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Peabody Western Coal Company Peabody Western Coal Company December 18, 2017 Gerardo Rios Air Pe1mits Manager Air Division (Attn: AIR-3) USEPA Region 9 75 Hawthorne Street San Francisco, CA 94105-3901 (FEDEX 2ND DAY) ------------ Ms. Tennille Begay Navajo Nation EPA Air Quality Control Program Operating Permit Program P. 0. Box 529 Fort Defiance, AZ 86504 (FEDEX 2ND DAY) Re: PWCC / Kayenta Mine / Application for Synthetic Minor Source Permit Dear Mr. Rios, Peabody Western Coal Company (PWCC) hereby submits the attached application that has been prepared in accordance with applicable provisions ofEPA's Tribal Minor Source Review Permit Program, 40 C.F.R. §49.1 51 et seq., and relevant Agency guidance. package. PWCC owns and operates Kayenta Mine Complex ("Kayenta") - a surface coal mine on lands of the Navajo Nation and Hopi Tribe near Kayenta, Arizona. b1 addition to the Company's mining activities at that site, raw coal from that mining is subsequently crushed, screened, blended and stored at a collocated coal preparation plant prior to being loaded-out for rail shipment. Kayenta Mine Complex is currently subject to a federal Title V operating permit issued by the Navajo Nation Enviromnental Protection Agency ("NNEPA") under a delegation ofauthority to administer that federal program (40 C.F.R. Part 71) from Region TX ofthe U.S. Environmental Protection Agency ("EPA" or "Agency"). The purpose of this pem1it submittal is to present PWCC's application to Region IX fo r a synthetic minor source permit for Kayenta. fo keeping with terms and conditions ofthat permit, Kayenta would be classified as a minor source under both the federal Title V program and the federal prevention ofsignificant deterioration ("PSD") program. Peabody Wesiern Coal Company · P. 0. Box 650, Navnjo Rt. 41 · Kayenta, Arizona 86033 · Telephone 928.677.5130 · fax 928.677.5083 PWCC, USEPA and the NNEPA have been working closely on the air permit issues related to Kayenta the past two years. We appreciate the expertise and open discussions allowing us to get to this point. We also would like to thank the EPA and NNEPA staff, and in particular, Lisa Beckham, as she has provided open and transparent dialogue throughout this process. We look forward to working with her in the future on this application. Please contact me at 928.913.9202, email at [email protected], or 928.913.9212 (fax) ifyou have any further questions. Respectfully, <Sl/2~, Randy S. Lehn Director Environmental Services SW Peabody Energy Encl. C: A. Rappleyea (PWCC-KC) w/o encl. M. Shepherd (PWCC-KC) Peabody Western Coal Company· P. 0. Box 650, Navajo Rt. 41 · Kayenta, Arizona 86033 · Telephone 928.677.5130 · Fax 928.677.5083 Peabody Western Coal Company PEABODY WESTERN COAL COMPANY KAYENTA MINE COMPLEX APPLICATION for SYNTHETIC MINOR SOURCE PERMIT December 2017 TABLE OF CONTENTS Section INTRODUCTION ................................................................................................................................. I Application for Synthetic Minor Limit .......................................................................................... 2 BACKGROUND ................................................................................................................................... 3 Scope of Potential-to-Emit Calculation for Kayenta .................................................................... 3 DESCRIPTION OF KAYENTA'S COAL PREPARATION PLANT ............................................. 5 Process Flow - From Hopper Loading to Silo Storage Load-out................................................ 5 Control Technologies ..................................................................................................................... 11 Startup, Shutdown and Malfunction............................................................................................ 11 Startup ................................................................................................................................. 11 Shutdown ............................................................................................................................. 13 Mal.function ......................................................................................................................... 14 Conclusion ........................................................................................................................... 14 Applicability of NSPS Subpart Y ................................................................................................. 14 LIMITATIONS ON KAYENTA'S POTENTIAL-TO-EMIT......................................................... 20 Production Limitation ................................................................................................................... 21 Maximum Design Capacities .............................................................................................. 21 Maximum Operating Capacities for PTE Calculations .................................................... 24 Operational Limitations ................................................................................................................ 26 Wet Suppression .................................................................................................................. 27 Inherent Process Design Features ..................................................................................... 31 Emission Limitations ..................................................................................................................... 33 Crushing .............................................................................................................................. 36 Screening ............................................................................................................................. 41 Transfer Points on Belt Conveyors .................................................................................... 47 Belt Conveyors ..................................................................................................................... 50 Hopper Loading .................................................................................................................. 51 Coal Pile Maintenance with Dozers ................................................................................... 55 Coal Pile Wind Erosion ...................................................................................................... 59 Summary.............................................................................................................................. 61 CALCULATION OFKAYENTA'S POTENTIAL-TO-EMIT ....................................................... 63 Calculating PTE for Each Coal Preparation Facility................................................................. 63 Hoppers, Crushers, Screens and Transfer Points ............................................................. 63 Coal Pile Maintenance (CPM) by Bulldozers .................................................................... 65 Coal Pile Wind Erosion ...................................................................................................... 66 Adjustments to PTE Calculations to Offset Uncertainty from Emission Factors ................... 69 Control Efficiencies for Wet Suppression Have Been Under-estimated .......................... 70 Moisture Correction Factors Are Lower than Expected Actual Values ........................... 71 Kayenta's Restricted PTE ............................................................................................................. 72 TABLE OF CONTENTS (continued) Section ENFORCEABILITY OF LIMITS THAT RESTRICT KAYENTA'S POTENTIAL-TO-EMIT. 74 Legally Enforceable ....................................................................................................................... 74 Enforceable as a Practical Matter ................................................................................................ 74 Practical Enforceability ofProduction Limitation ............................................................ 76 Practical Enforceability ofOperational Limitations ......................................................... 81 Practical Enforceability ofEmission Limitations .............................................................. 97 DEMONSTRATING COMPLIANCE WITH MINOR SOURCE EMISSION LIMITS ............ I 14 Calculating Actual Monthly Emissions ...................................................................................... I I 4 Hoppers, Crushers, Screens and Transfer Points ........................................................... I I 4 Coal Pile Maintenance ...................................................................................................... 123 Coal Pile Wind Erosion .................................................................................................... 124 Monthly Compliance Demoustration ......................................................................................... 125 LIST OF TABLES Table 1. Nature and Extent of Sprays at Subpart Y Facilities .......................................... I 5 Table 2. Non-NSPS Conveyors with Transfer Points ......................................................... I 8 Table 3. Facilities' Design and Maximum Operating Capacities ......................................22 Table 4. Forms of Wet Suppression and Estimated Control Efficiencies ....................... .30 Table 5. Inherent Process Design Features and Estimated Control Efficiencies .............32 Table 6. Kayenta's
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