ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 22, 2005
*****PCB2006-111
*****
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
OF THE STATE OF ILLINOIS
MARATHON ASHLAND I F TROLFUM, LLC
)
Reformulated Gasoline Blending Process
)
)
PCB 06-
( fax Ccitiflcation)
PROPERTY IDENTIFICATION NUMBER
)
51-34-1-21 or portion thereof
)
NOTICE
TO:
Dorothy Gunn, Clerk
John S
.
Sk\ cal ill--ell
Illinois Pollution Control Board
Marathon Ashland Petroleum
State of Illinois Center
Refinery Office Building
100 \N . Randolph Street, Suite I I-500
Robutson . Illinois 62454
Chicago, Illinois 60001
Steve Santarelli
Illinois Department of Revenue
101 West .lefferson
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 22, 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 22, 2005
* * * * * PCB 2006-111 * * * * *
BEFORE
-I'll L ILLINOIS POLLUTION CONTROL BOARD
OF'FNE STATE OF ILLINOIS
MARATHON ASI-ILAND Pl. TROLEUM, LLC
)
Reformulated Gasoline Blending Process
)
PCB 06-
(Tax Certification)
PROPERTY IDENTIFICAIION NUMBIFR
)
51-34-I-21 or portion thercol
)
APPEARANCE
I hereby file my Appearance in this proceeding_ on behalf of the Illinois
Environmental Protection A ,uency .
Respectfully submitted by,
Rohh fl. Layman
Assistant Counsel
Date: December 22, 2005
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 22, 2005
*****PCB2006-111
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BEFORE THE ILLINOIS POLIA ION CON'IROI. BOARD
OF THE STATE OF ILLINOIS
MARATHON ASHLAND PETROLEUM, LLC
)
Reformulated Gasoline-- Blending Process
)
PCB 06-
(Tax Certification)
PROPERTY IDENTIFICATION NUMBER
)
51-34-I-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
3
.
The pollution control facilities involved in this request are located at the
aforementioned address and consist of the installation of equipment that involves the
manufacture reformulated gasoline. The project is described as a Blending Process,
which mainly consists of a computerized blending system and equipment for achieving
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE, DECEMBER 22, 2005
*****PCB2006-111
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se ieg iiio,n of product and related .linkses. Aul~cithsnindiII the limned ill li niiatioil
contained within the application Ior tax certification, it does not appear that the overall
project. or even portions thereof, is prinwrily meant to reduce or eliminate air pollution
.
Indeed, it is not apparent that any contaminants arc removed or reduced Irons the
Ielincry's operations. The description of the project instead suggests that it was intended
solely as a process-related improvement
.
4 .
Section 11-10 olthe Property Fax Code . 3~ ILCS'_00,'1 I-10 (20(12),
defines "pollution control hacilities'' as
:
t
. .any system, method, construction, device or appliance appurtenant
hereto, or any portion of any huiIdiI1 or equipment, that is designed,
constructed, installed or operated lot
- the primary purpose of: (a)
eliminating, preventing, or reducing air or water pollution
.
. . or (h)
treating, pietreating, modifying or disposing of any potential solid, liquid,
gaseous pollutant which if' released without treatment, pretreatment,
modification or disposal might be hamiful, 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 200111-5 (2002)
.
6 .
Based on information in the application, it is the Illinois EPA's
engineering judgment that the described project and/or equipment may not be considered
as "pollution control facilities" in accordance with the statutory definition and consistent
with the Board's regulations at 35 III . Adin. Code 125 200. Exhibit 1131 .
Because the Blending Process does not satisfy the aforementioned criteria,
the Illinois EPA recommends that the Board deny the applicant's requested tax
certification.
ELECTRONIC FILING, RECEIVED, CLERK'S OFFICE. DECEMBER 22, 2005
*****PCB 2006-111
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Respectfully submitted by,
ILLINOIS ENVIRONMENTAL PROTEC"IION
AGENCY
Robh 11. Layman
Assistant Counsel
DATED: December 22. 2004
ILLINOIS ENVIRONMENTAL. PROTECTION AGENCY
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
Telephone
:(217)524--9137
ELECTRONIC FILING. RECEIVED, CLERK'S OFFICE, DECEMBER 22. 2005
*****PCB2006-111
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CERTIFICATE OF SERVICE
I hereby ccrtily that on the 220 day of December, 2005, I electronically filed the
following instruments entitled NOTICE, APPEARANCE and RECOMMENDATION
with
Dorothy Guns. Clerk
Illinois Pollution Control Board
100 \Vest Randolph Street
Suite I I->00
Chicaeo.Illinois 00601
and, ILrtherl
that I did send a true and correct copy of the same foregoing instruments, by
First Class Mail kith postage thereon lull paid and deposited into the possession of the
United States Postal Service . lo
:
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
Rohb H. Layman
Assistant Counsel
ELECTRONIC FILING, RECEIVED, CLERKS OFFICE, DECEMBER 22, 2005
IL 532-0222
APC 151 (Rev. 8/00)
*****PCB 2006 111
*****
Tar Ceaicarion for Pollution Control Fociliricr
Page I of 2
.
8100
APPLICATION FOR CERTIFICATION (PROPERTY TAX TREATMENT)
POLLUTI9N CONTROL FACILITY
AIRPR
WATER
LI
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
P. O. Box 19276, Springfield, IL 62794-9276
]his
Agency is amhorizAd to request this
information undo Illinois Revised Statues, 1979,
Chaplcr,110,Section .502a5. Disdosacofthis
ir,fomwtion
is
voluntary. However. failure to
comply could prevent your application
from
bang processed or could result in denial ofyour
application for certification
.
FOR AGENCY USE
File No.
Date Received
Ceftificaoon No .
Date
Sec A
Company Name
Marathon Ashland Petroleum LLC
Person Authorized to Receive Certification
Person to Contact for Additional Details
John Swearinqen
Dennis Baker
Street Address
Street Address
Refinery Office Buildinq
539 South Main Street
Municipality, State
IS Zip Code
Municipality. State & Zip Code
Robinson, IL 62454
Findlay, OH 45840
Telephone Number
618-544-2121
Telephone Number
419-421-3759
Location of Facility
Quarter Section
Township
Range
Municipality
Township
Robinson
Robinson
Street Address
RDIItP 33
County
Book
Number
Crawford
Property Identification Number
Parcel Number
Part of 51-34-1-21
Sec.
B
Nature of Operations Conducted at the Above Local on
(L
l ! 9
Petroleum Refining
Reformulated Gasoline
- Blending
u
X
o
H-
VQ
n
ao
E
Water Pollution Control Construction Permit No .
Date Issued
NPDES PERMIT No .
Date Issued
Expiration Date
Air Pollution Control Construction Permit No
.
Date Issued
Air Pollution Control Operating Permit No
96010007 (Title V)
Date Issued
Sec. C
a o
za
Describe Unit Process
See Attached
~~~~~
Materials Used in Process
'
See Attached
DEC 3 0 2004
JEPA-
DAPC - coCL®
Sec. D
jZ
00
-
Describe Pollution Abatement Control Facility
See Attached
ELECTRONIC FILING, RECEIVED, CLERKS OFFICE, DECEMBER 22, 2005
*****PCB 2006-111
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Tax Cfrrifieafion for Pollution Control facilities
Page 2 of 1
8/00
Sec. E
(1) Nature of Contaminants or Pollutants
Benzene and sulfur compounds
Material Retained, Captured or Recovered
_
Contaminant or Pollutant
DESCRIPTION
DISPOSAL OR USE
Benzene
Benzene
Sulfur Compounds
Sulfur Compounds
0
u
u
0
o
°
Z
°
5 r
o<
°
z
a
(2) Point(s) of Waste Water Discharge
N/A
Plans and Specifications Attached
Yes
No
XX
(3)
Are contaminants (or residues) collected by the control facility?
Yes
xx
No
(4)
Date installation completed
Ort 1994
status of installation on date of application
100%
FAIR CASH VALUE IF CONSIDERED REAL PROPERTY
:
$
of 9 o s' eo
0
(5)
a .
I'
b .
NET SALVAGE VALUE IF CONSIDERED REAL PROPERTY
:
$
Lt 3 c-I
c.
PRODUCTIVE GROSS ANNUAL INCOME OF CONTROL FACILITY
:
$
2
aR d
d .
PRODUCTIVE NET ANNUAL INCOME OF CONTROL FACILITY
:
$
Ze.~p
e .
PERCENTAGE CONTROL FACILITY BEARS TO WHOLE FACILITY VALUE
:
%
- 3133
Sec. F
z
°
The following information is submitted in accordance with the Illinois Property Tax Code, as amended, and to the best of my
knowledge, is [rue and correct. The facilities claimed herein are'potlution control facilities' as defined in Section 11-10 of the
Illinois Property Tax Code .
,~~^~-
y 2~291dY
Signature
John Swearingen
Title Illinois Refining Division Manager'
Sec. G
INSTRUCTIONS FOR COMPILING AND FILING APPLICATION
General: Separate applications must be completed for each control facility claimed . Do not mix types (water and air). Where both air and
water operations are related, file
two
applications. If attachments are needed, record them conseafivety 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 orfor inspection of
facilities. Define facility location by street address a legal description . A plat map location Is required or facilities located
outside of municipal boundaries. The property identification number is required
.
Sec B
Self-explanatory. Submit copies of all permits issued by local pollution control agencies
.
(e.g. MSD Construction Permit)
Sec- C
Refers to manufacturing processes a materials on which pollution axmlrol facility Is used
.
Sec
. D
Narrative description of the pollution control facility, indicating that its primary purpose is to eliminate, prevent o reduce pollution
.
State the ype of control facility . Stale permit number, date, and agency issuing permit. A narrative description and a process
flow diagram describing the potation coned facility. Include a listing of oath major piece of equipment imduded in the claimed
fair cash value for real property. Include an averacle analysis of the influent and effluent of the control facility slating the
collection efficiency.
,a
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 manufacturing processes.
U
Item (1)-Refers to pollutants and contaminants removed from the process by the pollution control facility
.
y
Item (2)- Refers to water polution but can apply to water-carried wastes from air pollution control facilities . Submit drawings,
which dearly show (a) Point(s) of discharge to receiving stream, and (b) Sewers and process piping to and from the control
z
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 onllecied substances . State the cost of reclamation and related expense
.
Item (4) - State the date which the pollution control facility was first placed In service and operated . If 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 :
Illinois 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, CLERKS OFFICE, DECEMBER 22 .2005
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Section C
Describe Unit Process
:
A new blend system consisting of a Honeywell distributed control system (DCS), a VAX
computer, two gas chromatographs for benzene analysis, an Icotron software package
(the blend algorithms), the knock engine hardware and software to interface between the
existing engines and new TDC equipment and the electrical work to commission the
system was installed in order to meet the 1995 reformulated per gallon gasoline
specifications . The new blending system optimizes the blend on-line feedback
measurements (octane, rvp, and benzene content) . With this feedback, the blend is
controlled via Honeywell equipment . Included in the installation were two GC analyzers
that were required to provide the on-line benzene content of the blended product as well
as some of the key components that are being fed to the blender .
To control the RVP of the low vapor pressure grades of gasoline, light gasoline must be
segregated from ultraformate. To achieve this segregation, a new 25,000 barrel sphere
was installed for C5 storage. The new sphere was engineered with a design pressure
sufficient for isobutene storage allowing for inventory and maintenance flexibility
.
An MTBE line was installed between the existing Robinson Waash pipeline station and
the existing refinery MTBE storage tank
.
Additional laboratory equipment was installed to analyze gasoline upon completion of
the reformulated gasoline projects this included installation of an X-ray equipment
capable of performing EPA mandated D2622 for sulfur analysis on RFG, balance for
oxygenate analysis and a gas chromatograph for benzene analysis
.
Section C
Materials used in process
:
Reformulated gasoline
Section D
Pollution Control Facility Description
A new blend system consisting of a Honeywell distributed control system (DCS), a VAX
computer, two gas chromatographs for benzene analysis, an Icotron software package
(the blend algorithms), the knock engine hardware and software to interface between the
existing engines and new TDC equipment and the electrical work to commission the
system was installed in order to meet the 1995 reformulated per gallon gasoline
specifications. The new blending system optimizes the blend on-line feedback
measurements (octane, rvp, and benzene content) . With this feedback, the blend is
controlled via Honeywell equipment . Included in the installation were two GC analyzers
that were required to provide the on-line benzene content of the blended product as well
as some of the key components that are being fed to the blender .
To control the RVP of the low vapor pressure grades of gasoline, light gasoline must be
segregated from ultraformate. To achieve this segregation, a new 25,000 barrel sphere
ELECTRONIC FILING. RECEIVED. CLERK'S OFFICE, DECEMBER 22, 2005
*****PCB2006-111
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was installed for C5 storage. The new sphere was engineered with a design
t
pressure
sufficient for isobutene storage allowing for inventory and maintenance flexibility
.
An MTBE line was installed between the existing Robinson Waash pipeline station and
the existing refinery MTBE storage tank
.
Additional laboratory equipment was installed to analyze gasoline upon completion of
the reformulated gasoline projects this included installation of an X-ray equipment
capable of performing EPA mandated D2622 for sulfur analysis on RFG, balance for
oxygenate analysis and a gas chromatograph for benzene analysis
.
ELECTRONIC FILING, RECEIVEDLERK'S OFFICE, DECEMBER 22, 2005
*****PCB2006-111
*****
ILLINOIS ENVIRONMENTAL PROTECTION AGENCY
1021 NORniCh"I
,
iAVLN.A
CASE, P.O . SO' 19306, Si"KI,NOI (LO.ILLINn6 6.'744-95I)6
-( 217.'7R2-2I 13
ROU R . 13, :,COIrvICrl,
GOCELNOrt
Do!
GL AS I" SiolI, DIRLCIuK
Memorandum
Technical Recommendation for Tax Certification Denial
Date
:
October 27, 2005
To :
Robb Layman
From :
Don Sutton 'r r
Subject
:
Marathon Ashland Petroleum LLC TC-04-30-12V
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
:
Reformulated Gasoline-Blending system whose primary purpose is to meet
reformulated gasoline requirements and isn't the reduction of Air Pollution and it does
not meet the definition of a "Pollution Control Facility" it is therefore denied
.
This facility is located at 100 Marathon Avenue, Robinson
The property identification number is Part of 51-34-1-21
Based on the information included in this submittal, it is my engineering judgement that
the proposed facility may not be considered "Pollution Control Facilities" under 35 IAC
125.00(a), with the primary purpose of eliminating, preventing, or reducing air pollution,
or as otherwise provided in this section, and therefore not eligible for tax certification
from the Illinois Pollution Control Board . Therefore, it is my recommendation that the
Board deny the requested tax certification for this facility
.
PRINIED
ON RtLYCLW
PAPER
r
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