AQ_F_1900015_20130603_ENF_SOC

Special Order By Consent
ARAUCO Panels USA, LLC
BEFORE THE NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
STATE OF NORTH CAROLINA )
COUNTY OF CHATHAM )
ARAUCO PANELS USA, LLC ) SPECIAL ORDER BY CONSENT
MONCURE FACILITY. ) SOC 2013-002
MONCURE, CHATHAM COUNTY )
NORTH CAROLINA )
[SITE NUMBER 05/19/00015] )
This SPECIAL ORDER BY CONSENT (hereinafter referred to as the "ORDER") is
made and entered into pursuant to North Carolina General Statute 143-215.110 by and among
ARAUCO PANELS USA, LLC (hereafter referred to as "ARAUCO" or "COMPANY") and the
ENVIRONMENTAL MANAGEMENT COMMISSION, an agency of the State of North
Carolina(hereinafter referred to as the"COMMISSION").
WITNESSETH:
I. The COMMISSION and ARAUCO do hereby stipulate and agree to the following:
A. ARAUCO Panels USA LLC operates a Particleboard Manufacturing Facility
(hereafter referred to as the "Facility") in Moncure, Chatham County, North
Carolina.
B. On March 15, 2012, Mr. Steve Carr of the Raleigh Regional Office of the N.C.
Division of Air Quality was on-site for stack testing of the Facility and observed
excess emissions from the Particleboard Dryer/Press exhaust stack. Mr. Carr
conducted a 30-minute EPA Reference Method 9 visible emissions test and
determined that five six-minute average opacity readings were in excess of the
20% permit limit for visible emissions. These readings confirmed prior readings
by a third party during engineering testing on December 2, 2011, that showed
opacity readings in excess of the 20%permit limit.
C. On April 12, 2012, the Division of Air Quality (DAQ) issued a Notice of
Violation (NOV) for exceedance of the visible emission standard 15A NCAC 2D

Special Order By Consent
ARAUCO Panels USA, LLC
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.0521 and Condition No. 2.1.F.5.a of the facility's Title V air permit No.
03449T39.
D. ARAUCO submitted a response to the NOV on May 1, 2012 stating that the
visible emissions from the Particleboard Dryer/Press exhaust stack had been more
variable recently but that the cause of higher levels was uncertain. ARAUCO
requested a meeting with DAQ representatives to discuss a plan to thoroughly
investigate the cause of the higher visible emissions and appropriate means to
reduce them. The meeting took place on May 31, 2012, at the DAQ Raleigh
Regional Office, and the COMPANY agreed to a Plan of Action to determine the
sources of the excess emissions. DAQ granted 90 days for the COMPANY to
execute the plan to determine the cause of the excess emissions.
E. On September 28, 2012, the COMPANY submitted the results of the plan items
and stated that the existing Wet ElectroStatic Precipitator (WESP) designed to
control Visible Emissions and Particulate Matter emissions (PM) from the process
line needed to be replaced. Further, the COMPANY requested the agency allow
the COMPANY to enter a Special Order by Consent (ORDER) to provide the
time necessary to replace the existing WESP with a new unit.
NOW, THEREFORE, the COMMISSION and ARAUCO have agreed to enter into this
ORDER with the following terms and conditions.
II. The COMPANY, desiring to operate in a safe and environmentally sound manner in
accordance with the rules and regulations of the COMMISSION, hereby agrees to
perform the following activities:
A. The COMPANY will continue to operate the existing WESP per their permit until
such time that the new WESP has finished construction. The facility will shut
down all processes exhausting through the WESP while the old WESP is
disconnected and the new WESP is connected to the process. At no time will the
processes operate without being controlled by either the existing or new WESP.

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B. Within 60 days after the effective date of this ORDER, the COMPANY shall file
with DAQ an application for a revised permit for the installation of the new
WESP.
C. The COMPANY shall sign the necessary contract(s) for the purchase and
installation of the new WESP to be installed on the Particleboard Line within 2
months after issuance of the revised permit by DAQ.
D. The COMPANY shall commence construction on the installation of the new
WESP according to the specifications in the contract(s) signed as provided in
Paragraph II.C. This activity shall be completed within 6 months after issuance of
the revised permit.
E. The COMPANY shall complete the work associated with installation of the new
WESP according to the terms of the contract(s) within 20 months after issuance of
the revised permit.
F. The COMPANY shall submit a testing protocol at least 45 days prior to the
compliance test.
G. The COMPANY shall conduct engineering evaluation, shakedown, and performance
testing on the new WESP demonstrating compliance with applicable permit
requirements. The source testing for 40 CFR 63 Subpart DDDD (MACT 41)),
particulate matter and visible emissions shall be completed and the test report
submitted to DAQ within 4 months after completion of installation of the new
WESP.
H. The COMPANY agrees to pay the COMMISSION a civil penalty in the amount of
ten thousand dollars ($10,000). This amount shall be due and payable within 30 days
of the effective date of this ORDER.
III. The COMPANY shall submit no later than fourteen (14) days after the deadline for
completing each increment required in Paragraph II.B-G written certification to the Air
Quality Regional Supervisor, Raleigh Regional Office, Division of Air Quality, whether
such increment has been performed.

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IV. This ORDER shall pertain to the equipment, sources, and operations described in this
ORDER and covers potential excess emissions of particulate matter and visible
emissions. Any violation of Air Quality Standards resulting from other pollutants,
sources or equipment for which the COMPANY is responsible, may subject the
COMPANY to enforcement action pursuant to North Carolina General Statute 143-
215.114A.
V. In the event of changed circumstances, the COMPANY may request that the Director
modify the ORDER, as appropriate. If the Director finds that the COMPANY has
established good cause for its request, DAQ and the COMPANY shall jointly stipulate
and agree to a written modification of this ORDER in compliance with 15A NCAC 2D
.2200.
VI. In the event the COMMISSION or DAQ finds that reports, plans, specifications, or
permit applications required under this ORDER are in any respect deficient or if
additional information is necessary to comply with the requirements of North Carolina
General Statutes 143-215.107 et seq., any regulations promulgated thereunder, or any
other applicable laws or regulations, the COMPANY shall be notified by DAQ as soon as
possible. The COMPANY shall be afforded an opportunity to modify, amend or
supplement its submissions to make such submissions complete and appropriate.
VII. In the event that the COMPANY fails to comply with any deadline as set out in this
ORDER, the COMPANY agrees that, unless excused under Paragraph VIII, the
COMPANY will pay the COMMISSION according to the following schedule:
DEADLINES AND REPORTS STIPULATED PENALTIES
Failure to submit reports or otherwise meet $500 per day for the first five days and
any deadline as required by Paragraph II. $1,000 per day thereafter.

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STIPULATED PENALTY:
Failure within thirty (30) days of receipt of the Director's written demand to pay the
penalties will be grounds for a collection action, which the Attorney General is hereby
authorized to initiate. By entering into this ORDER, the COMPANY waives any and all
defenses and agrees that the sole issue in such an action will be whether thirty (30) days
has elapsed. The COMPANY shall pay all costs, including agency and attorney fees,
associated with the collection of a delinquent stipulated penalty.
VIII. The COMPANY's obligation to comply with the requirements set forth in this ORDER
for which a stipulated penalty may be assessed, may be delayed or excused only to the
extent that noncompliance is caused by circumstances beyond control of the COMPANY,
as determined by the Director. Contractor delays or failure to obtain funding will not be
considered events beyond the COMPANY's control. If any such delaying event occurs,
the COMPANY shall notify the DAQ in writing within 10 days of encountering or
discovering the delaying event, describing in detail the event or delay, the precise
cause(s) of the event or delay, the measure(s) taken and to be taken by the COMPANY to
prevent or minimize the event or delay, and the schedule by which those measures will be
implemented. If the Director determines that noncompliance with this ORDER was
caused by circumstances beyond the control of the COMPANY, DAQ and the
COMPANY jointly may stipulate and agree to a written modification of this ORDER in
compliance with 15A NCAC 2D .2203(f).. Extension of any compliance date pursuant to
this Paragraph shall not extend any subsequent deadlines established in the ORDER
unless the subsequent deadline necessarily is dependent upon completion of the earlier
deadline. The final deadline shall not be extended more than 4 months per 15A NCAC
2D .2203(f).
IX. All notices and reports required from the COMPANY by this ORDER shall be mailed,
first class postage prepaid to:

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ARAUCO Panels USA, LLC
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Patrick Butler, Regional Air Quality Supervisor
Raleigh Regional Office
N.C. Dept. of Environment and Natural Resources
3800 Barrett Drive, Suite 101
Raleigh, North Carolina 27609
X. This ORDER constitutes full and final settlement and satisfaction of all matters addressed
herein and any and all claims or prospective claims that the COMMISSION has or may
have for violations of regulations described in Paragraph I. hereof, as of the date this
ORDER is approved by the COMMISSION. This ORDER shall not affect the
COMPANY's obligation to comply with any Federal, State, or local laws or regulations.
XI. Final approval and entry into the Original ORDER were subject to the requirements that
the COMMISSION give notice of proposed consent decrees to the public, and that the
public have at least thirty (30) days within which to comment on the ORDER.
XII. Should any provision of this ORDER be declared by a court of competent jurisdiction to
be inconsistent with Federal or State law and therefore unenforceable, the remaining
provisions hereof shall remain in full force and effect.
XIII. Except as otherwise set forth herein, this ORDER is not and shall not be interpreted to be
a permit or modification of an existing permit under Federal, State or local law, and shall
not be construed to waive or relieve the COMPANY of its obligations to comply in the
future with any permit.
XIV. In the event of termination of operations and closure of the Moncure Facility, the
COMPANY shall notify the Director in writing, within five (5) business days of the
earlier of(i) the date any Workers Adjustment and Retraining Notification Act (WARN),
notification, or (ii) Facility closure. Receipt of said notification from the COMPANY by
the Director shall terminate any obligations of the COMPANY pursuant to this ORDER,
including those pertaining to stipulated penalties, and this ORDER shall become null and
void in its applicability to the COMPANY. The COMPANY acknowledges its
responsibilities pursuant to this ORDER from the date of final approval and entry of this

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ORDER, through the date of receipt by the Director of notification of closure required by
this paragraph.
XV. This Agreement shall be binding upon the parties, their successors and assigns, upon
execution by the undersigned, who represent and warrant that they are authorized to enter
into this agreement on behalf of the parties hereto. The parties acknowledge and agree
that this Special Order by Consent is transferable to successor entities of the COMPANY
(by purchase or otherwise) upon written modification of the Order agreed to by the
parties.
XVI. This Special Order by Consent shall expire upon completion of the requirements in this
ORDER.
tJ
AGREED TO THIS DAY OF S-j 12013.
ATTESTED: ARAUCO Panels USA, LLC
BY:
Ric o Hill ann, Site Manager
DATE: `1 t�r`► _ �. �'
APPROVED AND ACCEPTED: ENVIRONMENTAL MANAGEMENT
COMMISSION
BY:
OOAV--Q---
Sheila C. Holman, Director
Division of Air Quality
DATE:
q`wv.Q 3i �°13