e pplication for a ermit to i c lpg s roject at the m p c … · liquefied petroleum gas...

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4771-50th Street S.E., Suite One, Grand Rapids, MI 49512 Phone 616 554.3210 Fax 616 554.3211 www.horizonenv.com June 17, 2015 Air Quality Division – Permit Section Michigan Department of Environmental Quality Constitution Hall, 3 rd Floor North 525 West Allegan Street Lansing, MI 48933 RE: APPLICATION FOR A PERMIT TO INSTALL COVERING THE LPG STORAGE AND TRANSFER PROJECT AT THE MARATHON PETROLEUM COMPANY LP REFINERY IN DETROIT, MICHIGAN (SRN: A9831) Dear Sir or Madam, 1. INTRODUCTION Marathon Petroleum Company LP (“MPC”) owns and operates a petroleum refinery at 1300 South Fort Street in the City of Detroit, Wayne County, Michigan (the “Detroit Refinery”). The Detroit Refinery produces gasoline, fuel oils, asphalt, propane, and propylene through the use of various hydrocarbon processing units. Liquefied petroleum gas (“LPG”) storage and handling operations at the Detroit Refinery currently include the following equipment: Sixteen pressurized “bullet” storage tanks; Three pressurized spherical tanks; LPG railcar loading rack; and LPG truck loading rack. LPG storage and transfer operations are covered under Renewable Operating Permit No. MI- ROP-A9831-2012b, last revised by Michigan Department of Environmental Quality, Air Quality Division (“AQD”) on January 16, 2014 (the “ROP”) 1 . The location of the Detroit Refinery is illustrated in Figure 1, while the current location of the LPG storage tank and railcar loading areas is shown in Figure 2. The LPG truck load rack, which will be unaffected by this project, is located in the adjacent Marketing Terminal. 1 Process units covered under this Permit to Install application also operate under Permit to Install No. 63- 08D. On October 30, 2014, MPC submitted an Administrative Amendment request to incorporate Permit to Install No. 63-08D into the ROP.

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Page 1: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

4771-50th Street S.E., Suite One, Grand Rapids, MI 49512

Phone 616 554.3210 Fax 616 554.3211 www.horizonenv.com

June 17, 2015 Air Quality Division – Permit Section Michigan Department of Environmental Quality Constitution Hall, 3rd Floor North 525 West Allegan Street Lansing, MI 48933 RE: APPLICATION FOR A PERMIT TO INSTALL COVERING THE LPG STORAGE AND

TRANSFER PROJECT AT THE MARATHON PETROLEUM COMPANY LP REFINERY IN

DETROIT, MICHIGAN (SRN: A9831) Dear Sir or Madam,

1. INTRODUCTION

Marathon Petroleum Company LP (“MPC”) owns and operates a petroleum refinery at 1300

South Fort Street in the City of Detroit, Wayne County, Michigan (the “Detroit Refinery”). The

Detroit Refinery produces gasoline, fuel oils, asphalt, propane, and propylene through the use of

various hydrocarbon processing units. Liquefied petroleum gas (“LPG”) storage and handling

operations at the Detroit Refinery currently include the following equipment:

Sixteen pressurized “bullet” storage tanks;

Three pressurized spherical tanks;

LPG railcar loading rack; and

LPG truck loading rack.

LPG storage and transfer operations are covered under Renewable Operating Permit No. MI-

ROP-A9831-2012b, last revised by Michigan Department of Environmental Quality, Air Quality

Division (“AQD”) on January 16, 2014 (the “ROP”)1. The location of the Detroit Refinery is

illustrated in Figure 1, while the current location of the LPG storage tank and railcar loading

areas is shown in Figure 2. The LPG truck load rack, which will be unaffected by this project, is

located in the adjacent Marketing Terminal.

1 Process units covered under this Permit to Install application also operate under Permit to Install No. 63-08D. On October 30, 2014, MPC submitted an Administrative Amendment request to incorporate Permit to Install No. 63-08D into the ROP.

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Air Quality Division – Permits Section June 17, 2015 Page 2 MPC proposes to upgrade its LPG storage and handling operations to assure the long term

operation of the Detroit Refinery in conformance with Industry and MPC engineering design and

safety standards. The upgrades include replacing the sixteen existing bullet tanks with eight new

3,000 barrel capacity bullet tanks, and the construction of a new ten spot railcar load rack in the

adjacent Melvindale Tank Farm, new piping and related components (valves, flanges, etc.), new

optimized process pumps for the new bullet tanks and railcar loading operation, and related

equipment such as vaporizers, knock-out pots, and propane dryers. The existing bullet tanks,

LPG railcar loading operation, and some related piping, pumps, and components will be

removed from service and demolished as part of the project. These upgrades are referred to as

the “LPG Storage and Transfer Project”.

Pursuant to Rule 201 of Michigan’s Administrative Rules for Air Pollution Control (PA 451 of

1994, as amended), an Air Use Permit to Install must be issued by the AQD prior to the

commencement of construction of new equipment associated with the LPG Storage and Transfer

Project. The project will not result in an increase in daily or annual refining capacity at the

Detroit Refinery. The new bullet tanks will provide for an increase in short-term LPG storage

capacity. However, the increased storage capacity will not debottleneck any upstream or

downstream operations at the Detroit Refinery. Further, the number of components (valves,

flanges, etc.) associated with the upgraded LPG storage and handling operations will be less than

the number currently in service, resulting in a decrease in volatile organic compound (“VOC”)

and toxic air contaminant (“TAC”) emissions due to LPG storage and handling operations.

This document and attached application form constitute the required Permit to Install application

package covering the LPG Storage and Transfer Project. Information required pursuant to Rule

203, along with analyses demonstrating compliance with all relevant State of Michigan and

federal air quality requirements is presented in this submittal. A description of the overall

project, including an estimate of regulated NSR pollutants is provided in Section 2. Relevant

federal air regulations are described in Section 3, while relevant State of Michigan air

regulations are discussed in Section 4. Compliance with the air impact requirements of

Michigan’s air toxics provisions (Rules 225 through 229) is demonstrated in Section 5. A

Permit to Install application form, signed by the Responsible Official, is submitted in

Attachment A.

Relation to Other Projects

On June 9, 2015, MPC submitted a Permit to Install application covering changes to the Detroit

Refinery necessary to comply with lower sulfur in gasoline requirements mandated under the

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Air Quality Division – Permits Section June 17, 2015 Page 3 U.S. EPA’s Tier 3 Motor Vehicle Emissions and Fuel Standards (the “Tier 3 Fuels Project”).

Though construction activities associated with the LPG Storage and Transfer and the Tier 3

Fuels Project may overlap, the two projects are completely separate and distinct. The timing of

the two projects is coincidental and not based in any way on the viability of the other project.

2. PROJECT DESCRIPTION AND ESTIMATED EMISSIONS

Background

As part of its refining operation, the Detroit Refinery produces light end streams that behave as

gases at standard temperature and pressure. These gases include butane, isobutane, propane,

propylene, butylene, and C3-C4 mixtures. Butane, isobutane, and C3-C4 mixtures are currently

stored in three pressurized spherical vessels with storage capacities of 15,000 barrel, 15,000

barrels and 5,100 barrels, while the remaining gases are stored as liquids under pressure in up to

sixteen bullet tanks located in Area 22 of the Detroit Refinery (refer to Figure 2).

Some of these streams (e.g., butylene, C3-C4 mixtures) are returned to refinery process units for

further processing. Propane is shipped off-site via pipeline or railcar. Propylene is shipped off-

site via railcar. Butane may be shipped off-site via pipeline, railcar, or tanker truck; or may be

blended with gasoline. Railcar operations are currently located adjacent to the LPG Storage

Area.

Physical and Operational Changes Associated with the LPG Storage and Transfer Project

In order to maintain the viability and safety of the Detroit Refinery, MPC proposes to upgrade

the current LPG storage and handling operations. Physical changes include the following:

Replacement of sixteen existing pressurized bullet tanks with eight new 3,000 barrel

capacity pressurized bullet tanks. The new bullet tanks will be located in the same

general area as the existing tanks.

Replacement of an existing six spot railcar load rack with a new ten spot railcar load

rack. The existing railcar load rack is located adjacent to the existing LPG bullet tanks

and spherical tanks. The new railcar load rack will be located in the Melvindale Tank

Farm, part of a rail spur that includes existing asphalt and ethanol railcar loading

operations. Light-end streams may be shipped or received at the new railcar load rack.

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Air Quality Division – Permits Section June 17, 2015 Page 4 Replacement of existing piping, pumps, and related components (valves, flanges, etc.) in

the LPG Storage Area and the installation of new piping, pumps, and related components

in the new railcar loading area.

Installation of related equipment such as vaporizers, knock-out pots, and propane dryers.

System sketches illustrating the anticipated LPG Storage Area layout and the anticipated

location of the LPG railcar loading operation are provided in Attachment B.

The total LPG storage capacity of the three existing spheres and the eight new bullet tanks

(59,100 barrels) is greater than the capacity of the three existing spheres with the sixteen existing

bullet tanks (43,200 barrels). However, the existing storage capacity is sufficient to meet current

and projected LPG and light end gas stream storage needs on an annual basis. Therefore, the

LPG Storage and Transfer Project will not debottleneck any upstream or downstream operations

at the Detroit Refinery.

Further, the number of pumps and components (valves, flanges, etc.) associated with the

upgraded LPG storage and handling operations will be less than the number currently in service.

As a result, post-project emissions of VOCs and TACs will be lower than what has already been

accounted for in previous permitting of the LPG storage and handling operations. However, no

credit has been taken for the expected reduction in VOC and TAC emissions.

Construction/modification of the aforementioned equipment is expected to commence in the first

quarter of 2016 and is scheduled for completion by the end of 2017.

Estimate of Fugitive Emissions from Leaking Components

Transfer operations from process equipment to storage vessels, from storage vessels to the railcar

load rack, and from the railcar load rack to storage vessels will occur through a closed system

that will remain under pressure whenever the light end streams are being transferred. Therefore,

losses to the atmosphere due to the storage and transfer operations will be limited to fugitive

emissions leaks.

Fugitive emissions associated with pressurized storage and transfer operations are dependent on

the number of components (i.e., valves, flanges, pumps, etc.) rather than the amount of material

transferred. MPC has developed and implemented a comprehensive fugitive emissions leak

detection and repair (“LDAR”) program at the Detroit Refinery. The program uses an electronic

database to store component information and monitoring data. MPC has also developed site-

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Air Quality Division – Permits Section June 17, 2015 Page 5 specific emission factors using protocols developed by the U.S. EPA2, the American Petroleum

Institute3, and the Texas Commission on Environmental Quality4 to estimate fugitive emissions

due to the various types of leaking components that may operate at the Detroit Refinery. The

U.S. EPA protocol accounts for the emissions reduction associated with the increased control

efficiency of an LDAR Program. Fugitive emission estimates for valves, pumps and flanges are

based on actual monitoring data from 2013 and 2014, and assume that the existing requirement

to monitor 90% of flanges and connectors in gas/vapor and light liquids service will remain in

effect. The equipment-specific emission factors developed following this methodology have

previously been reviewed and approved for use by the AQD.

Potential fugitive VOC emissions due to leaking components associated with the proposed

storage and transfer operations were estimated using the MPC-developed emission factors.

Additional information necessary to estimate fugitive emission leaks includes the number and

type of components, the service category of each component, and the annual hours of operation.

All components associated with the proposed storage and transfer operations will operate in gas

or light liquid service. Further, all related components are expected to remain in service 8,760

hours per year.

MPC projects that approximately 3,660 new components will be installed to support the

upgraded LPG storage and transfer operations. New components, emission factors, and

estimated fugitive VOC emissions for the upgraded LPG storage and transfer operations are

presented in Table 1. As shown in the table, potential VOC emissions due to new components

associated with the upgraded LPG storage and transfer operations are estimated at 5,164 pounds

per year (2.58 tons per year).

3. RELEVANT FEDERAL AIR REGULATIONS

The Detroit Refinery is located at 1300 South Fort Street in the City of Detroit, Wayne County,

Michigan, in an area currently designated attainment with the NAAQS for all regulated NSR

2 Protocol for Equipment Leak Emission Estimates – EPA-453/R-95-017. 3 API Publications 4677 (process drains) and 343 (equipment leaks). 4 Texas Commission on Environmental Quality, Air Permit Technical Guidance for Chemical Sources:

Equipment Leak Fugitives, Air Permits Division, TCEQ Air Permits Division draft document, October

2000, pp15-16.

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Air Quality Division – Permits Section June 17, 2015 Page 6 pollutants except for the 1-hour SO2 Standard. Federal air regulations relevant to the LPG

Storage and Transfer Project are summarized below.

40 CFR Part 60, Subpart GGGa – Standards of Performance for equipment Leaks of VOC in Petroleum Refineries for Which Construction, Reconstruction, or Modification Commenced After November 7, 2006

On November 16, 2007, the U.S. EPA promulgated new standards of performance for equipment

at petroleum refineries that are in VOC service (e.g., valves, flanges, pumps, and connectors).

The LPG tank farm (included in EU22-Tankfarms) was modified in 2012 and is, therefore,

currently subject to Subpart GGGa requirements which have been incorporated into the Detroit

Refinery LDAR program. The existing LPG railcar loading facilities (EU22-LPGRailRack)

were constructed before November, 2007 and have not been reconstructed or modified since

then. Additional components in VOC service will be installed for the LPG Storage and Transfer

Project. These components will be subject to Subpart GGGa requirements, and will be added to

the LDAR program.

Subpart QQQ – Standards of Performance for VOC Emissions from Petroleum Refinery

Wastewater Systems

The standards promulgated under 40 CFR Part 60 Subpart QQQ apply to affected facilities

located in petroleum refineries for which construction, modification, or reconstruction is

commenced after May 4, 1987. Affected facilities include individual drain systems, oil-water

separators, and aggregate facilities (i.e., an individual drain system together with ancillary

downstream sewer lines and oil-water separators, down to and including the secondary oil-water

separator, as applicable). MPC will construct up to six new drains as part of the LPG Storage

and Transfer Project. The new drains will be constructed to comply with the applicable

provisions of Subpart QQQ, including standards for individual drain systems (§60.692-2). The

new drains will be added to the refinery LDAR monitoring program.

National Emission Standards For Hazardous Air Pollutants (“NESHAP”) For Source Categories

The Clean Air Act Amendments of 1990 (“CAA”) required the U.S. EPA to regulate emissions

of 189 listed HAPs. On July 16, 1992, the U.S. EPA published a list of source categories that

emit one or more of these HAPs. For listed categories of "major" sources (those that emit 10

tons annually or more of a listed pollutant or 25 tons annually or more of a combination of

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Air Quality Division – Permits Section June 17, 2015 Page 7 pollutants), the CAA requires the U.S. EPA to develop standards that include the application of

maximum achievable control technology (“MACT”). The U.S. EPA has promulgated NESHAP

for the source category of petroleum refineries as a major source of HAP emissions.

While the Detroit Refinery is classified as a major source of HAPs and is regulated under a

number of NESHAPs, emissions associated with the LPG Storage and Transfer Project will be

limited to substances that are not regulated HAPs. Therefore, the project is not subject to

regulation under the federal NESHAPs.

4. RELEVANT STATE OF MICHIGAN AIR REGULATIONS

Michigan's Administrative Rules for Air Pollution Control set forth requirements for new or

modified sources of air pollution. Applicable Michigan air quality requirements are summarized

below.

Rule 201 (Permits to Install)

Rule 201 states, "A person shall not install, construct, reconstruct, relocate, alter, or modify any

process or process equipment, including the control equipment pertaining thereto, which may

emit an air contaminant, unless a permit to install which authorizes such action is issued by the

department." The LPG Storage and Transfer Project will have the potential to emit an air

contaminant. Therefore, the project is subject to the Permit to Install requirement. In

accordance with Rule 203 (Information Required), MPC is submitting the enclosed Permit to

Install application form (Attachment A) and supporting documentation for the proposed

changes.

Rules 224 - 232 (Michigan’s Air Toxics Rules)

Rule 224 stipulates that a new or modified source subject to Rule 201 permitting requirements

(i.e. any source permitted after April 17, 1992) and that emits a TAC shall not be allowed to emit

the TAC in excess of “the maximum allowable emission rate based on the application of best

available control technology for toxics (“T-BACT”), except as provided in subrule (2) of this

rule”. Rule 102 defines T-BACT as “the maximum degree of emission reduction which the

commission determines is reasonably achievable for each process that emits toxic air

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Air Quality Division – Permits Section June 17, 2015 Page 8 contaminants, taking into account energy, environmental, and economic impacts and other

costs.”

However, pursuant to Rule 224(2)(a)(ii), T-BACT does not apply to “an emission unit or units

for which standard have been promulgated under section 112(d) of the clean air act….” or for

“Other toxic air contaminants that are volatile organic compounds, if the standard under section

112(d) of the clean air act…controls similar compounds that are also volatile organic

compounds.”

Petroleum refinery process units, storage tanks and fugitive emissions are regulated under Part

63, Subpart CC – National Emissions Standards for Hazardous Air Pollutants from Petroleum

Refineries. Components associated with the LPG Storage and Transfer Project will be covered

under the Detroit Refinery’s LDAR program, which is a consolidation of requirements under 40

CFR Part 63, Subpart CC and standards promulgated under 40 CFR Part 60, Subparts GGG and

GGGa. The TACs potentially emitted from leaking components associated with the LPG

Storage and Transfer Project are also VOCs. Therefore, T-BACT does not apply to the project.

Rule 225(1) stipulates that a new or modified source shall not be allowed to emit any TAC in

excess of "the maximum allowable emission rate which results in a predicted maximum ambient

impact that is more than the initial threshold screening level or the initial risk screening level,

or, both...”.

New equipment associated with the LPG Storage and Transfer Project has the potential to emit

LPG, propane, butane, isobutane, propylene, isobutylene, and amylene. Pursuant to Rule 120(f),

two of these constituents, LPG and propane, are not regulated as TACs. Ambient air quality

dispersion modeling analyses have been conducted to demonstrate that potential fugitive TAC

emissions due to new leaking components associated with the storage and transfer operations

will not cause an exceedance of any applicable health-based screening level. The methodology,

databases, and results of the air quality impact analysis are summarized in Section 5.

Rule 702 (New Sources of VOCs)

Rule 702 states that the owner or operator of a new source of VOC emissions shall not allow the

emission of VOC from the new source in excess of the lowest maximum allowable emission rate

of the following:

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Air Quality Division – Permits Section June 17, 2015 Page 9

Rule 702(a) – An emission rate as listed by the commission or based upon the application

of the best available control technology.

Rule 702(b) – An emission rate as specified by a new source performance standard.

Rule 702(c) – An emission rate specified as a condition of a permit to install or a permit

to operate.

Rule 702(d) – An emission rate specified in Part 6 of the Rules.

The new components in VOC service (valves, flanges, etc.) that will be associated with the LPG

Storage and Transfer Project are regulated under a new source performance standard (Subpart

GGGa). In compliance with Subpart GGGa, the new components will be added to the Detroit

Refinery’s comprehensive LDAR program. Therefore, the project satisfies Rule 702(b).

Rule 706 (Loading Delivery Vessels)

Pursuant to Rule 706(1), “It is unlawful for a person to load, or allow the loading of, any

organic compound that has a true vapor pressure of more than 1.5 psia at actual conditions

from any stationary vessel into any delivery vessel located at a new loading facility that has a

throughput of 5,000,000 or more gallons of such compounds per year, unless such delivery

vessel is filled by a submerged pipe.” Rule 706(2) states, “It is unlawful for a person to load, or

allow the loading of, any organic compound that has a true vapor pressure of more than 1.5 psia

at actual conditions from any stationary vessel into any delivery vessel located at a new loading

facility that has a throughput of 5,000,000 or more gallons of such compounds per year, unless

such delivery vessel is controlled by a vapor recovery system that captures all displaced organic

vapor and air by means of a vapor-tight collection line and recovers the organic vapor such that

emissions to the atmosphere do not exceed 0.7 pounds of organic vapor per 1,000 gallons of

organic compounds loaded.”

A “delivery vessel” is defined under Rule 104(b) as “any tank truck, tank equipped trailer,

railroad tank car, or any similar vessel equipped with a storage tank used for the transport of a

volatile organic compound from sources of supply to any stationary vessel.” While the railcars

associated with the LPG loading operation qualify as delivery vessels under Rule 104(b), it is

important to note that the loading operation is conducted with pressurized railcars. In contrast to

the loading of liquid fuels (e.g., gasoline, diesel), the railcars are loaded without displacing LPG

vapors. Therefore, it is neither necessary to load the railcars via submerged pipe nor to operate a

vapor recovery system with a vapor-tight collection line in order to keep organic vapor emissions

from exceeding 0.7 pounds per 1,000 gallons of organic compounds loaded. Further, due to the

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Air Quality Division – Permits Section June 17, 2015 Page 10 method of pressurized vessel loading, is not necessary to operate the LPG railcar loading

operation with two of the five measures specified in Rule 706(3):

(a) Interlocking system or procedure is not necessary since there is no vapor-tight collection

line.

(b) Device to ensure that the vapor-tight collection line will close upon disconnection is not

necessary since there is no vapor-tight collection line.

(c) A device or procedure to accomplish complete drainage before the loading device is

disconnected, or a device or procedure to prevent liquid drainage from the loading device

when not in use will be provided.

(d) Vapor-tight pressure relief devices will be provided.

(e) Hatch openings will be closed and vapor-tight during loading.

In accordance with Rule 706(4), written procedures for operation of these control measures will

be developed and posted in an accessible location near the loading device.

Rules 1801 – 1818 (Prevention of Significant Deterioration)

Pursuant to Rule 1801(cc)(i)(K), the Detroit Refinery is currently classified as an existing major

stationary source under the Prevention of Significant Deterioration (“PSD”) regulations.

Described in Section 2 of this submittal, the project has the potential to emit 2.58 tons/year of

VOCs from new components that will be installed in support of the Project. This is well under

the PSD significant emission rate threshold of 40 tons per year. Therefore, the LPG Storage and

Transfer Project is classified as a minor modification to an existing major source.

5. COMPLIANCE WITH THE AIR TOXICS SCREENING LEVEL REQUIREMENT

Rule 225 requires a demonstration that potential TAC emissions due to a new or modified source

subject to the PTI requirement will not result in an ambient impact above an applicable health-

based screening level. Ambient air quality dispersion modeling analyses have been conducted in

support of the Rule 225 requirement and demonstrate that the new components associated with

the LPG Storage and Transfer Project will not threaten the applicable health-based screening

levels.

The modeling analyses described in this section were conducted utilizing databases and following a

methodology consistent with previous AQD-approved Rule 225 demonstrations for the Detroit

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Air Quality Division – Permits Section June 17, 2015 Page 11 Refinery. The following sections summarize the dispersion modeling methodology, the dispersion

model employed in the analysis, site area characteristics, modeling databases developed in support

of the analysis, and the results of the air quality impact analysis. Dispersion modeling input and

output files are submitted in electronic format (CD-ROM) in Attachment C.

Modeling Methodology

Rule 225(1) requires new or modified sources of TAC emissions to demonstrate that the ambient

impact of each emitted TAC is less than its corresponding initial threshold screening level

(“ITSL”), initial risk screening level (“IRSL”), or both if applicable. The LPG storage and

handling operations have the potential to emit the following five TACs: propylene, butane,

isobutane, isobutylene, and amylene. Screening levels for TACs associated with the LPG

storage and handling operations are summarized in Table 2.

Potential VOC emissions from new components associated with the LPG Storage and Transfer

Project have been estimated at 2.58 tons per year (refer to Table 1). The composition of the

VOCs being stored or handled at any given time will vary. To ensure protection of the

applicable screening levels, model simulations were conducted conservatively assuming that

100% of the annual VOC emission rate would be comprised of each individual TAC. This is a

situation that will never occur, especially considering that two of the constituents potentially

emitted are not regulated as TACs (e.g., LPG and propane).

The LPG storage operation is located within the refinery property boundary, while the LPG

railcar loading operation is located in the Melvindale Tank Farm. Because the two operations

are separated by a distance of approximately one-half mile, TAC impacts from the two

operations are not expected to meaningfully overlap. Therefore, using the component location

information provided in Table 1, potential TAC emissions were subsequently split between the

LPG storage area and the LPG railcar load rack. Potential TAC emission rates and release

parameters for the modeled sources are summarized in Table 2.

Dispersion Model

Model simulations of the new LPG storage and handling operations were conducted using the

AMS/EPA Regulatory Dispersion Model (“AERMOD”, Release No. 14134). AERMOD is

currently recommended and approved for use in industrial source modeling applications by the U.S.

EPA and the AQD. AERMOD is designed to simulate conditions associated with this air quality

impact analysis, including:

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Air Quality Division – Permits Section June 17, 2015 Page 12 Urban dispersion conditions;

Both windy and calm conditions;

Simulation of low-level fugitive sources;

Concentration estimates over flat and simple terrain; and

Concentration estimates for short-term and annual averaging periods.

Consistent with U.S. EPA and AQD guidance, AERMOD simulations were conducted in the

Regulatory Default mode.

Land Use

Atmospheric conditions affecting the downwind dispersion of air contaminants may be

influenced by localized land use. The developers of AERMOD have designed the model to

simulate emissions sources located in both rural and urban environments. To assess whether the

modeling domain is located in a rural or urban environment, the U.S. EPA’s Guideline on Air

Quality Models (2006) suggests using a land use typing scheme developed by Auer5.

Utilizing satellite imagery, land use within a three kilometer radius of the Detroit Refinery has

been assessed in accordance with the Auer procedure and can be classified as urban. Consistent

with recent AQD-approved modeling analyses of the Detroit Refinery, AERMOD simulations

were conducted in the urban mode at a population of 1,208,574 (URBANOPT 1208574).

Modeling Databases

Databases required as input to AERMOD include receptor points and associated terrain

elevations, meteorological data, and emission inventory data. A discussion of the databases

utilized in the ambient air quality impact assessment is provided below.

Meteorological Data

The AQD generally requires the use of the most spatially and temporally representative one-year

meteorological database when conducting dispersion model simulations of TACs in support of a

PTI application. Because the Detroit Refinery is located in an urban setting, the AQD

recommends the use of surface observations measured at the Detroit City Airport (“Detroit

5 Correlation of Land Use and Cover with Meteorological Anomalies, Journal of Applied Meteorology,

1978.

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Air Quality Division – Permits Section June 17, 2015 Page 13 City”, Station No. 14822), combined with coincident upper air observations measured at the

National Weather Service station located in White Lake, Michigan (Station No. 72632).

In accordance with AQD guidance, one year (2014) of the Detroit City Airport/White Lake

meteorological database, preprocessed by the AQD, was employed in the Rule 225 compliance

demonstration.

Receptor Points

AERMOD-predicted concentrations may be estimated at discrete receptor locations. Utilizing

aerial imagery in NAD 83 format, a discrete receptor grid was designed to identify maximum

predicted TAC impacts due to the proposed LPG storage and handling operations. The

following methodology was utilized to design a receptor grid that covers the new and existing

fenceline:

Receptors were located along the Detroit Refinery property boundaries at distances not

exceeding 10 meters; and

25 meter spacing out to a distance of approximately one kilometer from the Detroit

Refinery interior.

Illustrated in Figure 3, the grid used in the air quality impact analysis consists of 6,210 discrete

receptor points.

Topography

Elevated terrain features may affect the transport of atmospheric contaminants as well as serve as

areas of potentially higher pollutant impacts. Where appropriate, terrain features should be included

in the modeling analysis. Terrain elevations at emission locations and modeled receptor points were

assessed using the U.S. EPA’s AERMOD Terrain Preprocessor (“AERMAP”, Release No. 11103)

in conjunction with U.S.G.S. digital elevation model terrain files in NAD 83 format. Terrain data

estimated by AERMAP were subsequently input to AERMOD to account for potential fluctuations

in elevation.

Source Inputs

Potential TAC emissions will vent to atmosphere as fugitive leaks from components associated with

the LPG storage and handling operations. Consistent with previous AQD-approved modeling

Page 14: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Air Quality Division – Permits Section June 17, 2015 Page 14 demonstrations at the Detroit Refinery, fugitive component leaks from these types of emission units

are modeled as low-level area sources. As a conservative measure, leaking components associated

with the LPG storage and transfer operations, including components associated with the propane

dryers, were modeled as if they will all be located along piping linking each of the two banks of new

bullet tanks. The location of the two banks of new bullet tanks is shown in Figure 4.

Leaking components associated with the railcar loading operation were modeled as if they will all

be located along the spine of the pipe rack that connects the load bays. Because the U.S. EPA

recommends that AERMOD simulations of area sources not exceed a length to width ratio

greater than 10:1, the railcar load rack was divided into four equal areas. The location of the

railcar loading operation is shown in Figure 5.

As previously described, potential TAC emissions were split between the LPG storage area and the

LPG railcar load rack. Potential TAC emission rates and area source release parameters for the two

areas are summarized in Table 2.

Predicted Impacts

Utilizing AERMOD over a one-year meteorological database (2014 Detroit City Airport/White

Lake) and following the methodology described above, model simulations of the two areas (LPG

storage area and LPG railcar load rack) were each conducted at a one gram per second unit

emission rate. The model simulations were conducted by evenly dividing the unit emission rate

by the number of area sources located in each area – two area sources in the LPG storage area

and four area sources in the LPG railcar load rack. Consistent with the applicable screening levels,

concentrations for each area were predicted over 8-hour, 24-hour, and annual averaging periods.

Considering the applicable averaging period, maximum predicted concentrations for each area

were then multiplied by the potential TAC-specific emission rate assigned to that area to obtain

maximum predicted TAC-specific impacts.

Maximum TAC-specific impacts for each of the two areas associated with the LPG storage and

handling operations are compared to the applicable screening levels in Table 2. As shown in the

table, the dispersion modeling analyses demonstrate that potential TAC emissions from new

components associated with the LPG storage and handling operations will result in ambient impacts

lower than applicable screening levels. Therefore, the LPG Storage and Transfer Project is in

compliance with the applicable air quality impact requirement of Rule 225.

Page 15: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Air Quality Division – Permits Section June 17, 2015 Page 15

6. CONCLUDING REMARKS

MPC proposes to upgrade its LPG storage and handling operations to assure the long term

operation of the Detroit Refinery in conformance with Industry and MPC engineering design and

safety standards. The information provided in this submittal, including an application form

signed by the Responsible Official, constitutes the Permit to Install application covering the LPG

Storage and Transfer Project.

The project will not result in an increase in daily or annual refining capacity at the Detroit

Refinery. Moreover, the emissions changes associated with the project will not trigger PSD, nor

will it result in an exceedance of a health-based screening level under Michigan’s air toxics

provisions. The project has been designed to comply with all applicable state and federal air

quality regulations.

If you have any questions regarding this submittal or require any additional supporting

information, please do not hesitate to contact me at (616) 554-3210 or Jeff Bruestle of MPC at

(313) 297-6068.

Sincerely, HORIZON ENVIRONMENTAL CORPORATION

Brian E. Leahy Senior Meteorologist c: Jeffery L. Bruestle, P.E., MPC Attachments

Page 16: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

FIGURES

Page 17: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

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Figure 1Site Map-Marathon Petroleum Company LP

0 0.25 0.5 0.75 10.125Miles

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Rouge Asphalt Terminal

Page 18: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Figure 2Current Location of LPG Storage and Railcar LoadingMarathon Petroleum Company LP - Detroit Refinery

June 2015V:\GIS\Marathon\MOC_0261\Layouts\LPG_Project\Figure_2_LPG_Loading_Storage_Areas_For_JPG.mxd

Current LPGRailcar Loading

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¹ 0 50 100 15025 Meters

Page 19: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Figure 3Receptor Grid

Marathon Petroleum Company LP - Detroit Refinery

May 2015V:\GIS\Marathon\MOC_0265\Layouts\ReceptorGrid.mxd

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¹ 0 250 500 750125 Meters

Page 20: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Figure 4Location of New LPG Storage Operations

Marathon Petroleum Company LP - Detroit Refinery

June 2015V:\GIS\Marathon\MOC_0266\Layouts\Marathon_New_LPG_Operations.mxd

ModeledArea

Source

¹0 30 60 9015 Meters

LegendNew PipingNew Bullet TanksTanks to be Removed

Page 21: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Figure 5Location of New LPG Railcar Loading Operation

Marathon Petroleum Company LP - Detroit Refinery

June 2015V:\GIS\Marathon\MOC_0266\Layouts\Marathon_NewRailcarLPG_Loading.mxd

LPGRailcar

Loading

PentaneRailcar

Loading

AsphaltRailcar

Loading

¹ 0 80 160 24040 Meters

Page 22: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

TABLES

Page 23: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Emission Factor List

LL/G valves 6.400E-05 Facility Average (based on 2013 & 2014 SV data) 8,760

HL valves 1.800E-04 Ave Emsn Factor (API Pub343) 8,760

LL Pumps 1.165E-03 Facility Average (based on 2013 & 2014 SV data) 8,760

HL Pumps 1.050E-03 Facility Specific Factor 8,760

Compressors 2.103E-01 Ave Emsn Factor w/ 85% control (EPA Protocol Doc) 8,760

LL/G flanges 5.510E-04 Ave Emsn Factor (EPA Protocol Doc) 8,760 10.00% percentage of unmonitored flanges

LL/G flanges - monitored 1.653E-05 Ave Emsn Factor (EPA Protocol Doc and TCEQ Doc3) 8,760 90.00% percentage of monitored flanges

LL/G flanges - monitored 2.985E-05 Facility Average (based on 2013 & 2014 SV data) 8,760

HL flanges 8.160E-05 Ave Emsn Factor (API Pub 343) 8,760

PRVs 3.530E-01 Ave Emsn Factor (EPA Protocol Doc) 8,760

PRVs - monitored 6.310E-03 Facility Average (based on 2013 & 2014 SV data) 8,760Drains (continuous) 5.174E-03 Facility Specific Factor 8,760

LPG Tank Farm and Railcar Loading - Component Count SummaryStream Name VOC wt%

LL/G Valves HL Valves LL Pumps HL Pumps

Com- pressors

LL/G Flanges HL Flanges PRVs Drains Totals

New for LPG Tank Farm all 100 640 0 7 0 0 1,921 0 8 4 2,581New for Railcar Loading all 100 236 0 7 0 0 709 0 0 0 953New for Propane Dryers all 100 31 0 0 0 1 94 0 0 2 128

New Components Total all 100 908 0 14 0 1 2,724 0 8 6 3,661

LPG Tank Farm and Railcar Loading - Estimated Fugitive VOC Emissions (in pounds unless otherwise noted)

Stream Name VOC wt%

LL/G Valves HL Valves LL Pumps HL Pumps

Com- pressors

LL/G Flanges HL Flanges PRVs Drains Total (lb/yr)

Total (tons/yr)

New for LPG Tank Farm all 100 359 0 71 0 0 1,380 0 442 181 2,434 1.22New for Railcar Loading all 100 133 0 71 0 0 509 0 0 0 713 0.36New for Propane Dryers all 100 17 0 0 0 1,842 67 0 0 91 2,018 1.01

New Components Total all 100 509 0 143 0 1,842 1,956 0 442 272 0 5,164 2.58

Total (lb/yr)Total

(tons/yr) Total (lb/yr)Total

(tons/yr) Total (lb/yr)Total

(tons/yr) Total (lb/yr)Total

(tons/yr)

New Components Total 4,892 2.45 New Components Total 0 0.00 New Components Total 272 0.14 New Components Total 5,164 2.58

Notes:(1) "Facility Average" emission factors are based on the emission rates and component counts from the GuideWare database for the years 2013 & 2014.

(2) "Facility Specific Factor" emission factors are from a study "Fugitive VOC Emission Calculations" conducted by NTH Consultants, Ltd. (Sept 2002).

(3) EPA Protocol Document - Protocol for Equipment Leak Emision Estimates Nov. 1995 (EPA-453/R-93-026)

(4) TCEQ Document - Equipment Leak Fugitives Oct. 2000

LL/G EMISSIONS HL EMISSIONS DRAIN EMISSIONS

TABLE 1LPG TANK FARM AND RAILCAR LOADING - COMPONENT COUNT AND VOC EMISSIONS

Marathon Petroleum Company LP, Detroit Refinery

EquipmentFactor

(lb/hr-comp) Factor Basis (Reference) Hours

PTI Support Tables 06‐17‐15

Page 24: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

Emission Release X Y Component EmissionFugitive Rate Height Dimension Dimension Orientation Sigma Z Area Rate

Component Easting Northing (g/s) (m) (m) (m) (deg) (m) (m2) (g/s/m2)

LPG Storage Area 1 322196.4 4683045.6 0.50 4.27 20.0 3.0 32 0.142 60.0 8.33E-03LPG Storage Area 2 322207.5 4683077.0 0.50 4.27 20.0 3.0 32 0.142 60.0 8.33E-03

LPG Railcar Loading Area 1 321453.3 4682722.6 0.25 4.57 20.0 2.0 -70 0.142 40.0 6.25E-03LPG Railcar Loading Area 2 321437.5 4682710.1 0.25 4.57 20.0 2.0 -70 0.142 40.0 6.25E-03LPG Railcar Loading Area 3 321421.6 4682698.5 0.25 4.57 20.0 2.0 -70 0.142 40.0 6.25E-03LPG Railcar Loading Area 4 321405.7 4682686.3 0.25 4.57 20.0 2.0 -70 0.142 40.0 6.25E-03

Averaging Period

LPG Storage Area

LPG Railcar Loading Area

8-hour 586.1 2,782.224-hour 242.0 1,001.8annual 29.8 180.3

Emission Rate

Maximum Modeled Impact

Emission Rate

Maximum Modeled Impact

(g/s) (ug/m3) (g/s) (ug/m3) (ug/m3)

Propylene 115-07-1 0.064 15.5 0.010 10.3 1,500 24-Hour ITSLButane 106-97-8 0.064 37.5 0.010 28.5 23,800 8-Hour ITSL

Isobutane 75-28-5 0.064 37.5 0.010 28.5 23,800 8-Hour ITSLIsobutylene 115-11-7 0.064 1.9 0.010 1.8 21 Annual ITSL

Amylene 513-35-9 0.064 1.9 0.010 1.8 106 Annual ITSL

Notes:1. Model simulations of the LPG Storage Area conducted conservatively assuming that 100% of the emissions will occur in the row of storage vessels located nearest the fenceline.2. Model simulations of the LPG Railcar Area conducted conservatively assuming that 100% of the emissions will occur in the load bay located nearest the fenceline.3. TAC-specific emission rates conservatively based on the assumption that the potential VOC emission rate is composed entirely of that TAC.

TAC CAS Number

AERMOD Concentrations, ug/m3 (based on a 1 g/s emission rate)

TABLE 2LPG STORAGE AND LOAD RACK EMISSION SOURCES AND EXHAUST PARAMETERS

Marathon Petroleum Company LP, Detroit Refinery

Southwest CoordinateUTM

Screening Level

Avg. Time ITSL / IRSL

LPG Storage Area LPG Railcar Loading Area

PTI Support Tables 06‐17‐15

Page 25: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

ATTACHMENTS

Page 26: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

ATTACHMENT A

PERMIT TO INSTALL APPLICATION FORM

Page 27: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related
Page 28: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related
Page 29: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

ATTACHMENT B

LPG STORAGE AND RAILCAR LOADING SYSTEM SKETCHES

Page 30: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related
Page 31: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related
Page 32: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related
Page 33: E PPLICATION FOR A ERMIT TO I C LPG S ROJECT AT THE M P C … · Liquefied petroleum gas (“LPG”) storage and handling ... adjacent Melvindale Tank Farm, new piping and related

ATTACHMENT C

DISPERSION MODELING INPUT/OUTPUT FILES ON CD-ROM

(INCLUDED IN ORIGINAL ONLY)