ILLINOIS POLLUTION CONTROL BOARD
    March 3, 1994
    MOBIL OIL CORPORATION,
    )
    Petitioner,
    v.
    )
    PCB 93—151
    (Variance)
    ILLINOIS ENVIRONMENTAL
    PROTECTION AGENCY,
    Respondent.
    DAVID L. RIESER, of ROSS & HARDIES, APPEARED ON BEHALF OF
    PETITIONER; and
    ROBB H. LAYMAN APPEARED ON BEHALF OF RESPONDENT.
    OPINION AND ORDER OF THE BOARD (by J. Theodore Meyer):
    This matter is before the Board on petitioner Mobil Oil
    Corporation’s August 18, 1993 petition for variance from 35 Ill.
    Adm. Code 304.122, as that section relates to ammonia nitrogen
    effluent limitations. Mobil seeks a five—year variance for its
    Joliet refinery. The Illinois Environmental Protection Agency
    (Agency) filed its recommendation on October 27, 1993, and Mobil
    filed a response to that recommendation, and a request for
    hearing, on November 2, 1993. Hearing was held on December 29,
    1993, in Joliet. No members of the public attended.
    As set forth below, the Board finds that Mobil would suffer
    an arbitrary or unreasonable hardship if variance were not
    granted. Therefore, variance will be granted, subject to
    conditions.
    BACKGROUND
    Mobil owns and operates a petroleum refinery on Arsenal Road
    in Will County, Illinois, approximately 10 miles southwest of
    Joliet. This refinery began operation in 1973, and is Mobil’s
    newest domestic refining facility. The Joliet facility has a
    rated capacity of 190,000 barrels of crude oil throughput per
    operating day, and employs approximately 675 people. The
    refinery processes high sulfur and high nitrogen North American
    crudes, which comprise 70 of total throughput. Its principal
    products are motor gasolines and distillate fuel oil. The
    refinery also produces kerosene jet fuel, propane, petroleum
    coke, sulfur, and some heavy fuel oil. The refinery’s products
    are primarily marketed in Illinois and other midwestern states.
    (Pet. at 2.)
    The Joliet refinery uses water from the Des Plaines River

    2
    for boiler feed, cooling tower make—up, and non—contact cooling.
    Well water is used for drinking, sanitary purposes, and general
    services. Separate sewer systems segregate the various types of
    water discharged into the Des Plaines. These include stormwater
    (Outfall 003), non-contact cooling water (Outfall 002), and
    process water which is treated at the refinery’s wastewater
    treatment facility before release to the river (Outfall 001).
    The refinery design includes advanced water conservation
    practices, so that only 14 gallons of water are used per barrel
    of crude refined. This compares with an average of 39 gallons
    per barrel for the calculated best available technology (BAT)
    flow for a refinery of Joliet’s size. However, these
    conservation efforts result in a more concentrated effluent.
    (Pet. at 3.)
    The refinery process wastewater treatment facility consists
    of two parallel channels. Each consists of an API oil separator
    and an air floatation unit equipped with a mixer for flocculation
    and chemical addition, as well as the ability to add acid and/or
    caustic for pH adjustment. From the air floatation unit, flow
    can be pumped to either a 1½ acre aerated east equalization
    basin, or to two 900,000 gallon aeration basins. The aeration
    basins flow to two final clarifiers which in turn flow to a 1¼
    acre guard basin. The guard basin effluent is split to a cascade
    aerator and a stair cascade for additional aeration. These two
    streams, along with non-contact cooling water and stormwater,
    flow to a recessed basin and then discharge, via an underwater
    discharge line, to the Des Plaines River. (Pet. at 3-4; Agency
    Rec. at 3.)
    RELIEF REOUESTED
    Mobil seeks a five—year variance from the ammonia nitrogen
    effluent standard established at 35 Ill. Adm. Code 304.122(b).
    That subsection limits discharge of ammonia nitrogen to no more
    than 3.0 mg/i. Between 1988 and 1993 Mobil operated under a
    site—specific ammonia nitrogen rule (35 Iii. Adm. Code 304.214)
    that established limitations of 20 mg/i on a monthly average and
    35 mg/l as a daily composite. That site—specific rule expired on
    December 31, 1988. From 1989 to 1991, however, Mobil was able to
    comply with the more stringent general limits of Section
    304.122(b), with only one exceedance of those general limits. In
    1990 and 1991 Mobil made modifications to its wastewater
    pretreatment system in order to comply with federal RCRA
    requirements. Mobil states that those modifications adversely
    affected the refinery’s ability to reduce ammonia loading, and
    that conventional adjustments were not sufficient to restore the
    necessary level of performance. Thus, Mobil seeks a five—year
    variance, with three years to investigate compliance options, and
    the remaining two years to either implement a reduction strategy,
    or pursue site-specific relief. (Pet. at 1, 5.)

    3
    The Agency recommends that Mobil be granted a variance.
    However, the Agency recommends that the study period be shortened
    to 1½ years (instead of 3 years), which could be extended if
    Mobil can provide more data on the progress of the research and
    design program. (Agency Rec. at 6-7.) Additionally, the Agency
    recommends that the variance terminate earlier if the Joliet
    facility shows compliance with the general effluent standard of
    Section 304.122(b) for four consecutive quarters. (Agency Rec.
    at 7.) Mobil objects to both of these recommendations.
    (Response to Rec. at 1—3.) These issues were the focus of the
    hearing in this matter.
    ENVIRONMENTAL
    IMPACT
    Mobil contends that
    the impact of the requested variance on
    the ammonia nitrogen load in the Des Plaines River would be
    insignificant. Mobil has provided a table which summarizes
    calculated increases in river ammonia concentrations attributable
    to Mobil’s discharge at actual past average performance,
    conditions under the now-expired site-specific rule, requested
    variance conditions, and conditions permissible under BAT.
    (Pet., Table VII.) Mobil concludes that in all cases, Mobil’s
    impact is negligible, with a maximum change in ammonia
    concentration of 0.198 mg/i at BAT conditions. (Pet. at 6, Table
    VII.) Mobil has also included a summary of dissolved oxygen and
    ammonia water quality data from 1989 to 1992, and states that
    existing water quality in the vicinity of Mobil’s discharge is
    well within applicable standards. (Pet. at 6, Table VIII.)
    Therefore, Mobil concludes that its requested discharge of
    ammonia nitrogen will not threaten water quality standards, and
    that there will be no negative effect on the aquatic community in
    the Des Plaines or Illinois Rivers. (Pet. at 6.)
    The Agency agrees with Mobil’s conclusion that there should
    be no long-term impairment of the water’s uses or aquatic life.
    (Agency Rec. at 5.)
    HARDSHIP
    Mobil states that it has evaluated three alternate
    technologies, and associated costs for those options. Mobil
    lists those technologies as activated sludge with PAC, granular
    media filtration/selective ion exchange, and breakpoint
    chlorination. Mobil states that the capital investment for these
    options would range from $1.9 to $13.8 million, with annual
    operating costs between $0.7 to $1.7 million. (Pet., Table IX.)
    Mobil concludes that these costs are disproportionately high,
    because the average cost to remove an incremental pound of
    ammonia above the existing system’s current capability would be
    $40 per pound. Mobil states this figure is $32 over the cost
    incurred to remove a pound of ammonia using its existing BAT
    technology. (Pet. at 6.) Mobil contends that denying a variance

    4
    would result in an arbitrary and unreasonable hardship, because
    proven and cost—effective technology has not been identified,
    while its ammonia discharge has an insignificant effect on the
    ammonia concentration of the Des Plaines. (Pet. at 8.)
    COMPLIANCE PLAN
    Mobil proposes that it perform an investigation to determine
    the sources of nitrification inhibition and methods to bring the
    facility into compliance. This investigation would study
    pollutant source survey/control, removal of inhibitors of
    biological nitrification, microtox studies, biological nutrient
    addition, and respiration studies. (Pet. at 7, Table VI.) Mobil
    believes that this study period should continue for three years
    from the grant of variance. Mobil states that because
    nitrification is a dynamic chemical and biological process, it is
    difficult and time-consuming to evaluate problems. At the end of
    that three year period, Mobil proposes to file a report with the
    Agency indicating its intent to either bring the facility into
    compliance or seek site—specific relief. The remaining two years
    requested by Mobil would be used to either make the necessary
    modifications to achieve compliance, or to pursue site—specific
    relief. (Pet. Exh. 3, Table IV; Pet. at 1, 7.)
    CONSISTENCY WITH FEDERAL LAW
    Mobil states, and the Agency agrees, that the Board may
    grant Mobil’s requested variance consistent with federal law.
    The Agency notes that Mobil’s requested variance limits are still
    more restrictive than federally allowable under 40 CFR 419
    (1989). (Pet. at 8; Agency Rec. at 6.)
    CONCLTJS IONS
    After reviewing the record and the parties’ arguments, the
    Board finds that immediate compliance with 35 Ill. Adm. Code
    304.122(b) would impose an arbitrary or unreasonable hardship.
    The record demonstrates that Mobil’s current discharges of
    ammonia have a minimal impact, while the proper control
    technology has not yet been identified. Therefore, the Board
    will grant a Variance from Section 304.122(b) for Mobil’s Joliet
    refinery, subject to conditions.
    As noted above, however, the dispute in this case is over
    the proper term of the variance. Mobil requests three years to
    research the problem, while the Agency recommends an eighteen
    month study period. Mobil contends that it presented unrebutted
    testimony at hearing in support of its contention that a three
    year study period is necessary. Mobil states that its witness,
    Ms. Lilliana Gachich, testified to the steps necessary to
    identify and control the current nitrification inhibition, and
    notes that Ms. Gachich testified that utilizing outside

    5
    consultants would not shorten the time frame for study of the
    problem (Tr. at 78-79), and that the time frame cannot be
    shortened without compromising the quality of the work (Tr. at
    42—43). Mobil also points to the testimony of Dr. William
    Patterson that the scope of work proposed by Mobil will require a
    full three years. (Tr. at 66.) Mobil argues that the Agency did
    not present any evidence in support of its position that the work
    be performed within 18 months. Thus, Mobil contends that
    imposing the 18 month study period would be unreasonable,
    arbitrary, and capricious.
    In response, the Agency maintains that it is not convinced
    that Mobil has exhausted all of the available steps to keep its
    research tiinefraxne within a “reasonable’ time period. The Agency
    points out that Mobil became aware of the ammonia problem in
    early 1992, and thus has had almost two years to study, explore,
    and investigate compliance alternatives. The Agency continues to
    recommend an 18-month study period, with Mobil having an option
    to ask the Board to modify the variance to extend the
    investigation phase by the additional 18 months.
    The Board will grant Mobil two years for the study of the
    problem, and two years to make necessary modifications or seek
    permanent relief. We recognize that nitrification inhibition is
    a complicated problem, and that the necessary studies and
    investigations are time consuming. However, as the Agency points
    out, Mobil has been aware of the current problems since early
    1992. Additionally, prior to the January 1988 grant of the now-
    expired site—specific rule, Mobil’s Joliet facility had operated
    under five prior variances for ammonia nitrogen. (Mobil Oil
    Corporation v. Illinois Environmental Protection A~ency
    (September 20, 1984), PCB 84—37; (June 10, 1982), PCB 82—36;
    (July 10, 1980), PCB 80—54; (June 8, 1978), PCB 78—97; (June 9,
    1977), PCB 77—22.) The first of those variances was granted on
    June 9, 1977. Thus, the Joliet facility has been operating under
    variance or site-specific rule for the majority of the past 17
    years. We will not, at this time, extend that period for five
    additional years. We believe that the record does support a
    shortened study period. Mobil’s timetable shows that the bulk of
    the study steps are to be completed by the end of 1995. (Pet.
    Exh. 3, Table IV.) Granting a two-year study period, until March
    3, 1996, will give Mobil some additional time to complete those
    steps. Mobil will then have an additional two years, as it has
    requested, to make modifications or seek site—specific relief.’
    Additionally, the Agency recommends that the variance expire
    if the Joliet facility shows compliance with Section 304.122(b)
    1
    Mobil, like any other variance petitioner, can move for
    modification of variance during the pendency of the variance.

    6
    for four consecutive quarters. The Agency makes this
    recommendation based upon its general view that variance relief
    should be based upon need. In response, Mobil contends that, as
    its witnesses testified, 12 months of compliance may not indicate
    that the source of the problem has been identified, or that Mobil
    can be assured of continued compliance. (Tr. at 21—22, 67.)
    The Board shares the Agency’s general view that variance
    relief should be limited to those situations where the petitioner
    cannot demonstrate compliance over four consecutive quarters.
    However, given the situation presented by this case, where the
    ammonia nitrogen standard has presented problems for 17 years,
    the Board believes that it is necessary to allow the variance to
    run the full four—year term.
    This opinion constitutes the Board’s findings of fact and
    conclusions of law.
    ORDER
    Mobil Oil Corporation, Joliet facility, is hereby granted a
    variance from the ammonia nitrogen effluent standard in 35 Ill.
    Adm. Code 304
    .
    122(b), subject to the following conditions:
    1. This variance expires on March 3, 1998.
    2. Mobil shall not exceed ammonia limits of 13 mg/l on a
    monthly average basis and 26 mg/I on a daily maximum basis.
    3. Mobil shall submit progress reports every six months to
    the Illinois Environmental Protection Agency (Agency), do
    Mark Books, Compliance Assurance Section, Bureau of Water,
    Illinois Environmental Protection Agency, 2200 Churchill
    Road, P.O. Box 19276, Springfield, IL 62794—9276. The
    progress reports shall describe completed and anticipated
    events in the optimization study, and any process changes
    made to reduce ammonia nitrogen discharges.
    4. By March 3, 1996, Mobil shall submit a report to the
    Agency, at the above address, stating whether it has
    identified a means for compliance with the general effluent
    standard of 35 Ill. Adm. Code 304.122(b). If so, Mobil
    shall include a specific plan for achieving compliance,
    including preliminary engineering designs for any necessary
    construction. If Mobil chooses to seek an alternative
    standard, it shall include a draft petition for that
    alternative relief.
    5. In the event that Mobil chooses to seek an alternative
    standard, it shall file its petition with the Board by May
    3, 1996.

    7
    6. Mobil shall continue to operate its wastewater
    treatment plant so as to produce the best effluent
    practicable and to achieve compliance with 35 Ill. Adm. Code
    304.122(b) as soon as possible.
    7. Within 45 days of the date of the final Board order in
    this case, Mobil shall execute and forward to Robb Layman,
    Division of Legal Counsel, Illinois Environmental Protection
    Agency, 2200 Churchill Road, P.O. Box 19276, Springfield, IL
    62794—9276, a certificate of acceptance and agreement to be
    bound to all terms and conditions of this variance. The 45-
    day period will be held in abeyance during any period that
    this matter is appealed. Failure to execute and forward
    this certificate within 45 days shall render this variance
    null and void. The form of the certificate shall be as
    follows:
    CERTIFICATION
    I (We),
    _______________________________,
    hereby
    accept and agree to be bound by all terms and conditions of
    the Pollution Control Board’s March 3, 1994 order in PCB 93-
    151.
    Petitioner
    Authorized Agent
    Title
    Date
    IT IS SO ORDERED.
    I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control
    Board, hereby certify that the a~oveopinion and order was
    adopted on the 12 ~
    day of ~‘~)i
    ~
    ,
    1994, by a vote
    of~’~C)_.
    Lborothy
    ~
    M. ,Gi/nn,
    ~.
    Clerk
    /~
    Illinois Pó~&ution Control Board

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