STATEMENT OF BASIS. NAICS Description: Other Basic Inorganic Chemical Manufacturing NAICS Code:

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STATEMENT OF BASIS For the issuance of Draft Air Permit # 1177-AOP-R15 1. PERMITTING AUTHORITY: Arkansas Department of Environmental Quality 5301 Northshore Drive North Little Rock, Arkansas 72118-5317 2. APPLICANT: Georgia-Pacific Chemicals LLC 124 Paper Mill Road Crossett, Arkansas 71635 3. PERMIT WRITER: Franck Houenou 4. NAICS DESCRIPTION AND CODE: NAICS Description: Other Basic Inorganic Chemical Manufacturing NAICS Code: 325180 5. SUBMITTALS: Date of Application Type of Application (New, Renewal, Modification, Deminimis/Minor Mod, or Administrative Amendment) Short Description of Any Changes That Would Be Considered New or Modified Emissions 9/6/2016 Administrative Amendment Re-install the previously removed sodium hydroxide storage tank M-5. This tank will replace the sodium hydroxide storage tank M-4 that has been removed. The sodium hydroxide storage tank M-5 is added to the permit as an insignificant activity.

Page 2 of 12 6. REVIEWER S NOTES: Georgia Pacific Chemicals LLC, formerly Georgia-Pacific Resins, Inc., located at 124 Paper Mill Road, Crossett, Arkansas 71635. The facility has submitted an application for administrative amendment to re-install the previously removed sodium hydroxide storage tank M-5. This tank will replace the sodium hydroxide storage tank M-4 that has been removed. The sodium hydroxide storage tank M-5 is added to the permit as an insignificant activity. Also, the facility has requested to remove the word storage from the emission summary table group heading, to change the description of SN-121, SN-52, and of the sources in the table shown under Specific Condition #125. There is no change with the total permitted emissions rates. 7. COMPLIANCE STATUS: The following summarizes the current compliance of the facility including active/pending enforcement actions and recent compliance activities and issues. None 8. PSD APPLICABILITY: a) Did the facility undergo PSD review in this permit (i.e., BACT, Modeling, etc.)? N b) Is the facility categorized as a major source for PSD? N Single pollutant 100 tpy and on the list of 28 or single pollutant 250 tpy and not on list If yes, explain why this permit modification is not PSD. 9. SOURCE AND POLLUTANT SPECIFIC REGULATORY APPLICABILITY: Source Pollutant Regulation (NSPS, NESHAP or PSD) See Table in Plantwide 40 C.F.R. Part 60, Subpart Kb Record keeping only Condition #13 SN-11 and equipment in 40 C.F.R. Part 63, Subpart F, formaldehyde production G, H (HON Rule) SN-11 and equipment in wet 40 C.F.R. Part 63, Subpart W strength resin production SN-11 and equipment in Amino/Phenolic Resin 40 C.F.R. Part 63, Subpart SS, UU, WW, OOO Production SN-05, SN-129, SN-42, SN- 40 C.F.R. 63, Subpart FFFF 51, SN-25, SN-120, SN-121, SN-122, SN-41, SN-06, SN- 123, SN-126, SN-134 Facility Benzene 40 C.F.R. 61, Subpart FF

Page 3 of 12 Source SN-140 Pollutant Regulation (NSPS, NESHAP or PSD) 40 C.F.R. Part 63, Subpart ZZZZ 10. EMISSION CHANGES AND FEE CALCULATION: See emission change and fee calculation spreadsheet in Appendix A. 11. AMBIENT AIR EVALUATIONS: a) Reserved. b) Non-Criteria Pollutants: 1 st Tier Screening (PAER) Estimated hourly emissions from the following sources were compared to the Presumptively Acceptable Emission Rate (PAER) for each compound. The Department has deemed the PAER to be the product, in lb/hr, of 0.11 and the Threshold Limit Value (mg/m 3 ), as listed by the American Conference of Governmental Industrial Hygienists (ACGIH). Pollutant TLV (mg/m 3 ) PAER (lb/hr) = 0.11 TLV Proposed lb/hr Pass? Acetaldehyde 45.04 4.95 2.70 Yes Acrolein 0.23 0.03 0.02 Yes Methanol 262.09 28.83 30.81 No Phenol 19.25 2.12 5.934 No Lead Compounds 0.05 0.01 0.10 No Cadmium 0.01 0.0011 0.07 No Ammonia 17.41 1.92 22.78 No Formaldehyde 1.5 0.165 3.63 No

Page 4 of 12 2 nd Tier Screening (PAIL) AERMOD air dispersion modeling was performed on the estimated hourly emissions from the following sources, in order to predict ambient concentrations beyond the property boundary. The Presumptively Acceptable Impact Level (PAIL) for each compound has been deemed by the Department to be one one-hundredth of the Threshold Limit Value as listed by the ACGIH. Pollutant PAIL (μg/m 3 ) = 1/100 of Threshold Limit Value Modeled Concentration (μg/m 3 ) Pass? Methanol 2621.0 55.81 Yes Phenol 192.5 5.83 Yes Lead Compounds 0.50 0.01 Yes Cadmium 0.1 0.01 Yes Ammonia 174.1 33.25 Yes Formaldehyde 15.0 8.11 Yes c) H2S Modeling: A.C.A. 8-3-103 requires hydrogen sulfide emissions to meet specific ambient standards. Many sources are exempt from this regulation, refer to the Arkansas Code for details. Is the facility exempt from the H2S Standards If exempt, explain: No H2S Emission N

Page 5 of 12 12. CALCULATIONS: SN 03 Emission Factor Source (AP-42, testing, etc.) AP-42 Testing 05 Stack Testing 11 AP-42, Table 1.4-1, 1.41-2, 1.4-3, 1.4-4 (natural gas combustion) Emission Factor (lb/ton, lb/hr, etc.) Natural Gas Emission (lb/mmscf) PM/PM 10 /PM 2.5 7.6 SO 2 0.6 NO x 100 CO 84 VOC 5.5 Pb 0.0005 Formaldehyde 0.075 Hexane 1.8 Naphthalene 0.00061 POM (Total) 0.000044 Toluene 0.0034 Cadmium 0.0011 Production Related Emissions (lb/hr) Acetaldehyde 1.19 Formaldehyde 1.83 Methanol 12.3 Phenol 0.71 Dimethyl Ether 0.48 Total VOC 27.7 PM/PM 10 /PM 2.5 11.5 Ammonia 0.02 varied Control Equipment Boiler Scrubber Condenser Thermal Oxidizer Control Equipment Efficiency 98% 98% 98% 99% Comments Production Related PM/PM- 10/PM 2.5, NOx, VOC/HAP & CO emissions based on stack test data

Page 6 of 12 SN 129 134 136 138 139 140 145 146 Emission Factor Source (AP-42, testing, etc.) Manuf. Specs. AP-42 (natural gas combustion) Stack Testing AP-42, Section 5.2 AP-42 Table 3.3-1, 3.3-2. AP-42 13.2.1.3 Emission Factor (lb/ton, lb/hr, etc.) varied Control Equipment Thermal Oxidizer Control Equipment Efficiency 98% Comments Production Related PM/PM- 10/PM 2.5, NOx, & CO emissions based on manufacturer specifications SO 2 stack testing Emissions were calculated based on equation 7 found in USEPA Technical Guidance for Hazardous Analysis, Emergency Planning for EHS, December 1987 (Appendix G) Lb/MMBtu PM: 0.31 SO 2 : 0.29 NOx: 4.41 CO: 0.95 VOC: 0.36 Acetaldehyde: 7.67x10-4 Benzene: 9.33x10-4 Formaldehyde: 1.18x10-3 Naphthalene: 8.48x10-5 Toluene: 4.09x10-4 Xylene: 2.85x10-4 Total POM: 1.68x10-4 Emissions were estimated using emission factors and control efficiencies found in the document titles Air Permit Technical Guidance for Chemical Sources Equipment Leak Fugitives, prepared by the Texas Commission on Environmental Quality, draft, October 2000

Page 7 of 12 SN Emission Factor Source (AP-42, testing, etc.) 148 Vendor Emission Factor (lb/ton, lb/hr, etc.) Control Equipment Dust collector Control Equipment Efficiency 95% Comments Maximum air flow through the dust collector is 2,600 cfm Particulate emission from dust collector: 0.005 gr/cf 13. TESTING REQUIREMENTS: The permit requires testing of the following sources. SN Pollutants Test Method Test Interval Justification None 14. MONITORING OR CEMS: The permittee must monitor the following parameters with CEMS or other monitoring equipment (temperature, pressure differential, etc.) SN 10, 11 05 129 12 03, 05, 09, 13, 18, 19 Parameter or Pollutant to be Monitored Firebox Temperature Temperature ph, Liquid flow rate Method (CEM, Pressure Gauge, etc.) Temperature Monitoring Device Temperature Monitoring Device Frequency Continuous Continuous Report (Y/N) Monitoring Device Weekly Y Pressure Drop Visual Inspection Weekly N Y Y

Page 8 of 12 15. RECORDKEEPING REQUIREMENTS: The following are items (such as throughput, fuel usage, VOC content, etc.) that must be tracked and recorded. SN Recorded Item Permit Limit Frequency Report (Y/N) All Kb s Dimensions N/A N 10 Firebox Temperature 1600 o F Continuous Y 11 Combustion Chamber 910 o C Continuous Y Temperature 11 Transfer rack design analysis and throughput None Annual Y 11 and Subpart Leak Detection OOO processes Requirements None Varied Y 129 Temperature 1,410 o F Daily N 114 Throughput 500,000 gal Monthly Y Facility 12 Production Rates Hours of Operation See Plantwide Conditions #13 and #25 Monthly 4,400 Monthly Y 12 ph 9.0 or greater Weekly Y 12 Liquid flow rate 80-120 gallons/min Weekly Y 70 Throughput 500,000 gal Monthly Y 135 Ammonia 1,300,000 Throughput gallons Monthly Y 05 Firebox Temperature 1100 o F Daily N 95 HAP 140 Hours of Operation 0.25 tpy single or combination Monthly 1,500 Monthly Y Y Y

Page 9 of 12 16. OPACITY: SN Opacity Justification for limit Compliance Mechanism 3, 6, 9,13, 18, 19, 148 5% Department Guidance Weekly Observations 5 20% Department Guidance 10, 11 5% Department Guidance Weekly and per batch observations Natural Gas Combustion 129 20% Department Guidance Weekly Observations 17. DELETED CONDITIONS: Former SC Justification for removal None 18. GROUP A INSIGNIFICANT ACTIVITIES: Source Name 325hp Hydroblaster 1,000 gal Dowtherm 4,000 gal Therminol Charging Sodium Hydroxide Sodium Hydroxide Sodium Hydroxide Process Weigh Sodium Hydroxide Group A Category Emissions (tpy) PM/PM 10 SO 2 VOC CO NO x A1 0.15 0.14 0.17 0.44 2.01 0.002 A3 0.00004 A3 0.00029 Single Total

Page 10 of 12 Source Name Process Weigh Dilute Caustic Storage Sodium Hydroxide Sodium Hydroxide Potassium Hydroxide NaOH/KOH and Water Dilution Urea Storage Silo Kettle Urea Feed Hoppers Epichlorohydrin DETA Railcar Storage and Transfer to Trucks Phenol Storage Urea Solution Wet Strength Resin and Urea Solution Dilute Novacote and Glassmat Resin Blend Storage s Onsite Storage of Epichlorohydrin: Group A Category 1.63 1.63 Emissions (tpy) PM/PM 10 SO 2 VOC CO NO x Single Total 0.48 0.48 0.48 0.09 0.12 0.12 0.12 0.05 0.03 0.00001 0.0001 0.0001

Page 11 of 12 Source Name 2-7,200 gallon trailers RCI Distillate Hexamine Group A Category Emissions (tpy) PM/PM 10 SO 2 VOC CO NO x Single Total 0.042 0.042 0.042 0.0008 Column 0.18 XTOL Light Distilled Head Storage tank Test XTOL Railcar Loading Therminol Surge Crude Tall Oil Methanol Railcar Maintenance Portable Pump with Diesel Engine 10 hp Self- Priming Water Pump 208 hp Non- Road, Non- Stationary Emergency Generator 111 hp Non- Road, Non- Stationary Diesel Fired Air Compressor Ethylene Glycol 0.45 0.32 0.00007 0.04 0.27 0.27 0.27 0.07 0.06 0.08 0.20 0.89 0.0008 0.0008 0.01 0.01 0.06 0.02 0.03 0.06 0.05 0.07 0.17 0.77 0.0007 0.0007 0.01 0.01 0.01 0.02 0.07 0.00006 0.00006 0.00001 0.00001

Page 12 of 12 19. VOIDED, SUPERSEDED, OR SUBSUMED PERMITS: List all active permits voided/superseded/subsumed by the issuance of this permit. Permit # 1177-AOP-R14

APPENDIX A EMISSION CHANGES AND FEE CALCULATION

Fee Calculation for Major Source Facility Name: Georgia-Pacific Chemicals LLC Permit Number: 1177-AOP-R15 Revised 03-11-16 $/ton factor 23.93 Annual Chargeable Emissions (tpy) 706.2 Permit Type AA Permit Fee $ 0 Minor Modification Fee $ 500 Minimum Modification Fee $ 1000 Renewal with Minor Modification $ 500 Check if Facility Holds an Active Minor Source or Minor Source General Permit If Hold Active Permit, Amt of Last Annual Air Permit Invoice $ 0 Total Permit Fee Chargeable Emissions (tpy) 0 Initial Title V Permit Fee Chargeable Emissions (tpy) not included in VOC or PM: Air Contaminants: Chlorine, Hydrazine, HCl, HF, Methyl Chloroform, Methylene Chloride, Phosphine, Tetrachloroethylene, Titanium Tetrachloride All air contaminants are chargeable unless they are included in other totals (e.g., H2SO4 in condensible PM, H2S in TRS, etc.) Pollutant (tpy) Check if Chargeable Emission Old Permit New Permit Change in Emissions Permit Fee Chargeable Emissions Annual Chargeable Emissions PM 249 249 0 0 249 PM 10 248.7 248.7 0 PM 2.5 0 0 0 SO 2 99.5 99.5 0 0 99.5 VOC 219.5 219.5 0 0 219.5 CO 102.2 102.2 0 NO X 112.8 112.8 0 0 112.8 Total Iodine 3.8 3.8 0 0 3.8

Pollutant (tpy) Check if Chargeable Emission Old Permit New Permit Change in Emissions Permit Fee Chargeable Emissions Annual Chargeable Emissions Formic Acid 0.2 0.2 0 Ammonia 15.83 15.83 0 0 15.83 Dimethyl Ether (DME) 2.45 2.45 0 Chlorine 1.3 1.3 0 0 1.3 Hydrogen Chloride 4.47 4.47 0 0 4.47