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HomeMy WebLinkAbout20121361.tiff • EXHIBIT /OA City of /�^ ,wx, Pfr c "• Gleat �.�,�,� tilt Grim_ [ : T_ Y May 2, 2012 Mr. Clay Drake Director of Business Development The Great Western Development Company 700 Automation Drive, Unit A Windsor, CO 80550 Re: Windsor Renewal's Request for Interim Water Service for the Musket Corporation's Transloading Station at the Former Kodak Site Dear Clay: Your request for interim water service to serve the parcel you are leasing to Musket Corporation requires additional information as the City of Greeley considers conditionally providing water service for the proposed transloading facility. Before staff can move forward,please provide an • updated utility plan that clearly addresses the following items: 1. Location of the existing master meter that serves your site and the remaining Kodak property. 2. Location of the proposed' -inch tap and meter. 3. Highlight the proposed Musket Corporation's site boundaries as described in your lease agreement. Upon receipt of your revised utility plan, The City of Greeley will then consider entering into an Outside City Water Service agreement with Windsor Renewal to provide water service on a time-limited, interim basis. This agreement will identify the terms and conditions outlined in the Greeley Water and Sewer Board and the City Council Resolutions concerning this topic to the extent feasible. These terms and conditions will include, but are not limited to the following items: 1. Service from the City of Greeley's transmission lines does not equate to a guarantee of pressure or continuity of service; therefore, fire protection is not available per Greeley's standards. 2. A plant investment fee of$18,000 for one 3/4-inch interim water tap will be required. 3. Customary tap-related fees include a'/4-inch meter and 0.75 acre feet of raw water. The amount of raw water due is estimated at$8,025, subject to quarterly changes in the cash- in-lieu of water rights rate. 4. The proposed' -inch water tap will have a base annual allotment of 244,000 gallons, • subject to a surcharge if usage exceeds the base amount. 2012-1361 Water and Sewer Department . 1100 10th Street,Suite 300,Greeley,CO 80631 • (970)350-9811 Fax(970)350-9805 We promise to preserve and improve the quality of life for Greeley through timely, courteous and cost-effective service. • Mr. Clay Drake Page 2 May 2, 2012 5. Any fees paid by Windsor Renewal or Musket Corporation to the City of Greeley for the interim water tap will not be refundable at the end of the agreement's term. 6. Windsor Renewal's interim water service agreement must comply with the provisions of the Water and Board and the City Council's Joint Resolution No. 66, 1998. 7. Windsor Renewal understands that the interim water service agreement is specific to the Musket Corporation's site only. 8. Future requests for water service will not be considered until Windsor Renewal provides a master plan for the development of the former Kodak site, and such requests remain subject to the terms and conditions outlined in the Greeley Water and Sewer Board Resolution No. 10,2011, and City Council Resolution No. 72, 2011. As we get further into this process, the Water and Sewer Board will need to consider the provisions of the interim agreement and grant approval for staff to proceed further. Final approval by City Council may also be necessary. Please let me know if you have any additional concerns or questions. • Sincerely, Jon G. Monson Director of Water and Sewer Cc: Derek Glosson, Engineering Development Manager Doris Biehl, Water and Sewer Services Coordinator Frank Brooks, Water Operations Manager Jim Witwer, Water and Sewer Board Counsel • Water and Sewer Department • 1100 10th Street,Suite 300,Greeley,CO 80631 • (970)350-9811 Fax(970)350-9805 We promise to preserve and improve the quality of life for Greeley through timely,courteous and cost-effective service. ATTORNEYS&COUNSELORS AT LAW • 633 SEVENTEENTH STREET,SUITE 3000 DENVER,COLORADO 80202 TELEPHONE:(303)297-2900 FAX:(303)298-0940 WWW.SHERMANHOWARD.COM W.SHERMANHO W ARD.COM Joan Blaik Direct Dial Number: (303)299-8073 E-mail: JBlaik@ShermanHoward.com May 2, 2012 Via E-Mail Mr. Tom Parko, Planner Weld County Department of Planning Services 1555 North 17th Avenue Greeley CO 80631 Re: Case#USR 12-0005 Windsor Renewal I LLC Windsor Transloading Facility Dear Mr. Parko: • We represent Carestream Health, Inc. ("Carestream"), which owns property adjacent to the site of the proposed Windsor Transloading Facility (the "Facility"). For the reasons set forth below, Carestream does not believe that Windsor Renewal I LLC ("WR"), which filed the Application on February 3, 2012 as authorized agent for Musket Corporation ("Musket"), has met its burden of proving that it has met the standards and conditions contained in Sections 23- 2-220(A) and 23-2-230(B), Weld County Code (the "Code"), as well as the standards and conditions of Sections 23-2-240 and 23-2-250 of the Code. The Application does not clearly identify how the Applicant intends to comply with the requirements of the Code for the Use by Special Review process. Moreover, many of the statements made in the Application and the Map of the Windsor Transloading Facility which is pan of the Application and based on which Weld County is performing its analysis are unclear, inaccurate or incomplete. The lack of complete information and inaccuracies in the Application make it very difficult to evaluate the adequacy of the utilities and access roads on which the Facility will rely, to address the shared use of those facilities by neighboring private parties, or to evaluate the impact of the Facility on the operations of neighboring property owners. For example, as described below, Eastman Kodak Company ("Kodak") and Carestream are parties to multiple easement agreements and a services agreement designed to facilitate the provision of a complex private integrated system of water, sewer, fire protection and other utilities (some of which the Applicant intends to use) and which are not designed for use by an unknown number of potential occupants of the "Industrial Park." Carestream, Kodak and parties developing property within the property recently acquired by WR, including Musket, each need an • opportunity to gain an adequate understanding of the impacts new uses will have on these DOW BUS_RE\4333499.I 'T� r � Sherman & Howard L.L.C. Mr.Tom Parko, Planner Weld County Department of Planning Services May 2, 2012 Page 2 systems, ensure the systems have the capacity to handle the growing demand, and allocate related responsibilities among the parties. However, Carestream has not been approached either by Musket or WR to discuss the plans for the Facility and, although it has been negotiating with Great Western Railway (an affiliate of WR) with respect to the use of Carestream's rail tracks to the south of the proposed Facility and specifically to service the Facility as well as other customers of Great Western Railway, none of the information and plans contained in the Application was provided to it by either WR or Great Western Railway. Carestream requests that Musket be required to add additional detail to its Application in compliance with the requirements of Weld County Code Sec. 23-2-260 and to permit the opportunity for adequate evaluation of the Application's satisfaction of the requirements for its approval. Carestream also requests that, as contemplated in Section 23-2-210(B(4) of the Code, Musket and WR be encouraged to communicate with Carestream and Kodak regarding the systems of private utilities and roads which Musket and WR propose to use. • BACKGROUND In 1968 Kodak announced that it had acquired property in unincorporated Weld County and over a period of decades developed a manufacturing campus (the "Kodak Campus") serviced by a private integrated system of utilities, roads and railroads designed specifically to serve the manufacturing uses to which Kodak put the property. A map showing the Kodak Campus, part of which was acquired by Carestream in 2007 and 2010, as well as the remaining property owned by Kodak is attached as Exhibit A. In 2007 Kodak sold its medical imaging business to Carestream and, with it, those facilities on the Kodak Campus used in connection with that business on two parcels of land(the "North Parcel" and the "South Parcel") located to the west of the property where the proposed Facility is to be located. In 2010 Carestream acquired additional property from Kodak located to the south of the South Parcel and south of the proposed location of the Facility. As part of the 2007 and 2010 transactions, Kodak and Carestream entered into multiple easement agreements (the "Easement Agreements") and a Services Agreement dated April 30, 2007 which was superseded and replaced in 2010 by a Restated Services Agreement (the "Services Agreement"), pursuant to which they provide services to each other in order to facilitate their respective manufacturing processes. The Easement Agreements and the Services Agreement are designed to support the provision of utilities and road and rail services to the Kodak Campus. In December 2012 WR acquired all of the remaining property owned by Kodak with the exception of a parcel located between the North Parcel and the South Parcel where Kodak continues its manufacturing process (the "WR Property"). • BUS_RE\4333499.1 • Sherman & Howard L.T.C. Mr.Tom Parko, Planner Weld County Department of Planning Services May 2, 2012 Page 3 The Services Agreement sets forth Kodak's and Carestream's rights and obligations in providing various services to each other. Only Kodak and Carestream are parties to the Services Agreement which does not contemplate providing services to any third parties. Neither the utilities, roads and rail services in place on the Kodak Campus and made the subject of the Services Agreement nor the Easement Agreements were designed or intended to serve the future redevelopment of the Kodak Campus as part of a completely different "Industrial Park" with different uses and demands. In order to facilitate the development of the WR property and the Facility as part of a larger "Industrial Park" the utilities and transportation infrastructure needs to be evaluated and WR and Carestream need to work out new agreements that provide for the growth and expansion of industry in the area without compromising existing systems of limited capacity. OBJECTIONS We have the following objections to the Applicant's Questionnaire Response filed with • the Application. • The Applicant must show that adequate water will be available to the site. Item 5 of the Application states that water will be provided by the Greeley Water District. Page 1 of the Map shows the location of"proposed water service" which appears to connect with "existing water per Kodak Sketch (labeled service water)" also shown on the Map. The water supply to the Kodak Campus is the subject of a Water Agreement dated May 11, 1978 between Kodak and the City of Greeley, as amended by an Amendment to Water Agreement dated October 3, 1995, and an Assignment and Amendment to Water Agreement dated April 30, 2007 among Kodak, Carestream and the City of Greeley (the "Greeley Water Agreement"). In 2007 Kodak assigned to Carestream a portion of Kodak's right to receive treated water under the Greeley Water Agreement and Greeley agreed to provide water to Kodak and Carestream in consideration of the provision of raw water to Greeley by Kodak and Carestream. Pursuant to the Greeley Water Agreement, Kodak is presently obligated to pay Greeley for treated water charges relating to the Kodak and Carestream property and Carestream is required to pay Kodak for treated water charges as provided in the Services Agreement. The Application does not disclose what water the Applicant intends to use and we note that the Applicant has no right to use the treated water provided to Carestream under the Greeley Water Agreement. • The Applicant must show that adequate sewer service will be available to the site. Item 5 of the Application states that sanitary sewer service will be provided by "the • Town of Windsor utilizing existing infrastructure owned by Kodak". Only parts of the BUS_REt4333499.1 Sherman & Howard • L.L.C. Mr.Tom Parko, Planner Weld County Department of Planning Services May 2, 2012 Page 4 sanitary sewer system are owned by Kodak. The remainder is owned by Carestream and Carestream's and Kodak's rights and obligations for the provision of the sanitary sewer service are governed by the Services Agreement. Page 1 of the Map appears to depict a proposed sanitary sewer line. Carestream does not know whether the Applicant intends to connect a new sewer line to the existing sanitary sewer system and has not yet determined whether connection of a new sewer line to the sanitary sewer system is permitted under the Kodak/Carestream agreements or will overwhelm the existing sanitary sewer system. • The Applicant must show that adequate fire protection measures are available on the site. Item 5 of the Application appears to state that Windsor Fire Protection District will provide fire protection service, but it does not tell us how the Fire Protection District will provide this service or where it will obtain water for fire protection. Fire protection water service is provided by Kodak to Carestream in accordance with the terms of the Services Agreement and the Applicant has no right to use the water owned by • Carestream under the Greeley Water Agreement. • Uses must comply with storm water management standards. Item 8 of the Application states that the development of the site will use the existing storm water facilities. Kodak and Carestream are parties to an Amended and Restated Easement Agreement (Reciprocal Storm Sewer Easements) which permits each of them to use the other's property for the flow of storm water over their property. The Storm Water Easement Agreement requires each party to comply with all laws and regulations, all applicable requirements of the Colorado Discharge Permit System-Stormwater Permit, and the requirements of the Kodak Colorado Division Storm Water Management Plan. The Application does not discuss the implications of these requirements. Moreover, there is nothing in the Application to assure Carestream that the Applicant has considered any of the issues related to storm water discharge over Carestream's property,that the Applicant has an adequate spill prevention and containment plan or the fact that the Poudre River may be contaminated if there is an oil spill at the Facility. The Application says only that the development of the site will use the existing storm water facilities and not impede the historical flow routes. There are a number of statements made in the Application that are inaccurate or misleading. For example: (1) Page 1 of the Map submitted with the Application mistakenly represents that the two cooling towers on the Carestream property are abandoned and that the building to the east • aus_AEw333499.I • Sherman & Howard L.L.C. Mr.Tom Patio, Planner Weld County Department of Planning Services May 2, 2012 Page 5 of the towers is not in use. The towers and building are integral components of Carestream's power plant operation which serves its manufacturing activities on the South Parcel. (2) Applicant also states that adequate roadway and rail infrastructure has been established to serve the existing and new uses within the "Industrial Park". Carestream and Great Western Railway (an affiliate of WR) are presently negotiating a license for Great Western Railway to use Carestream's railroad tracks to accommodate the proposed rail traffic contemplated by the Application, but that license is not yet in place. We would also point out that Applicant has not specified which roads the 7,800 gallon tanker trucks will use to deliver the crude oil. Only certain roads within the former Kodak Campus are intended and designed to support heavy loads. In 2007 Kodak granted Carestream easements on roads throughout the former Kodak Campus. These easement agreements include obligations for maintenance and repair of the roads which could be significantly increased by heavy tanker trucks using the roads. Carestream is also concerned that tanker trucks making 14 round trips spread out throughout the day(Application, paragraph 5) will adversely affect Carestream's ability to cross • from the parcel immediately south of the Facility to its manufacturing plant. In conclusion, the Application is lacking the necessary detail for the County to analyze its compliance with the Code or for Carestream to determine what effect the Facility will have on Carestream's operations on its property. The activity contemplated by Applicant at the new Facility is not designed to fit within the complex system of easement and other agreements between Kodak and Carestream which were intended to serve their manufacturing processes on the former Kodak Campus. V my yours, Blaik JB/vlh cc: Julie Lewis, Carestream Health, Inc. Mark Caton, Carestream Health, Inc. Chris Schmachtenberger, Carestream Health, Inc. Alex Yeros,Windsor Renewal I LLC Bruce Bowden,Musket Corporation • BUS_RE\4333499.I -- ..... __. ... .. .-.-_-- EXHIBITA _ � . _ 1 • I I ' t i 4: 1 r - ; i -----'i......�. PROPERTY I / . • \•i i" \, i I . 1 1 +I-/ :1- I 1 •� i I \* ST(�py. 0 i , ,\� %(RimV • ' I 4....\\ \ 1 i • 0 i I N KCD O `WINDSOR COLORADO • PARCEL B • J-R ENGINEERING April 24, 2012 • Lauren Light Weld County Department of Health and Environment 1555 North 17th Street Greeley, CO 80631 Re: USR 12-0005 Sewage System Variance Request per Article IX of the Weld County Code Dear Ms. Light: On behalf of Musket Corporation the applicant for the above mentioned Use By Special Review Application 12-0005 we are requesting a variance to Weld County Code Section 30-2-40 G(3) "Except as provided in the Chapter, no individual sewage disposal system permit shall be issued to any person when the subject dwelling, place of business or institution is located within four • hundred (400) fee of a sewer line of a municipality or special district which provides public sewer service, except where such sewer service to the structure is not feasible in the determination of the municipality or special district." The Town of Windsor is the owner and operator of the centralized sanitary sewer located within 400 feet of the project location 2030 Howard Smith Avenue East. At this time of application review the Town of Windsor has declined to provide sanitary sewer service to this property due to the property being outside of their Town Limits. Therefore to serve this project JR Engineering requests that an ISDS permit be issued. Other alternatives would be to design a sanitary sewer holding tank which could be pumped out on a regular basis since the facility will have between 3 and 5 employees during regular business hours that will generate minimal holding volume. Other alternatives include no sanitary sewer services which will cause a denial of our project. The project lease site comprises of approximately 9 acres. Directly east of the planned improvements (see attached site plan) as shown on the USR 12-0005 application adequate room exists to construct an ISDS system. This portion of the site has a gentle slope to the south. Per the geotechnical report dated February 3, 2012 by Earth Engineering Consultants the first 10 feet of soil consists of sandy lean clay/clayey sand. It is anticipated that an acceptable percolation rate can be achieved of around 30 minutes per inch. The water depth identified during drilling was at 7.5 feet therefore adequate 4 feet of separation can occur between the leach field and ground water. Currently this location is within the John Law Ditch Special Flood Hazard Area also known as the 100 year flood plain. Therefore our system will be designed to meet Weld • County ISDS flood plain regulations. The location of the proposed ISDS system allows for EXHIBIT 7200 South Alton Way,Suite C100,Centennial,CO 80112 303-740-9393•Fax.303-721-9019•www jrengineenng.com LISA, -__r•.y • Page 2 adequate separation from physical features. An ISDS system will not cause any additional risk to the public or harm to the environment. The purpose for the ISDS request is solely due to the denial of access to the existing centralized sanitary sewer system owned and operated by the Town of Windsor. We appreciated you consideration to our request. Sincerely, Michael Brake, PE, PLS Client Manager on behalf of JR Engineering Attachments • Cc: Bruce Bowden, Musket Corporation • a., — r. . •00hlea0�_3,5rI• JNIi�'JNI`.�N3 lit Si _ .._..... - —. •._ 1VNINN31 ... -.._.--- 1A30(183 SOSONN5 • • — —----. ri_;, s� __________II___ rte . `O• ."' —46�• _ 11 ; Seal _� . 1( 1 le: t i, -YI .t ' .er f _.- r , -..r-Iii),.�r V) ` g. OQ .\.. .\\ i II ! 4. • . 0 ' •I /I •• - •, . . i . ;. r.:j • • -• •tb i_ y -.r._.._._ ..........:.:..... ......�--.._._-- ., ,_....r - .is — ":."2-..:.-..:•".-......-.........• ............ .. -_.. ....,_ ... "--..,..'.' —r—in - y• • -i WNW HUM OYYMON 1 • 0 • ig6i PUBLIC WORKS DEPARTMENT 1111H STREET, P.O. BOX 758 t , GREELEY, COLORADO 80632 WEBSITE: WWW.CO.WELD.CO.US ��/U� PHONE: (970) 304-6496 C O U NV"' FAX: (970) 304-6497 April 19, 2012 JR Engineering Attention: Mike Brake 7200 S Alton Way Suite C100 Centennial, CO 80112 Re: Flood Hazard Development Permit application (FHDP-766) — Crude Oil Transloading Facility Dear Mr. Brake, As a participant in FEMA's National Flood Insurance Program (NFIP), Weld County is required by FEMA to ensure that any development (as defined by FEMA) occurring in a designated 100-year floodplain or floodway is compliant with FEMA, Colorado Water Conservation Board, and Weld County floodplain regulations. The intent of the floodplain regulations is to ensure that development occurs in a manner that keeps proposed development safe from flood damage and does not adversely impact the • health and safety of the public. The purpose of this FHDP Conditional Approval Letter is to provide the applicant with a brief history of the floodplain issues involved with the proposed project and to make the applicant aware of specific requirements which must be satisfied in order for Weld County and this proposed project to remain in good standing with the NFIP requirements. Failure to abide by the floodplain regulations and requirements may result in a violation case being brought before the Weld County Board of County Commissioners and potential fines. The Weld County Public Works Department has reviewed the requested Flood Hazard Development Permit (FHDP) application for the construction of a crude oil transloading facility on the former Kodak property. The current FHDP application can be conditionally approved at this time based on the comments and requirements below. COMMENTS Applicant: Musket Corporation Attention: Bruce Bowden 10601 N Pennsylvania Ave Oklahoma City, OK 73120 Request: Flood Hazard Development Permit number 766 for the construction of a crude oil transloading facility in the I-1 (Industrial) Zone Legal Description: Generally located in part of the SW1/4, Section 26, T6N, R67W of the 6th P.M., Weld County, Colorado Property Location: Generally located north of Kodak Drive and east of Howard Smith Avenue, • Windsor, CO EXHIBIT Page 1M5 P MtLANNING-DEVELOPMENT REVIEVJ\FHDP-Flood Hazard Development PertnilVfi6 Muskeg Trensloatl FaciliryTHDF'-766 Musket Transload 2012.tloa LtSQt2-0005 • FIRM Community 080266-605D dated September 27, 1991 and superceded by the FEMA Panel Map No. approved Physical Map Revision for the John Law Ditch dated December 14, 2009 Parcel Number: 0807-26-2-00-018 Public Works Department Project History The applicant submitted a FHDP application for review on January 13, 2012 by the applicant's engineer, Mike Brake—JR Engineering. The applicant's engineer was notified via email that additional information was needed. Revised information regarding the hydraulic modeling was submitted by the applicant's engineer on February 2, 2012. An email from the applicant's engineer was received on February 23, 2012 indicating that the original submittal was being expanded from 2 bays to 4. The expansion required additional fill to be placed and therefore new modeling was required to show the impact of the fill. The revised mapping, modeling, and narrative was resubmitted by the applicant's engineer on March 1, 2012. The mapping and modeling was reviewed for completeness and it was determined that the mapping and HEC-RAS model files needed to be revised. The applicant's engineer provided revised mapping and modeling on March 15, 2012. The application was signed by Alex Yeros, applicant's agent. The application was submitted in support of the construction of a crude oil transloading facility to be located at the Eastman Kodak Plant in Windsor, CO (located in unincorporated Weld County). The narrative and work maps were stamped, signed, and dated by Jason Tarry, P.E. Number 41795. Proiect Description The project location is located partially within the John Law Ditch Special Flood Hazard Area (SFHA), • also known as the 100-year floodplain. The project location is designated as Zone AE and Zone AO (shallow flooding) on the Physical Map Revision Floodplain Maps. The revised floodplain maps update the original John Law Ditch floodplain shown on Flood Insurance Rate Map (FIRM) Panel 080266- 0605D. These floodplain designations indicate there are published base flood elevations (BFEs) on the FEMA approved Physical Map Revision dated December 14, 2009. All FIRMs are prepared, distributed, managed, and revised by the Federal Emergency Management Agency (FEMA). The project location falls entirely within the area studied by Anderson Consulting Engineers (ACE) in the 2009 John Law Ditch Physical Map Revision. The original ACE HEC-RAS model completed by ACE was used as a starting point for modeling the impact of the proposed project. Because the ACE model does not run in HEC-RAS version 4.1 due to a problem with the definition lateral wiers, the portion of the ACE model that was pertinent to the proposed project was cut out and utilized as the duplicate effective model (the applicant's engineer mistakenly identified the duplicate effective model as the corrected effective model) . The duplicate effective model extends from station 5030 to 7185 of the Kodak Lpath as modeled in the ACE model. The duplicate effective model shows that water surface elevations match to within 0.04 feet of the ACE model. The applicant's engineer then modified the duplicate effective model by adding three new cross sections through the proposed project area. The model containing the additional cross section became the corrected effective model (mistakenly referred to as the existing conditions model by the applicant's engineer). The additional cross sections were placed at stations 5680, 5870, and 5950. The additional cross sections include the pertinent obstructions and ineffective flow areas that are based on existing structures at those locations. The applicant's engineer then modified the corrected effective model to show the proposed grading • which includes additional fill around the existing tank containment structure, a four lane access ramp west of the existing tanks, and an elevated pad south of the existing tanks for an office trailer. The Page 2 of 5 M:PLANNING-DEVELOPMENT REVIEIMFHDP-Flood Hazard Development Permit\766 Musket Transload FaulityTHDP-766 Musket Transload Faulity Conditional Approval 04-19- 2012 does • modified corrected effective model became the proposed conditions model. The FHDP drawing for the unloading bays shows the BFE to be 4750.7 feet NAVD-88, In order to be compliant with the CWCB's critical facility rule, the transload facility has be a minimum of two feet above the BFE. The proposed fill is projected to be at an elevation of 4753.4 feet NAVD-88. The addition of the proposed fill to the floodplain creates a maximum rise of approximately 0.3 feet. On April 18, 2012, representatives from Windsor Renewal 1, LLC provided a letter stating they will accept a rise of up to 0.3 feet on their adjacent property. The FHDP drawing and the pre-construction elevation certificate shows the office trailer associated with the transload facility is proposed to be at a BFE of 4750.3 feet NAVD-88. The lowest and highest adjacent grade for the office trailer is proposed to be at an elevation of 4752.0 feet NAVD-88. The floor of the office trailer is proposed to be at an elevation of 4754.2 feet NAVD-88. In order to be compliant with the CWCB's critical facility rule, the transload facility has be a minimum of two feet above the BFE. The FHDP application includes the following documentation: 1. FHDP Application (Page 6) 2. Letter dated January 12, 2012 describing the impact of the proposed 2 bay transload facility. Letter is stamped, dated, and signed by Jason Tarry, P.E. #41795. 3. Letter dated February 29, 2012 describing the impact of the revising the transload facility from the original 2 bay facility to a 4 bay facility. Letter is stamped, dated, and signed by Jason Tarry, P.E. #41795. 4. Copy of the FHDP Submittal Checklist 5. Special Warranty Deed for the property 6. Copy of pre-construction elevation certificate for the office trailer that has been stamped, • signed, and dated by Michael S Brake, PLS#28262 7. FHDP Drawing for the office trailer that has been stamped, signed, and dated by Jason M Tarry, P.E. #41795 8. FHDP Drawing for the unloading facility that has been stamped, signed, and dated by Jason M Tarry, P.E. #41795 9. FHDP Drawing showing the overall site layout that has been stamped, signed, and dated by Jason M Tarry, P.E. #41795 10. Copy of Broe Letter dated April 18, 2012 accepting the rise caused by the Musket Transload facility 11. Copy of the electronic HEC-RAS and CAD files Weld County added the following documentation to the file: 1. Copy of a floodplain and vicinity map showing the John Law Ditch floodplain in relation to the 2008 aerial photograph 2. Copy of the FIRMette showing the proposed location of the transload facility in relation to the John Law Ditch Floodplain 3. Copies of correspondence from Building, Planning, and Health Departments 4. Copies of email correspondence Please refer to the REQUIREMENTS section of this memorandum for further instructions. Department of Planning Services The property is zoned Industrial (I-1) and has historically been part of the Eastman Kodak Company corporate campus. There is an existing Amended Site Plan Review permit for the entire campus area not previously annexed into the Town of Windsor. • At a minimum, the property will be required to establish a legal description for the area defined for the transload facility. This action will require, at a minimum, a Recorded Exemption or alternatively be part Page 3 of 5 M:\PLANNING-DEVELOPMENT REVIEW\FHDP-Flood Hazard Development PermiN66 Musket Transload Facility FHDP-765 Musket Transload Facility Conditional Approval 04-19- 2012 dccx • of a planned unit development (PUD), with the latter land use application taking up to two years to complete. The defined area will require a deed to establish the legal description. Given that this newly defined property is Zone Industrial, a new site plan review (SPR) application shall be submitted to permit the proposed transload facility. With the approval and recording of the new plat for the SPR, the property owner shall request a vacation of AmSPR-293 for the area defined by the RE plat and associated deed. Please refer to the REQUIREMENTS section of this memorandum for further instructions. Building Department Please refer to the REQUIREMENTS section of this memorandum for further instructions. Department of Environmental Health Services Environmental Health Services has reviewed this proposal. Upon review of our records for the identified parcel numbers, there is not an individual sewage disposal system (ISDS) associated with this request. It appears that water and sewer will be provided from a system previously utilized by Kodak. As there is not an ISDS that is associated with this expansion, this department has no concern with this proposal. If a septic system is installed in the future the system shall comply with the Weld County ISDS flood plain regulations. No septic systems shall be installed within the floodway Please refer to the REQUIREMENTS section of this memorandum for further instructions. • REQUIREMENTS: Public Works Department 1. In order to verify the foundation elevations, prior to the foundation inspection for the office, an Elevation Certificate for the building under construction shall be provided to Public Works. The Building under Construction Elevation Certificate shall have an original wet stamp and be signed and dated by a registered Professional Land Surveyor licensed in the state of Colorado. Photos of the office trailer shall be included with the elevation certificate. 2. In order to verify the As-Built elevations, prior to the issuance of a Certificate of Occupancy for the office, an As-Built Elevation Certificate shall be provided to Public Works. The As-Built Elevation Certificate shall have an original wet stamp and be signed and dated by a registered Professional Land Surveyor licensed in the state of Colorado. Photos of the office trailer shall be included with the As-built elevation certificate. 3. An as-built survey covering the extent of fill and grading shall be provided to Public Works prior to the issuance of a Certificate of Occupancy for the office trailer. The as-built survey shall have an original wet stamp, and be signed and dated by a registered Professional Land Surveyor licensed in the State of Colorado. 4. Any fill material placed in the floodplain must be placed in a method which will withstand the erosional forces associated with the 100-year flood event. 5. Any future proposed development activities on this parcel that fall within the FEMA-defined 100- year floodplain shall not cause a rise in the BFE on adjacent or upstream properties or structures. 6. Any future activities must be approved through an amended flood hazard development permit. 7. Any future structures or development activities must be in compliance with the Federal, State, and Weld County floodplain regulations in effect at the time. Department of Planning Services • 1. All existing structures on the RE parcel must be appropriately permitted for the use of the building or structure. Page 4 of 5 M.\PLANNING-DEVELOPMENT REVIENAFHDP-Flood Hazard Development Permi0766 Musket Transload FaulitpFHDP-766 Musket Transload Facility Conditional Approval 04-19- 2012 docx • 2. Stockpiling of any material in the floodway is not permitted due to the highly erosional nature of the placement of the material. 3. Installation of utilities shall comply with applicable ordinances and codes. 4. Construction shall comply with all requirements and conditions of the Weld County Building Code. 5. All proposed or existing structures will or do meet the minimum setback and offset requirements for the zone district in which the property is located. 6. Any future structures or uses on site must obtain the appropriate zoning and building permits. 7. Transient equipment including temporary structures shall be appropriately anchored. Building Department 1. Fill used to elevate equipment within the floodplain shall be compacted to resist erosion created by flood waters. Fill shall be certified by a Professional Engineer and compaction reports are required to be submitted with As Built Elevation Certification. 2. A building permit will be required for any new construction, alteration, or addition to any buildings or structures on the property. It is recommended that a code analysis be done on the project by a design professional with experience in this area. 3. A building permit application must be completed and two complete sets of plans including engineered foundation plans bearing the wet stamp of a Colorado registered architect or engineer must be submitted for review. A geotechnical engineering report performed by a registered State of Colorado engineer shall be required. 4. Buildings and structures shall conform to the requirements of the various codes adopted at the time of permit application. Currently the following has been adopted by Weld County: 2006 International Building Code; 2006 International Mechanical Code; 2006 International Plumbing Code: 2006 International Energy Code; 2006 International Fuel Gas Code; 2011 National Electrical Code; 2003 ANSI 117.1 Accessibility Code and Chapter 29 of the Weld • County Code 5. Electrical systems, equipment and components, and heating, ventilating, air conditioning and plumbing appliances, plumbing fixtures, duct systems, and other service equipment shall be elevated or shall be waterproofed to prevent the entry of floodwaters into the equipment a minimum of one foot above the regulatory flood datum (BFE + 1 ft). Department of Environmental Health Services 1. The future installation or repair of any septic system within the 100-year flood plain shall comply with the Weld County I.S.D.S. flood plain regulations. 2. In accordance with the Colorado I.S.D.S. Regulations, no septic systems shall be installed within the floodway. RECOMMENDATIONS: The Weld County Public Works Department conditionally approves this FHDP application at this time. Sincerely, Clay Kimmi, P.E., CFM Weld County Public Works Original: Bruce Bowden,Applicant CC to File. FHOP466 • PC by Post: Mlhe Brake,JR Engineering Lin Dodge,Panning Kim Ogle,manning Tom Pork:.Planning Frank Piacentmo,Panning Lauren Lignt Ernnienmenlal Ne¢/M Page 5 of 5 M'.\PLANNING-DEVELOPMENT REVIEWFHDP-Flood Hazard Development Pennit\766 Musket Transload FaolityfHDP-766 Musket Transload Facility Conditional Approval 04-19- 2012.docx Great Western Railway of Colorado, LLC • 252 Clayton Street,41' Floor Denver,Colorado 80206TtiONY 1'"_ Telephone:(303)398-4529 c o i.,o R a D o Facsimile: (866)351-9508 www.omnitrax.com April 18, 2012 Clay Kimmi P.E., CFM, Drainage & Floodplain Engineer Weld County Colorado - Department of Planning Services PO Box 758 Greeley, CO 80632 Email: ckimmi(Wco.weld.co.us RE: Weld County Flood Hazard Development Permit for Musket Project Located in the Great Western Industrial Park near Windsor, Weld County, Colorado. Dear Mr. Kimmi: The Great Western Railway of Colorado (GWRCO) is aware of Musket Corporation's plans involving the location of a new Musket facility within the Great Western Industrial Park (GWIP). • The Musket project, which is located within the interior of the Loop Track area, is required by Weld County Code to mitigate potential risk of flooding to its facility by locating out of the floodplain. The Musket design mitigation plan displaces flood waters onto neighboring property owned by Windsor Renewal I, a subsidiary of Broe Real Estate. As a consequence of the Musket design, the floodwater on the adjacent Broe/GWRCO property experiences a rise in the flood elevation of approximately 0.30 feet. This is to advise that Broe/GWRCO will accept the aforementioned rise in flood elevation on its property. Sincerely, /eSeril Kendall (Ken) Koff Vice President - Engineering Services OmniTRAX, Inc. for Great Western Railway of Colorado, LLC cc: Michael Brake, PE, PLS Rich Montgomery Clay Drake EXHIBIT • Glenn Hay ' 12. •• •- Windsor Trans Loading Station • Floodplain Assessment Duplicate Effective Model HEC-RAS Results Summary* Kodak Lpath Q Total Original Model Duplicate Effective Model Change in W.S. River Station (cfs) W.S. Elevation W.S. Elevation Elevation (FT) 7185 1422.51 4760.10 4760.13 0.03 7045 1422.51 4751.70 4751.75 0.05 6050 1474.53 4751.21 4751.26 0.05 5760 1474.53 4750.13 4750.14 0.01 5480 1474.53 4748.31 4748.36 0.05 5320 1474.53 4745.43 4745.47 0.04 5030 1474.53 4744.68 4744.71 0.03 *Results taken from John Law Ditch LOMR,dated December 27,2007. Duplicate Effective model contains errors. Corrected Effective Model HEC-RAS Results Summary" Kodak Lpath Q Total Duplicate Effective Model Corrected Effective Model Change in W.S. River Station (cfs) W.S. Elevation W.S. Elevation Elevation(FT) 7185 1422.51 4760.13 4760.12 -0.01 7045 1422.51 4751.75 4751.71 -0.04 6050 1474.53 4751.26 4751.22 -0.04 5760 1474.53 4750.14 4750.11 -0.03 5480 1474.53 4748.36 4748.33 -0.03 5320 1474.53 4745.47 4745.44 -0.03 5030 1474.53 4744.71 4744.68 -0.03 *Flow rates adjusted in Corrected Effective Model to match LOMR results. Duplicate Effective Model contains errors. • Existin Conditions Model HEC-RAS Results Summary Kodak Lpath Q Total Corrected Effective Model Existing Conditions Change in W.S. River Station (cfs) W.S. Elevation W.S. Elevation Elevation(FT) 7185 1422.51 4760.12 4760.12 0.00 7045 1422.51 4751.71 4751.79 0.08 6050 1474.53 4751.22 4751.40 0.18 5950 1474.53 - 4750.71 - 5870 1474.53 - 4750.53 - 5760 1474.53 4750.11 4750.37 0.26 5680 1474.53 - 4750.16 - 5480 1474.53 4748.33 4748.33 0.00 5320 1474.53 4745.44 4745.44 0.00 5030 1474.53 4744.68 4744.68 0.00 Proposed Conditions Model HEC-RAS Results Summary Existing Conditions Proposed Conditions Change in W.S. River Station IQ Total (CFS) W.S. Elevation W.S. Elevation Elevation(FT) 7185 1422.51 4760.12 4760.12 0.00 7045 1422.51 4751.79 4751.67 -0.12 6050 1474.53 4751.40 4751.18 -0.22 5950 1474.53 4750.71 4750.74 0.03 5870 1474.53 4750.53 4750.58 0.05 5760 1474.53 4750.37 4750.32 -0.05 5680 1474.53 4750.16 4749.83 -0.33 5480 1474.53 4748.33 4748.33 0.00 5320 1474.53 4745.44 4745.44 0.00 • 5030 1474.53 4744.68 4744.68 0.00 JR Engineering 2/21/2012 X:\3960000.all\3967700\ExcelW EC-RAS Summary Table-4-Lane.xls 2:25 PM • 4-Lane Proposed Conditions Model HEC-RAS Results Summa Existing Conditions 4-Lane Option Change in W.S. River Station IQ Total(CFS) W.S. Elevation W.S. Elevation Elevation(FT) 7185 1422.51 4760.12 4760.12 0.00 7045 1422.51 4751.79 4751.69 -0.10 6050 1474.53 4751.40 4751.21 -0.19 5950 1474.53 4750.71 4750.99 0.28 5870 1474.53 4750.53 4750.74 0.21 5760 1474.53 4750.37 4750.39 0.02 5680 1474.53 4750.16 4749.84 -0.32 5480 1474.53 4748.33 4748.33 0.00 5320 1474.53 4745.44 4745.44 0.00 5030 1474.53 4744.68 4744.68 0.00 4-Lane Proposed Conditions NO KODAK BUILDING Model HEC-RAS Results Summary Existing Conditions 4-Lane Option Change in W.S. River Station IQ Total(CFS) W.S. Elevation W.S. Elevation Elevation(FT) 7185 1422.51 4760.12 4760.12 0.00 7045 1422.51 4751.79 4750.96 -0.83 6050 1474.53 4751.40 4750.41 -0.99 5950 1474.53 4750.71 4750.31 -0.40 5870 1474.53 4750.53 4750.15 -0.38 5760 1474.53 4750.37 4749.42 -0.95 5680 1474.53 4750.16 4748.47 -1.69 5480 1474.53 4748.33 4747.85 -0.48 5320 1474.53 4745.44 4745.26 -0.18 . 5030 1474.53 4744.68 4744.68 0.00 • JR Engineering 2/21/2012 X:\3960000.all\3967700\Excel\HEC-RAS Summary Table-4-Lane.xls 2:25 PM • AIR POLLUTION CONTROL DIVISION PRELIMINARY ANALYSIS PERMIT NUMBER: 12WE1016 DATE: April 11, 2012 APPLICANT: Musket Corp REVIEW ENGINEER: Michael J. Harris, P.E. CONTROL ENGINEER: R. K. Hancock III PROJECT DESCRIPTION Musket Corporation is proposing to construct and operate a transloading facility, located at 9952 Eastman Park Drive, Windsor, Weld County, CO. The company has applied to transload the following: total crude oil and condensate not to exceed 245,280,000 gallons per year; and condensate not to exceed 61,320,000 gallons per year. Estimated emissions are listed in the following table. • SUMMARY OF EMISSIONS in Tons/Year Pollutant Emissions Nitrogen Oxides 11.3 tons per year Carbon Monoxide 28.2 tons per year Volatile Organic Compounds 55.2 tons per year Volatile Organic Compounds (fugitive) 4.6 tons per year SOURCE CLASSIFICATION For permitting purposes, this source is considered a synthetic minor source for New Source Review (NSR) applicability and Title V applicability, since permitted emissions will be less than 100 tons per year for all criteria pollutants and less than 10 tons per year for any hazardous air pollutant (HAP) and 25 tons per year of total HAP's. Emissions could exceed 100 tons per year of Volatile Organic Compounds (VOCs), if Musket Corp did not accept federally enforceable limits on production throughput and install and operate air pollution control equipment. The company has made an application for issuance of a federally enforceable synthetic minor source permit limiting the potential to emit to below the major source thresholds. The Division has determined that the proposed source will comply with all applicable regulations and standards of the Colorado Air Quality control commission and has made a preliminary determination of approval of the application. S Page 1 of 1 D RAFT STATE OF COLORADO • o,•co COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AIR POLLUTION CONTROL DIVISION TELEPHONE: (303) 692-3150 `. ',.•1876* CONSTRUCTION PERMIT PERMIT NO: 12WE1016 INITIAL APPROVAL DATE ISSUED: ISSUED TO: Musket Corporation THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Condensate and crude oil transloading facility, known as the Windsor Loading Facility,owned and operated by Musket Corp, located at 9952 Eastman Park Drive,Windsor,Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: • Facility AIRS Description /Activity Equipment ID Point Two (2) Condensate LACT tanks to receive condensate from tank 2 - Condensate 001 trucks and discharge to rail cars—vented to a flare for emission control. LACT tanks Tank capacity is 16,075 gallons each. (Manufacturer, model and SN : TBD) Two (2) internal floating roof storage tanks to receive crude oil from 2 -Crude Oil 002 LACT tanks and discharge to rail cars. Tank capacity is 948,614 gallons storage tanks each. (Manufactured by Chicago Bridge and Iron, model no. 73-627OU, serial numbers ST No. 1 and ST No. 2) Six (6) crude oil LACT tanks to receive crude from tank trucks and 6 -Crude discharge to storage tanks (AIRS 002) or to rail cars. -vented to a flare 003 for emission control. Tank capacity is 16,075 gallons each LACT tanks P tY (Manufacturer, model and SN : TBD) One (1) drain tank to collect rail car contents and is vented to a flare for Drain tank 004 emission control. Tank volume is 16,075 gallons. (Manufacturer, model and SN : TBD) Flare 005 John Zink flare, model LHT-3-24-30-X-1/10-1/10-X, rated at 13 MM BTU/hr. Used to control emissions from transfers and tanks. Crude Transfer Crude oil transfers to LACT tanks (AIRS 003) (Tanker truck to 006 6 LACT tanks) Vented to a flare for emission control. • EXHIBIT I W AIRS ID 123/9581/ WR12. tom, Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 2 Air Pollution Control Division Facility AIRS Description/Activity Equipment ID Point Condensate Transfer Condensate transfers from tank trucks to LACT tanks (AIRS 001). 007 (Tanker truck to Vented to a flare for emission control. 2 LACT tanks) Crude Tansfer Crude oil transfer from storage tanks (AIRS 002) to railcars. (2 storage tanks 008 Vented to a flare for emission control. to railcar) Condensate Transfer Condensate transfers from LACT tanks(AIRS 001)to railcars 009 (2 LACT tanks Vented to a flare for emission control. . to railcar) Crude Transfer (6 LACT tanks 010 Crude oil transfers to storage tanks (AIRS 002) and/or railcars to 2 storage Vented to a flare for emission control. tanks) Fugitive 011 Fugitive emissions from equipment leaks. • emissions THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S.(25-7-101 et seq),TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL APPROVAL 1. YOU MUST notify the Air Pollution Control Division (the Division) no later than fifteen days after commencement of the permitted operation or activity by submitting a Notice of Startup form to the Division. The Notice of Startup form may be downloaded online at www.cdphe.state.co.us/ap/downloadforms.html. Failure to notify the Division of startup of the permitted source is a violation of Air Quality Control Commission (AQCC) Regulation No. 3, Part B, Section III.G.1 and can result in the revocation of the permit. 2. Within one hundred and eighty days (180) after commencement of operation, compliance with the conditions contained on this permit shall be demonstrated to the Division. It is the permittee's responsibility to self certify compliance with the conditions. Failure to demonstrate compliance within 180 days may result in revocation of the permit or enforcement action by the Division. Information on how to certify compliance was mailed with the permit or can be obtained from the Division. (Reference: Regulation No. 3, Part B, II.G.2) 3. This permit shall expire if the owner or operator of the source for which this permit was issued: (i) does not commence construction/modification or operation of this source within 18 months after either, the date of issuance of this construction permit or the date on which such construction or • activity was scheduled to commence as set forth in the permit application associated with this permit; (ii) discontinues construction for a period of eighteen months or more; (iii) does not complete construction within a reasonable time of the estimated completion date. The Division AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 3 Air Pollution Control Division may grant extensions of the deadline per Regulation No. 3, Part B, III.F.4.b. (Reference: Regulation No. 3, Part B, III.F.4.) 4. Within one hundred and eighty days (180) after commencement of operation, the operator shall complete all initial compliance testing and sampling as required in this permit and submit the results to the Division as part of the self-certification process. (Reference: Regulation No. 3, Part B, Section III.E.) 5. The applicant shall develop an operating and maintenance (O&M) plan, along with a recordkeeping format, that outlines how the applicant will maintain compliance on an ongoing basis with the requirements of this permit. The O&M plan shall commence at startup.Within one hundred and eighty days (180) after commencement of operation, the applicant shall submit the O&M plan to the Division. Failure to submit an acceptable operating and maintenance plan could result in denial of the final approval permit (Reference: Regulation No. 3, Part B, III.E.) 6. Within one hundred and eighty days (180) after commencement of operation, the permit number and AIRS ID number shall be marked on the subject equipment for ease of identification. (Reference: Regulation No. 3, Part B, III.E.) (State only enforceable) 7. The manufacturer, model number and serial number of the subject equipment shall be provided to the Division within fifteen days (15)after commencement of operation. This information shall be included on the Notice of Startup (NOS) submitted for the equipment. (Reference: Regulation No. 3, Part B, III.E.). • EMISSION LIMITATIONS AND RECORDS 8. Emissions of air pollutants shall not exceed the following limitations (as calculated using the emission factors included in the Notes to Permit Holder section of this permit). Monthly records of the actual emission rates shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation No. 3, Part B, Section II.A.4). • AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 4 Air Pollution Control Division Monthly Limits: Based on 31 day month Facility Equipment AIRS Tons per Month Emission Type ID Point NO, VOC CO (2) Condensate 001 0.17 — Point LACT tanks (2)Crude 002 0.16 Point storage tanks (6) Crude 003 ---- 0.11 ---- Point LACT tanks Drain tank 004 0.001 Point Flare 005 0.96 --- 2.40 Point Crude transfer (Tanker truck to 6 006 ---- 1.11 ---- Point LACT tanks) Condensate transfer (Tanker truck to 2 007 0.48 Point • LACT tanks) Crude transfer (2 storage tanks to 008 ---- 1.11 ---- Point railcar) Condensate transfer (2 LACT tanks to 009 -- 0.48 ---- Point railcar) Crude transfer (2 LACT tanks to 2 010 ---- 1.11 ---- Point storage tanks) Fugitive emissions 011 0.39 Fugitive Point 0.96 4.65 3.02 TOTAL Fugitive ---- 0.39 ---- The monthly limits included in this permit were derived from the annual limits based on a 31-day month. The owner or operator shall calculate monthly emissions based on the calendar month. • AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 5 Air Pollution Control Division Annual Limits: Facility Equipment AIRS Tons per Year Emission Type ID Point NO. VOC CO (2) Condensate 001 2.0 Point LACT tanks (2) Crude 002 1.8 -- Point storage tanks (6) Crude 003 1.2 Point LACT tanks Drain tank 004 ---- 0.01 Point Flare 005 11.3 ---- 28.2 Point Crude transfer (Tanker truck to 6 006 ---- 13.0 Point LACT tanks) Condensate transfer (Tanker truck to 2 007 5.6 ---- Point LACT tanks) Crude transfer (2 storage tanks to 008 13.0 Point • railcar) Condensate transfer (2 LACT tanks to 009 5.6 ---- Point railcar) Crude transfer (2 LACT tanks to 2 010 --- 13.0 Point storage tanks) Fugitive emissions 011 ---- 4.6 Fugitive Point 11.3 55.2 28.2 TOTAL Fugitive ---- 4.6 See "Notes to Permit Holder#4"for information on emission factors and methods used to calculate limits. During the first twelve (12) months of operation, compliance with both the monthly and yearly emission limitations shall be required. After the first twelve(12)months of operation,compliance with only the yearly limitation shall be required. Compliance with the annual limits shall be determined by recording the facility's annual criteria pollutant emissions, (including all HAPs above the de-minimis reporting level) from each emission unit, on a rolling (12) month total. By the end of each month a new twelve-month total shall be calculated based on the previous twelve months' data. The permit holder shall calculate monthly emissions and keep a compliance record on site, or at a local field office with site responsibility, for Division review. This rolling twelve-month total shall apply to all emission units, requiring an • APEN, at this facility. AIRS ID 123/9581 • Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 6 Air Pollution Control Division 9. The emission points in the table below shall be maintained and operated with the control equipment as listed. The uncontrolled emissions shall be reduced by at least the control efficiencies listed. Operating parameters of the control equipment shall be identified in the operating and maintenance plan. The identified operating parameters will replace the control efficiency requirement in the final approval permit. (Reference: Regulation No.3, Part B, Section III.E.). Facility Equipment ID AIRS Control Controlled (1)Control Point Device Emissions Efficiency (2) Condensate LACT tanks 001 Flare VOC 97% (2) Crude Internal storage tanks 002 floating roof VOC 0 (6) Crude 003 Flare VOC 97% LACT tanks Drain tank 004 Flare VOC 97% Flare 005 None Crude transfer(Tanker truck 006 Flare VOC 97% to 6 LACT tanks) Condensate transfer (Tanker truck to 2 LACT tanks) 007 Flare VOC 97% • Crude transfer 008 Flare VOC 97% (2 storage tanks to railcar) Condensate transfer 009 Flare VOC 97% (2 LACT tanks to railcar) Crude transfer (2 LACT tanks to 2 storage 010 Flare VOC 97% tanks) Fugitive emissions 011 None ---- ---- (1) Control efficiency for flare based on 99% capture and 98% destruction of VOCs PROCESS LIMITATIONS AND RECORDS 10. This source shall be limited to the following maximum consumption, processing and/or operational rates as listed below. Monthly records of the actual process rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation 3, Part B, II.A.4). I AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 7 Air Pollution Control Division Process/Consumption Limits Annual Limit Monthly limit(31 days) Process Parameter (gallons) (gallons) crude oil and condensate Facility combined shall not exceed 245,280,000 20,832,000 wide AND condensate shall not exceed 61,320,000 5,208,000 The monthly limits included in this permit were derived from the annual limits based on a 31-day month. The owner or operator shall calculate monthly emissions based on the calendar month. During the first twelve(12) months of operation, compliance with both the monthly and yearly process limitations shall be required. After the first twelve(12)months of operation, compliance with only the yearly limitation shall be required. Compliance with the yearly process limits shall be determined on a rolling twelve (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months' data. The permit holder shall calculate monthly process rate and keep a compliance record on site or at a local field office with site responsibility, for Division review. . STATE AND FEDERAL REGULATORY REQUIREMENTS 11. Visible emissions shall not exceed twenty percent(20%) opacity during normal operation of the • source. During periods of startup, process modification, or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1, Section II.A.1. &4. 12. This source is subject to the odor requirements of Regulation No. 2. (State only enforceable) 13. The two large storage tanks(AIRS ID 002) are subject to requirements to Control Emissions of Volatile Organic Compounds as contained in Regulation No. 7, Section VI.B.2 "Storage of petroleum liquid in tanks greater than 151,412 liters (40,000 gallons)" including but not limited to: §VI.B.2.a. Storage of petroleum liquid in fixed roof tanks VI.B.2.a.(i)(A) The tank has been equipped with a pontoon-type, or double-deck type, floating roof or an internal floating cover which rests on the surface of the liquid contents and which is equipped with a closure seal or seals to close the space between the edge of the floating roof(or cover) and tank walls; OR VI.B.2.a.(i)(B) The tank has been equipped with a vapor gathering system capable of collecting the petroleum liquid vapors discharged, together with a vapor recovery or disposal system capable of processing such vapors so as to prevent their emission into the atmosphere. VI.B.2.a.(i)(C) Control devices shall meet the applicable requirements, including recordkeeping, of Subsections IX.A.3.a,b,c, and e, and IX. A.8.a and b. AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 8 Air Pollution Control Division VI.B.2.a.(i)(D) The applicable EPA reference methods 1 through 4, and 25, of 40 CFR Part 60 shall be used to determine the efficiency of control devices. Vl.B.2.a.(i)(E)The owner or operator shall maintain records for at least two years of the type, average monthly storage temperature, and true vapor pressure of all petroleum liquids stored in tanks not equipped with an internal floating roof or cover or other control pursuant to Regulation 7.VI.B.2.a.(i)(A) or(B) or 7.II.D. VI.B.2.a.(ii) No owner or operator of a fixed-roof tank equipped with an internal floating roof or cover shall permit the use of such tank unless: VI.B.2.a.(ii)(A)The tank is maintained such that there are no visible holes, tears, or other openings in the seal or any seal fabric or materials; and VI.B.2.a.(ii)(B)All openings, except stub drains, are equipped with covers, lids, or seals such that: VI.B.2.a.(ii)(B)(1)The cover, lid, or seal is in the closed position at all times except when in actual use; VI.B.2.a.(ii)(B)(2)Automatic bleeder vents are closed at all times except when the roof is floated off or landed on the roof leg supports; VI.B.2.a.(ii)(B)(3) and Rim vents, if provided, are set to open when the roof is being floated off the roof leg supports or at the manufacturer's recommended setting. • 14. This source is subject to requirements to Control Emissions of Volatile Organic Compounds as contained in Regulation No. 7, Section VI. "Storage and Transfer of Petroleum Liquid" including but not limited to: §VI.C.4. Transport Vehicles §VI.C.4.a Rail cars shall be loaded only at facilities which allow for the following: §VI.C.4.a(i)A submerged fill pipe which reaches within 15.24 com (6 in) of the bottom of the tank or tank cars equipped for bottom loading. §VI.C.4.a(ii) Vapor collection and/or disposal equipment designated and operated to recover vapors displaced during the loading of the rail car. §VI.C.4.a(iii)A vapor-tight seal around the tank car hatch and the loading equipment. 15. The petroleum transport trucks transferring products at Musket's Windsor site are subject to the requirements contained in Regulation No. 7, Section VI. "Storage and Transfer of Petroleum Liquid" including but not limited to:: §VI.C.4.b(i) Dry-break loading and unloading nozzles are used and are compatible with those required at Musket's Windsor facility. §VI.C.4.b(ii)Vapor recovery hoses are connected at all times during unloading or loading of petroleum distillate. • AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 9 Air Pollution Control Division §VI.C.4.b(iii)Transport trailers and vehicle tanks are operated and maintained to prevent detectable hydrocarbon vapor loss during loading-and delivery at the Musket's Windsor Facility. §VI.C.4.b(iv) Compartment dome lids are closed and locked during transfers of petroleum liquid. Such lids may be opened for the purpose of certifying the accuracy of a delivery only prior to and after such delivery. §VI.C.4.b(v) Hoses, couplings, and valves are maintained to prevent dripping, leaking, or other liquid or vapor loss during loading or unloading. 16. This source is located in an ozone non-attainment or attainment-maintenance area and subject to the Reasonably Available Control Technology (RACT) requirements of Regulation Number 3, Part B, III.D.2.b. Compliance with conditions 9, 10, 13, 14 and 15 were determined to be RACT. OPERATING & MAINTENANCE REQUIREMENTS 17. Upon startup of these points, the applicant shall follow the operating and maintenance (O&M) plan and record keeping format approved by the Division, or for new sources, the operating and maintenance (O&M) plan and record keeping format submitted to the Division for review and approval, in order to demonstrate compliance on an ongoing basis with the requirements of this permit. Revisions to your O&M plan are subject to Division approval prior to implementation. (Reference: Regulation No. 3, Part B,Section III_G.7.) • COMPLIANCE TESTING AND SAMPLING Initial Testing Requirements 18. Within 180 days of startup, the owner or operator shall demonstrate compliance with Condition 11, using EPA Method 9 to measure opacity from the flare (AIRS point 005) This measurement shall consist of a minimum twenty-four consecutive readings taken at fifteen second intervals over a six minute period. (Reference: Regulation No. 1, Section II.A.1 &4). 19. A source initial compliance test shall be conducted on the John Zink Flare (AIRS ID 005)to measure the emission rate(s)for the pollutants listed below in order to demonstrate compliance with 98% destruction of VOCs The test protocol must be in accordance with the requirements of the Air Pollution Control Division Compliance Test Manual and shall be submitted to the Division for review and approval at least thirty (30) days prior to testing. No compliance test shall be conducted without prior approval from the Division. Any compliance test conducted to show compliance with a monthly or annual emission limitation shall have the results projected up to the monthly or annual averaging time by multiplying the test results by the allowable number of operating hours for that averaging time (Reference: Regulation No. 3, Part B., Section III.G.3) Volatile Organic Compounds using EPA approved methods. 20. A source initial compliance test shall be conducted on the VOC vapor collection system to • demonstrate compliance with the 99% capture efficiency and to demonstrate that there is no detectable vapor loss from the collection system (ie the system is leak free). Detectable vapor loss is defined as a VOC concentration exceeding 10,000 ppm. Measurement for fugitive VOC AIRS ID 123/9581 • Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 10 Air Pollution Control Division emissions from the collection system shall be made by Photo Ionization Detector(PID) or another method approved by the Division. The test protocol must be in accordance with the requirements of the Air Pollution Control Division Compliance Test Manual and shall be submitted to the Division for review and approval at least thirty (30) days prior to testing. No compliance test shall be conducted without prior approval from the Division. Any compliance test conducted to show compliance with a monthly or annual emission limitation shall have the results projected up to the monthly or annual averaging time by multiplying the test results by the allowable number of operating hours for that averaging time (Reference: Regulation No. 3, Part B., Section III.G.3) ADDITIONAL REQUIREMENTS 21. Within one hundred and eighty days (180) after commencement of operation, the operator shall complete a hard count of components at the source and establish the number of components that are operated in "gas service" and 'light oil" service. The operator shall submit the results to the Division as part of the self-certification process to ensure compliance with emissions limits. 22. The permit number and AIRS ID number shall be marked on the subject equipment for ease of identification. (Reference: Regulation No. 3, Part B, III.E.) (State only enforceable). 23. A Revised Air Pollutant Emission Notice(APEN) shall be filed: (Reference: Regulation No. 3, Part A, Section II.C.) a. Annually whenever a significant increase in emissions occurs as follows: • For any criteria pollutant: For sources emitting less than 100 tons per year, a change in actual emissions of five tons per year or more, above the level reported on the last APEN submitted; or For volatile organic compounds (VOC) and nitrogen oxide (NOx) sources in an ozone non-attainment area emitting less than 100 tons of VOC or nitrogen oxide per year, a change in actual emissions of one ton per year or more or five percent, whichever is greater, above the level reported on the last APEN submitted; or For sources emitting 100 tons per year or more of a criteria pollutant, a change in actual emissions of five percent or 50 tons per year or more, whichever is less, above the level reported on the last APEN submitted; or For sources emitting any amount of lead, a change in actual emissions, above the level reported on the last APEN submitted, of fifty(50) pounds of lead For any non-criteria reportable pollutant: If the emissions increase by 50% or five (5)tons per year, whichever is less, above the level reported on the last APEN submitted to the Division. b. Whenever there is a change in the owner or operator of any facility, process, or activity; or c. Whenever new control equipment is installed, or whenever a different type of control • equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified; or AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 11 Air Pollution Control Division e. No later than 30 days before the existing APEN expires. 24. Operating Permit(OP) requirements shall apply to this source at any such time that the facility wide potential to emit equals or exceeds the major source level. Once the facility wide potential to emit equals or exceeds the major source level a Title V operating permit application shall be submitted in accordance with the requirements in Regulation No. 3, Part C. 25. Non-attainment New Source Review requirements shall apply to this source at any such time that this source becomes major solely by virtue of a relaxation in any permit condition. Any relaxation that increases the potential to emit above the applicable NSR threshold will require a full NSR review of the source as though construction had not yet commenced on the source. The source shall not exceed the NSR threshold until a NSR permit is granted. (Regulation No. 3, Part D, V.A.7). GENERAL TERMS AND CONDITIONS: 26. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the Division as provided in Regulation No. 3, Part B, Section II.B upon a request for transfer of ownership and the submittal of a revised APEN and the required fee. 27. If this permit specifically states that final approval has been granted, then the remainder of this • condition is not applicable. Otherwise, the issuance of this construction permit does not provide "final" authority for this activity or operation of this source. Final approval of the permit must be secured from the Division in writing in accordance with the provisions of 25-7-114.5(12)(a) C.R.S. and Regulation No. 3, Part B, Section III.G. Final approval cannot be granted until the operation or activity commences and has been verified by the Division as conforming in all respects with the conditions of the permit. Once self-certification of all points has been reviewed and approved by the Division, it will provide written documentation of such final approval. Details for obtaining final approval to operate are located in the Requirements to Self-Certify for Final Approval section of this permit. 28. This permit is issued in reliance upon the accuracy and completeness of information supplied by the applicant and is conditioned upon conduct of the activity, or construction, installation and operation of the source, in accordance with this information and with representations made by the applicant or applicant's agents. It is valid only for the equipment and operations or activity specifically identified on the permit. 29. Unless specifically stated otherwise, the general and specific conditions contained in this permit have been determined by the Division to be necessary to assure compliance with the provisions of Section 25-7-114.5(7)(a), C.R.S. 30. Each and every condition of this permit is a material part hereof and is not severable. Any challenge to or appeal of a condition hereof shall constitute a rejection of the entire permit and upon such occurrence, this permit shall be deemed denied ab initio. This permit may be revoked at any time prior to self-certification and final authorization by the Division on grounds set forth in the Colorado Air Pollution Prevention and Control Act and regulations of the AQCC including failure to meet any express term or condition of the permit. If the Division denies a permit, conditions imposed upon a permit are contested by the applicant, or the Division revokes a permit, • the applicant or owner or operator of a source may request a hearing before the AQCC for review of the Division's action. AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 12 Air Pollution Control Division 31. Section 25-7-114.7(2)(a), C.R.S. requires that all sources required to file an Air Pollution Emission Notice (APEN) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to be discontinued, the owner must notify the Division in writing requesting a cancellation of the permit. Upon notification, annual fee billing will terminate. 32. Violation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention and Control Act or the regulations of the AQCC may result in administrative, civil or criminal enforcement actions under Sections 25-7-115 (enforcement), -121 (injunctions), -122 (civil penalties), -122.1 (criminal penalties), C.R.S. Michael Harris, P.E. R K Hancock III, P.E. Permit Engineer Construction Permit Unit Supervisor Permit History Issuance Date Description Initial Approval This Issuance Issued to Musket Corporation • Notes to Permit Holder: 1) The production or raw material processing limits and emission limits contained in this permit are based on the production/processing rates requested in the permit application. These limits may be revised upon request of the permittee providing there is no exceedence of any specific emission control regulation or any ambient air quality standard. A revised air pollution emission notice (APEN) and application form must be submitted with a request for a permit revision. 2) This source is subject to the Common Provisions Regulation Part II, Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II.E.1. of the Common Provisions Regulation. See: http://www.cdphe.state.co.us/regulations/airregs/5CCR1001-2.pdf. 3) The following emissions of non-criteria reportable air pollutants are estimated based upon the process limits as indicated in this permit. This information is listed to inform the operator of the Division's analysis of the specific compounds emitted if the source(s) operate at the permitted limitations. Uncontrolled Emission Are the Controlled Rate emissions Emission • Pollutant CAS# BIN (Ib/yr) reportable? Rate (Ib/yr) Benzene 71432 A 90 Yes 90 AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 13 Air Pollution Control Division Hexane 110543 C 1540 Yes 1540 4) The emission levels contained in this permit are based on the following emission factors: • VOC Emissions for AIRS points 001 -004 (various tanks)were calculated using TANKS 4.09. These emissions are tank losses. • VOC Emissions for AIRS points 006- 010 (various transfers from point to point) these emissions are loading losses and were calculated using the loading loss equation (AP 42, equation 5.2) with the following parameters: Parameter Crude Oil Condensate S- saturation factor 0.6 0.6 P—true vapor pressure 2.26 _ 4.68 M—molecular weight 146.2 90.1 T—temperature(degrees R) 522.4 522.4 LL- loading loss lb/1000 gal(uncontrolled) 4.73 6.03 LL- loading loss lb/1000 gal (with 97% control) 0.14 — 0.18 • • Flare (AIRS point 005) based on the manufacturer's control specifications VOC—minimum of 97%control(99%capture and 98%destruction = 0.99*0.98=0.9702) NOx -4 mg per liter (0.0334 Ib/1,000 gallons) of product loaded CO— 10 mg per liter (0.0835 lb/1,000 gallons) of product loaded • For the flare emissions the total volume processed is greater than the volume received due to multiple handling steps involved. The condensate is handled 2 times: 1) from the tank truck to the LACT tank and 2) from the LACT tank to rail cars. The crude has the potential to be handled 3 times 1)from the tank truck to the LACT tank, 2) from the LACT tank to the storage tanks, and 3)from the storage tanks to the rail car. Thus the total volume processed would be(2 *61,320,000) + (3* 183,960,000) = 674,520,000 gallons. This is the volume used to calculated NOx and CO emission limits. • Fugitive emissions(AIRS point 011) are based on the following estimated component counts and using "Protocol for Equipment Leak Emission" (EPA 453/R-95-017). The following component counts are representative estimates only and are not enforceable limits: Component Gas Service Light Oil Service Valves 38 38 Connectors 14 14 Flanges 38 38 Seals 0 7 Other 4 7 Open ended lines (capped) 24 24 • 5) The emission calculations for the two storage tanks (AIRS ID 002) are based on each tank being configured with an internal floating roof. A permit modification will be required if Musket Corporation decides to use a vapor collection and control system, instead of the internal floating AIRS ID 123/9581 Musket Corporation Permit No. 12WE1016 Initial Approval Colorado Department of Public Health and Environment • page 14 Air Pollution Control Division roof to control emissions. 6) In accordance with C.R.S. 25-7-114.1, the Air Pollutant Emission Notices (APENs) associated with this permit are valid for a term of five years. As of the issuance of this permit, the five-year term for these APENs expires per the table below. A revised APEN shall be submitted no later than 30 days before the five-year term expires. AIRS Points Expiration Date Renewal Date 001 -011 December 15, 2016 November 15, 2016 7) This facility is classified as follows: Applicable Status Requirement Operating Permit Synthetic Minor Source VOC NANSR Synthetic Minor Source VOC 8) The two large storage tanks (AIRS ID 002) are not subject to NSPS subpart Kb since the dates of the tank construction (1973 and 1974) precede the effective date for subpart Kb, July 23, 1984. • 9) Full text of the Title 40, Protection of Environment Electronic Code of Federal Regulations can be found at the website fisted below: http://ecfr.q poaccess.gov/ • AIRS ID 123/9581 Hello