ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
* * * * PCB 2006-095 * * * *
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
OF THE STATE OF ILLINOIS
MARATHON ASHLAND PETROLEUM, LLC
)
Low NOx Burners
)
PROPERTY IDENTIFICATION NUMBER
)
51-34-I 21 or portion thereof
)
NOTICE
PCB 06-
(Tax Certification)
TO
:
Dorothy Gunn, Clerk
John S. Swearingen
Illinois Pollution Control Board
Marathon Ashland Petroleum
State of Illinois Center
Refinery Office Building
100 W . Randolph Street, Suite I 1-500
Robinson, Illinois 62454
Chicago, Illinois 60601
Steve Santarelh
Illinois Department of Revenue
101 West Jefferson
P.O. Box 19033
Springfield, Illinois 62794
PLEASE TAKE NOTICE that I have today electronically filed with the Office of
the Pollution Control Board the APPEARANCE and RECOMMENDATION of the
Illinois Environmental Protection Agency, a copy of which is herewith served upon the
applicant and a representative of the Illinois Department of Revenue
.
Respectfully submitted by,
/s/
Robb H. Layman
Assistant Counsel
Date: December 13, 2005
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 North Grand Avenue East
P.O. Box 19276
Springfield, IL 62794-9276
Telephone: 217/524-9137
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
OF THE STATE OF ILLINOIS
MARATHON ASHLAND PETROLEUM, LLC
Low NOx Burners
)
PCB 06-
(Tax Certification)
PROPERTY IDENTIFICATION NUMBER
)
51-34-1-21 or portion thereof
)
APPEARANCE
I hereby file my Appearance in this proceeding on behalf of the Illinois
Environmental Protection Agency
.
Respectfully submitted by,
s/
Rohb H. Layman
Assistant Counsel
Date: December 13, 2005
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
Telephone: 217/524-9137
* * * * PCB 2006-095 * * * *
ELECTRONIC FILING, RECEIVED, CLERKS OFFICE, DECEMBER 13, 2005
* * * * PCB 2006-095 * * * *
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
OF Tt1E STATE OF ILLINOIS
MARATHON ASHLAND PETROLEUM, LLC
)
Low NOx Burners
)
PCB 06-
(Tax Certification)
PROPERTY IDENTIFICATION NUMBER
)
51-34-1-21 or portion thereof
)
RECOMMENDATION
NOW COMES the ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
("Illinois EPA"), through its attorneys, and pursuant to 35 III . Adm. Code 125.204 of the
ILLINOIS POLUTION CONTROL BOARD'S ("Board") procedural regulations. files
the Illinois EPA's Recommendation in the above-referenced request for tax certification
of pollution control facilities. In support thereof, the Illinois EPA states as follows
:
On December 30, 2004, the Illinois EPA received a request and supporting
information from MARATHON ASHLAND PETROLEUM, LLC, ("Marathon")
concerning the proposed tax certification of certain air emission sources and/or
equipment located at its Robinson refinery in Crawford County, Illinois . A copy of the
relevant portions of the application is attached hereto . Exhibit Al
.
2 .
The applicant's address is as follows
:
Marathon Ashland Petroleum, LLC
Refinery Office Building
Robinson, Illinois 62454
The pollution control facilities involved in this request are located at the
aforementioned address and consist of the installation of equipment used in the removal
of nitrogen oxide emissions from the refinery operations . The equipment, described as
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
* * * * PCB 2006-095 * * * *
Low NOx Burners. is designed to reduce nitrogen oxide emissions on the two furnaces
servicine the Ultralbrmer Unit
.
4 .
Section 11-10 of the Property Tax Code, 35 ILCS 20011
1
-10 (2002),
defines "pollution control facilities' as
:
"any system, method, construction, device or appliance appurtenant
thereto, or any portion of any building or equipment, that is designed,
constructed, installed or operated for the primary purpose of: (a)
eliminating, preventing, or reducing air or water pollution
.
. . or (h)
treating
. pretreating, modifying or disposing of any potential solid, liquid,
gaseous pollutant which if released without treatment, pretreatment,
modification or disposal might he harmful, detrimental or offensive to
human, plant or animal life, or to property .''
5
.
Pollution control facilities are entitled to preferential tax treatment, as
provided by 35 ILCS 200/11-5 (2002) .
6 .
Based on information in the application and the underlying purpose of the
Low NOx Burners to prevent, eliminate or reduce air pollution, it is the Illinois EPA's
engineering judgment that the described project and/or equipment may be considered as
"pollution control facilities" in accordance with the statutory definition and consistent
with the Board's regulations at 35 III . Adm. Code 125 200 . Exhibit 1131 .
The Illinois EPA notes that the applicant has not documented whether the
cost estimate in its application is representative of the total costs for the furnaces or the
incremental costs associated with the proposed low NOx burners when compared to
conventional burners . Because a furnace requires a burner to operate and the furnace
itself is not pollution control equipment, the environmental benefits of a low NOx burner
would be incidental in relation to the overall purchase or replacement of a furnace. For
purposes of this Tax Certification, preferential tax treatment should only be afforded to
the incremental cost of the pollution control system, not the entire cost of the furnace
.
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
* * * * PCB 2006-095 * * * *
S .
Because the I . ow NOx Burners satisfy the aforementioned criteria, the
Illinois EPA recommends that the Board grant the applicant's requested tax certification
.
Respectfully submitted by,
ILLINOIS ENVIRONMENTAL. PROTECTION
AGENCY
/s/
Rohb H. Layman
Assistant Counsel
DATED: December 13, 2004
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
Telephone: 217/5249137
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
* * * * PCB 2006-095 * * * *
CERTIFICATE OF SERVICE
I hereby certify that on the 13th day of December, 2005, I electronically filed the
following instruments entitled NOTICE, APPEARANCE and RECOMMENDATION
with :
Dorothy Gunn. Clerk
Illinois Pollution Control Board
100 West Randolph Street
Suite 11-500
Chicago, Illinois 60601
and, further, that I did send a true and correct copy of the same foregoing instruments, by
First Class Mail with postage thereon fully paid and deposited into the possession of the
United States Postal Service, to
:
Steve Santarelli
John S. Swearingen
Illinois Department of Revenue
Marathon Ashland Petroleum
101 West Jefferson
Refinery Office Building
P.O. Box 19033
Robinson, Illinois 62454
Springfield, Illinois 62794
/s/
Robh H. Layman
Assistant Counsel
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
IL 532-0222
APC 151 (Rev. 8100)
* * * * PCB 2006-095 * * * *
Tax Cenyicadon/or Pollution Control Focilinrs
Page J2 .
APPLICATION FOR CERTIFICATION (PROPERTY TAX TREATMENT)
POLLUTION CONTROL FACILITY
AIR$
WATER
0
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
P. O. Box 19276, Springfield IL 62794-9276
This
Agency
is authorized to request this
inron,,,ion urxler Illinois Revised Sutues, 1979,
CIaplet,120,Section50Za5-Disclosureofthis
information
is voluntary. However, failure to
compy could prevent you! application 6om
being processed or mrdd result in denial of your
application for certification
.
FOR AGENCY USE
File No
Date Received
Certification No.
Dale
Sec. A
Company Name
Marathon Ashland Petroleum LLC
Person Authorized to Receive Certification
Person to Contact for Additional Details
John Swearinqen
pdnnis Baker
Street Address
Refinery Office Building
Street Address
539 South Main Street
Municipality. State & Zip Code
Robinson, IL 62454
Municipality, State & Zip Code
Findlay, OH 45840
Telephone Number
Telephone Number
°<
618-544-?121
419-4?1-3759
Location of Facility
Quarter Section
Township
Range
Municipality
Township
Robinson
Robinson
Street Address
Route 33
County
Book
Crawford
Number
Property Identification Number
Parcel Number
f 51-34-1-?l
Sec . El
I-F
u
a
u
4
0
s
Nature of Operations Conducted at the Above Location
Petroleum Refining
Low NOx Burners
ii
;-6
Water Pollution Control Construction Permit No
.
Date Issued
NPDES PERMIT No
.
Date Issued
Expiration Date
Air Pollution Control Construction Permit No .
99020080
Date Issued
Re-issued December ?9, 2003
Air Pollution Control Operating Permit No
.
96010007 Title V CAAPP Permit
Date Issued
November 24, 2003
Sec C
Ou
4
0
Z°
Describe Unit Process
See Attached
(!'fEVEIVIgp
Materials Used in Process
UEC 3 0 2004
See Attached
IEPA-DAPC-SPFLD
Sec. D
I!
;
n
Describe Pollution Abatement Control Facility
See Attache d
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
* * * * PCB 2006-095 * * * *
Tar Cen iicnrion
for Pollmlon ControlFnciliriet
Page 2 of 2
.woo
Sec. E
w
(1) Nature of Contaminants or Pollutants
Nitrogen Oxide
-
Material Retained, Captured or Recovered
Contaminant or Pollutant
DESCRIPTION
DISPOSAL OR USE
3
a
z
,o
~u
Nitrogen Oxide
NOx
u
a
(2)
Point(s) of Waste Water Discharge
N/A
-'
.`-
z
zz
°
a
Plans and Specifications Attached
Yes
No
XX
(3)
Are contaminants (or residues) collected by the control facility?
Yes
x x
No
(4)
Date installation completed
NA,
2000
status of installation on date of application
100%
(5)
a .
FAIR CASH VALUE IF CONSIDERED REAL PROPERTY :
$
6
~. 1 oo
NET SALVAGE VALUE IF CONSIDERED REAL PROPERTY
:
$
L
4
~"
[
G
PRODUCTIVE GROSS ANNUAL INCOME OF CONTROL FACILITY
:
$
ZP-~o
d .
PRODUCTIVE NET ANNUAL INCOME OF CONTROL FACILITY
:
$
ZeAo
e
.
PERCENTAGE CONTROL FACILITY BEARS TO WHOLE FACILITY VALUE
:
%
p,j 99
Sec. F
The following information is submitted in accordance with the Illinois Property Tax Code, as amended, and to the best of my
knowledge, is true and correct. The facilities claimed herein are "pollution control facilities" as defined in Section 11-10 of the
Illinois Property Tax Code
.
I21~1~r
sien
ure
John Swearinqen
Title
Illinois Refining Division Manager
Sec. G
INSTRUCTIONS FOR COMPILING AND FILING APPLICATION
General: Separate applications must be completed for each control facility daimed . Do not mix types (water and air). Where both air and
water operations are related, file two applications. If attachments are needed, record them consecutively on an index sheet
.
Sec A
Information refers to applicant as listed in the tax records and the person to be contacted for further details or for inspection of
facilities. Define facility location by street address or legal description. A plat map location is required for facilities located
outside of municipal boundaries. The property identification number is required
.
Sec B
Sed-explanatory. Submit copies of all permits issued by local pollution control agencies
.
(e.g. MSD Construction Permit)
Sec C
Refers to manufacturing processes or materials on which pollution control facility is used
.
Sec. D
Narrative description of the pollution control facility, indicating that its primary purpose
is to elirr*iale, prevent a reduce polution .
Slate the type of control facility. State permit number, date, and agency issuing pemtl . A narrative description and a process
flow diagram describing the pollution control facility . Include a listing of each major piece of equipment included in the claimed
fair cash value for real property. Include an average analysis of
the
'mlluenl and effluent of the control facility slating the
collection efficiency .
w
Sec. E
List air contaminants, a water pollution substances released as effluents to the manufacturing processes . List also the final
o
disposal of any contaminants removed from the rnanufacluring processes,
5
Item (1)-Refers to pollutants and contaminants removed from the process by the pollution control facility
.
i
Item (2)-Refers to wafer pollution but can apply to water-carried wastes from air pollution control facilities. Submit drawings,
which dearly show (a) Points) of discharge to receiving stream, and (b) Sewers and process piping to and from the control
facility
.
Item (3)-If the collected contaminants are disposed of other than as wastes, state the disposition of the materials, and the value
In dollars reclaimed by sale or reuse of the collected substances . Stale the cost of reclamation and related expense
.
Item (4)- State the date which the pollution control facility was first placed in service and operated . i not, explain .
Item (5)-This information is essential to the certification and assessment actions. This accounting data must be completed to
activate project review prior to certification by this Agency
.
Sec F
Self-explanatory- Signature must be a corporate authorized signature
.
Submit to:
Attention :
Attention :
(finch EPA
Thomas McSwiggin
Donald E. Sutton
P.O. Box 19276
Permit Section
Permit Section
Springfield, IL 62794-9276
Division of Water Pollution Control
Division of Air Pollution Control
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
Section C
Describe Unit Process :
Low "NOx" Nitrogen Oxide Burners were installed on two furnaces servicing the
Ultraformer Unit. Furnaces 3F-I and 3F-2 were retrofitted with these combustion
controls to reduce nitrogen oxide emissions
.
Section C
Materials used in process
:
Low "NOx" Nitrogen Oxide Burners
Section D
Pollution Control Facility Description
Low "NOx" Nitrogen Oxide Burners were installed on two furnaces servicing the
Ultraformer Unit. Furnaces 3F-1 and 3F-2 were retrofitted with these combustion
controls to reduce nitrogen oxide emissions
.
* * * * PCB 2006-095 * * * *
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 13, 2005
* * * * PCB 2006-095 * * * *
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 NoRTN Gk AND
AVENUE EASI, PO .
BO,e I4j06,
$AKIN FICLD, ILLINOIS 62794-9500-( 217) 782-2(13
Ron R .
BLACO(EVICI I, GOVERNOR
DouGLAS P. SCOTT, DIRECroR
Memorandum
Technical Recommendation for Tax Certification Partial
Date :
September 20, 2005
To :
Robb Layman
From :
Don Sutton
1(J4t~
C
Subject
:
Marathon Ashland Petroleum LLC TC-04-30-12M
This Agency received a request on December 30, 2004 from Marathon Ashland Petroleum LLC for an
Illinois EPA recommendation regarding tax certification of air pollution control facilities pursuant to 35 III
.
Adm. Code 125.204. I offer the following recommendation
.
The air pollution control facilities in this request include the following
:
Low Nox burners whose primary purpose is to reduce Nox emissions on the two
furnaces servicing the Ultraformer unit . Because furnaces need burners to operate and
the furnaces themselves are not pollution control facilities only the incremental cost of
low Nox burners above the cost of conventional burners is eligible for Tax Certification
as a pollution control facility .
These facilities are further described in the enclosed applications and supporting
documents
.
This facility is located 100 Marathon Avenue, Robinson
The property identification number is Part of 51-34-1-21
Based on the information included in this submittal, and in submittals from the applicant
on September 20, 2005, the Illinois EPA "Pollution Control Facilities" under 35 IAC
125.200(a), with the primary purpose of eliminating, preventing, or reducing air pollution,
or as otherwise provided in this section . This determination is based on the following
factors(s) :
Only the incremental cost increase of low Nox burners above the cost of
conventional burners should be considered for tax certification
.
FK ;
-
3
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