ILLINOIS POLLUTION CONTROL BOARD
    December
    14,
    1978
    SHELL OIL CO.,
    )
    )
    Petitioner,
    )
    v.
    )
    PCB
    78—190
    )
    ENVIRONMENTAL PROTECTION AGENCY,
    )
    )
    Respondent.
    MS.
    BARBARA
    LITTLE
    EVANS
    APPEARED
    ON
    BEHALF
    OF
    PETITIONER.
    MR.
    REED
    NEUMAN,
    ASSISTANT
    ATTORNEY
    GENERAL,
    APPEARED
    ON
    BEHALF
    OF
    RESPONDENT.
    OPINION AND ORDER OF THE BOARD
    (by Mr. Goodman):
    Shell Oil Co.
    (Shell)
    filed a Petition for Variance on July 24,
    1978.
    Shell seeks a variance from Rule 204(f) (1) (A) of the Air
    Pollution Regulations
    (Chapter
    2 of the Board’s Rules and Regulations)
    for a sulfur recovery unit (SRU-2) at its petroleum refinery located
    in Wood River, Madison County, Illinois.
    The Environmental Protec-
    tion Agency
    (Agency)
    filed its Recommendation on August 28, 1978.
    A hearing was held on October 30, 1978 in Edwardsville; no citizen
    witnesses testified.
    The
    purpose
    of
    the
    SRU-2
    unit
    at the Wood River Refinery is to
    control
    sulfur dioxide emissions and recover sulfur from Shell’s
    refinery as well as from refineries owned by Clark Oil Co. and
    Amoco Oil Co.
    Until April,
    1976, the sulfur recovery facilities used
    by Shell were owned by Anlin Co.
    In 1973, Shell, Clark and Amoco
    contracted with Anlin to build additional sulfur recovery capacity
    at Wood River to provide capacity for Shell to process higher sulfur
    crude oil and to provide sulfur recovery capacity for Clark and Amoco.
    Anlin, therefore, designed SRU-2, utilizing a unique process intended
    to meet Rule 204 (f) (1) (A) whereby the final converter operates
    below the dew—point of sulfur to significantly improve sulfur
    recovery capability over the conventional process.
    32—261
    —2—
    In April,
    1976,
    Shell exercised an option to purchase and
    acquired the facilities.
    Construction of SRU-2 was completed in
    October,
    1976,
    and the unit was started—up
    in November.
    In subse-
    quent months,
    however,
    Shell became aware of serious deficiencies
    and operating problems which rendered SRU-2 unreliable.
    These in-
    cluded problems with the utilities system,
    inability
    of the unit to
    handle hydrocarbons, and inadequate winterizing,
    all of which were
    corrected.
    Shell also found that much of the equipment used in the
    unique process design was ineffective and inoperable and was not
    able
    to bring about compliance with Rule 204(f) (1) (A).
    Beginning
    in December,
    1977, Shell reengineered the design and modified the
    equipment at a cost of $500,000
    in an effort to meet the 2000 ppm
    SO2 standard.
    However, pretesting indicated
    t:hat the plant still
    could not meet the standard.
    Shell now intends
    to install
    a Shell Claus Off-Gas Treatment
    Unit
    (SCOT
    unit)
    at an approximate cost of $15,000,000
    to meet the
    standard and requests a variance for a period of eighteen months.
    Construction of the proposed SCOT unit is
    to begin by September
    1,
    1978,
    and is
    to be completed by October
    1,
    1979.
    Final compliance
    is
    to be achieved by November
    1,
    1979.
    Shell’s construction schedule
    is attached
    to the Petition as Exhibit D.
    The Agency believes that
    the proposed equipment will bring about compliance with the standard
    and that the schedule for installation of the equipment
    is reasonable.
    Rule 204(f) (1) (A)
    sets a 2000 parts per million SO2 standard for
    process emission sources.
    Until
    the SCOT unit is
    in operation,
    the
    two trains of the SRU-2 unit will run without switching of converters,
    and the SO2 emissions will be 13,000 parts per million.
    Present SO2
    emissions from SRU-2 are 2,937 pounds per hour, which
    is approximately
    12,829 tons per year.
    The Agency calculated the allowable emissions
    under Rule 204(f) (1) (A)
    to be equivalent
    to 1,974 tons per year.
    The sampling station nearest to SRU—2 reported the annual
    arithmetic mean for SO2
    to he
    .025 ppm in
    1977,
    which,
    although the
    highest average in the State in 1977,
    is below the primary ambient
    air quality standard.
    Wood River recorded one excursion
    (no viola-
    tion)
    of the 24—hour primary standard (Petitioner’s Exhibit A, p.105).
    The Wood River Area is presently unclassified as
    an attainment or
    non-attainment area for SO2
    (Federal Register Vol.
    43,
    p.
    8987,
    March
    3,
    1978).
    The Board finds that operation of SRU-2 for the
    duration of the requested variance would not prevent attainment or
    maintenance of the ambient air quality standards for sulfur dioxide.
    Shell claims and the Agency agrees that denial of the requested
    variance would result
    in
    an arbitrary and unreasonable hardship.
    Shell has diligently attempted
    to achieve compliance.
    Shell spent
    $500,000 redesigning SRU-2
    to meet the standard and now proposes
    to
    spend an additional $15,000,000
    to build the SCOT unit, which
    should result in compliance.
    In
    fact,
    Shell indicated at the hearing
    32—262
    —3—
    that the SCOT unit can meet Federal New Source Performance Standards
    for a sulfur plant
    (R.
    22).
    Furthermore,
    the SRU-2 unit is the
    primary air pollution control for not only Shell’s refinery but also
    the nearby refineries owned by Clark and Amoco.
    The Board finds
    that the harm to the environment caused by granting of this variance
    is so outweighed by the hardship to Shell which denial would impose
    as
    to render that hardship arbitrary and unreasonable.
    We will,
    therefore, grant the requested variance.
    Shell
    has requested and the Agency has recommended that the
    variance be granted until November
    1,
    1979.
    Section
    35 of the
    Environmental Protection Act was recently amended to require that
    variances granted by the Board be consistent with the Clean Air Act
    of 1977
    (42 U.S.C.
    7401 et seq.)
    .
    Section
    113(d)
    of the Clean Air
    Act allows the Board
    to grant sources a delay in compliance from any
    requirement in the State Implementation Plan
    (SIP)
    only until July
    1,
    1979.
    Both Shell and the Agency argue,
    however, that if a variance
    meets the procedural requirements of notice and hearing, which
    in
    this case have been met
    (R.
    18-19), it may be submitted to the U.S.
    Environmental Protection Agency as a revision to the State Implemen-
    tation Plan pursuant to Section
    110 of the Clean Air Act.
    The Board
    agrees with this interpretation.
    We will,
    therefore, grant the
    variance until November
    1,
    1979,
    subject to
    the condition that it
    be submitted to and approved by the U.S. Environmental Protection
    Agency as
    a revision
    to the Illinois State Implementation Plan.
    If
    the variance is not approved as
    a State Implementation Plan revision,
    it will terminate
    on July
    1,
    1979,
    and Shell will be subject to
    non-compliance penalties if compliance has not been achieved.
    This Opinion constitutes the findings of fact an conclusions of
    law of the Board in this matter.
    ORDER
    It is the Order of the Pollution Control Board that Shell Oil
    Co.
    is hereby granted variance from Rule
    204(f) (1) (A)
    of Chapter
    2
    for its Wood River Refinery until November
    1,
    1979,
    subject
    to the
    following conditions:
    1.
    This variance shall terminate
    on July
    1,
    1979
    if it is
    not submitted to and approved, by the U.S. Environmental Pro-
    tection Agency as
    a revision to the Illinois State Implemen-
    tation Plan;
    32—263
    —4—
    2.
    Shell Oil Co. shall within 45 days of the date of this
    Order
    furnish
    to the Illinois Environmental Protection Agency
    a performance surety bond in the amount of $50,000
    to be
    released upon timely completion of the project on November
    1,
    1979;
    3.
    Shell Oil Co.
    shall, by November
    1,
    1979,
    apply for an
    operating permit for SRU-2 and submit to the Agency stack
    test results which show compliance with the standard;
    4.
    Shell Oil Co.
    shall at least five days prior to the
    stack tests notify the Manager, Illinois Environmental
    Protection Agency, Region III,
    ll5A West Main Street,
    Collinsville, Illinois
    (phone number 618/345-0700)
    of the
    dates and times of the stack tests and permit Agency per-
    sonnel to be present during the stack tests;
    5.
    Shell Oil Co.
    shall submit progress reports
    on October
    1,
    1978; January
    1, 1979; April
    1,
    1979;
    July
    1,
    1979;
    and
    October
    1,
    1979
    to the Agency’s Region III at Collinsville
    at the address mentioned in paragraph
    4 above;
    6.
    Shell Oil Co.
    is hereby notified that,
    if compliance
    is not achieved by July
    1,
    1979,
    it may be subject to non-
    compliance penalties pursuant to Section 120 of the Clean
    Air Act of 1977;
    7.
    Within forty—five of after the date of this Board
    Order Shell Oil Co. shall execute and send to:
    Mr. John
    D. Williams, Technical Advisor,
    2200 Churchill Road,
    Springfield, Illinois
    62706,
    a certification of acceptance
    of this variance by which it agrees to be bound by its
    terms and conditions.
    This forty-five day period shall be held in abeyance
    for any period which this matter is appealed.
    The form of
    said certification shall be as
    follows:
    CERTIFICATION
    I
    (We) ______________________________ having read and fully
    understanding the Order of the Illinois Pollution Control Board
    PCB 78—190 hereby accepts the said Order and agrees to be bound by
    all terms and conditions thereof.
    SIGNED ________________________________
    TITLE
    DATE
    32—264
    —5—
    I, Christan L.
    Moffett, Clerk of the Illinois Pollution Control
    Board, h reby certify
    the
    day
    of
    ~~bov?~)~inion
    and Order were adopted on
    1978 by a vote of
    ~_p
    2t~leiEk
    Christan
    L. Mof
    Illinois Pollutio~’~ntrolBoard
    32—265

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