Murphy Oil Usa, Inc. Air Permit Objections

August 4, 2009 Ms. Soumaya Ghosn Louisiana Department of Environmental Quality Public Participation Group P. O. Box 4313 Baton Rouge, LA 70831-4313 RE: Public Comments on Murphy Oil USA, Inc.’s Meraux refinery Proposed Part 70 Air Permit Modification (proposed permit) and Associated EAS No. 1238, Permit No. 2500-00001-V5, (“V5”), Activity PER20090002

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Dear Ms. Ghosn: Concerned Citizens around Murphy (CCAM) is a neighborhood association formed to improve the quality of life in the neighborhoods around the Murphy Oil facilities in Meraux, Louisiana, to address air quality issues in the community of St Bernard Parish, and for resident advocacy. Members of CCAM are concerned about the adverse health, safety and environmental effects of both the proposed permit’s increased air emissions and the totality of emissions from Murphy Oil’s Meraux facility(s). CCAM members seek to preserve what little good air quality is left in their neighborhoods. As residents of these neighborhoods, we know the chemical emissions and associated chemical odors emanating from the Murphy Oil facility are a public nuisance and a source of many adverse effects to our health, safety, and quality of life. We also experience the effects from the refinery's excessive noise and vibrations, which have caused sleep deprivation, hearing loss, and structural damage to our restored homes. Louisiana law prohibits Louisiana DEQ from issuing a permit which creates or maintains a nuisance or is a danger to public health or safety. LAC 33.III.303.C Regulatory permits shall not authorize the maintenance of a nuisance or a danger to public health or safety. COMMENTS ON PERMIT Murphy Oil’s proposed permit application is deficient: it fails to include the basis of the emissions calculations. Without such information, it is difficult, if not impossible, to comment on PSD review or BACT applicability. The Louisiana DEQ has a constitutional duty to make an objective third party review and must not rely exclusively on data provided by Murphy Oil or its consultant. PSD review and BACT applicability decisions for the proposed permit must be for all emissions and shall not be allowed on the BenFree Unit as a stand alone project. The proposed permit seeks to use gasoline tanks with fixed roof(s), to route the BenFree Unit (BFU) to an inadequate gas recovery system, and to route H2S rich vent streams to the flare. To protect public health and safety, Louisiana DEQ must require stringent application of the best available controls to achieve the lowest emissions into the air we breathe. Murphy Oil is a major source of TAPs. Murphy Oil's proposed permit seeks to emit toxic air pollutants (TAPs) with minimum emission rates (MER's) greater than the rates in applicable LAC: 33 Chapter 51 Tables. When a major source of TAP’s applies to emit additional TAP’s at a rate greater than Chapter 51’s MER’s, BACT must apply for all TAP’s. Murphy Oil’s proposed permit does not meet this

standard. Therefore, Louisiana DEQ must deny the application. Best Available Control Technology (BACT) and Lowest Achievable Emissions Rate (LAER): The existing condition of the plant infrastructure at the Murphy Oil Meraux refinery, recently issued CO/NOPP(s), various violations of local zoning regulations, and the citizen's enforcement suit should all be considered in the analyses for BACT and LAER. The Louisiana DEQ should require Murphy Oil install the most effective control mechanisms to achieve the lowest emissions; effectively lowering the emission limits of Murphy Oil‘s Title V air permit and significantly reducing emissions from malfunction, shutdown and startup activity (MSS). We have an unfortunate zoning situation with heavy industry adjacent to our residential neighborhoods. No neighborhood should be subjected to chemical releases, yet the associated odors continue to disturb us. Therefore, measures that are appropriate for normal industry practice may be inadequate under these circumstances. Murphy Oil must recognize the need to do more than other refineries who are properly buffered from residences. The proposed permit is a major modification. Murphy Oil’s Meraux refinery seeks to change its batch processing of gasoline to include blending, mixing and dispatching of different processing batches of gasoline in the tanks and tank farms. The proposed permit substantially changes previously issued tank permits from storage to include processing. This change in processing is a major modification. Comprehensive enforceable compliance plan. Given the current condition of Murphy Oil Meraux refinery’s infrastructure, recently issued CO/NOPPs, the citizen’s enforcement suit (alleging violations of the clean air act), and various violations of local zoning regulations, the proposed permit should not be issued until a comprehensive, achievable, and enforceable compliance plan is formulated. Flaring Reduction in Neighborhood. Murphy Oil promised residents, over two years ago, a flaring reliability program at the Meraux refinery. Now, Murphy Oil seeks to route the BenFree Unit (BFU) to an inadequate gas recovery system (GRS) (EDMS 38894488, EDMS 42227489). Further, Murphy Oil seeks to route two of its highest H2S rich vent streams to the flare, canceling the oily water stripper (OWS) vent stream route, as applied for in modification 2500-001-V2. Instead, Louisiana DEQ must require Murphy Oil comply with its existing Title V air permit, as applied for, or reopen the permit applications. The proposed permit cannot assure compliance and is not enforceable, as the inability of the GRS to achieve air permit limits is still under analysis (EDMS 42227489). Louisiana DEQ doesnot have the authority to issue such a permit. Murphy Oil fails to identify an enforceable plan to achieve compliance with local parish performance standards for noise, vibration, radiation, fire and explosive hazards and local parish requirements for industrial parking lots (St. Bernard Parish Zoning Regulations Codes 22-9-10 and 22-9-8, noted in EDMS 41045636). Murphy Oil constructed and operates, without a Louisiana DEQ solid waste permit, an industrial waste (sludge) processing, treatment and storage facility. Murphy Oil failed to notify residents of the type and amount of chemical emissions and denied the public an opportunity to comment. This is a violation of the Clean Air Act and of local parish code Chapter 5 and Chapter 11. Yet, in a recently submitted odor abatement plan (EDMS 41464076) Murphy Oil prioritized odors associated with the chemical releases from this sludge press facility. Murphy Oil emits toxic air pollutants from this sludge facility, along with the

benzene streams and other chemicals emitted from both the open sewer system and open treatment tanks of the wastewater management units. These chemical emissions must be included in the Title V air permit emissions calculations and the air model. Murphy Oil reported VOC emissions from Tank 200-7 at nearly 500 times the permitted level (page 286 EDMS 38894488). How are these emissions included in the Title V Permit and in air modeling? School bus stops are within close distance to Tank 200-7. To better protect our school children, the Louisiana DEQ should require more frequent monitoring of VOC emissions from Tank 200-7, with public alerts and notification. Current H2S emissions Murphy Oil allegedly omitted H2S emissions from its Title V air permit (EDMS 38108188). Murphy Oil must be required to reopen the previous permit, recalculating netting analysis for PSD review and BACT applicability. Given the totality of H2S emissions from all its Meraux facilities, Murphy Oil must be made to install the best available controls which will result in the lowest achievable emissions. With the construction of a new petrochemical testing laboratory on the residential properties acquired to create the court-ordered buffer, residents expect Murphy Oil to utilize the lab 24 hours, 7 days a week to test and adjust processing streams for H2S. Murphy Oil's Meraux refinery has over 190 vent streams (EDMS 42227489). Of all these vent streams, three contribute more than 10lbs/day of H2S to the flare, and all three are used in continuous mode. Two of these three vent streams are from the OWS unit; the same vent streams Murphy Oil seeks to flare (canceling the vent streams route previously applied for in modification “V2”). Frequent and routine flaring practices are not considered ’good pollution control practice’ and ’may violate clean air act' ( EPA Enforcement Alert, October 2000, Volume 3, Number 9 Office of Regulatory Enforcement). As public health trustee, Louisiana DEQ must identify mitigating measures which could be implemented to protect residents’ health to a higher standard. Louisiana DEQ must consider the totality of emissions from all of Murphy Oil’s facilities in Meraux, including, but not limited to; the entire processing campus, marketing terminal, loading dock and dock flare, various pipelines (EXXON-Houston, Chalmette Refinery, LLC, Collins Pipeline, and Air Products), tanks and tank farms, tank deconstruction, open tanks and sewer system ditches of waste water treatment plant, and industrial waste (sludge) processing, treatment and storage facility. The totality of emissions must be included in an updated air model. Air modeling CCAM requests an updated air model for Murphy Oil’s Meraux facility(s). Louisiana DEQ must require the updated air modeling, before the agency can make any determinations on this permit. In February, 2009 (EDMS 40169977) Murphy Oil USA, Inc submitted a “significant modification” application to its Title V Part 70 air permit to construct and operate a benzene saturation unit. "The toxics modeling results listed...were submitted in March 2002 and are the only facility-wide modeling submitted since the issuance of Title V Permit No2500-00001-V0". Air modeling must be updated every five (5) years and include the current levels of SO2, H2S, VOC’s and other TAPs and criteria pollutants emitted into our

neighborhoods’ air. Air modeling must include emissions from all aspects of the Murphy Oil Meraux facilities (as mentioned before) and take into consideration the present capacity and efficiency of control devices. Air Monitoring CCAM requests a fenceline and neighborhood air monitoring program similar to the Baton Rouge area’s successful “HRVOC AOC” program. We suggest this air monitoring program include H2S, SO2, NOx, VOC’s and TAP’s, and begin during the construction and turnaround timelines. This neighborhood and fenceline air monitoring program should continue, until such time; (1) Murphy Oil has demonstrated the achievability of its Title V air permit limits, associated compliance/violation plans; (2) the public is assured protection of public health, avoidance of offensive chemical exposure and chemical odors, and implementation of long term, sustainable solutions; and (3) Murphy Oil agrees to: a. Finance and establish comprehensive, real-time, independent fenceline and neighborhood air monitoring for S02, H2S and other TAPs, NOx, benzene and other VOCs, with results made public in real time. Monitors would be placed around both the east and west sides of the refinery and tank farms and results would be uploaded and displayed, in real-time, to a publicly accessible website. Results would be available and accessible for 5 years. b. Supply publicly accessible computers to access pertinent public information, including the real-time air monitoring results. Abatement Plans Before issuance of this permit, the Louisiana DEQ must require independent abatement studies for both the chemical releases and associated chemical odors, and the noise and vibrations emanating from the refinery into the neighborhoods. A comprehensive, achievable and enforceable compliance plan must be developed, before issuance of this permit. Tanks and tank farms. The mixing, blending, sampling and dispatching of different processing batches to and from storage tanks leads to increased tank activity and a greater propensity to leak, spill or emit VOCs and other chemicals. Given the community still remains concerned about spills and soil contamination in the tank farms, the Louisiana DEQ should require more frequent tank inspections, for all tanks. The results of the ongoing tank inspections should be made public, including the gasoline tanks’ status. As an example of tank inspection requirements, Murphy Oil could be required to more frequently inspect all tanks with the use of “Fourier Transformation Infrared Spectroscopy” (“FTIR”)" or, for leak detection, “differential light absorption and ranging” (“DIAL”). “D IAL”, which, “compared with emission factor estimates, has been found to detect 33 times more VOC and 96 times more benzene (a known carcinogen) from storage emissions, and 12 times more VOC and 8 times more benzene from fugitive emissions.” (Allan Chambers, P.Eng. and Mel Strosher, “Refinery Demonstration of Optical Technologies for Measurement of Fugitive Emissions and for Leak Detection,” (Alberta Research Council, 3/31/06 at iv, http://www.arc.ab.ca/ARCAdmin/UploadedDocs/Dial%20Final%20Report%20Nov06.pdf). The older gasoline tanks located on the refinery’s eastern boundary are within close proximity of residential trailers, mobile homes and adjacent residential neighborhoods. Yet, these are some of the few tanks to receive a postKatrina

upgrade for air emissions controls. To fulfill its constitutional duties as public trustee of the environment, Louisiana DEQ must require Murphy Oil to install internal floating roof(s) with external domed roof(s) and other more protective air emissions controls on the gasoline tanks. The tank farm expansion, permitted in November 2007, could be placed at an alternative site, instead of on the National Historical Area of the Villere brick ruins and historical tree line. The National Historical Villere Area is also the location of a natural waterway, the Panel Ditch. Soil subsidence is prevalent in this area and should be addressed for all tanks and containment berms. Given the community still remains concerned about spills and soil contamination in the tank farms, Murphy Oil should make drainage improvements for storm water and process water discharges. Discharges from the tank farm should be rerouted for treatment or detoured so they no longer foul the neighborhood canals and nearby wetlands. Process water discharge capacities should be increased to reflect the common five to eight inch rain events in the community. Given the community still remains concerned about the SPCC at the Murphy Oil Meraux facilities, assurance must be given that our neighborhoods and community will be protected in the event of a manmade or natural disaster. Its hurricane season and as residents implement their game plan for hurricanes, we want assurances that Murphy Oil will implement their hurricane preparedness plans, too. COMMENTS ON EAS Louisiana DEQ must require Murphy Oil to resubmit the proposed permit with adequate answers to the five IT Questions (EAS). (1) potential and real adverse environmental effects; The EAS fails to demonstrate Murphy Oil's avoidance of adverse environmental effects to the maximum extent possible. Murphy Oil's proposed permit seeks to use tanks with fixed roof(s), to route the BFU unit to an inadequate gas recovery system, and to route H2S rich vent streams to the flare. These are not state of the art emission controls. Louisiana DEQ should require stringent application of the best available controls to protect public health and safety. Murphy Oil‘s containment and drainage systems donot filter the contaminated tank farm’s storm water runoff, which fouls our neighborhood canals and nearby wetlands. Murphy Oil’s WWTP doesnot avoid the real adverse effects experienced in our neighborhood from the open sewer systems and open treatment tanks. Murphy Oil has not provided enough information on the BenFree Unit project and how it will adversely effect our homes, health and safety. What will it sound and smell like when the BenFree Unit is operating? What will it sound and smell like when the re boiler is fueled by natural gas? What will it sound and smell like when the re boiler is fueled by refinery fuel gas? What will it sound and smell like when the BenFree Unit shuts down? What are the expected shutdown emissions? What will this do to our homes, swimming pools, gardens and health? What alternatives has Murphy Oil examined to siting all the different boilers so not to cause further damage to our homes?

(2) cost - benefit analysis; The proposed permit seeks modifications other than the BFU Unit. The EAS fails to quantify: - an economic impact analysis, including how increased TAPSs and criteria air pollutants will cause St. Bernard Parish to lose its ability to attract other industry and more families to locate to the community - medical bills, hearing loss, effects of sleep deprivation on school children, and other health costs - loss of what good air quality may be left in our neighborhood - fire and explosion hazards - adverse quality of life effects (3-4-5) alternative projects or sites or mitigating measures; Alternative projects, which could comply with EPA MSAT II, do exist. The EAS fails to provide the necessary information for the Louisiana DEQ to make appropriate comparisons of any. The BenFree Unit itself could make varying usage of steam and hydrogen. Alternatives to the proposed permit’s benzene hydrogenation may include addition of a benzene splitter which would send feed to the platformer or prefractionation of the reformer feed and / or benzene extraction facilities as described in “Cost Effective Solutions for Reduction of Benzene in Gasoline” By Maarten J. Almering, Kerry L. Rock, Arvids Judzis – CDTECH Alternative projects, which could comply with the EPA mandate, maybe located at alternative sites within the existing processing campus, offering greater protection of public health, hearing loss, sleep deprivation, noise and vibrations, fire and explosion hazards. What are the alternative locations for each steaming source and boiler, which would prevent sleep deprivation and structural damage to our homes? Louisiana DEQ must identify the alternative sites and projects before a decision can be made. There are alternatives to use of flares as a pollution control device and these alternative methods must be evaluated. Alternative methods may include a more adequate gas recovery system, vapor combustors/thermal combustors, use of staged flaring or other flaring minimization projects. Each project has its own advantages and disadvantages, emission amounts and effects on the neighboring community. Louisiana DEQ must require Murphy Oil identify alternative pollution control devices, other than flaring, before the agency can make a determination. The EAS failed to identify the mitigating measures which could be implemented in the plant to protect the residents’ health and safety. As public health trustee, Louisiana DEQ can not make a determination on this permit until such mitigating measures are identified. Mitigating measures which would be more protective of public health, may include: -air monitoring in the neighborhood and at the fenceline -more frequent inspections of tanks and monitoring of tank emissions -explosion resistant windows at the nearby local high school -chemical release, chemical odor and noise abatement measures -testing and adjusting for H2S, 24 hours / 7 days a week -allowing process changes only if simultaneously coupled with adequate pollution control devices -drainage improvements to storm water and process waste water discharges -siting alternatives for all the boilers and burners For all the above reasons, Louisiana DEQ must reject the proposed permit and require Murphy Oil resubmit an application.

Respectfully submitted by Suzanne Kneale, as an individual, and on behalf of CCAM, 2114 Corinne Drive, Chalmette, St Bernard Parish, LA 70043 Both parties reserve the right to supplement these comments and to adopt and rely on comments made by others in this and any future proceedings regarding the proposed permits.