifications Project will install piping, seal tanks, valves,
and instrumentation to convert from process water gas scrubbing to acid and
fresh water gas scrubbing in X, Y, and Z Granulation Plants. Capital funds are
approved for this project and detailed engineering is complete. The timeframes
for final construction completion are based on Granulation Plant turn-around
that occurs approximately every 18 months.

 

Milestones:     The following
milestones provide a general plan for the implementation and completion of
modifications to the Granulation Plants scrubbing systems following May 1,
2010:

 

29

 

	
  ·  Issue purchase
  orders for all materials

  	
   

  	
  2 mos.

  
	
  ·  Initiate field
  construction

  	
   

  	
  3 mos.

  
	
  ·  Field
  construction 50% complete

  	
   

  	
  8 mos.

  

 

Completion:    The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
construction and implement Project 2.

 

	
  ·  Project
  completed

  	
   

  	
  12 mos.

  
	
  ·  Documentation
  of training completed

  	
   

  	
  14 mos.

  

 

Project 3

Granulation Plant Neutralization System

 

Description:    The Granulation
Plant Neutralization System Project will install tanks, lime slaking and/or
lime slurry storage, piping, pumps, and instrumentation to collect all
Granulation Plant spills, leaks, and cleaning solutions and neutralize those
solutions to pH greater than 2.0 and less than 12.5 prior to discharge to the
process water system. This will include the conversion from ammonia to lime as
the neutralizing agent for scrubber system cleaning solutions. In addition new
piping, pumps, tanks, and instrumentation will be installed to collect and
transfer Phosphoric Acid Plant evaporator cleaning solutions from the
Phosphoric Acid Plants to the Granulation Plants.

 

Milestones:     The following
milestones provide a general plan for the implementation and completion of the
Granulation Plant Neutralization project following May 1, 2010:

 

	
  ·  Select engineering
  contractor/initiate permitting as appropriate

  	
   

  	
  2 mos.

  
	
  ·  AFE issued for
  Board approval

  	
   

  	
  8 mos.

  
	
  ·  AFE
  approved/permit issued

  	
   

  	
  11 mos.

  
	
  ·  Initiate field
  construction

  	
   

  	
  15 mos.

  
	
  ·  Field
  construction 50% completed

  	
   

  	
  20 mos.

  

 

Completion:    The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
construction and implement Project 3.

 

	
  ·  Project
  completed

  	
   

  	
  24 mos.

  
	
  ·  Documentation
  of training completed

  	
   

  	
  26 mos.

  

 

Project 4

Spill Recording, Tracking, and Correction System

 

Description:    The Spill
Recording, Tracking, and Correction System (SRTC) Project is a new application
software to be utilized by the Production, Maintenance, Engineering, and
Environmental Departments to identify, track, and correct spills and leaks as
quickly as practical.  The SRTC is
described in Sections 3 and 5 of the BMP.

 

30

 

Milestones:     The following
milestones provide a general plan for the implementation and completion of the
Spill Recording, Tracking, and Correction System Project following May 1,
2010:

 

	
  ·  Develop
  preliminary system for review

  	
   

  	
  3 mos.

  
	
  ·  Implement beta
  version of system

  	
   

  	
  6 mos.

  

 

Completion:    The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
system design and implement Project 4.

 

	
  ·  System
  completed

  	
   

  	
  9 mos.

  
	
  ·  Documentation
  of system training completed

  	
   

  	
  11 mos.

  

 

Project 5

BMP Training

 

Milestones:     The following
milestones provide a general plan for the completion of initial employee and
contractor training on provisions of the BMP following May 1, 2010:

 

	
  ·  Develop
  preliminary draft presentation and training materials

  	
   

  	
  3 mos.

  
	
  ·  Initial
  training class

  	
   

  	
  4 mos.

  

 

Completion:    The following date
is an enforceable date upon which, following May 1, 2010, CF must complete
and implement Project 5.

 

	
  ·  Training
  completed

  	
   

  	
  6 mos.

  

 

31

 

APPENDIX A

 

 

CF Industries Inc.

 

 

Loss Monitor System

 

 

By Terrell Floyd

 

32

 

The
loss monitor system is an early detection system of possible acid leaks in the
A & B PAD Plants. It is monitored on the computer control panels in
the Station #3 and #4 control rooms and also the top-floor control room.

 

This
system utilizes a network of conductivity transmitters in various locations
throughout both A & B Phosphoric Acid plants. The most common
transmitter in use in these systems is the Yokogawa Model SC402G (shown in
figure 1). This 4-wire, 120 volt powered transmitter is designed for industrial
process monitoring and measurement. A Yokogawa SC42 resistance conductivity
probe is submerged in the process (pondwater).

 

As
stated earlier, this detection system is designed to show a rise in
conductivity in the process which could possibly be an acid leak in the system.
The control point of this system is the pondwater reference probe which
monitors the flow of water returning into the plant from the cooling ponds,
(Gyp dyke). This reading should be between the 40 to 50 MilliSiemens range. Any
other readout from transmitters in the system that goes over this reference
reading will trigger an alarm stating the location of the problem.

 

These
loss monitor readings are taken on each evaporator, hotwell, ditches, and seal
tanks. Any alarm should be investigated by Production Operators and a sample
taken for analysis to verify the alarm. If a loss of acid is detected, this
unit then can be isolated for correction of the problem.

 

33

 

Each
of the evaporators in both A & B Phosphoric Acid Plants (figures 4 &
5). Acid use a large volume of pondwater in the evaporator system. This large
volume of water flows through a barometric condenser and eventually to the
evaporator hotwell to create a vacuum, necessary to maintain a constant
temperature and acid strength. If a broken tube in the evaporator leaks acid,
the acid which is of higher conductance will be pulled by this vacuum over into
the hotwell and will trigger the alarm in the loss monitor system.

 

The
pondwater overflows from the evaporator hotwells and into the plant ditches,
which is returned to the cooling ponds. There are also conductivity probes
installed to monitor these ditches for detection of acid tank leaks, pump
and/or piping leaks.

 

The
I/E Maintenance shop is responsible for the inspection and calibration of this
system. It is calibrated on a monthly basis and recorded on a Preventative
Maintenance documentation sheet in the I/E shop.

 

34

 

 

	
  

  	
  U.S. ENVIRONMENTAL
  PROTECTION AGENCY

   

  Monitoring and Assessing Water Quality

  GO

  Contact Us | Print Version     Search:

  EPA Home > Water > Wetlands, Oceans &
  Watersheds > Monitoring and Assessing Water Quality >
  Volunteer Stream Monitoring: A Methods Manual > Chapter 5 >
  5.9 Conductivity

  
	
   

  	
   

  
	
  Introduction

  	
  5.9 Conductivity

  
	
   

  	
   

  
	
  Water Quality Reports

  	
   

  
	
   

  	
   

  
	
  Monitoring, Assessment and
  Reporting Guidelines

   

  Databases and Mapping

   

  Biological Assessment 

   

  Volunteer Monitoring 

   

  Related Links

   

  	
  What is conductivity and why
  is it important?

   

  Conductivity is a measure of the ability of water to pass an
  electrical current. Conductivity in water is affected by the presence of
  inorganic dissolved solids such as chloride, nitrate, sulfate, and phosphate
  anions (ions that carry a negative charge) or sodium, magnesium, calcium,
  iron, and aluminum cations (ions that carry a positive charge). Organic
  compounds like oil, phenol, alcohol, and sugar do not conduct electrical
  current very well and therefore have a low conductivity when in water.
  Conductivity is also affected by temperature: the warmer the water, the
  higher the conductivity. For this reason, conductivity is reported as
  conductivity at 25 degrees Celsius (25 C).

   

  Conductivity in streams and rivers is affected primarily by the
  geology of the area through which the water flows. Streams that run through
  areas with granite bedrock tend to have lower conductivity because granite is
  composed of more inert materials that do not ionize (dissolve into ionic
  components) when washed into the water. On the other hand, streams that run
  through areas with clay soils tend to have higher conductivity because of the
  presence of materials that ionize when washed into the water. Ground water
  inflows can have the same effects depending on the bedrock they flow through.

   

  Discharges to streams can change the conductivity depending on their
  make-up. A failing sewage system would raise the conductivity because of the
  presence of chloride, phosphate, and nitrate; an oil spill would lower the
  conductivity.

   

  The basic unit of measurement of conductivity is the mho or siemens.
  Conductivity is measured in micromhos per centimeter (μmhos/cm) or
  microsiemens per centimeter (μs/cm). Distilled water has a conductivity in
  the range of 0.5 to 3 μmhos/cm. The conductivity of rivers in the United
  States generally ranges from 50 to 1500 μmhos/cm. Studies of inland fresh
  waters indicate that streams supporting good mixed fisheries have a range
  between 150 and 500 μos/cm. Conductivity outside this range could indicate
  that the water is not suitable for certain species of fish or
  macroinvertebrates. Industrial waters can range as high as 10,000 μmhos/cm.

   

  Sampling and equipment
  Considerations

   

  Conductivity is useful as a general measure of stream water quality.
  Each stream tends to have a relatively constant range of conductivity that,
  once established, can be used as a baseline for comparison with regular
  conductivity measurements. Significant changes in conductivity could then be
  an indicator that a discharge or some other source of pollution has entered a
  stream.

   

  Conductivity is measured with a probe and a meter. Voltage is applied
  between two electrodes in a probe immersed in the sample water. The drop in  voltage
  caused by the resistance of the water is used to calculate the conductivity
  per centimeter. The meter converts the probe measurement to micromhos per
  centimeter and displays

  

 

	
  http://www.epa.gov/volunteer/stream/vms59.html

  	
   

  	
  2/27/2009

  

 

35

 

Conductivity and Water
Quality

 

Conductivity is a measurement of the ability of an aqueous solution to
carry an electrical current. An ion is an atom of an element that has gained or
lost an electron which will create a negative or positive state. For example,
sodium chloride (table salt) consists of sodium ions (Na+) and chloride ions (Cl-)
held together in a crystal. In water it breaks apart into an aqueous solution
of sodium and chloride ions. This solution will conduct an electrical current.
An equation which shows this is:

 

Na (atom)
+ Cl (atom) Na+ Cl - (ionic crystal)

 

Na+Cl -
(in a water solution) = Na+ (ion) + Cl - (ion)

 

There are several factors that determine the degree to which water will
carry an electrical current. These include:

 

1)   the
concentration or number of ions;

 

2)   mobility
of the ion;

 

3)   oxidation
state (valence) and;

 

4)   temperature
of the water.

 

Resistance, which is an electrical measurement expressed in ohms, is
the opposite of conductivity. Conductivity is then expressed in reciprocal
ohms. A more convenient unit of measurement in the chemical analysis of water
is rnicromhos. The specific conductance or conductivity measurement is related
to ionic strength and does not tell us what specific ions are present.

 

Methodology: The specific conductance of a sample is measured by a
self-contained conductivity electrode.

 

Environmental Impact: Conductivity is a measurement used to determine a
number of applications related to water quality. These are as follows:

 

1)   determining
mineralization: this is commonly called total dissolved solids. Total dissolved
solids information is used to determine the overall ionic effect in a water
source. Certain physiological effects on plants and animals are often affected
by the number of available ions in the water.

 

2)   noting
variation or changes in natural water and wastewaters quickly;

 

3)   estimating
the sample size necessary for other chemical analyses; and

 

4)   determining
amounts of chemical reagents or treatment chemicals to be added to a water
sample.

 

Elevated dissolved solids can cause “mineral tastes” in drinking water.
Corrosion or encrustation of metallic surfaces by waters high in dissolved
solids causes problems with industrial equipment and boilers as well as
domestic plumbing, hot water heaters, toilet flushing mechanisms, faucets, and
washing machines and dishwashers.

 

Indirect effects of excess dissolved solids are primarily the
elimination of desirable food plants and habitat-forming plant species.
Agricultural uses of water for livestock watering are limited by excessive
dissolved solids and high dissolved solids can be a problem in water used for
irrigation.

 

Criteria: Water quality criteria have been established only
for the mainstem of the Ohio River. The limit is 800 micromhos/cm or 500 mg/L
total dissolved solids.

 

·      Back to Water Quality Parameters List

·      Back to River Assessment Monitoring Project Home Page

·      Back to Kentucky Water Watch Home Page

·      Back to Natural Resources and Environmental Protection
Cabinet Home Page

 

	
  http://kywater.org/ww/ramp/rmcond.htm

  	
   

  	
  2/26/2009

  

 

 

36

 

	
  Instruction

  Manual

  	
   

  	
  Model SC402G

  Conductivity and Resistivity 

  Converter

  	
   

  	
  EXA

   

  C€

  

 

 

	
  YOKOGAWA

  	
   

  	
  IM 12D7C3-E-H

  5th Edition

  

 

Figure 1: Conductivity and Resistance Converter

 

37

 

	
   

  	
  B-Phos
  Acid

  	
  10/9/99

  	
  Rev-C

  

Bird
Filter (Node 04)

I\O
List

	
  LOOP NO

  	
   

  	
  I\O ADDRESS

  	
   

  	
  TAG NAME

  	
   

  	
  DESCRIPTION

  	
   

  	
  I/O TYPE

  	
   

  	
  FLA

  	
   

  	
  TRANSMITTER

  RANGE

  	
   

  	
  LOW LOW

  
	
  3120

  	
   

  	
  N3R02S03C001

  	
   

  	
  CIT3120

  	
   

  	
  PONDWATER REFERENCE CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3121

  	
   

  	
  N3R02S03C002

  	
   

  	
  CIT3121

  	
   

  	
  SOUTH TRENCH CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3122

  	
   

  	
  N3R02S03C003

  	
   

  	
  CIT3122

  	
   

  	
  #1 EVAPORATOR HOTWELL CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3123

  	
   

  	
  N3R02S03C004

  	
   

  	
  CIT3123

  	
   

  	
  #2 EVAPORATOR HOTWELL CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3124

  	
   

  	
  N3R02S03C005

  	
   

  	
  CIT3124

  	
   

  	
  #3 EVAPORATOR HOTWELL CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3125

  	
   

  	
  N3R02S03C006

  	
   

  	
  CIT3125

  	
   

  	
  #4 EVAPORATOR HOTWELL CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3127

  	
   

  	
  N3R02S03C007

  	
   

  	
  CIT3127

  	
   

  	
  NORTH TRENCH CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3128

  	
   

  	
  N3R02S03C008

  	
   

  	
  CIT3128

  	
   

  	
  PONDWATER SUMP CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3129

  	
   

  	
  N3R02S03C009

  	
   

  	
  CIT3129

  	
   

  	
  VACUUM SEAL TANK CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3130

  	
   

  	
  N3R02S03C010

  	
   

  	
  CIT3130

  	
   

  	
  BAROMETRIC CONDENSER CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3131

  	
   

  	
  N3R02S03C011

  	
   

  	
  CIT3131

  	
   

  	
  #5 EVAPORATOR HOTWELL CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3132

  	
   

  	
  N3R02S03C012

  	
   

  	
  CIT3132

  	
   

  	
  WEST TRENCH CONDUCTIVITY

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
  0-50,000 MHMO

  	
   

  	
   

  
	
  3253

  	
   

  	
  N3R02S03C013

  	
   

  	
  FT3253

  	
   

  	
  MASS STEAM FLOW TO #1 EVAPORATOR HEATER

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3053

  	
   

  	
  N3R02S03C014

  	
   

  	
  FT3053

  	
   

  	
  MASS STEAM FLOW TO #2 EVAPORATOR HEATER

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  N3R02S03C015

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  N3R02S03C016

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  VA/I

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

bpap
io list

 

Table 1 : B–Phosphoric Acid
Plant’s conductivity meter locations

 

38

 

 

Figure
2: Conductivity System for A–Phosphoric Acid Plant

 

39

 

 

Figure
3: Conductivity system for B–Phosphoric Acid Plant

 

40

 

 

Figure
4: “A” Evaporator for A–Phosphoric Acid Plant

 

41

 

 

Figure
5: “#5” Evaporator for B–Phosphoric Acid Plant

 

42

 

 

Sample PM
and Calibration Sheets for Conductivity Probes

 

INSTRUMENT
MAINTENANCE PROCEDURE

 

	
  ASSIGNED TO:  

  	
   

  	
   

  	
  DATE:

  	
   

  	
   

  

 

LOSS ACID MONITOR MONTHLY PM & INSPECTION ROUTE

Critical Alarms/Instruments Test & Calibration

 

VERIFY PORTABLE METER AT QC LAB PRIOR TO TESTING &
CALIBRATION OF CONDUCTIVITY ANALYZERS/PROBES.

 

a.                                       Clean probe
with demineralized water.

 

b.                                      Check air zero
(+/- 0.1 ms/cm). If zero
is good, go to line “d”. If adjustment needed go to line “c”.

 

c.                                       Remove screw
cover on top of the meter and adjust the pot to calibrate.

 

d.                                      Check
calibration with approximate 40 ms/cm buffer. Correct if needed (+/- 1 ms/cm).
If an adjustment is needed, follow the directions on line “c”.

 

e.                                       Record data
below.

 

	
   

  	
   

  	
  Air Zero

  	
   

  	
  40 ms/cm buffer

  
	
  As Found

  	
   

  	
   

  	
   

  	
   

  
	
  As Left

  	
   

  	
   

  	
   

  	
   

  

 

f.                                         After loss
monitor calibration is complete and before turning portable meter in at tool
room clean probe and meter.

 

	
  Completed By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
  (Mechanic’s
  Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Reviewed By:

  	
   

  	
   

  	
  Date:

  	
   

  
	
  (Supervisor’s
  Signature)

  	
   

  	
   

  

 

43

 

INSTRUMENT
MAINTENANCE PROCEDURE

 

CIT 2459 POND WATER REFERENCE TESTING & CALIBRATION

 

1.  Visually
inspect all instrumentation for condition of:

 

a.               Mounting Brackets and
Hardware

 

b.              Conductivity Probe

 

c.               Conductivity Analyzer

 

d.                                      Conduit &
Sealtite

 

e.                                       Verify
identification tag.

 

f.                                         Is process
sample flowing?                                YES  o   NO  o

 

Is probe in process sample?                                   YES  o   NO  o

 

( If NOT in process and/or submerged, note in comments)

 

2.  Calibration
Verification Procedure

 

a.               Is probe submerged? Record
transmitter “As Found” reading.

b.              Remove probe from process
and record “As Found” air zero.

c.               Test process sample with
portable meter and record “As Found” reading.

d.              Clean probe and record “As
Left” air zero.

e.               Reinstall Probe, after warm
up calibrate to grab sample portable reading (if needed) and record “As Left”
readings.

 

*Note: When checking air zero, instrument may indicate a residual
reading because of contaminants remaining on the probe.

(Do not adjust to zero.) Allowable error is +/- 1 ms/cm.

 

	
   

  	
   

  	
  Portable

  Reading

  	
   

  	
  Transmitter

  Zero

  Reading

  	
   

  	
  Transmitter

  Process

  Reading

  	
   

  	
  APACS

  Process

  Reading

  
	
   

  	
   

  	
  ms/cm

  	
   

  	
  ms/cm

  	
   

  	
  ms/cm

  	
   

  	
  ms/cm

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AS
  FOUND

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AS
  LEFT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

COMMENTS:(sample flow, probe location and condition)

 

 

 

 

	
  TEST
  CALIBRATED BY:

  	
   

  	
   

  	
  DATE:

  	
   

  

 

44

 

 

APPENDIX B

 

 

SPECIFICATION FOR RUBBER LINED TANK

 

INSPECTION AND REPAIR

 

CFII ENGINEERING STANDARD

 

SECTION V-06

 

***************************************************************************************

	
  SPECIFICATION:

  	
   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REV.

  	
   3

  	
   DATE

  	
  02/97

  	
   BY

  	
   AWH

  	
   PAGE

  	
   1

  	
   OF

  	
   8

  
											

 

45

 

TABLE OF CONTENTS:

 

	
  I.

  	
   

  	
  GENERAL

  
	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  DETERIORATION OF RUBBER LINED CARBON STEEL TANKS

  
	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  PRELIMINARY WORK

  
	
   

  	
   

  	
   

  
	
   

  	
  A. Tank
  Information

  
	
   

  	
  B. Inspection
  Planning

  
	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  INSPECTION

  
	
   

  	
   

  	
   

  
	
   

  	
  A. Internal
  Visual

  
	
   

  	
  B. Durometer
  Testing

  
	
   

  	
  C. External

  
	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  REPAIRS

  
	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  REPORTS

  

 

***************************************************************************************

	
  SPECIFICATION:

  	
   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REV.

  	
   3

  	
   DATE

  	
   01/97

  	
   BY

  	
   AWH

  	
   PAGE

  	
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46

 

I.          GENERAL

 

This
procedure covers inspection and repair of rubber lined, welded, carbon steel
storage tanks. The design of the carbon steel portion of the rubber lined tanks
at CF Industries, Inc., Plant City Phosphate Complex (CFII), is in
accordance with API Standard 650, “Welded Steel Tanks for Oil Storage” and with
CFII Specification V-01, “Carbon Steel API Coded Storage Tanks”. The inspection
and repair of the carbon steel portion of these tanks is to be in accordance
with API Standard 653, “Tank Inspection, Repair, Alteration, and Reconstruction”
and with this specification. Rubber lining design and installation in these
tanks is in accordance with CFII Specification Q-05, “Rubber Lining”.

 

Rubber
lined carbon steel tanks are used for storage of 26% to 54% phosphoric acid,
pond water, treated water or condensate. The inspection and repair procedures
contained in this specification are intended to insure the integrity of these
tanks. The useful life and quality of a rubber lined tank is often determined
by proper installation, adequate cure and proper inspection/maintenance.

 

A
thorough knowledge of the rubber lining specifications, design drawings and
lining characteristics is required on new as well as repair work. When repair
work is involved, specific attention will be given to the reason for the rubber
lining failure. A change in the rubber lining material or a modification of the
process conditions may be required for a proper repair.

 

II.         DETERIORATION OF RUBBER
LINED CARBON STEEL TANKS

 

The
tank rubber lining may deteriorate because of aging, excessive temperature,
physical damage, subjection to hydrocarbons, sunlight exposure, ply separation
or loss of adhesion. Localized internal corrosion of the underlying carbon
steel portion will occur when the rubber lining does not have complete
integrity. Externally the carbon steel roof, shell and floor sections will show
signs of corrosion from leakage around nozzles, ducts and piping.

 

III.        PRELIMINARY WORK

 

A.  Tank Information

 

The
previous inspection reports should be reviewed to determine the age of the tank
and lining, thickness and type of lining, prior repairs required, reasons for
those repairs and any long range recommendations.

 

B.   Inspection Planning

 

1.    Non-Banded Tanks

 

Complete
inspections for tanks that do not have external reinforcing bands installed are
scheduled on the following approximate schedule: five years after a new lining
is installed, three years after that inspection, and every two years
thereafter; unless there is evidence indicating the need for more frequent
inspection. Circumstances that might indicate a need for more frequent
inspection would include a change in service conditions or the recurrence of
leaks.

 

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  SPECIFICATION:

  	
   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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47

 

III.        PRELIMINARY WORK  (continued)

 

B.  Inspection Planning  (continued)

 

2.    Banded Tanks

 

Inspections
are not scheduled on a regular basis for tanks that have been externally
banded, due to the potential for cleaning damage when completely removing
buildup from the interior and the greatly reduced possibility of a catastrophic
shell failure. These tanks should be partially cleaned as needed for a limited
inspection and repair for process reasons, when a problem exists or there is
evidence indicating the need for more frequent inspection. Circumstances that
might indicate a need for more frequent inspection would include a change in
service conditions or the recurrence of leaks.

 

3.             The following
should be previously arranged and ready when the inspector arrives on site:

 

a.             The tank should
have been washed as needed, all remaining water removed and the tank dried if
practical.

 

b.             GFCI electric
power supply and personnel to move scaffolds and provide manway watch should be
available. For proper internal inspection, good illumination and ventilation
are essential.

 

c.             Equipment such
as scaffolds and/or ladders necessary for physical access to the areas to be
inspected should be available. Care should be exercised when erecting or using
scaffolds/ladders to avoid damaging the rubber lining.

 

d.             A Confined
Space Entry Permit must have been obtained and posted at the tank entrance.

 

IV.       INSPECTION

 

A.  Internal Visual

 

A
visual inspection should be made in all areas (including floor, shell and roof)
where the buildup has been removed to check for damage from cleaning, failed
previous repair patches, softening, hardening (aging), blistering, splitting,
ply separation, and adhesion loss to the steel or at the rubber lining seams.
Tapping lightly on previous repair (rubber or epoxy) patches with a chipping
hammer will often reveal if the patches have failed.

 

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  SPECIFICATION:

  	
   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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48

 

IV.       INSPECTION (continued)

 

A.            Internal
Visual (continued)

 

An
inspection of the walls should be made at various levels of the tank. A ladder
may be used to check the shell where buildup has been removed. The use of
scaffolding requires special care to avoid damaging the floor lining. Visual
inspection of the roof from the floor will usually reveal any suspect rubber
damage. Ladders or scaffolding will be required for closer inspection.

 

In
addition, tanks that do not have external reinforcing bands installed will be
completely cleaned of buildup and the lining will be sandblasted for a through
inspection based upon the schedule in the INSPECTION PLANNING section. All
shell, floor and dome lining will be spark tested and repaired as necessary.

 

In
cases where the age or condition of the rubber lining warrant complete
relining, a complete inspection of the metal should be made after the lining is
stripped. This inspection should identify the metal repairs required which will
be made in accordance with API-653. A preliminary inspection report with the
metal repair recommendations should be completed at this point so the metal
work can be quoted. (See Section VI)

 

B.            Durometer
Testing

 

Hardness
of the lining will be checked utilizing a calibrated Durometer gauge. This
assists in estimating liner damage and in predicting the remaining life of the
lining.

 

C.            External

 

An
external visual inspection should be made to determine the condition of the
carbon steel sections of the tank, including the floor, shell, roof and
nozzles. Ultrasonic thickness readings should be taken (sandblast if necessary)
in suspect areas. Ultrasonic thickness readings should also be made in areas
adjacent to any leak or significant rubber failure. Usually the metal loss will
be very localized at the rubber failure with the adjacent steel still being the
original thickness.

 

Any
cracking, settling, spalling or corrosion of the foundation and grillage beams
should be noted in the inspection report. Foundation elevations are checked
every 5 years, unless conditions warrant more frequent surveys.

 

V.         REPAIRS

 

Prior
to the job beginning, the scope of work (provided with the purchase order) will
be discussed with the field foreman or shop foreman to confirm his
understanding of the job requirements. A spot check of the surface preparation
as well as application of the lining or repair work must be made to confirm
adherence to the procedure. After the repair is completed, a final inspection
will be made with the foreman to determine conformation to the job
requirements.

 

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  SPECIFICATION:

  	
   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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49

 

V.            REPAIRS (continued)

 

Repair
practices in rubber lined tanks frequently involve the use of epoxy cement,
chemical cure rubber, or precured rubber. There are cases of utilizing steam
cured rubber repairs, but this is usually when large areas are involved and the
remainder of the lining will not be overly cured by exposure to the steam.

 

Epoxy
cement is used to repair damaged rubber areas which have not exposed the carbon
steel. Exposed carbon steel is repaired with chemical cure or precured rubber.
Repairs to rubber lined tanks frequently involve metal repairs prior to the
actual application of the rubber.

 

Thickness
readings of the metal will be taken in localized areas affected and all metal
areas approximately 15% less than the original thickness will be repaired or
replaced. If the affected area is larger than one square foot, the metal will
be replaced. Repairs involving plate replacement or complete rewelding of
existing plate will be radiographed in accordance with API-650 except for the
following more stringent requirements:

1.     Vertical welds to be 100 %
radiographed.

2.     All “tees” at vertical and
horizontal weld joints to be radiographed.

3.             All shell
replacement plate horizontal welds to have spot radiography in 10 locations per
360o seam or one every 10’ if less than 360o. These are in addition to the “tee”
radiographs required.

4.     All shell flush patches to
be 100% radiographed.

5.     All radiograph film to be a
minimum of 17” length.

 

Any
new welding on the shell to floor joint should be inspected by applying light
diesel oil to the side opposite the first weld pass made. The oil should be
allowed to stand at least 4 hours and then the weld inspected for “wicking”
action.

 

After
metal repairs are complete, the following tests should be performed: check any
new shell-to-floor welds with diesel oil, vacuum test the floor welds, pressure
check any new nozzle or manway reinforcing pads per API-650.

 

After
metal repairs are complete, interior surface preparation must be such that
installing the rubber lining will not entrap air; such as in voids,
undercutting, ripples, weld splatter, etc. In addition, replacement plate
sections will be flush with the inside of the vessel, and will have corners
rounded to a minimum radius of 6” on the shell and 3” minimum on the floor and
dome.

 

Damaged
rubber will be removed at least six inches more in each direction than the
metal patch to prevent damage to the remaining good lining when the metal is
welded to the vessel. Rubber repair patches must be properly bonded to sound
existing rubber. Buff surface of the original lining back 4” from the cut edge.
For small areas an inlay of the repair lining should be skived onto the beveled
edges of the buffed rubber and then a cover patch used over the inlay (see
sketch 1). For large areas it is permissible to use a single thickness of
lining over the area to be repaired. The patch should extend 4” over the old
rubber (see sketch 2).

 

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  SPECIFICATION:

  	
   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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50

 

VI.       REPORTS

 

A.  Preliminary

 

On
a complete relining job the metal should be inspected after the rubber is
stripped. A preliminary report should be issued as a guide for the repairs and
should include the following

 

1.     Size and location of
replacement plate (A-516, gr.70).

 

2.     Approximate number of repair
welds on the floor, shell and roof.

 

3.     Size, schedule and
specification of any nozzles to be replaced.

 

B.  Final

 

After
repair, a full report should be issued including the following:

 

1.     The size, age, tank number,
service, lining material and original thickness.

 

2.             The visual
inspection results with a description of failed areas or problems affecting the
tank with sketches, photos and metal thickness readings taken, if applicable.
The general overall condition of the rubber lining will be included.

 

3.             Recommendations
for repairs to the rubber and size of replacement plate, if it is required. The
location, extent, and reasons for repairs will be given. Final inspection after
repairs will include an electrostatic test with a machine capable of generating
at least 15,000 volts. Rubber Lining Specification Q-05 lists the acceptable rubber
linings for original installation and repair.

 

4.             Documentation
should include the name of the contractor that made the metal repair and the
name of the contractor that made the lining repair. The metal repair
documentation should also include a sketch showing the location of the weld
repairs made and the certified welders identified for each specific weld.

 

5.             One copy of the
report is to be permanently retained in the Equipment Files.

 

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  SPECIFICATION:

  	
   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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51

 

 

 

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   V-06,
  RUBBER LINED TANK INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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52

 

APPENDIX C

 

 

CONCRETE ACID PADS

 

CFII ENGINEERING STANDARD

 

SECTION Q-03

 

 

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  SPECIFICATION:

  	
   Q-03,
  CONCRETE ACID PADS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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*DENOTES
LATEST REVISION

 

53

 

TABLE OF CONTENTS

 

	
  I.

  	
   

  	
  GENERAL

  
	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  INSPECTION AND REPAIR

  
	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  MAINTENANCE OF EXISTING AREAS

  
	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Concrete Floor Slab Crack Sealing

  
	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Concrete Floor Slab Replacement With Under-Slab
  Liner

  
	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  NEW CONSTRUCTION

  
	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  UNDER - SLAB LINERS

  
	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Preliminary

  
	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Site Preparation

  
	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Installation

  
	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Destructive Testing

  
	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  Non-Destructive Testing

  
	
   

  	
   

  	
   

  
	
   

  	
  F.

  	
  Inspection and Repair

  
	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  NOTES

  
				

 

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  SPECIFICATION:

  	
   Q-03,
  CONCRETE ACID PADS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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*DENOTES
LATEST REVISION

 

54

 

I. GENERAL

 

This
procedure covers the design, installation, inspection and repair of sealing
systems for concrete acid pads, necessary to insure that liquids stored,
processed or conveyed at CFII’s Plant City Phosphate Complex will not
contaminate the soil. Concrete acid pads will be installed in all areas which
have routine acid spills or leaks. Areas which are exposed only to accidental
spills of a non-routine nature can use asphalt paving without under-slab liners
and are not subject to this specification.

 

II. INSPECTION AND REPAIR

 

Inspection

 

Periodic
inspection of concrete slabs and structures designed to prevent hazardous
liquids from contaminating the soil is required in order to maintain their environmental
integrity. Immediately prior to major outages, turnarounds, tank cleaning, etc.,
associated concrete pads should be visually examined and repaired as necessary
before the outage or cleaning occurs. At least once per year these concrete
pads, foundations, curbs and any corrosion-resistant lining should be
thoroughly, visually inspected by Plant Engineering with the condition being
documented. In addition, any serious problems with these concrete structures
discovered between annual inspections should also be repaired as soon as
practical. Trenches are frequently not available for inspection annually and
should be inspected during major outages or whenever they can be taken out of
service. Some specific problems to watch for include: (1) expansion joint
deterioration; (2) cracks in the slab or lining; (3) signs of
elevation changes; and (4) concrete or lining failure. All significant
damage to the integrity of these concrete structures should be repaired as soon
as practical.

 

Repair

 

Repairs
shall return the damaged area to conformity with this specification and the
appropriate drawings. There are two methods of repair defined by this
specification. They are (1) crack sealing with bituminous materials and; (2) slab
replacement with an under-slab liner. Where repair is to be by replacement of
existing slabs with a liner underneath, careful consideration shall be given to
the method of sealing the new liner to any existing structures and the ability
to tie to the liner for future repairs or replacements.

 

III. MAINTENANCE OF EXISTING AREAS

 

A.
Concrete Floor Slab Crack Sealing

 

Where
concrete floor slabs are currently installed and are in generally good
condition with adequate drainage, they may be left in place and repaired in
accordance with this portion of the specification. The repairs defined in this
section are to be as per the details of drawing S-SK-18. The upper portion of
standard asphalt fiberboard expansion joints in concrete floor slabs shall be
removed and replaced using Blome No. 42 hot pour asphalt membrane and No. 40
primer or approved equals. Cracks, construction joints and control joints shall
be repaired using the Blome Nos. 42 and 40 products or approved equals. If
required, the top portion of the joints shall be chipped or gouged to a depth
of approximately one inch for proper adhesion of the sealing material.

 

In
areas where concrete deteriorates rapidly, a 1/8” layer of Semstone no. 145
(for solvent areas), U-Crete (for acid areas) or an approved equal may be
applied to the top of the slab. Thicker applications can be made where heavy
traffic loading is expected. Termination of the top-coating (if used) at
mid-slab is to be per drawing S-SK-20.

 

***************************************************************************************

	
  SPECIFICATION:

  	
  Q-03,
  CONCRETE ACID PADS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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*DENOTES
LATEST REVISION

 

55

 

III. MAINTENANCE OF EXISTING AREAS (continued)

 

B.  Concrete Floor Slab
Replacement With Under-Slab Liner

 

If
significant deterioration to the concrete has occurred or if drainage is
inadequate, the concrete slab so affected shall be replaced to provide adequate
containment and drainage. Concrete curbs and exaggerated slopes can be utilized
to confine and direct the flow of surface liquids where needed. When concrete
slabs are to be replaced, contaminated soil is to be removed and replaced with
clean fill; neutralization may be allowed with CFII approval.

 

*                                                                 Design and
installation of replacement or partial replacement concrete slabs with
under-slab liners shall be required in an acid environment which subjects the
soils to heaving, and shall be as per the new construction details on drawing
S-SK-19. Careful consideration should be given to the method of sealing the new
liner to any existing structures and the ability to tie to the liner for future
repairs or replacements. See Section V for Under-Slab Liner Requirements.
Termination of the under-slab liner at mid-slab is to be per drawing S-SK-20.

 

IV. NEW CONSTRUCTION

 

New
plant equipment that stores, processes or conveys liquids that could
potentially contaminate the soil, shall have their foundations and adjacent
grade areas designed and installed to prevent soil contamination in the event
of leakage. This design will include concrete slabs with adequate drainage and
curbing around the pad. Careful consideration will be given to the methods of
sealing new construction to existing structures. All expansion, isolation,
construction and control joints will be specifically located by the Contractor
and submitted to CFII for approval prior to beginning construction. New
concrete shall be installed according to CFII Specifications A-02 and A-04, as
well as this specification. Details of new construction concrete work are shown
on drawing S-SK-19.

 

*                               Expansion and isolation
joints in new concrete floor slabs should be standard 1/2” asphalt fiberboard,
sealed with a layer of Blome No. 42 hot pour asphalt membrane and No. 40
primer or approved equals. Control and construction joints will also be
installed using the Blome Nos. 42 and 40 products or approved equals. In
addition, a high density polyethylene (HDPE) or other approved flexible
membrane of 60 mil, (0.060”) minimum thickness, will be installed under all new
concrete slabs and small foundations. Larger concrete footers or foundations,
of adequate thickness which would normally not be subject to cracking are not
required to have underlying liners. See Section V for Under-Slab Liner Requirements.

 

In
areas where concrete is expected to deteriorate rapidly, a 1/8” layer of
Semstone no. 145 (for solvent areas), U-Crete (for acid areas) or an approved
equal may be applied to the top of the slab. Thicker applications can be made
where heavy traffic loading is expected. Termination of the top-coating (if
used) at mid-slab is to be per drawing S-SK-20.

 

*V. UNDER-SLAB LINERS

 

*A.
Preliminary

 

Prior
to installation, the HDPE geomembrane shall be stored so as to be protected
from puncture, dirt, grease, water, mud, mechanical abrasion, excessive heat,
or other geomembrane hazards. The rolls shall be stored as close to the job
site as possible.

 

***************************************************************************************

	
  SPECIFICATION:

  	
  Q-03,
  CONCRETE ACID PADS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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*DENOTES
LATEST REVISION

 

56

 

*V. UNDER-SLAB LINERS (continued)

 

*A.
Preliminary (continued)

 

The
vendor will supply panel placement drawings to indicate the panel configuration
and location of seams proposed for the project. These drawings will be
submitted prior to installation.

 

A
written warranty shall be obtained from the manufacturer (for material) and the
vendor (for workmanship). These documents shall warrant both the quality of the
material and workmanship for a specified duration of time.

 

*B.
Site Preparation

 

Prior
to liner installation, the exposed subgrade shall be smooth, clear of all
foreign and organic material, angular or sharp objects, roots, or debris of any
kind. The subgrade shall be compacted in accordance with design specifications
but in no circumstance below the minimum required to provide a firm, unyielding
foundation with no abrupt changes in grade. Standing water or excessive
moisture shall not be allowed. Subgrades found to have desiccation cracks, or
heaving shall be replaced or reworked to remove these defects.

 

The
vendor, if necessary shall sterilize the liner installation area using an
effective soil sterilizing agent specifically formulated for vegetation present
in the area. The sterilizing agent shall not be harmful to the liner and shall
be applied according to the manufacturer’s recommendations. Subgrade soil
sterilization is required for use with spray-on or trowel-on liners, and is
optional with HDPE sheet liners, dependant upon soil conditions.

 

*C.
Installation

 

When
weather conditions are not favorable, the results of the destructive and
non-destructive testing will be used to substantiate the seaming process.
Geomembrane deployment shall proceed between ambient temperatures of 40 degrees
F to 104 degrees F. Placement can proceed below 40 degrees only after it has
been verified by the testing that the material can be seamed according to the
specification and is approved by CFII. Geomembrane placement shall not be done
during any precipitation, in the presence of excessive moisture, fog, rain,
dew, or in the presence of excessive winds.

 

No
equipment or tools shall damage the geomembrane by handling, trafficking, or
other means. No personnel working on or near the geomembrane shall smoke, wear
damaging shoes, or engage in other activities that could damage the
geomembrane. The method used to unroll the panels shall not cause scratches or
crimps in the geomembrane, and shall not damage the supporting soil. Adequate
loading of sand bags or similar items that will not damage the geomembrane
shall be placed to prevent uplift by winds. Direct contact with the geomembrane
shall be minimized once it is in place.

 

In
corners and odd-shaped geometric locations, the number of field seams shall be
minimized. If a “fishmouth” or wrinkle is found, it shall be relieved and
cap-stripped.

 

Panels
of geomembrane must have a finished overlap of a minimum of 4 inches for double
wedge fusion welding and 3 inches for extrusion welding, but in any event
sufficient overlap shall be provided to allow peel and shear tests to be
performed on the seam. No solvent or adhesive may be used. The procedure used
to temporarily bond adjacent panels together shall not damage the geomembrane;
in particular, the temperature of hot air at the nozzle of any spot welding
apparatus shall be controlled such that the geomembrane is not damaged.

 

***************************************************************************************

	
  SPECIFICATION:

  	
  Q-03,
  CONCRETE ACID PADS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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   DATE

  	
   7/93

  	
   BY

  	
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   5

  	
   OF

  	
   11

  
											

 

*DENOTES
LATEST REVISION

 

57

 

*V. UNDER-SLAB LINERS (continued)

 

*D.
Destructive Testing

 

The
vendor shall provide a minimum of one destructive test sample per 500 feet of
seam length from a location specified by CFII. Samples shall be cut by the
vendor as the seaming progresses. Sampling times and locations shall be
determined by CFII. All damage to the geomembrane resulting from obtaining the
seam samples shall be repaired. All repairs shall be vacuum tested. The samples
shall be 12 inches wide by 24 inches long with the seam centered lengthwise. The
sample shall be cut into two equal length pieces, half to be tested by the
vendor and the other half to be given to CFII.

 

Double
wedge fusion welder and extrusion welder start-up testing shall be conducted on
geomembrane liner to verify that seaming conditions are satisfactory. Start-up
tests shall be conducted at the beginning of each seaming period and at CFII’s
discretion for each seaming apparatus used that day.

 

All
test seams shall be made at a location selected by CFII in the area of the
seaming and in contact with the subgrade. The vendor shall use a tensiometer to
test these specimens for shear and peel. If a test seam fails to meet field
seam specifications, the seaming apparatus and/or seamer shall not be accepted
and shall not be used for seaming until the deficiencies are corrected and two
consecutive successful full test seams are achieved.

 

The field seams shall meet the following specifications:

 

	
  Seam Property

  	
   

  	
  Test Method

  	
   

  	
  Requirements

  
	
  Shear
  Strength

  	
   

  	
  ASTM
  D 3083

  	
   

  	
  >90%
  of yield strength

  
	
  Peel
  Strength

  	
   

  	
  ASTM
  D 413

  	
   

  	
  >70%
  of yield strength

  

 

Seam
specimens are 1 inch wide, grip separation rate is 2 ipm. Both shear seam
strength and peel tests shall be run on five replicate specimens. A break
through the weld or at the weld-sheet interface shall be considered a (failure)
in both seam strength (shear) and peel strength tests. Approved field seaming
processes are double wedge fusion welding and extrusion welding. Welding rods
or beads used for extrusion welding shall be HDPE and the physical properties
shall be the same as those of the resin used in the manufacture of the HDPE
geomembrane.

 

*E.
Non-Destructive Testing

 

The
vendor will non-destructively test up to as much as 20% of factory fusion welds
in the field to verify factory test results. Additional testing at the vendor’s
expense will be required if failed tests are obtained in the field.

 

The
vendor shall non-destructively test all field seams over their full length
using air pressure or vacuum testing. All test equipment shall be furnished by
the vendor. All test data will be documented.

 

Equipment
for air pressure testing double fusion seams:

 

1.                                                         An air pump
capable of generating and sustaining a minimum pressure between 25 and 30 psi.

2.                                                         A manometer
(equipped with a sharp hollow needle used for inserting air into the seam) for
measuring the pressure held in the air channel.

 

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*DENOTES
LATEST REVISION

 

58

 

*V. UNDER-SLAB LINERS (continued)

 

*E.
Non-Destructive Testing (continued)

 

The following air pressure testing procedures shall be followed by the
vendor:

 

1.   Seal both ends of the seam to
be tested.

2.   Insert needle into the air
channel created by the double wedge fusion weld.

3.         Inflate the air channel to a
pressure between 25 and 30 psi, close the valve, and sustain pressure for
approximately 2 minutes. This is a period which permits the air pressure, and
all contributing factors to stabilize. Maintain pressure and sustain for
approximately 5 additional minutes. At this time record the air test data.

4.         At the end of the five
minute period, cut the seam at the far end of the test area to allow air to
escape, therefore, verifying that there was no blockage of the seam being
tested.

5.   Remove needle and repair both
ends.

6.          If loss of pressure exceeds
4 psi, or the pressure does not stabilize, locate the area of the leak and
repair. Retest the repaired area using vacuum box testing method.

 

Equipment for vacuum testing extrusion seams:

 

1.          A vacuum box assembly
consisting of a rigid housing, a transparent viewing window, a soft gasket
attached to the bottom, and a vacuum gauge.

2.   A vacuum pump or air pressure
eductor.

3.   Vacuum or air hose.

4.   A plastic bucket and an
applicator.

5.   A soapy water solution.

 

The following vacuum testing procedures shall be followed by the
vendor:

 

1.   Excess seam overlap shall be
trimmed away.

2.   Clean the vacuum box viewing
window, gasket surfaces and check for leaks.

3.          Wet a strip of geomembrane
approximately 3 inches larger than the parameter of the box with the soapy
water solution.

4.   Place the box over the wetted
area and compress.

5.   Apply the vacuum and maintain
an air tight seal.

6.          For a period of
approximately 15 seconds, examine the seam through the viewing window for the
presence of a stream of moving soap bubbles indicating a leak.

7.          If no bubbles appear after
15 seconds, shut off the vacuum, move the box over the adjoining area with a
minimum 3 inches overlap and repeat the process.

8.   All areas where leaks were
detected shall be marked, repaired and then retested.

 

*F.
Inspection & Repair

 

All
seams and non-seam areas of the geomembrane shall be inspected for defects,
holes, blisters, undispersed raw materials, and any sign of contamination by
foreign matter. Because light reflected by the geomembrane helps to detect
defects, the surface of the geomembrane shall be reasonably clean at the time
of inspection. The geomembrane surface shall be brushed, blown, or washed by
the vendor if the amount of dust or mud inhibits inspection.

 

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*DENOTES
LATEST REVISION

 

59

 

*V. UNDER-SLAB LINERS (continued)

 

*F.
Inspection & Repair (continued)

 

Each
suspect location in seam and non-seam areas shall be non-destructively tested.
Each location that fails the non-destructive testing shall be marked by the
vendor and repaired accordingly.

 

Defective
seams shall be restarted/reseamed as described in these specifications. Small
holes shall be repaired by extrusion cap welding. If the hole is larger than
1/4 inch, it shall be patched. Tears shall be repaired by patching. Where the
tear is on a slope or an area of stress and has a sharp end it must be rounded
prior to patching. Blisters, largeholes, undispersed raw materials, and
contamination by foreign matter shall be repaired by patches. Surfaces of HDPE
which are to be patched shall be abraded and cleaned no more than 15 minutes
prior to the repair. No more than 10% of the thickness shall be removed by the
abrading process.

 

Patches
shall be round or oval in shape, made of the same geomembrane, and extend a
minimum of 6 inches beyond the edge of defects. All patches shall be of the
same compound and thickness as the geomembrane specified. All patches shall
have their top edge beveled prior to placement on the geomembrane. Patches
shall be applied using approved methods only.

 

The
welding process shall restart by grinding the existing seam and rewelding a new
seam. Welding shall commence where the grinding started and must overlap the
previous seam by at least 2 inches. Reseaming over an existing seam without
regrinding shall not be permitted.

 

Each
repair shall be non-destructively tested, except when CFII requires a
destructive seam sample obtained from a repaired seam. Repairs that pass the
non-destructive test shall be taken as an indication of an adequate repair.
Failed tests indicate that the repair shall be repeated and retested until passing
test results are achieved.

 

VI.                NOTES

 

*1.                                Semstone products are
manufactured by Sentry Polymers, Freeport, Texas. U-Crete products are
manufactured by Thoro Building Products, Pittsburgh, Pennsylvania. Blome
products are manufactured by Blome Cements Co., St. Peters, Missouri. The HDPE
geomembrane is manufactured by Plastic Fusion Fabricators, Huntsville, Alabama
and Reef Industries, Houston, Texas. Spray-on or trowel-on under-slab liners
are to be “Membrane #6” manufactured by Environmental Liner Systems (ELS),
Marietta, Georgia. Substitution of other materials is acceptable only with
prior CFII approval.

 

2.                                 Application of
Semstone or other approved corrosion resistant lining products is to be as per
the manufacturer’s recommended procedures and this CFII Specification.
Conflicts between these will be immediately brought to the attention of CFII
for resolution.

 

3.                                 By reference
CFII Specification A-02 “Site Preparation and Earthwork” and Specification A-04
“General Concrete” are included in this specification. Conflicts between these
two specifications and CFII Specification Q-03 will be immediately brought to
the attention of CFII for resolution.

 

*4.                                HDPE and spray-on or
trowel-on under-slab linings are to be installed only by vendors specifically
approved by CFII and who are trained and licensed to install the manufacturer’s
geomembrane.

 

 

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*DENOTES
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60

 

 

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61

 

 

 

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62

 

 

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63

 

CFI SOLID AND HAZARDOUS
WASTE

MANAGEMENT PLAN

 

CF
Industries, Inc. Plant City Phosphate Complex

Sulfuric
Acid Plant Maintenance/Turnaround Activities

 

I. Background

 

The following plan has been prepared to assist CF Industries, Inc.’s
(CFI) personnel in properly managing and characterizing any solid and hazardous
wastes that may be generated during Sulfuric Acid Plant Maintenance and
Turnaround activities.  Of particular
concern are sulfate residues that may be generated during such activities.  When liquefied, such residues typically
represent characteristic hazardous waste under the Resource Conservation and
Recovery Act (RCRA) and implementing regulations by exhibiting the hazardous
characteristic of corrosivity (i.e., pH < 2).  Additionally, certain sulfate residues may
also exhibit the hazardous waste characteristic of metals toxicity when either
wet or dry.  Any such hazardous waste
must be treated and disposed at a permitted treatment, storage and disposal
(TSD) facility unless onsite treatment and disposal is otherwise allowed under
specific RCRA regulations.  For example,
those wastes that are hazardous solely because of corrosivity can be treated
onsite in an Elementary Neutralization Unit (ENU) without a TSD permit.  Some that are hazardous for corrosivity and
metals toxicity can also be treated on-site without a TSD permit if performed
in accordance with 40 C.F.R. § 270.1(c)(2). 
Onsite treatment and disposal of certain characteristically hazardous
sulfate wastes is permissible by adherence to the procedures outlined in this
plan.

 

CFI has determined that, in some instances, it may not be feasible to
perform representative sampling and/or decontamination of waste acid brick and
packing materials that may be removed from process vessels for disposal as part
of these activities.  Therefore, CFI has
elected to manage all such brick and packing materials contaminated with
sulfate residues as “hazardous waste”, until and unless the sulfate residues
have been specifically determined to be non-hazardous by representative
sampling and analysis.  Other materials
that may be contaminated with hazardous constituents and that cannot be
recycled (e.g., candle packing and demisters), can be representatively sampled
and characterized analytically to determine whether such materials must be
managed as hazardous wastes.

 

The following procedures and approach will be implemented to ensure
that:

 

·  the generation of solid and
hazardous wastes is minimized;

·  all solid and hazardous
wastes that may be generated are properly characterized and managed for
recycling or disposal;

·  the potential for release of
waste materials to the environment is minimized;

·  appropriate preventative and
response measures are in place prior to implementation of work; and

 

Rev.
July 8, 2009

 

1

 

·  personnel safety is not
compromised during waste sampling, characterization and management activities.

 

II. Responsibilities

 

The Hazardous Waste Coordinator (Chief of Environmental Services) or
his designee will be responsible for oversight of EHS compliance and is
responsible for ensuring that the hazardous waste containers are properly
labeled, inspected, stored, and shipped in accordance with the Container
Management Plan.  The Hazardous Waste
Operators (Area Supervisors) will be responsible for oversight of hazardous
waste characterizations and management prior to disposal.  There will be an operations person designated
to be responsible for controlling the waste containers to ensure that the
containers are labeled and properly handled.

 

This Solid and Hazardous Waste Management Plan will be reviewed with
all personnel engaged in the work prior to the implementation of waste
generating activities, and such review will be documented.  The Plan will be refined as necessary based
on new information or changes in the scope of work.  Any recommended changes in procedures will be
communicated to the appropriate personnel.

 

III. Liquids

 

Any free liquid acid encountered that is not recoverable to the
manufacturing process shall be characterized for metals toxicity and
corrosivity.  Those that only exhibit
corrosivity shall be neutralized in the tank or vessel of origin prior to
generation as a waste or removed from the vessel of origin and neutralized in
an ENU prior to disposal.  A liquid waste
that is both corrosive and toxic as generated may be treated if a procedure is
listed in this plan; otherwise, it must be transported to a permitted TSD
facility.

 

IV. Sulfate Residues

 

All waste sulfate residues generated during maintenance activities will
be characterized for metals toxicity. 
Such residues are potentially present in all acid side and gas side
interior portions of the sulfuric acid process plants including:

 

·   Sulfur Furnaces

·   Drying and Absorption towers

·   Gas ducts

·   Pump tanks

·   Heat exchangers

·   Economizers

·   Acid Coolers

·   Gas stacks

·   Boilers

 

2

 

All non-recyclable waste materials generated during maintenance
activities that have been in contact with process gas or acid will also be
characterized for metals toxicity.  Such
materials include:

 

·   Boiler /duct refractory

·   Burner /duct refractory

·   Drying and Absorption tower
demister pad material

·   Absorption tower candle mesh
material

 

NOTE: Due to the heterogeneity of brick and packing debris removed from
absorption towers, and due to the potential presence of hazardous waste sulfate
residues in absorption towers, all brick and packing contaminated with hazardous
sulfate residue that is removed from the absorption towers will be managed as
hazardous waste, until and unless specifically determined to be non-hazardous
by representative sampling and analysis.

 

V. Cleanout Preparations

 

1.     Prior to beginning any activities
that may result in the potential discharge of sulfuric acid/sulfate residues to
the environment, plastic sheeting shall be deployed so as to adequately cover
the ground around the work area. 
Particular care and attention shall be paid to any work areas underlain
by pervious ground that cannot be avoided. 
Plastic sheeting shall be ballasted as necessary to ensure that it
remains in place during the work, and the edges will be raised to prevent
runoff.  Additional plastic sheeting will
be on hand for emergencies and for the covering and isolation of any open
vessel or exposed components that may generate leachate if contacted by
rainwater.

 

2.     When connecting ducts and/or
piping are to be separated from a tower, all appropriate safety procedures shall
be strictly followed, including but not limited to hot work and confined space
entry permitting requirements and use of appropriate personal protective
equipment (PPE).  Only properly trained
personnel will perform the work.

 

3.     A portable rinse tank/vat
will be placed in the work area to receive and clean solid demister pads and
candle mesh removed from the absorption towers.

 

4.     Adequate neutralizing
compound will be on hand to maintain an appropriate pH range in the cleaning
tank/vat during the course of the work and to respond to an accidental release
of acidic wastewater.

 

5.     Clean, empty tanker truck
tanks, FRAC tanks, or other suitable portable tanks shall be placed in the work
area as a precautionary measure to receive and store any excess liquid wastes
or recovered spills that must be contained and characterized for disposal.

 

3

 

6.     An adequate supply of new,
empty hazmat poly drums will be on hand for the receipt of residual process
wastes (principally sulfate) that may be generated during
maintenance/turnaround activities.  RCRA
compliant roll-off dumpsters with liners and covers will be readily available
for receipt of bulk waste materials.

 

7.     All waste containers must be
numbered and labeled.  Pre-labeling and
numbering will be done whenever possible. 
Whenever wastes are put into the drums, the date and type of waste must
be written on the containers/labels.  A
log of all stored waste will be maintained, which shall be used to inventory
and inspect wastes, track inventory, and determine monthly generator status.

 

8.     RCRA compliant drums or
roll-off dumpsters (depending on volume of material) will be provided to
receive candle mesh and demister pads after cleaning until they are reused or
disposed.

 

9.     RCRA compliant drums or
roll-off dumpsters (depending on volume of material) will be provided to
receive sulfate contaminated debris (principally, ceramic packing and brick).

 

10.   Cleaning of candle mesh and
demister pads will be done in place as part of the tower washing.  The resulting wash solution must be monitored
to ensure that corrosive hazardous waste is not generated during the course of
the work.  The Production Supervisor will
ensure that personnel responsible for monitoring and adjusting pH are properly
trained in the use and calibration of pH monitoring equipment and the rinsing
procedures to be employed.  Training will
be documented prior to the initiation of work. 
Automatic sampling devices will be available and on hand for the collection
of flow weighted samples of wash streams in accordance with the Waste
Management and Characterization Plan.

 

11.   No
washing or neutralizing operation will be initiated, and no wastewater, sludge,
catalyst, or sulfate residual will be removed or discharged, without the
knowledge of the Hazardous Waste Coordinator or prior to coordination with
personnel responsible for sample collection and waste characterization during
the turnaround.

 

VI.
Waste Management

 

1.     The washing of sulfuric acid
absorption and drying towers during a sulfuric acid plant turnaround generates
a liquid waste that is corrosive and frequently toxic for chromium.  This liquid waste may be treated on-site in a
Wastewater Treatment Unit (“WTU”), as set forth in  40 C.F.R. § 270.1(c)(2),without obtaining a
Treatment Storage and Disposal permit, by adhering to the following procedures.

 

a. Absorption/Drying Towers (See Figure 1)

 

i.  Care will be taken to avoid
the release of any scale or sulfate residue during removal and handling of
ancillary ducts and piping.  All loose
scale and residue

 

4

 

will be physically removed (to the extent practicable) from the
recyclable scrap, contained, and placed in poly drums or lined roll-offs.  All such scales and residues will be sampled
and characterized for proper disposal.

 

ii.  Wastewater generated during
tower washings has been determined to be characteristically hazardous for
corrosivity, as well as characteristically toxic for chromium.  Treatment of tower wash wastewater using lime
neutralization in a WTU) has been successfully implemented to reduce
corrosivity and toxicity to non-hazardous levels as demonstrated through
analytical characterization of the treated effluent and liming solids.  Such treated wastes will continue to be
characterized as necessary to demonstrate adequate reduction of hazardous waste
characteristics.

 

iii.  Wastewater generated during
tower washings will be treated in a WTU by neutralizing the wash water with
lime slurry (per current practice) to a pH above 2.0 and below 12.5 standard
units.  The WTU is comprised of a two
stage system that consists of two dedicated tanks in series.  The pH of the first tank flow will be
monitored, and if the pH approaches 2.0, pH can be re-adjusted in the first
tank while being adjusted in the second tank to ensure that pH is maintained
above 2.0 standard units before it is released to the process water
system.  The treated wastes will be
characterized to document adequate reduction of hazardous waste
characteristics.  Such characterization
will include monitoring for pH and may include composite sampling for chromium
and/or other metals as appropriate.

 

iv.  A pH log of the flow from
Tank 1 to Tank 2 will be maintained by the operator.  This log will serve as the operating log for
pH adjustment and will guide the operator in the addition of lime
neutralization agent to the tanks.  The
flow will be monitored at intervals of not less than every 15 minutes for the
first 8 hours of tower wash, or until an adequate margin of safety has been
established so that maintenance of the final discharge pH above 2.0 and below
12.5 standard units can be assured. 
Alternatively, a continuous pH monitor and recorder may be used.

 

v.  A pH log of the final
effluent from Tank 2 to the process water ditch will be maintained by the
operator.  This log will serve to
demonstrate adequate treatment for reduction of corrosivity.  The effluent will be monitored at intervals
of not less than every 15 minutes for the first 8 hours of tower wash, or until
an adequate margin of safety has been established so that maintenance of the
final discharge pH above 2.0 standard units can be assured.  Alternatively, a continuous pH monitor and
recorder may be used.

 

vi.  If analytical characterization
for metals is necessary to demonstrate adequate reduction of toxicity in the
final discharge, a composite sample will be collected using an automatic
sampler, which will be installed and operated to take a representative
composite sample of the entire waste stream discharged during the washing
activity.  A second automatic sampler
will be operated to provide a back up sample if the first sampler
malfunctions.  The backup sample will be
retained.

 

5

 

v.  Candles or demister pads
removed from the vessel will be rinsed prior to removal when the tower is being
washed or in a wash vat if the tower is not being washed and staged on plastic
sheeting first for logistical purposes. 
Any loose residue, if present, should be removed and placed in a waste
drum when the candle or demister is removed from the tower.

 

 

b. Vat Washing (pipes, demister pads, etc.)

 

i.  Small equipment, from which
residues have been removed and drummed separately, can be rinsed clean in a WTU
vat.  The components will be
dipped/flushed in the wash vat while maintaining pH above 2 and below 12.5 pH
units in the wash water.  Wash water pH
will be monitored at an appropriate frequency to determine successful washing
of each component while maintaining pH above 2 units and below 12.5 units.  Initially, this monitoring frequency should
be not less than every 15 minutes and during the course of the work should be
not less than hourly when actively washing components.  Water will not be discharged from the wash
vat during washing.  If necessary to
allow time for characterization, the wash will be put into an onsite temporary
storage tank (i.e., tanker truck tank or other suitable portable tank) and a fresh
wash will be prepared.

 

6

 

ii.  Upon completion of cleaning,
each candle or pad shall be placed onto plastic sheeting to dry. For demisting
media that is to be disposed, non-recyclable mesh and pad materials will be
separated from metal frames and will be placed into drums or roll-off dumpsters
(depending on volume) for sampling and characterization to determine proper
disposal.  Mesh and pad materials,
frames, and cages that will not be reused will be placed into drums or roll-off
dumpsters (depending on volume) for sampling and characterization to determine
proper disposal.  Cleaned frames, cages,
or other parts of the demisters that will be reused will be staged on plastic
to dry and sent to a repacking service.

 

iii.  Any incidental residues
that are collected on the protective plastic sheeting will be recovered and
placed with similar vat washing wastes for sampling and characterization and
subsequent proper disposal.  All plastic
sheeting will be stored for characterization and proper disposal if it is not
in a condition to be reused for additional maintenance activities, or upon
completion of the work.

 

iv.  Upon completion of all
washings, a composite sample of the accumulated washwater will be analyzed for
pH and metals toxicity.  When the
characterization results show the accumulated washwater is non-hazardous for
corrosivity and metals, it can be discharged to the NPDES cooling pond
system.  If the results show the
washwater is hazardous it will be treated as hazardous waste.

 

c.   Fixed Equipment Washing
(superheaters, economizers, ammonia scrubbers, etc.)

 

i. Residues will be removed to the maximum extent practicable prior to
washing.  All generated scales, sludges
and residues will be contained, drummed, sampled, and characterized for proper
disposal.

 

ii.  Wash liquid will be
collected and pumped to a storage tank, sampled, and characterized for proper
disposal.  Upon completion of all
washings, a composite sample of the accumulated washwater will be analyzed for
pH and metals toxicity.  When the
characterization results show the accumulated washwater is non-hazardous for
corrosivity and metals, it can be discharged to the NPDES cooling pond
system.  If the results show the
washwater is hazardous it will be treated as hazardous waste

 

d.  Storage Tank Washing

 

i.  All residual liquid acid will
be transferred from the storage tank being cleaned using pumps to a storage
tank in the sulfuric acid process.  Once
all residual acid is removed from the tank, a cleaning nozzle will be installed
inside the tank, to circulate a neutralization solution.  When neutralization is complete, a fresh
water rinse will be circulated.  The
purpose of the neutralization and rinse activities is to remove any acidic
materials from the tank walls and floor. 
All neutralization and rinse materials will be collected for proper
characterization.  A vacuum truck will

 

7

 

be used to dry out the storage tank to remove any standing liquid from
the floor of the tank.

 

ii.  a composite sample of the
accumulated washwater will be analyzed for pH and metals toxicity.  When the characterization results show the
accumulated washwater is non-hazardous for corrosivity and metals, it can be
discharged to the NPDES cooling pond system. 
If the results show the washwater is hazardous it will be treated as
hazardous waste

 

2.     Gas Ducts

 

a.   Any gas duct sections that
are removed will be carefully placed in a RCRA compliant lined roll-off
dumpster or in a lined holding area and decontaminated of any loose scale and
sulfate residues.  All scale and residues
will be contained, drummed or placed in roll-offs, and subsequently sampled and
characterized for proper disposal.

 

3.     Pump Tanks

 

a.  If characterization of
sulfate from pump tanks indicates that pump tank sulfate is not hazardous,
brick debris from pump tanks may be disposed in a lined municipal
landfill.  If segregation of such debris
is not practicable, it may be mixed with hazardous debris for disposal at a
permitted hazardous waste TSD facility. 
If sulfate is characterized as hazardous, it must be managed as
hazardous debris with the tower brick and packing.

 

4.     Boilers and Burners

 

a.  Refractory linings in the
interiors of boilers, burners, and attached gas ducts may contain heavy metals.  This material will be collected in drums,
roll-offs or dumpsters (depending on volume) and sampled and characterized for
proper disposal.

 

5.     Acid Cooler

 

a.  Any sulfate residue and
scale waste will be drummed, sampled and characterized for proper disposal.

 

b. CIL Cooler washings will be
contained in the cooler, sampled and characterized for proper disposal.  The wash water must be maintained above a 2.0
and below a 12.5 pH.

 

6.     Gas Stacks

 

a.  Any scale/residue removed
from the Gas Stack will be contained, drummed, sampled and characterized for
proper disposal.

 

8

 

7.     Converter Catalyst

 

a.  Catalyst that is to be
disposed will be screened for size separation, and a composite sample of each
cut (i.e. dust, chips, full size) will be collected.  This will be accomplished by pulling one
off-line sample from each supersack during filling at the time of vacuum
removal from the converter.  In order to
characterize the catalyst for proper disposal, subsamples from each bed cut
will be composited for analysis.

 

b. Serviceable catalyst that is
screened and returned to the converter will not require sampling or
characterization.  Dust and chips
separated from serviceable catalyst for disposal will be bagged and sampled as
described above.

 

c.  All catalyst that is removed
for disposal will be placed in supersacks and stored on pallets in a lined or
paved area.  Each supersack will be
shielded from weather with a plastic cover bag and maintained free from rainwater
contact.

 

8.     Breaking Flanges

 

a.  Any time a flange or hose
fitting that could drip low pH liquids is taken apart (piping, manways, acid
truck unloading hoses, etc.)

 

i.      If the piping is not over an
impervious surface, plastic will be placed below the flange and a neutralizing
agent put on the plastic to catch any drippage.

 

ii.     If the piping is over an
impervious surface, a neutralizing agent will be put under the flange and left
under the dripping flange until it either stops dripping or it is put back
together.

 

iii.    The neutralized solution
will be washed to the lined Area 10 once there is no longer any danger of acid
leakage from the flange.

 

9.     Any accidental spills or
releases of waste materials that could occur during the   performance of the work activities shall be
cleaned up as expeditiously as possible, and in no case shall any waste
materials be allowed to escape the immediate work area.  The spill residues and contaminated materials
contacted by the spilled material shall be managed as a hazardous waste until
such material is determined not to be characteristically hazardous.  Sulfuric acid spills that are not
contaminated with any other waste and occur on the impervious pads that drain
to the lined Area 10 will be neutralized with a neutralizing agent and washed
to the lined Area 10.

 

10.   In the event of an
accidental spill of sulfuric acid, the lined Area 10 system allows for the
collection and neutralization of low pH liquid waste prior to transfer to the
cooling pond..  The pH of the lined Area
10 is monitored and adjusted as necessary to maintain pH between 2 and 12.5.

 

9

 

11.   A demineralizer is used as
part of the boiler water treatment.  The
regeneration of the demineralizer produces useable weak sulfuric acid and
unusable weak caustic (sodium hydroxide) streams.  The caustic stream is neutralized in an ENU
with acid, and the neutralized caustic stream goes to the lined Area 10 system.  The useable weak sulfuric acid is pumped to
the phosphoric acid production facility where it is used in the reactor to
produce phosphoric acid.

 

12.   The single absorption
sulfuric acid plants use ammonia scrubbing to control emissions from the
stack.  This produces an ammonium sulfate
solution that is either used as a feedstock in DAP production or, after
neutralization, is sold as a liquid fertilizer. 
The excess ammonium sulfate solution is neutralized and stored in a
lined pond on top of the phosphogypsum stack. 
This solution is either sold or used as a liquid fertilizer for the
grassed slopes of the phosphogypsum stacks.

 

13.   Discarded welding rods can
be a characteristically toxic hazardous waste and shall not be mixed with other
solid wastes.  Used welding rods must be
put into marked containers for metals recycling or proper disposal.  DO NOT THROW WELDING RODS ON THE GROUND.  If welding rods are encountered when cleaning
up the areas, they must be separated and put into the marked containers.

 

VII. Waste Characterization

 

1.     As indicated by the above
procedures, the following wastes will be sampled and analyzed upon generation:

 

a.     sulfate residues and sludges

b.     duct scales

c.     candle mesh (if removed for
disposal)

d.     demister mesh (if removed
for disposal)

e.     neutralization wastewater
(storage tanks, tankers, neutralization tanks)

f.      neutralization sludge
(neutralization tanks)

g.     sulfuric acid catalyst

h.     welding rods intended for
disposal

 

2.     For each sample, the precise
location at which the sample was taken shall be recorded.  Sampling results will be maintained and,
where appropriate, will be used to establish future waste characterization by
supporting CFI’s generator knowledge.

 

3.     All samples collected will
be analyzed by a properly certified laboratory for Total RCRA metals (arsenic,
cadmium, chromium, mercury, selenium, silver, barium, and lead) using the total
metals analysis method.  If the totals
result for a solid is less than 20 times the TCLP limit, it will be deemed
non-hazardous.  Sample results for
liquids (or mixtures) will be compared to the TCLP limit.  If the result is greater, then the liquid (or
mixture) shall be analyzed using TCLP. 
Alternatively, direct analysis for TCLP metals may be performed.  Where necessary, to ensure appropriate waste

 

10

 

management and response,
rapid turnaround times will be requested for laboratory analyses.

 

4.     Waste profiles will be
prepared, as needed, for documentation for disposal of each waste stream.

 

5.     All proper quality
assurance, quality control, and chain of custody procedures will be applied and
maintained.

 

6.     Appropriate disposal
alternatives will be determined based on analytical results.  All hazardous waste determinations will be
compiled and documented in a final report of sulfuric acid plant turnaround
waste management activities, which will be prepared upon completion of the
project.

 

7.     Waste characterization
analytical data will be evaluated periodically for sufficiency in establishing
CFI’s generator knowledge of specific waste streams.  CFI management may decide to reduce testing
frequency upon CFI’s establishment of defensible consistency and confidence in
waste regulatory status.

 

VIII. Container Management

 

1.     All hazardous waste storage
containers (drums, bins, tankers, etc.) shall be kept closed at all times
except when wastes are being added, removed, or sampled.  All hazardous waste bins (i.e., roll-offs or
dumpsters) shall receive poly liners prior to the placement of waste materials.  Tarps shall be used to keep bins covered at
all times when not receiving, removing or sampling wastes.  All waste storage containers shall be
presumed to hold hazardous waste until determined otherwise.

 

2.     All storage containers shall
be in good condition, non-leaking, and compatible with the wastes placed
inside.

 

3.     All drums shall be uniquely
numbered and labeled with weatherproof labels to allow ease of marking and
identification.  All information written
on labels shall be written legibly in waterproof ink.

 

4.     All waste containers shall
be labeled with the date that waste is placed inside and the name/type of waste
and its origin.  (Example:  “SULFATE SLUDGE, ECONOMIZER A-SAP”).  The container shall be labeled “CF industries”
with the address and appropriate 24-hour emergency contact information.  Upon sampling for characterization, the date
of sampling and words “IN ANALYSIS” shall be applied.  Upon determination of regulatory status, the
container shall be further labeled with a preprinted RCRA compliant hazardous
waste label, if hazardous; or if non-hazardous, it shall be labeled with the
words “NON-HAZARDOUS WASTE” or an appropriate non-hazardous waste label will be
applied.

 

11

 

5.     Only approved DOT hazmat
shipping containers shall be used for the shipment of hazardous waste.

 

6.     Upon filling, all drums
shall be stored in a covered area out of the weather on pallets, not exceeding
4 drums per pallet. Adequate aisle space shall be maintained to allow
inspection, sampling, and emergency response. 
Emergency contact information and fire extinguishers shall be present
and readily identifiable in all waste storage locations.

 

7.     Each super sack bag of
catalyst shall be stored on a single pallet, either in a covered area out of
the weather or otherwise shielded from all stormwater contact using undamaged
plastic cover bags.  Each bag shall be
individually marked on its exterior with source, media type (i.e., pellets,
chips, or dust), and date of generation.

 

8.     All waste storage areas and
containers shall be inspected weekly for proper identification of wastes,
leaks, and inventory control by properly trained personnel.  A written record of all inspections shall be
maintained.  Any deficiencies noted shall
be promptly corrected.

 

12

 

APPENDIX 7

 

 

	
   

  	
  P.O. Drawer
  L.

  
	
   

  	
  Plant City,
  Florida 33564-9007

  
	
   

  	
  Telephone:
  813/782-1591

  

 

 

Dept. of Environmental

Protection

 

APR 17 2007

 

Southwest District

 

Mr. Sam
Zamani, P.E.

Program
Administrator

Phosphate
Management Group

Department of
Environmental Protection

Southwest District
Office

13051 North
Telecom Parkway

Temple Terrace,
Florida 33637

 

	
  Subject:

  	
  CF
  Industries, Inc. (CFII)

  
	
   

  	
  Plant City
  Phosphate Complex

  
	
   

  	
  Assessment of
  Existing Perimeter Earthen Dikes

  

 

Dear Mr. Zamani:

 

In
accordance with 62-672.620, enclosed are two copies of the “Assessment of
Existing Perimeter Earthen Dikes” for the Plant City Phosphate Complexes
phosphogypsum stack system.

 

If
you have any questions pertaining to this submittal, please call me at (813)
364-5639.

 

	
   

  	
  Sincerely,

  
	
   

  	
  /s/ J. Michael
  Messina

  
	
   

  	
  J. Michael
  Messina

  
	
   

  	
  Chief,
  Environmental Services

  

 

U:\200762-672.620

JMM/gem

 

	
  CC:

  	
  W.
  Batchelor/HCEPC

  	
  REC’D

  	
   

  
	
   

  	
  R.C. May

  	
   

  	
   

  
	
   

  	
  T.A. Edwards

  	
  APR 17 2007

  	
   

  
	
   

  	
  G.F. Haeusler

  	
   

  	
   

  
	
   

  	
   

  	
  ENV. PROT. COMM

  OF H.C.

  	
   

  

 

 

April 16, 2007

File Number 07-048

 

CF Industries, Inc.

Post Office Drawer
L

Plant City,
Florida 33564-9007

 

	
  Attention:

  	
  Mr. Robert
  C. May

  
	
   

  	
   

  
	
  Subject:

  	
  Assessment of
  Existing Perimeter Earthen Dikes and Process Water Conveyance and Containment
  Systems Relative to Requirements of Rule 62-672, Plant City Phosphate
  Complex, Hillsborough County, Florida

  

 

Gentlemen:

 

Recent revisions
to Rule 62-672, Florida Administrative Code (F.A.C.), require that the
owner of a phosphogypsum stack system submit documentation to the Florida Department
of Environmental Protection (FDEP) within 9 months of July 19, 2006 (i.e.,
by April 19, 2007) that existing perimeter earthen dikes and process water
conveyance and containment systems meet certain minimum design and safety
criteria specified in the rule. In particular, Rule Section 62-672.620
states the following:

 

Perimeter Dikes:

 

62-672.620(1). Within nine months of July 19,
2006, the owner of a phosphogypsum stack system shall submit to the department
documentation that existing perimeter dikes have either been: (a) authorized
to be constructed or modified by a permit issued by the department in response
to an application that addressed freeboard, dike seepage, factors of safety,
and slope stability; or (b) engineered, or retrofitted such that they are
deemed by a third-party engineer to be in compliance with the seepage control
feature provision of Rule 62-672.300(1)(c), the freeboard provisions of Rule 62-672.600(1)(c),
and the design factors of safety and slope stability provisions of Rule 62-672.600(1)(d) and
(e); or (c) evaluated by a third-party engineer who certifies the
safety and stability of the dikes.

 

Conveyance
Ditches:

 

62-672.620(3) At the time of the assessment required
by Rule 62-672.620(1), a third-party engineer shall also determine whether
the existing system is equipped with process water conveyance/containment
capabilities that conform to the design requirements set forth in Rule 62-672.600(4).

 

In that regard and
as requested, Ardaman & Associates, Inc. (Ardaman) has reviewed
and compiled the required documentation needed to demonstrate compliance of the
existing earthen dikes and process water conveyance and containment systems at
the Plant City complex with Rule 62-672.620. This report provides a brief
discussion of the major components of the Plant City process water system, with
required documentation attached.

 

Existing
Perimeter Earthen Dikes

 

The existing
perimeter earthen dikes at the Plant City facility include the lined
above-ground cooling pond, the return water ditch and surge pond for the lined
gypsum stack expansion area and the perimeter dike of the original cooling
pond, which, since closure of the unlined gypsum stack, has been converted to a
seepage collection ditch and, during normal operations, is no longer used
to

 

[ILLEGIBLE]

 

 

APPENDIX 8

BMP AND PROJECT IMPLEMENTATION SCHEDULE

 

CF INDUSTRIES, INC

PLANT CITY, FLORIDA COMPLEX

EPA ID NO.  FLD 046 088 829

 

All
milestone timeframes outlined below are established relative to May 1,
2010, prior to the Effective Date of the CF-EPA Consent Decree.

 

Extension
Provision:  If CF has credible reason to
believe that it will exceed the timeframes set forth in this Appendix to
complete the projects detailed herein, CF may request an extension for project
completion and implementation in accordance with Paragraph 89 of the Consent
Decree.

 

Project
1

Cleaning
Solution Transfer Piping

 

Description:  The Cleaning
Solution Transfer Piping Project will install new piping to enable CF to clean
piping which transfers phosphoric acid from A-PAP, B-PAP, and ACU to the
Granulation Plants, and return the cleaning solutions to the Phosphoric Acid
Plants.  In addition, new or upgraded
pumps, motors, small pump tanks, and instrumentation may be needed to ensure
the return of the cleaning solution to the Phosphoric Acid Plants.

 

Milestones:  The following
milestones provide a general plan for the implementation and completion of
piping systems to return cleaning solutions used to clean transfer piping from
A-PAP, B-PAP, and ACU to the Granulation Plants

 

	
  ·  Select
  engineering contractor/initiate permitting as appropriate

  	
  2 mos.

  
	
  ·  AFE issued for
  Board approval

  	
  8 mos.

  
	
  ·  AFE
  approved/permit(s) issued

  	
  11 mos.

  
	
  ·  Initiate field
  construction

  	
  18 mos.

  
	
  ·  Field
  construction 50% complete

  	
  24 mos.

  

 

Completion:  The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
construction and implement Project 1.

 

	
  ·  Project
  completed

  	
  30 mos.

  
	
  ·  Documentation
  of training completed

  	
  32 mos.

  

 

Project 2

DAP/MAP Scrubber System Modifications

 

Description:  The DAP/MAP
Scrubber System Modifications Project will install piping, seal tanks, valves,
and instrumentation to convert from process water gas scrubbing to acid and
fresh

 

1

 

water gas scrubbing in X, Y, and Z Granulation Plants.  Capital funds are approved for this project
and detailed engineering is complete. 
The timeframes for final construction completion are based on
Granulation Plant turn-around that occurs approximately every 18 months.

 

Milestones:  The following
milestones provide a general plan for the implementation and completion of
modifications to the Granulation Plants scrubbing systems following May 1,
2010:

 

	
  ·  Issue purchase
  orders for all materials

  	
  2 mos.

  
	
  ·  Initiate field
  construction

  	
  3 mos.

  
	
  ·  Field
  construction 50% complete

  	
  8 mos.

  

 

Completion:  The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
construction and implement Project 2.

 

	
  ·  Project
  completed

  	
  12 mos.

  
	
  ·  Documentation
  of training completed

  	
  14 mos.

  

 

Project 3

Granulation Plant Neutralization System

 

Description:  The Granulation
Plant Neutralization System Project will install tanks, lime slaking and/or
lime slurry storage, piping, pumps, and instrumentation to collect all
Granulation Plant spills, leaks, and cleaning solutions and neutralize those
solutions to pH greater than 2.0 and less than 12.5 prior to discharge to the
process water system.  In addition new
piping, pumps, tanks, and instrumentation will be installed to collect and
transfer Phosphoric Acid Plant evaporator cleaning solutions from the
Phosphoric Acid Plants to the Granulation Plants.

 

Milestones:  The following
milestones provide a general plan for the implementation and completion of the
Granulation Plant Neutralization project following May 1, 2010:

 

	
  ·  Select
  engineering contractor/initiate permitting as appropriate

  	
  2 mos.

  
	
  ·  AFE issued for
  Board approval

  	
  8 mos.

  
	
  ·  AFE
  approved/permit issued

  	
  11 mos.

  
	
  ·  Initiate field
  construction

  	
  15 mos.

  
	
  ·  Field
  construction 50% completed

  	
  20 mos.

  

 

Completion:  The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
construction and implement Project 3.

 

	
  ·  Project
  completed

  	
  24 mos.

  
	
  ·  Documentation
  of training completed

  	
  26 mos.

  

 

2

 

Project 4

Spill Recording, Tracking, and Correction System

 

Description:  The Spill
Recording, Tracking, and Correction System (SRTC) Project is a new application
software to be utilized by the Production, Maintenance, Engineering, and
Environmental Departments to identify, track, and correct spills and leaks as
quickly as practical.   The SRTC is
described in Sections 3 and 5 of the BMP.

 

Milestones:  The following
milestones provide a general plan for the implementation and completion of the
Spill Recording, Tracking, and Correction System Project following May 1,
2010:

 

	
  ·  Develop
  preliminary system for review

  	
  3 mos.

  
	
  ·  Implement beta version of
  system

  	
  6 mos.

  

 

Completion:  The following dates
are enforceable dates upon which, following May 1, 2010, CF must complete
system design and implement Project 4.

 

	
  ·  System
  completed

  	
  9 mos.

  
	
  ·  Documentation
  of system training completed

  	
  11 mos.

  

 

Project 5

BMP Training

 

Milestones:  The following
milestones provide a general plan for the completion of initial employee and
contractor training on provisions of the BMP following May 1, 2010:

 

	
  ·  Develop
  preliminary draft presentation and training materials

  	
  3 mos.

  
	
  ·  Initial
  training class

  	
  4 mos.

  

 

Completion:  The following date
is an enforceable date upon which, following May 1, 2010, CF must complete
and implement Project 5.

 

	
  ·  Training
  completed

  	
  6 mos.

  

 

3

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