SCRUBBER-ADSORBER       
Updates 

January 2010

No. 427

MARKETS

Cement Industry Purchases to Boost Scrubber Industry to $6.5 Billion in 2012

The market for industrial stack gas scrubbers has historically been small compared to those used in coal-fired power plants. But, thanks to tough proposed regulations for the cement industry, the world industrial scrubber market is now forecasted to reach $6 billion in 2012. This is the latest forecast of the McIlvaine Company in “Scrubber/Adsorber/Biofilter World Markets.”

A new proposed air pollution rule in the U.S. would require installation of scrubbers on more than 200 cement kilns. Some revenues are generated on order placement with the balance generated through the 24 months of a typical project length.

Another big market is waste-to-energy. There are typically two scrubbers in these plants. One captures hydrogen chloride and the other captures the SO₂. China has embarked on a major program to burn its garbage. The U.S. has also awakened to the advantages of using waste as a substitute for coal in energy production.

The biggest growth over the next decade will be in Asia. Scrubbers are the basic air-pollution control device in developing countries. Foundries, steel mills, mining operations and pulp mills all use scrubbers whether they are located in a poor Asian nation or in a rich one in the West. However, most of the construction of basic industry is taking place in Asia.

There is a major stimulus funding for municipal wastewater treatment plants in China, the U.S. and some other countries. Sewage treatment generates noxious odors. A large treatment facility may purchase a number of scrubbers with a total outlay of over $1 million.

Industrial Scrubber System Purchases ($ million)

                        Country                             2012

China will buy 50 percent more industrial scrubbers in 2012 than the U.S. Its purchases will equal the U.S. and Japan combined.

For more information on “Scrubber/Adsorber/Biofilter World Markets,” click on http://www.mcilvainecompany.com//brochures/air.html#n008.

IRON & STEEL

AE&E to Design Flue Gas Desulfurization Units for Chinese Steelworks

AE&E — one of the leading international plant engineering and construction companies in the field of thermal power generation and environmental technology that forms part of the listed A-TEC Industries Group — has secured its first contract to design emission reduction equipment for a Chinese steelworks. In response to increasingly strict environmental regulation in China the JianLong Group, one of the leading companies in the country’s metallurgical sector, intends to install AE&E Turbosorp^® flue gas desulfurization units at two 90-square-meter sintering plants built in 2002. The order from Fushun Xinfu Steel & Iron is further proof of AE&E’s strong reputation in the fast growing Chinese market.

“This project is a major milestone in the history of AE&E Shanghai. It will be the first instance of the use of Turbosorp^® technology at steel industry sinter plants, and should enable us to gain a strong foothold in the rapidly-expanding Chinese market for desulfurization equipment for such facilities,” said AE&E Group CEO Georg Gasteiger.

The Liaoning Wanhe Group is acting as the general contractor for the project, and will be responsible for procurement, fabrication and erection. AE&E Shanghai has been commissioned with the basic engineering design of the flue gas desulfurization plants, and the detail engineering design of the turboreactors, instrumentation and control equipment.

New Blast Furnace for NLMK

Iron & Steel Technology reports Novolipetsk Steel (NLMK) has begun assembly for blast furnace No. 7 steel structures at its main site in Lipetsk. The new production facility, with capacity of 3.4 million tonnes of hot pig iron per year, is the first to be constructed in Russia for 20 years. BF No. 7’s design incorporates the most up-to-date technical solutions for high-performance, resource-saving and largely automated pig iron production. The facility will incorporate a number of new technologies, including a pulverized coal injection system, high-efficiency dedusting systems, and closed water and sludge removal circuits. The company said it also would partially construct stoves, exhaust air cleaning systems and other equipment this year.

CARBON ADSORPTION

Final Results of Antidumping Duty Administrative Review

On May 7, 2009, the Dept. of Commerce published in the Federal Register the preliminary results of the first administrative review of the antidumping duty order on certain activated carbon from the People’s Republic of China. Interested parties were given an opportunity to comment on the “Preliminary Results.” Based upon analysis of the comments and information received, changes were made to the margin calculations for the final results. The Dept. of Commerce continues to find that certain exporters have sold subject merchandise at less than normal value during the period of review, October 11, 2006 through March 31, 2008.

The merchandise subject to this order is certain activated carbon. Certain activated carbon is a powdered, granular or pelletized carbon product obtained by “activating” with heat and steam various materials containing carbon, including but not limited to coal (including bituminous, lignite and anthracite), wood, coconut shells, olive stones and peat. The thermal and steam treatments remove organic materials and create an internal pore structure in the carbon material. The producer can also use carbon dioxide gas (CO₂) in place of steam in this process. The vast majority of the internal porosity developed during the high temperature steam (or CO₂ gas) activated process is a direct result of oxidation of a portion of the solid carbon atoms in the raw material, converting them into a gaseous form of carbon.

The scope of this order covers all forms of activated carbon that are activated by steam or CO₂, regardless of the raw material, grade, mixture, additives, further washing or post-activation chemical treatment (chemical or water washing, chemical impregnation or other treatment), or product form. Unless specifically excluded, the scope of this order covers all physical forms of certain activated carbon, including powdered activated carbon (“PAC”), granular activated carbon (“GAC”) and pelletized activated carbon.

Excluded from the scope of the order are chemically-activated carbons. The carbon-based raw material used in the chemical activation process is treated with a strong chemical agent, including but not limited to phosphoric acid, zinc chloride sulfuric acid or potassium hydroxide, that dehydrates molecules in the raw material, and results in the formation of water that is removed from the raw material by moderate heat treatment. The activated carbon created by chemical activation has internal porosity developed primarily due to the action of the chemical dehydration agent. Chemically-activated carbons are typically used to activate raw materials with a lignocellulosic component such as cellulose, including wood, sawdust, paper mill waste and peat.

To the extent that an imported activated carbon product is a blend of steam and chemically-activated carbons, products containing 50 percent or more steam (or CO₂ gas) activated carbons are within this scope, and those containing more than 50 percent chemically-activated carbons are outside this scope. This exclusion language regarding blended material applies only to mixtures of steam and chemically-activated carbons.

Also excluded from the scope are reactivated carbons. Reactivated carbons are previously used activated carbons that have had adsorbed materials removed from their pore structure after use through the application of heat, steam and/or chemicals.

Also excluded from the scope is activated carbon cloth. Activated carbon cloth is a woven textile fabric made of or containing activated carbon fibers. It is used in masks and filters and clothing of various types where a woven format is required.

Any activated carbon meeting the physical description of subject merchandise provided above that is not expressly excluded from the scope is included within this scope.

Calgon Carbon Announces Third Quarter Results

Calgon Carbon Corp. announced results for the third quarter ended September 30, 2009.

The company reported net income of $13.9 million for the third quarter of 2009, versus $2.2 million for the comparable period of 2008. On a fully-diluted basis, net income per common share for the third quarter of 2009 was $0.25 as compared to fully diluted net income per common share of $0.04 for the comparable quarter of 2008.

Income from operations for the third quarter of 2009 was $14.1 million, as compared to income from operations of $12.3 million for the third quarter of 2008.

Net sales for the third quarter of 2009 were $107.5 million versus third quarter 2008 sales of $99.1 million, an increase of 8.5 percent. Currency translation had a $2.3-million negative impact on sales for the third quarter of 2009 due to the stronger U.S. dollar.

For the third quarter of 2009, sales of Activated Carbon and Service increased by 10.6 percent versus the third quarter of 2008. The increase was due to favorable pricing and higher demand in areas of strategic focus, including products in the environmental air treatment market, as well as supply of activated carbon for a new potable water treatment facility in Asia. Equipment sales declined 9.5 percent versus the third quarter of 2008. The decrease was attributable to lower demand for traditional carbon adsorption and odor control equipment, and was partially offset by higher revenue from systems that employ ultraviolet light technology. A 23.7 percent increase in consumer sales for the third quarter of 2009 was due to higher demand for activated carbon cloth.

Net sales less the cost of products sold as a percentage of net sales was 33.9 percent for both the third quarter of 2009 and the third quarter of 2008.

Selling, administrative and research expenses for the third quarter of 2009 and for the third quarter of 2008 were comparable. As a result of the quarter-over-quarter sales growth, selling, administrative and research expenses as a percentage of sales were 16.4 percent for the third quarter of 2009, versus 17.5 percent for the third quarter of 2008.

For the third quarter of 2009, the company reported a tax benefit of $0.8 million, versus a tax provision of $1.6 million for the comparable period in 2008. During the third quarter of 2009, the company determined that a sufficient amount of foreign source income had been generated to release $5.0 million of its valuation allowance on foreign tax credits. Absent this and other 2009 discrete events, the company estimates that its 2009 consolidated annual tax rate will be 38.4 percent.

COMPANY FINANCIALS

Third Quarter Net Income of $1 Million for Met-Pro

Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corp. announced the company’s financial results for the third quarter ended October 31, 2009.

Net sales for the third quarter ended October 31, 2009 were $19.8 million compared with net sales of $28.0 million for the same quarter last year. For the third quarter, the company reported net income of $1.0 million, or $0.07 per diluted share, compared with net income of $3.0 million, or $0.20 per diluted share, for the third quarter of last year.

“Results in the quarter reflect the lagging effect on both net sales and earnings from the slowdown in global economic activity that began last year,” stated De Hont. “Reflecting some improvement in our markets, new orders in the third quarter were $25.5 million, our best quarterly bookings since the third quarter of last year and up 31 percent sequentially from our second quarter. The recovery in new orders is being led by an improvement in large project bookings within our Product Recovery/Pollution Control Technologies segment, which totaled $5.5 million in the third quarter, the highest quarterly large project bookings since the quarter ended January 31, 2007. With end markets improving, we believe our wide breadth of high-quality comprehensive solutions that meet the increasing demand for a cleaner, more energy-efficient environment will enable us to continue to increase our share of this growing global market.”

During the first nine months of the current fiscal year, the company generated a record $14.8 million in cash flow from operating activities, resulting in a record $32.3 million cash position on October 31, 2009.

Net sales for the nine months ended October 31, 2009 were $60.3 million compared with $78.8 million for the same period last year. Net income for the nine months ended October 31, 2009 totaled $3.2 million compared with $7.6 million for the same period last year. For the nine months ended October 31, 2009, earnings were $0.22 per diluted share compared with earnings of $0.50 per diluted share for last year’s first nine months.

“We are encouraged by our solid third quarter bookings, the second sequential quarter of increasing new orders, and especially our recent success in closing several large projects,” added De Hont. “While these new orders are signs of an improvement in the markets we serve, the lack of any significant global economic growth represents a challenge to capital spending, necessitating continued caution regarding the strength of any recovery in the near-term. With record cash, our balance sheet remains extremely strong. We continue to focus on increasing our operating efficiencies, which has allowed us to effectively complete for new business while achieving 34 percent gross margins for the first nine months, consistent with the same period a year ago despite lower revenue levels. The underlying fundamental strength of our business leaves us well positioned to create long-term sustainable growth and value for our shareholders.”

On October 21, 2009, the company declared a quarterly dividend of $0.06 per share payable December 11, 2009 to shareholders of record at the close of business on November 27, 2009. This is the thirty-fifth consecutive year the company has paid a cash or stock dividend.

TurboSonic Has Healthy Backlog

TurboSonic Technologies, Inc., a global provider of clean air technologies, released operating results for its first quarter ended September 30, 2009, as shown in Figure 1.

Figure 1. Operation Results for First Quarter

Commenting on the company’s results, Edward Spink, TurboSonic CEO, said, “We recently completed a record year for fiscal 2009 with a healthy backlog and optimism for fiscal 2010. First quarter revenue is nearly 50 percent over the first quarter of the previous fiscal year while net income was flat, due to two large contracts with significant outsourced turnkey construction components resulting in low margins. We expect, however, that these contracts will open two new markets for our technologies, building on our strategy for diversification.

We are currently facing market uncertainties and requirements for cost containment as new opportunities are hampered by a slow economic recovery and the gap between establishment of environmental policies and their inevitable implementation as regulations. As a result, we anticipate that we will experience somewhat lower performance levels for the next several quarters. Our long-term prospects are built on product and market development, marketing agreements and geographic coverage to address regulatory progress, non-regulatory drivers, growth in energy generation and rising market projects. We have taken initiatives to develop several new technologies that offer our customers an economic payback based on non-regulatory driven purchase decisions.”

TurboSonic Technologies (www.turbosonic.com) designs and markets air pollution control technologies to industrial customers worldwide. Its products help companies in the Cement and Mineral Processing, Ethanol and Biofuels, Metals and Mining, Petrochemicals, Power Generation, Pulp and Paper, Waste Incineration and Wood Products industries meet the strictest emissions regulations, improve performance and reduce operating costs.

BIOREM Announces Record Third Quarter

BIOREM Inc. announced results for the three- and nine-month periods ended September 30, 2009. Biorem’s complete fiscal 2009 third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

“We are excited to report a strong quarter, with record gross profit and net earnings. Our results for 2009 year-to-date have now exceeded our fiscal 2008 results for those areas,” said Peter Bruijns, President and CEO. “We are especially pleased to report that this marks our third consecutive quarter of positive cash flow generation, and the highest net income the company has earned in one quarter over the last five years. We believe that our solid performance in 2009 thus far creates a strong foundation for the future growth of our company and provides the flexibility to advance our growth initiatives, which include potential acquisitions.”

Revenue in the three-month period ended September 30, 2009 (third quarter 2009) increased 20 percent to $4,910,000, from $4,105,000 over the comparative period in the prior year. New orders for the quarter totaled $4,588,000 resulting in a current order backlog of $10.4 million. The backlog is down $2.8 million or 21 percent from September 30, 2008. In relation to the second quarter of 2009, the backlog decreased by $0.8 million or 7 percent.

Gross profit in third quarter 2009 increased 34 percent to $2,348,000 from $1,753,000 in the third quarter 2008. Biorem achieved a strong gross margin percentage in the third quarter of 2009, which is in line with the company’s target annual level of 40 percent.

In the third quarter 2009, EBITDA increased 177 percent to $796,000 from $287,000 in the same period a year ago.

Net income for the third quarter of 2009 increased 261 percent, or $0.04 per basic and diluted share, from $144,000, or $0.01 per basic and diluted share in the third quarter of 2008.

For the nine months ended September 30, 2009, revenue totaled $14,625,000, which is a 50 percent increase over last year’s period. Gross profit totaled $5,980,000, EBITDA $646,000 and net loss totaled $(143,000), or $(0.01) per basic and diluted share.

As at September 30, 2009, the company had working capital of $7,245,000 including cash and short-term investments of $2,933,000, trade and other receivables of $3,420,000 and unbilled revenue of $3,283,000, compared to total working capital of $6,935,000, cash and short-term investments of $2,199,000, trade and other receivables of $5,419,000 and unbilled revenue of $3,810,000 as of December 31, 2008. Long-term debt was $2,442,000 as at September 30, 2009 and $2,287,000 as at December 31, 2008.

INDUSTRY NEWS

Kimre Provides Advanced Emission Control System to MPC Phosphate

Saudi Arabia’s Ma’aden Phosphate Co. (MPC) has taken delivery of three exhaust gas cleaning units from Kimre Systems. They are designed to set new industry standards for emission control.

When completed, the integrated phosphate and fertilizer granulation complex expects to produce 3 million metric tons per year of diammonium phosphate fertilizer. Kimre Systems’ uniquely designed scrubbers, with their proprietary KON-TANE^® packing and B-GON^® mist eliminators, will significantly reduce particulates, dust and noxious gases typically associated with the wet phosphoric acid process being used at the facility.

Very low pressure drops and high liquid feed rates make Kimre Systems’ scrubbers the logical choice for high production facilities like the MPC Phosphate Project.

BIOREM Expands Into New Markets with Launch of Latest Product

BIOREM Inc. announced that it has launched its SK Series of skid-mounted, two-stage biofilters. The systems come in two sizes, one to treat up to 250 CFM of contaminated air and one to treat up to 450 CFM.

The systems benefit from the use of Biorem’s permanent high performance XLD media. By utilizing its proprietary XLD media, Biorem has also reduced the footprint of its installation by up to 75 percent from its traditional solution for low CFM air streams. The systems are pre-assembled on a self-contained skid and shipped complete to site for rapid installation.

The key added values expected to be derived from this product include; significantly lower overall installed capital costs, applications in new market niches previously dominated by activated carbon technologies and shorter sales to revenue cycles. The development of the SK Series will help advance Biorem’s organic growth strategy of significantly increasing international bookings by 2010. International demand for Biorem products is expected to be driven primarily by China, where the first manufactured System has already been shipped and installed.

 “This product has applications in municipal and various industrial verticals such as the food and beverage industry,” said Peter Bruijns, President and CEO. “Our commitment to developing, acquiring and delivering clean technology air emissions solutions to customers is furthered with this product introduction. We anticipate that the continued expansion of our product offering will translate into added value for our shareholders.”

CB&I Announces Technology Acquisition

CB&I announced that it has entered into a definitive agreement with H2Gen Innovations, Inc. to acquire the Mars modularized Pressure Swing Adsorption (PSA) technology.

H2Gen’s PSA technology is used to recapture hydrogen and noble gases from waste streams in a variety of industries including oil and gas, petrochemicals and metals. Small footprint PSA process modules provide gas separation and purification with high reliability at a low cost. Commercialized H2Gen PSA projects are successfully operating in North America and the Middle East.

“H2Gen’s high-performance PSA technology provides an important component in hydrogen management that complements our existing portfolio of refining, gas processing and petrochemical technologies,” said Dan McCarthy, President of CB&I’s Lummus Technology sector. “It offers significant advantages over competing PSA technologies including improved gas purity, faster cycle times, better equipment reliability and broad scalability.”

Golder Wins Biological Treatment Contract at the Pueblo Chemical Agent Pilot Plant

Golder Associates Inc. has been awarded a $28.7-million contract to provide biological treatment and odor control systems at the Pueblo Chemical Depot (PCD) in Pueblo, CO. The PCD encompasses approximately 23,000 acres and includes a variety of buildings, structures and undeveloped areas. The depot’s mission is the secure storage of part of the U.S. chemical weapons stockpile.

Bechtel National, Inc. heads an organization collectively known as the Bechtel Pueblo Team, which was selected by the Defense Dept.’s Assembled Chemical Weapons Alternative program in 2002 to design, build, operate and close the Pueblo Chemical Agent Pilot Plant. The plant will use neutralization and bio-treatment to destroy projectiles and mortars containing 2600 tons of mustard agent, about eight percent of the U.S. chemical weapons stockpile. The project is estimated to last about 10 years and cost approximately $3.5 billion.

The key elements of Golder’s scope will be to design, fabricate and commission bio-treatment modules that will remove contaminants from wastewater generated by the mustard agent neutralization process. Golder will also provide an off-gas treatment system that will provide odor control for the facility. The heart of Golder’s proposal is its proprietary Immobilized Cell Bioreactor (ICB) technology for which Golder acquired exclusive North American licensing rights in late 2008. The ICB technology has been shown to be extremely effective reducing contaminant concentrations in wastewater.

“We are thrilled to be awarded the opportunity to serve on this project under Bechtel for the U.S. Army and look forward to providing proven wastewater treatment technologies as part of a facility designed to reduce the chemical weapons stockpile in the U.S.,” said Kevin Conroy, the director of Golder’s Water Treatment Group based in Lakewood, CO.

Abbott Saving 1 Billion Gallons of Water Annually

Abbott announced that it is saving 1 billion gallons of water annually since launching a comprehensive, global effort in 2004 to preserve natural resources through reducing use of water in the production of its nutrition and other health care products.

In 2004, the company set out to achieve a reduction in water use compared to its 2004 baseline by the end of 2011, when normalized to sales.

Abbott has nearly reached its goal of a 40 percent reduction in water use two years ahead of time as its manufacturing water use has decreased 37 percent, normalized to sales. The company has also achieved a 7 percent reduction in absolute terms, while at the same time increasing production at many of its plants as demand for its products has grown.

Abbott is incorporating water-saving design and technology into new and existing facilities. For example, Abbott’s plant in Sturgis, MI, is utilizing more efficient water scrubbers to control dust emissions, resulting in the saving of 8.5 million gallons of water per year. The company’s Casa Grande, AZ plant has installed water-efficient fixtures, low water use landscaping and implemented a “Leak Tag” program which ensures leaks are detected and fixed promptly. In addition, after being sent to the local water treatment plant for cleaning, some water is now returned to the community for uses such as in landscaping and golf course irrigation.

Abbott’s nutritional plant in Singapore was built from the ground up with several environmental objectives in mind, including water conservation. The plant uses water-efficient fittings, irrigation systems and cooling towers. As a result, the company received the Green Mark “Gold” certification from the Singapore Building and Construction Authority.

CECO Environmental Announces Eight New Orders Totaling Approximately $8.5 Million

On December 8, 2009, CECO Environmental Corp. announced that it has secured eight new contracts totaling approximately $8.5 million.

Rick Blum, President and Chief Operating Officer, said, “These new orders were secured by both our contracting and equipment groups. The eight customers come from a wide array of industries, including aluminum, power, chemical, refining, tobacco and food and is proof of our diverse client base and strong position in the market.”

Phillip DeZwirek, Chairman and Chief Executive Officer, commented, “We are extremely pleased with these new orders. It is a testament to our international growth strategy as approximately 25 percent of the total is being sold to a new client in South America. We are entering 2010 with a very strong position having announced close to $30 million of new orders over the past month.”

Met-Pro Corporation’s Duall Business Unit Wins $2.8 Million in New Equipment Orders

Met-Pro Corp. announced that the company’s Duall business unit has received two orders, totaling approximately $2.8 million, from two municipal water treatment facilities. One, valued at $2.2 million, is to supply three odor control and six water purification systems. The second, valued at approximately $600,000, is to supply two Duall degasifier systems, complete with Duall exhaust fans. Both projects are located in the Southern United States and are expected to ship during the company’s next fiscal year, which begins February 1, 2010.

The odor control and water purification systems will reduce harmful and hazardous odors by removing hydrogen sulfide and carbon dioxide at the water treatment plant’s filtration and processing operation. The systems include Duall forced draft aerators, odor control scrubbers utilizing the company’s Fybroc pumps for recirculation and exhaust fans.

The degasifiers will remove hydrogen sulfide and carbon dioxide dissolved gases from contaminated groundwater as part of the process designed to make the groundwater suitable for public use. Both orders will be manufactured in Duall’s Owosso, MI factory using Duall’s unique NSF-approved DUALLast^® fiberglass reinforced plastic construction with thermoplastic inner liner for greater corrosion resistance and extended service life.

REGULATORY ACTIONS

Final Order Issued for BP Whiting, IN Plant

The Administrator of EPA has responded to a petition submitted by the Environmental Law and Policy Center, Hoosier Environmental Council, Natural Resources Defense Council, Save the Dunes, Sierra Club, Susan Eleuterio and Tom Tsourlis (petitioners) asking EPA to object to an operating permit issued by the Indiana Dept. of Environmental Management to the BP Products North America, Inc., Whiting Business Unit (Whiting).

On August 19, 2008, EPA received a petition requesting that EPA object to the Title V operating permit for Whiting. The petitioners allege that the permit is not in compliance with the requirements of the Act.

Specifically, the petitioners allege that:  (1) The permit application lacks emission information and calculations critical for determining applicable requirements and setting appropriate limits and conditions; (2) the minor source permit fails to comply with New Source Review requirements because the project is a major modification when all project emissions are properly included; (3) the permit does not include applicable Best Available Control Technology and Lowest Achievable Emission Rate limits for flares and other sources; (4) BP and IDEM failed to conduct the proper greenhouse gas Best Achievable Control Technology analysis; and (5) the permit omits compliance schedules that Title V requires to ensure compliance with all applicable requirements, as supported by the Notice of Violation issued by EPA to BP for its Whiting refinery.

On October 16, 2009, the Administrator issued an order granting the Whiting petition in part and denying it in part. The order explains the reasons behind EPA’s conclusions.

EPA Reaches Agreement with Dow AgroSciences on Clean-Air Violations

U.S. Environmental Protection Agency Region 5 has reached an agreement with DOW AgroSciences LLC on alleged Clean Air Act violations at the company’s pesticide production facility at 305 N. Huron Ave., Harbor Beach, MI.

The agreement, which includes a $70,000-penalty, resolves EPA allegations that Dow Agro violated national emission standards for hazardous air pollutants at its Harbor Beach plant. The company generates methanol and uses xylene, both hazardous air pollutants, in making pesticide active ingredients at the plant.

Penalty Included in Sauder Woodworking Agreement

U.S. Environmental Protection Agency Region 5 has reached an agreement with Sauder Woodworking Co. on alleged Clean Air Act violations at the company’s cogeneration plant at 820 W. Barre Road, Archbold, OH.

The agreement, which includes a $79,500-penalty, resolves EPA allegations that, among other things, Sauder violated federal and state regulations by emitting excessive amounts of visible particulates (smoke, dust, ash), nitrogen oxides and volatile organic compounds from its wood-fired boilers.

Agreement Reached on Nitric Acid Plants Review Deadline

Notice of proposed consent decree request for public comment was published in the Federal Register November 16, 2009. This addresses a lawsuit filed by the Environmental Integrity Project and Sierra Club in the United States District Court for the District of Columbia.

This proposed consent decree would settle a deadline suit filed by plaintiff’s for EPA’s failure to review, and if appropriate revise, 40 CFR Part 60, Subpart G, New Source Performance Standards for Nitric Acid Plants. Under the terms of the proposed consent decree, on or before November 15, 2010, EPA will sign and submit for publication in the Federal Register one or a combination of the following:  (a) a proposed rule containing revisions to NSPS Subpart G pursuant to CAA 111(b)(1)(B); and/or (b) a proposed and/or final determination under CAA 111(b)(1)(B) not to revise NSPS Subpart G. If EPA signs a propose rule or propose determination, then on or before November 15, 2011, EPA will sign and submit for publication in the Federal Register, one or a combination of the following:  (a) a final rule containing revisions to NSPS Subpart G pursuant to CAA 111(b)(1)(B); and/or (b) a final determination under CAA 111(b)(1)(B) not to revise NSPS Subpart G. If EPA signed a final determination under CAA 111(b)(1)(B) not to revise NSPS Subpart G, then EPA shall have no obligation to take action. The proposed consent decree states that, after EPA fulfills its obligations under the decree, the case shall be dismissed with prejudice.

McIlvaine Company,

Northfield, IL 60093-2743

Tel:  847-784-0012; Fax:  847-784-0061;

E-mail:  editor@mcilvainecompany.com;

Web site:  www.mcilvainecompany.com