July

26,2007

MARATHON PIPE LINE LLC

1

1

Petitioner,

1

1

v.

1

)

ILLINOIS

ENVRONklENTAL PRQTECTION

)

AGENCY,

1

)

Respondent.

1

1

(Frovisional

Variance

Control Requirements

On

June

29,2007, the

IlLinois EPA

received hm Marathon

Pipe

Line

LLC ("MPL'3 a

request for

provisioiml

variance,

with

supplemental

information

provided

by

Ietter dated

July

9,2007,

to

allow the

barge

loading

and

shipment

of

crude

oil

at

Wood River

Station,

located in Wood River,

Illinois,

without

the

required vapor

collection and control

system

designed

to

control

volatile

organic

material

('VOW')

emissions. The

request

was

accepted for

review

pursuant

to

the requirements

of

the

Illinois Environmental Protection

Act

CLAct")

and

the applicable regulations.

The

Illinois EPA evaluated

the

request pursuant

to

the

requirements

of Sections

35,

36,

and

37

of

the

Act

and

the Agency regulations

at

3 5

Ill.

Adm.

Code Part

1 80.

MPL seeks

provisional variance

from

permit

conditions

6(b) and 9(b) pertaining

to

gasoline

or crude

oil loadout and VOM emissions

limitations

relative

to

barge loading operations,

xespectiv'el

y, contained

within Federally Enforceable State Operating Permit

("FESOP")

number

73021451

and

35

Ill.

Ah.

Code

Part

219

Subpart

GG

(Marine

Tembls)

volatility

standards. The Illinois

EPA

is

denying

the

request

for

provisional variance

as

the

source has

failed

to

demonstrate

tbat

an

arbitrary and unreasonable

hardship will

result

in

the

event

of

a

denial.

As

set

forth

witbin

the

request,

in

October

2006,

MPL

completed

design

plans

and

purchased equipment

to

facilitate

the

instdhtian

of one marine vapor combustion

unit

~MVCTCP')

estimating

approximately 11

months

fox

the

manufacture,

delivery,

and

installation of the

conml

system.

On

March

22,

2007,

the Illinois EPA

issued

to

MPL

cons@ction

p-wit

number

06120048

dowing

the

conshction

of

one MVCU

to

colitrol

---

VOM emissions generated during barge loading operations described within

a

permit

application received

by

the Illinois

EPA,

on December

26,

2006.

MPL seeks

a

previsional variance from vapor coIEection and control system requirements asserting the

ability

to

conduct

barge loading operations during the period August 1 through

September 14, 2007, without utilizing a rvNCU to control VOM

emissions,

will help

smooth the domestic energy logistical network

and

mitigate foreign crude oil logistical

dislocations, diversify supply alternatives, reduce the impact of hurricane disruptions, and

capture

the security of

supply

foreign crude oil provides.

Having evaluated

the request,

the Illinois EPA

has

determined

compliance

with

35

111. '

Adm.

Code Part 219 Subpart

GG

requirements will not impose

an

arbitrary and

unreasonable

hardship.

Based upon information contained within the request, the

schedule implemented by MPL to

design,

purchase, and install one MVCU is seIE

imposed,

In

addition, information has not been received demonstrating

that

an

unanticipated disruption in the Ioading, shipment, and supply of domestic

andlor

foreign

crude oil is imminent. Accordingly, the Illinois EPA is denying relief to

MPL

from

conditions

6(b) and

9@) pertaining to control requirements and VOM emissions

generated during barge loading operations, respectively, and the

appIicable

requirements

of 35

d

II. Adm. Code Sections

219.762(a)

and (b).

Robert

A.

Messina

Chief CounseI

cc:

PCB, Clerk