BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
PETITION OF BIG RIVER ZINC
CORPORATION FOR
AN ADJUSTED
STANDARD UNDER 35 ILL. ADM. CODE
nO.131(c)
NOTICE OF FILING
Pollution Control Board
Attn: John
T. Therriault
100 West Randolph Street
James
R. Thompson Center, Suite 11-500
Chicago,
IL 60601-3218
William D. Ingersoll
Division
of Legal Counsel
Illinois Environmental Protection Agency
1021 N. Grand Avenue East
P.O. Box 19276
Springfield, IL 62794-9276
Carol Webb, Hearing Officer
Illinois Pollution Control Board
1021 North Grand Avenue East
P.O. Box 19274
Springfield, IL 62794-9274
AS 08-09
(Adjusted Standard-Land)
PLEASE TAKE NOTICE that I have today filed with the Office
of the Clerk ofthe Pollution
Control Board the attached Amended Petition for Adjusted Standard
of Big River Zinc
Corporation, a copy
of which is herewith served upon you.
Date: July
I!i
2008
Jennifer T. Nijman
Nijman Franzetti LLP
lOS. LaSalle Street, Suite 3600
Chicago,
II 60603
(312) 251-5255
Electronic Filing - Received, Clerk's Office, July 14, 2008
CERTIFICATE OF SERVICE
I, the undersigned, certifY that I have served the attached Amended Petition for Adjusted
Standard, by electronically filing with the Board and by first class mail upon IEPA and the
Hearing Officer:
Pollution Control Board
Attn: John
T. Therriault
100 West Randolph Street
James
R. Thompson Center, Suite 11-500
Chicago,IL 60601-3218
William D. Ingersoll
Division
of Legal Counsel
Illinois Environmental Protection Agency
1021 N. Grand Avenue East
P.O. Box 19276
Springfield, IL 62794-9276
Date: July
a,
2008
Jennifer
T. Nijman
Nijman Franzetti LLP
lOS. LaSalle Street, Suite 3600
Chicago,
II 60603
(312) 251-5255
Carol Webb, Hearing Officer
Illinois Pollution Control Board
1021 North Grand Avenue East
P.O. Box 19274
Springfield,IL 62794-9274
Electronic Filing - Received, Clerk's Office, July 14, 2008
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
PETITION OF BIG
RNER
ZINC
CORPORATION
FOR AN ADJUSTED
STANDARD UNDER 35 ILL. ADM. CODE
nO.l3l(c)
AS 08-09
(Adjusted Standard-Land)
AMENDED PETITION FOR ADJUSTED STANDARD
Big River Zinc Corporation ("BRZ"), by its undersigned counsel, submits this Amended
Petition to respond to the Hearing Officer Order
of June 26, 2008, Attaclunent A. BRZ is not
requesting a substantive change to the requested relief in AS 08-9 and therefore need not re-
notice the Amended Petition nor repeat the entire unchanged portion
of the original filing. 35 Ill.
Adm. Code 104.41 8(a) and (d). For ease
of review, BRZ restates each of the Hearing Officer's
questions below and responds in turn.
In addition, BRZ refers to the Findings of Fact and
Discussion by the Board in
In the Matter of Petition of Big River Zinc Corporation for an
Adjusted Standard, AS 99-3, Opinion and Order
of the Board, 4/15/99 (attached as tab C to
BRZ'sMotion to Incorporate Documents by Reference).
1. Besides refrning to produce zinc metal, please describe the other processes to which
BRZ expects its washed material to be subjected, as well as the resulting end products
and their uses.
BRZ currently expects its washed EAF zinc oxide to be processed to make zinc metal.
However, because the purpose
of this modifrcation to BRZ's existing Adjusted Standard is to
allow BRZ to wash zinc oxide for others, BRZ wants to ensure that the ultimate customer base is
not limited to only processors
of zinc metal given that other benefrcial markets exist for washed
zinc oxide. As described
in the attached Affidavit of George Obeldobel in Support of Amended
Electronic Filing - Received, Clerk's Office, July 14, 2008
Petition for Adjust Standard C"Aff."), zinc oxide can be used to make high purity zinc sulfate,
which is used in products such as fertilizer and animal feed
CAff. at para 4). In addition, high
purity zinc oxide can be used in paints, ceramics and rubber products, among other products
CAff. at para 4).
2.
A.
Please provide information about existing or prospective contracts for BRZ's
contemplated sale or return of washed EAF zinc oxide and any other relevant information
concerning the extent to which an end market for
BRZ'swashed material is guaranteed.
BRZ is close to fmalizing a washing agreement with Steel Dust Recycling to deliver to BRZ
approximately 1500 tons
per month of zinc oxide to be washed. Steel Dust Recycling is ready to
ship the material as soon as BRZ receives this amendment to Condition 2.a.(I)
CAff. para 5). In
addition, BRZ is in discussions with a second entity for washing, and expects also to wash zinc
oxide for BRZ's sister company
by rnid-201 0 CAff. at para 6,7).
2. B. Please describe the collection and testing methodology used to gather this data and any
plans BRZ has for such sampling in the future.
BRZ's existing Adjusted Standard for washing and processing EAF zinc oxide, granted in
1999, includes a condition requiring BRZ to
talce monthly "representative samples of the zinc
oxide material that it accepts from each supplier and composite the samples on a supplier-
specific basis" as well as testing composite samples on a monthly basis for specified constituents
using EPA methods
CAff. at para 8). BRZ has complied and will continue to comply with this
sampling condition
CAff. at para 9).
In
addition, each batch ofzinc oxide will be sampled and
composited after the material is washed. The composite will be analyzed to ensure the quality
of
the washed product on a frequency of no less than once per month
(Mf.
at para 10).
2. C. Could a supplier or third party decline to accept a shipment ofBRZ'swashed EAF
zinc oxide, such as for elevated levels
of inorganic salts? If so, how would rejected
material be handled?
2
Electronic Filing - Received, Clerk's Office, July 14, 2008
It
is unlikely that a supplier or third party will decline to accept a shipment of the washed
EAF zinc oxide because
the material will be sampled as described above to ensure the supplier's
specifications are met. Moreover, the washed material has significant market value and could
either be returned to
BRZ and rewashed if requested, or sold as is by the supplier for different
end use or at a discount. The discounted sale of off-spec feed materials is typical in the zinc
refining industry (Aff.
para 11).
2. D. Please explain how BRZ plans to "return" the washed EAF zinc oxide to the "original
supplier." Would the actual material received from a given supplier, after washing, be
returned to that supplier?
Each supplier
of EAF zinc oxide to BRZ will receive back its own material after it is washed.
BRZ does not currently plan to co-mingle the EAF zinc oxide it receives (Aff. at para 12).
In
the
future, some limited co-mingling may occur ifBRZ receives a significant amount ofEAF zinc
oxide from more than one supplier, the material is
of similar quality, and the suppliers agree to
allow some co-mingling
(Aff.
at para 12).
3. Please provide any updated information about existing or prospective contracts for
BRZ's
contemplated acquisition of EAF zinc oxide, the economic value of and markets for EAF
zinc oxide, and
BRZ'sproposed handling of incoming EAF zinc oxide from its arrival at
the Sauget facility through the washing phase, including the anticipated volumes, any
permitting, and the manner and duration
of any storage.
BRZ's contracts and agreements (including volume) for the acquisition ofEAF zinc oxide
for washing are described above in the response to question 2.A. and in the attached Affidavit
of
George Obeldobel at paragraphs 3, 5-7. These agreements are the "market" for the washed zinc
oxide as the supplier will talce the material back after washing. The ultimate uses
ofthe material,
in addition to zinc metal, are described above in the response to question I. The economic value
of the washed EAF zinc oxide was described by Mr. Obeldobel in his 5/22/08 Affidavit in this
3
Electronic Filing - Received, Clerk's Office, July 14, 2008
matter, attached to BRZ's Reply to Response of IEPA to Petition for Adjusted Standard. Mr.
Obeldobel stated:
The value
of the washed oxide on the market is similar to the value of mined zinc
concentrate. There is a standard fonnula for which the constants are negotiated every year
for purchasing concentrates. While tenns can vary year to year, the long term price is
approximately 55
to 65% ofthe LMB (London Metal Exchange) zinc price for the zinc
contained in the oxide, delivered to the customer. The LMB zinc price has ranged from
$800 per metric
tOIUle to about $4000 per metric tOIUle of zinc this decade. The washed
oxide will contain about 65% zinc. The current LMB price is about $2200 per metric
tonne zinc. See attached page from London Metals Exchange. Therefore, the
approximate value
of washed oxide today would be about 0.6 X 65% X $2200
=
$858 per
metric tonne delivered. Even
ifthe LMB zinc price falls, the difference in the washing fee
and the market price leaves significant room for profit for the supplier
ofthe crude zinc
oxide.
BRZ will use the same handling methods and washing process for incoming EAF zinc oxide
as it used in the past when the material would arrive for washing and then further refining by
BRZ (Aff. at para 13). The material is unloaded from rail car or truck through closed pneumatic
system ventilated air to silos equipped with HEPA filters, then to a washing tank, and then to a
covered storage building
(Aff.
at para 13-14). Typically, material will be stored in the silos for 3
days or less, so as to allow a steady feed rate to the washing circuit. The unloading and washing
process has not changed. Instead
of washed material being transported from the covered storage
building to
BRZ'srefining operation, however, this adjusted standard will allow BRZ the option
of transportation by the supplier to a supplier-directed location (Aff. at paraI4-15).
An
updated
process flow diagram for the washing is attached to Mr. Obeldobel'sAffidavit (Aff. at Exhibit
B). The washed product will be stored inside and only long enough to allow for efficient
transportation by the supplier
(Aff.
at para 14). BRZ has obtained all applicable permits for its
washing operation
(Aff.
at para 16) and only waits approval ofthis modification to allow it to
begin washing zinc oxide as requested herein.
4
Electronic Filing - Received, Clerk's Office, July 14, 2008
4. Please provide infonnation on how the material that is to depart from the Sauget facility
would be handled after the washing phase, including the anticipated volumes, any
permitting, and the manner and duration
of any storage, how loss would be minimized,
and how washed material would be delivered to customers.
Typically, there is about a 10% weight loss upon washing (dry basis) since certain salts are
dissolved. The washed
EAF zinc oxide will be in the fonn of wet filter calee
(Aff.
at para 14).
The filter
calee will be dropped through a chute into a truck and then transported about 200 feet
to a covered storage building where it will
be stored inside the building on its concrete floor. As
noted above, storage will only
be long enough to collect sufficient quantity for efficient
transportation by the supplier, and not for more than approximately 2 months (Aff.
at para 14).
Because the material is damp, no spillage typically occurs and loss is minimized.
BRZ also uses
a sweeper to pick up minimal quantities
of material that might fall during transportation or
loading
(Aff.
at para 14). The supplier is responsible for transportation from BRZ (covered truck
or rail) and meeting transportation requirements
(Aff.
at para 15). BRZ's process is properly
pennitted
(Aff.
at para 16). The washed material has significant value and all parties are
incentivized to minimize loss
(Aff.
at para 18).
5. Please describe BRZ'splanned expansion ofthe Sauget facility's washing operation and
how the expansion would affect the handling of both incoming EAF zinc oxide and
washed material headed either for off-site destinations or on-site refining.
BRZ's expansion is not expected to occur until the second halfof2009, when larger
quantities
ofEAF zinc oxide would be delivered for washing. The material handling would be
upgraded to allow for the additional volume, including additional silos, a more efficient
unloading system, and a more efficient system (such as conveyors) for moving
the larger
5
Electronic Filing - Received, Clerk's Office, July 14, 2008
quantities ofwashed material to storage for ultimate refining or transportation
(Aff.
at para 17).
The handling process would generally remain the same.
WHEREFORE,
Big River Zinc requests that the Board grant its request for an
amendment to Condition
2.a (1) of its adjusted standard AS-99-3.
Respectfully submitted,
Big River Zinc Corporation
Jennifer T. Nijman
Nijman Franzetti LLP
10 S. LaSalle St, Suite 3600
Chicago, Illinois 60603
(312) 251-5255
6
Electronic Filing - Received, Clerk's Office, July 14, 2008
BEFORE THE ILLINOIS POLLUTION CONTROL BOARD
IN THE MATTER OF:
PETITION OF
BIG
RIVER
ZINC
CORPORATION
FOR
AN
ADWSTED
STANDARD UNDER 35 ILL. ADM. CODE
no.
13I Cc)
AS 08-9
(Adjusted Standard - Land)
AFFIDAVIT OF
GEORGE OBELDOBEL IN SUPPORT OF AMENDED PETITION FOR
ADWSTED
STANDARD
I. George Obeldobel,
being first duly sworn on oath, depose and state as follows:
I. I am over the age
of 18 years and am a resident of Chesterfield, Missouri.
2. The information in this Affidavit is based on my personal knowledge or beliefin my capacity
as President and
ChiefExecutive Officer ofBig River Zinc Corporation C"BRZ" or the
"Facility") in Sauget, Illinois, and I would testify
to such matters if called as a witness.
3. I previously issued an affidavit discussing the need to wash the EAF zinc oxide. Washing
the EAF zinc
oxide effectively reduces chloride, fluoride, sodium and potassium and creates
a more marketable product for further processing. There is a market for washed zinc
oxide
and the product has significant value. I am familiar
with
the Nyrstar zinc smelter in
Tennessee which currently purchases approximately 15,000 tons
per year ofwashed zinc
oxide from sources in Europe. Zinc smelters in Europe purchase washed zinc oxide from
-~~
1
Electronic Filing - Received, Clerk's Office, July 14, 2008
Befesa Zinc Aser and others, which perform a similar washing process to that which BRZ
conducts
in the United States.
4. BRZ currently expects the washed EAF zinc oxide to be processed to make zinc metal;
however, the market for washed EAF zinc oxide
is broader than only zinc metal.
Washed EAF zinc oxide can also
be used to make high purity zinc sulfate, which is used in
products such as fertilizer and animal feed, and to produce high purity zinc oxide, which can
be used in the composition ofcertain paints and ceramics. See, e.g.
http://www.tetramlcro.comlcoDtrollerihome? load=dafault (describing use of zinc sulfate for animal
fead); http://www.pahc.com!( describing product phlbro chem from zinc oxide);
http://www.stallonazlncoxlde.coml(descrlblng both pharmaceutical and commercial uses for zinc
oxida, Including paints, caramlcs, textiles, chemicals and rubber products);
http://www.zincchemlcals.umicore.com/zcProductsJzinCOxide/Appllcalionsi (describing world use of
zinc oxide In 2004 at 1,000,000 tonnes, with applications such as agriCUlture, pharmaceutical,
ceramics and chemicals). Because the purpose ofthis modification to BRZ'sexisting Adjusted
Standard
is to allow BRZ to wash zinc oxide for others, BRZ does not want to limit its
customers
to only processors ofzinc metal, given that other beneficial markets do exist for
the washed zinc oxide.
5. BRZ is finalizing a washing agreement with Steel Dust Recycling ("SDR") ofMillport,
Alabama
(]'iYJ'V~~i£s;.I(lust.com).
SDR creates zinc oxide and will provide the material to
BRZ for washing. Once washed, SDR
will pick up the washed zinc oxide and sell it to a zinc
smelter. SDR expects to deliver to BRZ approximately 1500 tons per month
of zinc oxide to
be washed.
As ofJuly 10, 2008, SDR has informed BRZ that it is ready to begin shipping
EAF zinc oxide to BRZ for washing.
2
Electronic Filing - Received, Clerk's Office, July 14, 2008
6. BRZ is in preliminary discussions with PIZO (a joint venture between Heritage
Environmental Services
and Nucor Steel Corporation;
www.Dizotec"L~m
) to wash zinc
oxide for return to PIZO, beginning in approximately 2009. PIZO expects to deliver to BRZ
approximately 1250 tons per month of material for washing. BRZ understands that PIZO
expects
to sell the washed material to a zinc smelter.
7. BRZ's sister company, Zinc and Iron Recycling of Ohio, Inc., is expected to be operational
in mid 2010. It will produce approximately 7000 tons per month ofzinc oxide to be washed
by BRZ and then returned or sold in the market. The current plan is for BRZ to wash the
oxide for sale to other zinc refineries. Once there is an adequate supply ofzinc oxide, BRZ
likely will process the washed zinc oxide itselfto make zinc metal.
8. Pursuant to the Board's Order ofMay 6, 1999, in AS 99-3, BRZ is required to conduct
specified sampling
ofthe EAF zinc oxide it receives. The Board stated: "Each month, BRZ
must take representative samples ofthe zinc oxide material that it accepts from each supplier
and composite the samples on a supplier-specific basis. BRZ must test each composite
sample
on a monthly basis to determine the percentage by weight of zinc, lead, iron, total
gangue materials (silica plus calcium plus magnesium),
and chloride in the sample. Each
sample
must be collected and tested in accordance with generally accepted practices, such as
those specified in "Test Methods for Evaluating Solid Waste, PhysicaVChemical Methods,"
EPA Publication No. SW-846 (Third Edition)." (5/6/99 Order ofthe Board, AS 99-3,
attached hereto as Exhibit A).
9. BRZ conducted such sampling and provided results of the sampling to the Board in its
petition in this case. (See Petition for Adjusted Standard, AS 99-08, Attachment B, Affidavit
ofGeorge Obeldobel, 3/12/08, pp. 3-4). BRZ will continue to comply with this sampling
3
Electronic Filing - Received, Clerk's Office, July 14, 2008
condition. Specifically, BRZ used EPA sampling method 9253 for chloride, method 9214 for
fluoride, and method 7000 for iron, lead, potassium, sodium and zinc. On monthly
composite samples
of unwashed zinc oxide, BRZ sampled for percentages of zinc, chloride,
fluoride, sodium, potassium and other materials to determine the quality
of material before
washing.
10.
In addition to sampling the zinc oxide as it comes in to BRZ, each batch will be sampled and
composited after the material is washed on a supplier-specific basis
to ensure the quality of
the washed product. BRZ will analyze washed samples for percentages of zinc, chloride,
fluoride, sodium and potassium and other materials remaining in the washed zinc oxide,
using
EPA methods adapted to allow for the larger concentrations ofelements being
sampled.
The composite will be analyzed on a frequency as required by the needs of the
supplier
or as required by the variability in washing efficiencies, but no less than once per
month.
11. The material will be sampled as described above to ensure the supplier's specifications are
met. Because
of its significant market value, it is unlikely that a supplier would reject the
washed zinc oxide material.
It
could be returned to BRZ and rewashed if requested or sold as
is by the supplier for a different end use
or for the same use but at a discount to his
contractual terms.
The latter case is typical for the handling of off-spec feed materials in the
zinc refining industry.
12.
BRZ does not currently plan to co-mingle the EAF zinc oxide it receives, meaning that a
supplier will receive back its own material after washing. In the future,
ifthe supply ofEAF
zinc oxide to be washed becomes so significant and the facility is expanded, co-mingling
4
Electronic Filing - Received, Clerk's Office, July 14, 2008
might take place but only with materials of similar quality and only
with
each supplier's
approval.
13. BRZ will use the same handling methods and process for incoming
EAF zinc oxide as
described in its Application for Adjusted Standard Petition AS 99-3, which has been made
part
of the record in this case (Attachment A to BRZ'sMotion to Incorporate Documents by
Reference, pp. 11, 15-16) and as described
in Opinion and Order ofthe Board, AS 99-3,
April 15, 1999 (pp. 8-9, describing washing process for dry secondary zinc oxide material).
The vast majority,
if not all, of the EAF zinc oxide will
arrive
either by rail or truck. Both
rail cars and trucks will
be unloaded by ventilated air slides to silos, as described in the
Application. BRZ has installed 2 silos (rather than 4 as noted in the Application) and one
washing tank (rather than
3) because the additional equipment was not required for the actual
installed capacities.
An
updated process flow diagram for the zinc oxide washing is attached
as Exhibit
B.
14. The washed EAF zinc oxide will be in the form of wet filter cake and will be transported by
truck about 200 feet
to a covered storage building. The washed product will be stored inside
the covered storage building and
on its concrete floor only long enough to collect sufficient
quantity
for transportation by the supplier, and not for more than approximately 2 months.
The material is in a damp solid form and therefore no spillage typically occurs. In the event
of any spillage during transportation or loading, BRZ uses a road sweeper to pick up material
and transport it
back to the storage building (roads are paved for this purpose). BRZ also has
a facility-wide accident response program and trains its employees yearly on proper handling
procedures.
5
Electronic Filing - Received, Clerk's Office, July 14, 2008
15. The washed filter cake is loaded into the shipping vehicle, fob Sauget, and the supplier is
responsible for meeting any requirements for transportation by the supplier to a supplier-
directed location.
I
BRZ will load trucks or rail cars for transportation, depending upon the
requests
ofBRZ's supplier, and the vehicle will be covered before leaving the BRZ site to
avoid any loss ofthe valuable material during shipment. The elderior of the trucks or rail
cars will be inspected for any visible oxide and cleaned before they leave the plant.
16. BRZ has obtained applicable permits for its facility. In 1998, BRZ received from the Illinois
Environmental Protection Agency Construction Permit no. 98070057
to construct the
secondary zinc oxide receiving and washing plant, with appropriate environmental controls.
In 2005, BRZ received its notice
of completion for its CAAPP operating permit No.
96030 ]07, which includes the oxide washing facility. BRZ also has a 2008-9 Wastewater
Discharge permit
No. 08-101 issued by American Bottoms Regional Treatment Facility
which receives and regulates
BRZ's waste water discharge. The permit is based upon BRZ
washing zinc oxides and considers the specific composition
ofthe washing solution.
17. Any expansion of the washing facility is not expected until approximately 2
nd
half2009,
when larger quantities
ofEAF Zinc oxide are delivered to BRZ for washing (for instance, by
PIlO as described above). The handling of the material will remain the same in concept, but
will simply allow for handling more volume, more efficiently. BRZ would expect to install
additional silos, a more efficient pneumatic system for unloading, and a more efficient
system for handling and loading large volumes
of washed material. Any necessary permits
for the expansion would be obtained
at that time.
I
In the case of delivery to BRZ'srelated entity, Zinc and Iron Recycling ofOhio, Inc., BRZ may lake responsibility
for tile delivery off-site and will follow all applicable transportation requirements.
6
Electronic Filing - Received, Clerk's Office, July 14, 2008
18. As described in my prior affidavit
in
this case, both the unwashed and the washed EAF zinc
oxide have significant value on the market.
BRZ is incentivized to minimize any loss and
prevent any accumulation. (See Affidavit
of George Obeldobel,
5/22/08,
attached to BRZ
Reply to Response ofIEPA to Petition for Adjusted Standard).
FURTIIER AFFIANT SAYETHNOT.
OFFICIAL SEAL
SANDRA K ANDERSON
Nolary PUbl/c . Slale or
I/I/nol,
My Commlilian
expire,
Nav.l, 2010
SubscribeqJi!ld sworn to before me
on
July\!:\! 2008.
'\.
Notary
)-] rcDtZl
Public
16.
!Wc1iSC)(C
My Commission Expires: \
II
0 \IdO l 0
7
orge M. Obeldobel
resident
&
CEO - BRZ
~"'.
)
Electronic Filing - Received, Clerk's Office, July 14, 2008
Exhibit A to Affidavit
Electronic Filing - Received, Clerk's Office, July 14, 2008
AS 99-3
(Adjusted Standard - RCRA)
ILLINOIS POLLUTION CONTROL BOARD
May 6, 1999
IN THE MATTER OF:
)
)
PETITION OF BIG RIVER ZINC
)
CORPORATION FOR AN ADJUSTED
)
STANDARD UNDER 35 ILL. ADM. CODE)
720.131(c)
)
ORDER OF THE BOARD
(by K.M. Hennessey):
On April 15, 1999, the Board granted petitioner Big River Zinc Corporation (BRZ) an
adjusted standard, subject
to certain conditions. On April 28, 1999, BRZ moved the Board to
reconsider its decision. BRZ also moved the Board to decide the motion to reconsider at the
Board's May
6, 1999 meeting. On May 5, 1999, the Illinois Environmental Protection
Agency
(IEPA) filed a response to the motion to reconsider.
The Board grants BRZ's motion
to decide this matter today. The Board also grants
BRZ's motion
to reconsider and sets forth in this order the modified terms of BRZ's adjusted
standard.
BACKGROUND
The Board's findings of fact and conclusions
of law are set forth in its opinion of April
15, 1999 and are incorporated here by reference. Below, the Board highlights the facts and
proceedings relevant
to BRZ's motions.
BRZ operates an electrolytic zinc refinery
in Sauget, St. Clair County, Illinois. BRZ
uses various zinc-containing materials
as feedstock for its refinery. BRZ sought an adjusted
standard because it wants
to use a zinc-containing material recovered from dust emitted from
electric arc furnaces used
to produce steel. This secondary zinc oxide material would
ordinarily be considered a "solid waste" and a "hazardous waste" under the Resource
Conservation and Recovery Act
(RCRA) , 42 U.S.C. §§ 6901 et
seq.,
and corresponding
Illinois laws and regulations. BRZ wants
to use this secondary zinc oxide material without
becoming subject
to Illinois' hazardous waste requirements.
To that end, BRZ filed a petition for an adjusted standard under
35 Ill. Adm. Code
720.131 (c). Section 720.131
(c) allows the Board to determine that certain materials are not
solid wastes if they meet certain criteria. The status
of materials as "solid wastes" is
significant because under the laws and regulations that Congress and the United States
Environmental Protection Agency have established, only those materials that are "solid
wastes" can be regulated
as "hazardous wastes" under RCRA and corresponding Illinois laws
and regulations. Those laws and regulations impose various requirements on persons who
generate, treat, store, dispose, recycle, or transport hazardous waste. See 35 Ill. Adm. Code
Electronic Filing - Received, Clerk's Office, July 14, 2008
2
722-726, 728. Materials that are not solid wastes are not subject to Illinois' hazardous waste
regulations.
The secondary zinc oxide material for which BRZ sought
an adjusted standard is
recovered from electric arc furnace dust (EAF dust) by a high temperature metals recovery
(HTMR) process. The Board refers to this material as "EAF zinc oxide." BRZ also proposed
several conditions
on the adjusted standard. IEPA recommended that the Board grant the
adjusted standard, subject to the conditions that BRZ proposed.
In its April 15, 1999 opinion, the Board found that BRZ established that EAF zinc
oxide
is not a solid waste. The Board therefore granted BRZ's petition for an adjusted
standard, but modified the conditions that BRZ
had proposed.
MOTION
TO EXPEDITE
BRZ moves the Board to decide the motion to reconsider at the Board's May 6, 1999
meeting. Motion to Expedite (Mot. Exp.) at 4. BRZ attached the sworn affidavit of George
Obeldobel, President
of BRZ (Affidavit), to both the motion to reconsider and the motion to
expedite. BRZ is scheduled to begin receiving shipments of EAF zinc oxide on May 11,
1999. Affidavit at 4. BRZ states that its business relationships with its suppliers will be
threatened if the Board does not modify the adjusted standard before that date. Mot. Exp. at
3.
The Board's resources permit it to address BRZ's motion to reconsider at the Board's
May
6, 1999 meeting. Accordingly, the Board grants the motion to expedite and below rules
on BRZ's motion to reconsider.
MOTION
TO RECONSIDER
BRZ moves
the Board to reconsider its April 15, 1999 decision in this matter. Motion
to Reconsider (Mot. Rec.) at 1. Specifically, BRZ asks the Board to modify a condition of the
adjusted standard that the Board granted to BRZ.
Id.
at 15. The adjusted standard reads as
follows:
1.
The Board finds that zinc oxide material produced by subjecting electric
arc furnace (EAF) dust from
the primary production of steel (K061
under 35 Ill. Adm. Code 721.132) to a high temperature metals recovery
(HTMR) process
is not a solid waste and grants Big River Zinc
Corporation
(BRZ) an adjusted standard under 35 Ill. Adm. Code
720.131(c).
2.
The adjusted standard is subject to the following conditions:
a.
The determination described in paragraph one of this order
applies only
to zinc oxide material:
Electronic Filing - Received, Clerk's Office, July 14, 2008
3
(1)
that is tD be processed through BRZ's electrolytic zinc
refinery in Sauget, St. Clair CDunty, IllinDis;
(2)
that is in IllinDis;
(3)
that has arrived at BRZ's Sauget, St. Clair CDunty,
IllinDis facility
or that is under a legally binding cDntract
for sale
tD BRZ; and
(4)
that meets the fDllDwing specificatiDns by weight:
(a)
>
50% zinc;
(b)
<
20% lead;
(c)
<
5% iron (Dr
<
7% iron in material prDduced by
an
HTMR unit during the first three mDnths that
the HTMR unit produces zinc
Dxide material from
EAF dust from the primary productiDn
Df steel
(K061 under 35
Ill.
Adm. CDde 721.132));
(d)
<
4% tDtal gangue materials (silica plus calcium
plus magnesium); and
(e)
<
13% chlDride;
b.
BRZ must maintain records that dDcument the
SDurces Df all zinc
Dxide material that BRZ accepts under this adjusted standard;
c.
BRZ must maintain records that demDnstrate that each shipment
Df zinc Dxide material that BRZ accepts under this adjusted
standard meets the specificatiDns set forth in paragraph 2
(a) (4) Df
this order; fDr this demDnstratiDn, representative samples Df each
shipment
Df zinc Dxide material must be cDllected, cDmpDsited,
and tested in accDrdance with generally accepted practices, such
as
thDse specified in "Test MethDds fDr Evaluating SDlid Waste,
Physical/Chemical MethDds," EPA PublicatiDn
ND. SW-846
(Third EditiDn); and
d.
BRZ must maintain the recDrds required under paragraphs 2(b)
and 2(c)
Df this Drder fDr a periDd Df three years and must make
such records available for inspectiDn and cDpying at any
reasDnable time during nDnnal business
hDurs upDn the IllinDis
Environmental ProtectiDn Agency's request.
Electronic Filing - Received, Clerk's Office, July 14, 2008
4
In Re
Petition of Big River Zinc Corporation (April 15, 1999), AS 99-3, slip
op. at 18-19.
BRZ takes exception
to the sampling requirements of paragraph 2(c) of the adjusted standard.
In particular, BRZ asks the Board to amend tills provision so that each shipment of EAF zinc
oxide need not meet the specifications of paragraph 2(al(4). Rather, BRZ proposes to
determine compliance with the specifications based on a monthly composite of shipment
samples. Mot. Rec. at 4, 15.
The Board notes that BRZ previously proposed sampling based on monthly averages.
See Big River Zinc, AS 99-3, slip op. at 15. However, as the Board noted
in
its April 15,
1999 opinion, BRZ failed to adequately explaln how its proposal would work. Specifically,
BRZ failed to explain how it would composite samples and whether samples from different
producers would be composited together or separately. In addition, BRZ proposed blending
shipments that exceeded the specifications with other materials "such that the blended materials
meet the specifications," but failed to explain how it would determine whether the blended
materials meet the specifications.
Id.
at 16.
BRZ now explains that it proposes to sample each truckload, barge, railcar, or
supersack of EAF zinc oxide that arrives at its facility. Mot. Rec. at 2, 5-7; Affidavit at 2-3.
BRZ states that it would test a supplier-specific composite on a monthly basis for each supplier
to determine compliance with the specifications.
Id.
BRZ states that it uses this sampling and
testing approach for its mined zinc sulfide concentrates. Mot. Rec. at 2, 6-7; Affidavit at 2.
BRZ asserts that the requirement that each shipment of EAF zinc oxide meet the
specifications is cost-prohibitive. Mot. Rec. at 8; Affidavit at 3. BRZ states that AmeriSteel,
Inc. (AmeriSteel), which is expected to be a primary supplier
to
BRZ, and others like it would
have to send samples off-site for testing. According to BRZ, these suppliers would have to
hold the shipments for several days
to
await test results, resulting
in
demurrage fees. BRZ
states that the off-site testing fees and demurrage fees would represent a significant portion
(20-40%) of the value of the EAF zinc oxide. Mot. Rec. at 9-10; Affidavit at 3. For these
reasons, BRZ concludes that the requirement that each shipment meet the specifications will
prevent BRZ from purchasing EAF zinc oxide from its prospective suppliers. Mot. Rec. at 2-
3, 5, 8; Affidavit at 3.
BRZ states that it can process
an occasional shipment of inferior product and that it will
ensure that all EAF zinc oxide received is processed. Affidavit at 3. BRZ states that if a
supplier continues to provide inferior product, "BRZ will terminate its contract with its
supplier and process whatever product remalns."
Id.
In its response, IEPA notes that while the Board's conditions were more strict than
those that BRZ proposed, and IEPA agreed to, the Board's conditions were not without basis.
IEPA Response (Resp.) at 3. IEPA believes, however, that if "process and [supplier]
QAlQC
[Quality Assurance/Quality Control] standards are met and consistently followed, that should
Electronic Filing - Received, Clerk's Office, July 14, 2008
5
ensure a consistent product and less frequent sampling of actual content would be acceptable. "
Id.
at 4. IEPA also suggests that the Board define shipment as a production cycle. or on a
rolling average, rather than an individual truck or railcar.
Id.
IEPA also proposes that the
Board permit BRZ to blend only within the same shipment.
Id.
IEPA further suggests that the
Board allow "a reduction in the sampling frequency based on the generator's ability to use
QNQC
procedures to produce consistently on-specification material."
Id.
at 5.
It
is not clear
whether IEPA believes the material should be tested before or after it is shipped.
The Board notes that BRZ proposed
the specifications as a condition of the adjusted
standard. However, as noted above, the Board found that BRZ's proposed conditions, as
interpreted by BRZ, were potentially unenforceable. Accordingly, the Board crafted
enforceable conditions to address specifications and sampling. While BRZ now has clarified
its proposal, BRZ's interpretation of its proposed conditions remains problematic.
These problems arise because BRZ continues to propose that the specifications be a
condition of the adjusted standard. But BRZ will not know, until the end of the testing period,
whether the material
it
has already received meets the required specifications on an average
basis. If the material fails to meet the specifications, the adjusted standard would not apply to
the material and the material would be considered a hazardous waste. In that situation, BRZ
would have violated illinois hazardous waste laws and regulations. For these reasons, BRZ's
proposed condition is not workable.
Accordingly, the Board will take a different and more workable approach. The Board
already has found that AmeriSteel's EAF zinc oxide meets specifications necessary for BRZ to
process the material economically. See Big River Zinc, AS 99-3, slip op. at 14. Other
HTMR processes are capable of producing a similar quality material. Hearing Exhibit 3 at 10.
Attachment H. The Board further finds that BRZ plans to process all EAF zinc oxide that it
receives and that if a supplier consistently provides an inferior product, BRZ would terminate
its contract with that supplier. Affidavit at 3. Limiting the scope of the adjusted standard to
EAF dust that has been processed by HTMR and that is to be processed through BRZ's
electrolytic zinc refinery, as the Board did in its April 15, 1999 order, is an adequate proxy for
the monthly average specifications. Accordingly, the Board will delete the condition regarding
specifications from the adjusted standard. The Board also will modify the adjusted standard to
clarify that it applies only to EAF zinc oxide that will undergo BRZ's electrolytic zinc refining
process. The Board also will make other minor changes to the terms of the adjusted standard
for clarification.
The Board took a similar approach in
In
Ie
Petition of Recycle Technologies. Inc.
(September 3, 1998). AS 97-9. In that case, the Board granted an adjusted standard under
Section 720.131 (c) to a petitioner that processed used automotive antifreeze. The Board did
not impose a condition regarding specifications, but did limit the scope of the adjusted standard
to used automotive antifreeze that the petitioner had processed in a specific manner and would
further process in a specific manner. See Recycle Technologies, AS 97-9, sUp op. at 12.
Electronic Filing - Received, Clerk's Office, July 14, 2008
6
However, the Board does believe it necessary, as IEPA suggests, that BRZ sample and
test the materials it receives. BRZ has already proposed that the adjusted standard require it to
do so, and this information would allow rEPA to assess whether BRZ is indeed processing
material that
is EAF dust that has undergone HTMR processing. Accordingly, the Board will
require BRZ each month
to take representative samples of the material it receives from each
supplier and composite the samples on a supplier-specific basis. BRZ must test each composite
sample
on a monthly basis, and maintain records of sampling and test results for three years
and make those records available for IEPA
to inspect.
The Board grants BRZ's motion
to reconsider and grants BRZ the following amended
adjusted standard:
1.
The Board finds that zinc oxide material produced by subjecting electric arc
furnace (EAF) dust from
the primary production of steel (KD61 under 35 Ill.
Adm. Code 721.132)
to a high temperature metals recovery (HTMR) process is
not a solid waste and grants Big River Zinc Corporation (BRZ) an adjusted
standard under
35 Ill. Adm. Code 72D.131(c).
2.
The adjusted standard is subject to the following conditions:
a.
The determination described in paragraph one of this order applies only
to zinc oxide material:
(1)
that will undergo BRZ's electrolytic zinc refining process at its
facility in Sauget, St. Clair County, Illinois;
(2)
that is in Illinois; and
(3)
that has arrived at BRZ's Sauget, St. Clair County, Illinois
facility or that
is under a legally binding contract for sale to BRZ;
b. BRZ must maintain records identifying the suppliers of all zinc oxide
material that BRZ accepts under this adjusted standard;
c. Each month, BRZ musttake representative sa!Ilples ofthe zinc oxide
material
thatitacceptsfrom each supplier and composite the samples on a
supplier-specific basis.•
BRZ must test each composite sample on a monthly
basis
to determine the percentage by weight of zinc, lead, iron, total gangue
materials (silica plus calcium plus magnesium) , and chloride in the sample.
Each sample must
be collected and tested in accordance with generally
accepted practices, such
as those specified in "Test Methods for Evaluating
Solid Waste, Physical/Chemical Methods," EPA Publication No. SW-846
(Third Edition); and
Electronic Filing - Received, Clerk's Office, July 14, 2008
7
d. BRZ must maintain records of the information required in paragraphs 2(b)
and 2(c) of this order for a period of three years and must make them
available for the Illinois Environmental Protection Agency (rEPA) to inspect
and copy at any reasonable time during normal business hours upon IEPA's
request.
IT IS SO ORDERED.
Section
41 of the Environmental Protection Act (415 ILCS 5/41 (1996)) provides for
the appeal of final Board orders to the Illinois Appellate Court within 35 days of service of this
order. Illinois Supreme Court Rule 335 establishes such filing requirements. See 172 Ill. 2d
R. 335; see also 35 Ill. Adm. Code 101.246, Motions for Reconsideration.
I, Dorothy M. Gunn, Clerk of the IllInois Pollution Control Board, hereby certify that
the above order was adopted on the 6th day of May 1999 by a vote of7-0.
Dorothy M.
r1
Gunn, Clerk
Illinois Pollution Control Board
Electronic Filing - Received, Clerk's Office, July 14, 2008
Exhibit B to Affidavit
Electronic Filing - Received, Clerk's Office, July 14, 2008
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