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NC0000272_Meeting Notes Supplmental_20120202
r "1 y. Blue Ridge Paper Products Inc. now doing business as Evergreen Packaging, is proud to be a part of and significant contributor to Western North Carolina. We are proud of our employees, proud of our products, and proud of our deep roots in the region. We are equally proud of the remarkable progress we have made in protecting the environment and improving the Pigeon River. We have done more than required by our permits, and we work at getting better every day. The numbers listed below give you an idea of our history and commitment. Canton Mill and Pigeon River By The Numbers aRestrictions on eating fish caught from the Pigeon River Rank among private manufacturing employers in Western North Carolina Rank among North American paper mills for how little color is released using pollution prevention ® Fish species reintroduced into the Pigeon River since 2001 1 Percent reduction in color going into the river since 1988 1 1 Years of operation in the region i 1 Number of employees in North Carolina 1 1 Fish introduced to the Pigeon River since 2001 • i 1 1 1 Average annual wage of Evergreen employees in Western North Carolina 1 1 i Property taxes paid in Western North Carolina per year by Evergreen • • i 1 1 Number of rafters on the Pigeon River in Cocke County since 1995 ' • 1 1 1 1 1 1 1 Annual payroll in Western North Carolina 1 i 1 1 1 1 Amount spent on pollution prevention projects at the Canton Mill since 1990 0050001000 Amount spent per year on wages, materials, energy, transportation and services by Evergreen's Western North Carolina operations $683 50001000 Amount spent by the Canton Mill on capital projects, including pollution prevention, since 1990 evergreen4a ©2011 Evergreen Packaging.All Rights Reserved. EP-492011 11/1 I packaging CANTON MILL AND PIGEON RIVER evergireen.,* WHAT OTHERS SAYpackaging "..Blue Ridge Paper needs to be given credit for its improvements. The river is much cleaner than it used to be. We're very proud of the mill and the workers for all they have done." MAYOR PAT SMATHERS OF CANTON, NC "The Division appreciates the continued progress of Blue Ridge Paper in improving the quality of your treated effluent and the Pigeon River. We anticipate continued improvement and progress...." ALAN KLIMEK, DIRECTOR, NORTH CAROLINA DIVISION OF WATER QUALITY "...a "win-win" which shows that economic and environmental interests can in fact, go hand-in-hand. Both states reap tremendous benefits: a healthy region-wide economy that retains jobs while not losing a valued recreation and scenic resource." JOHN H. HANKINSON JR. EPA REGION 4 ADMINISTRATOR "Cocke County's fastest growing "industry", white water rafting on the Pigeon River..." COCKE COUNTY CHAMBER OF COMMERCE WEBSITE WWW.000KECOUNTY.ORG "Today native fish species have more than doubled in number, and the Pigeon has become one of the best stream fisheries in East Tennessee. Smallmouth, redeye, walleye, and channel catfish are plentiful..." PAUL SLOAN DEPUTY COMMISSIONER TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION MARCH/APRIL 2009 "THE TENNESSEE CONSERVATIONIST" "Now it is a river restored one that will have better days ahead. In fact, this river stands as proof that technology, money and determination can undo the most serious environmental degradation that industry can dish out. In these days of global warming and all its accompanying woes, that's a hopeful sign." SMOKY MOUNTAIN NEWS EDITORIAL "The 2005 Biological Assessment found a diverse and healthy aquatic community present in the Pigeon River below the Mill." UNIVERSITY OF TENNESSEE DEPARTMENT OF FORESTRY, WILDLIFE, AND FISHERIES ti d Cocke County, TN Year Total Rafters County Fee Pigeon River Rafting Industry 1995 21,154 $34,674 1995-2011 1996 49,271 - $79,610 >` 1997 43,532 $69,484 250,000 1998 52,245 $84,950 R 1999 59,646 __ $97,080 O 2000 73,536-- $120,804 4) 200,000 -- - - - ------- - - - 2001 73,724 $121,636 O. 2002 101,470 $168,840 d 2003 104,241 $172,744 t 150,000 2004 118,486 $196,608 .. C + 2005 129,428 $215,974 _ O 2006 149,571 $250,224 2007 150,203 $252,380 100,000 - 2008 139,970 $232,768 2009 176,575 $291,962 2010 196,513 $322,858 0 50.0002011 1 204,553 $338,120 3 C 0 C Q 0 6 1 W 0 O '� �1. ^' P h 6 1 0 NO, N`6 NC, NC, NC, Op Op 00 Op Op Op Op Op Op ti ti ti ti ti ti ti ti ti ti ti ti Cocke County,TN Pigeon River R;995-201'tlurtry Revenue Thriving Rafting Industry on Pigeon $400000 _. River in Cocke County, Tennessee a$350.000 - C I � $300,000 - L „ s $250,000 - -- - Total Rafters 1995 - 2011 = 1,844,118 y $200,000 Q. $150,000 - Total Permit Fees 1995 - 2011 = $3,050,716 $100,000 o $50,0$00 0 Source of information $° 10 14,14, Janice A. Butler, Cocke County Clerk Canton • 2012 • History • Our business 4i • Importance to WNC and NC �. • Sustainability of site and jobs • Overview of permits • Mill overview and tour Packaging was Created in 2007 plants,'mills, 16 converting . . Combined the assets of IP Beverage Packaging Division and Blue Ridge Paper Products/DairyPak (former Champion DairyPak Division) — Largest gable top liquid carton manufacturer in North America and second largest in the world — Provide complete fiber-based packaging solutions to our customers including package systems,printing and filling equipment — Have important market positions and commercial trademarks in uncoated freesheet paper and coated groundwood paper everc$een DWQ ARO 2 Feb 2012 1 Evergreen Packaging Presence in North Carolina JA evergreen4a packaging mesh by design.M CANTON MILL WAYNESVILLE PLANT RALEIGH FACILITY Over 1400 Employees in North Carolina E vrgfeef) .'7��nton Mill Brief History • Established in 1908 to produce pulp for the Champion paper mill in Hamilton, Ohio — Site selected for proximity to spruce,fir and chestnut trees in WNC mountains, good water supply and access to railroad — Discovered that the people of WNC were the greatest resource Came for the trees, stayed for the people • Ownership �- '0 — 1908 to 1999—Champion �J — 1999 to 2007—Blue Ridge Paper Products(ESOP) ,, '„_; — Now part of Evergreen Packaging Group — North Carolina operations under Evergreen Packaging include Canton Mill,Waynesville Plant and Raleigh Converting Facility • Many changes over 100 year history of mill site evergreen DWQ ARO 2 Feb 2012 2 I HistoryWaynesville Brief • Waynesville Extrusion Coating Plant — Lines 1 & 2 - 1960s — Line 3—1988 upgraded in 1998 — Canton Mill and Waynesville plus the converting plants were the "DairyPak Division" of Champion International Mal_1 —%JL ryne � rz Products • Bleached Kraft pulp • Paper and paperboard • Tall oil and turpentine yg5 � a. • everpreen i� Y® DWQ ARO 2 Feb 2012 3 WaynesvilleCanton — Product Flow Overview Fiber-Based Packaging - - ------------- - --- - _ --------------------------- - ISGodeTop ConeaeePia aevewe's •Pdlons, dad Ipary8Juices- sleadw Dowd patented bamer conrolo9rl __-______.,! Gup esspYFopd 9xsim •Consume. puenWlaF�nMab uMi Dry Goo OtlereMuFaod •pry Grads, Food. F P*Wbeerd Priaeine S••lent 20 Hardwood ■edlYls P +ee9e5 •Tons sold 3%000 Pulp mill ---- - 3oftwopd End Mabt NIP mill - •3Paper Emalope Grade •Gedebp eFe MecnF4es •Specialty NUNe�e^I ('aoq) fs 6 .Spud Wvpb6/ o Cdnplele•Tld •Olieet p punting paper Uncoated Freesheet Paper Paper secrtient-2070 •Tons sold 290,000 Products s Canton Waynesville paper and paperboard wpp"l VMW d.0 DWQ ARO 2 Feb 2012 4 evergreen packaging fresh by design ,, f Caro I[Whv fiber-based cartons are the best 1,packaging choice? Em Cartons are recyclable! - ► Made primarily from renewable materials - trees +Over half the energy used in our mills comes from renewable energy sources RICYtWtE 1 W/NIM Ndllltl®A mn rec�runonk fan m Nf•}tKl(USMf M1 1W YN s DWQ ARO 2 Feb 2012 5 Carton Council — http://www.recyclecartons.com We Recycle Cartons EIOMK Canton Environmental Certifications • Third party* forest product certifications: — Sustainable Forestry Initiative° (SFI) Fiber Sourcing — Forest Stewardship Council (FSC) Chain of Custody SUSTAINABLE Certified Chain of:�FcreV:stryy FORESTRY Promoting Sustainable INITIATIVE www.stiprogram.org $IO1! uao:�z o ra:.0 cM�mo: DWO ARO 2 Feb 2012 6 Canton Mill — Regional EconomicImpact Our jobs and contribution to regional economy are important — Mill is largest private manufacturing employer remaining in Western NC • 1200 employees in Haywood Co(Canton&Waynesville) • Average hourly wage of$19 plus benefits • Total payroll in Haywood Co of$90 million per year • Payroll multiplier benefit to regional economy of 3 to 9 times — Annual operating expenditure(wages, materials,energy, transportation and services)in excess of$500 million centered in Western NC • Of this economic activity more than$50 million per year of materials and services are sourced from Tennessee — Annual local property taxes&fees=$1.5 million — Annual Title V Air Permit fee=$305,000 Canton • May 2011 Cold Mill & Extended Outage — Largest group of outages and investment in Canton Mill since the Canton Modernization Project in 1992: $22.9 MM for 31 capital projects completed • $4.3 MM maintenance expense to complete 320 cold mill jobs $5.5 MM maintenance expense to complete other outage jobs — Work included maintenance re-tubing of the No.11 Recovery Furnace to extend life of this key chemical recovery biomass energy unit — $500,000 direct economic benefit to Haywood County and WNC during 2Q 2011 from influx of 1500 contractors for outage work — Demonstration of Evergreen Packaging commitment to site and to North Carolina presence. — NC DAQ helped this happen by completing NSPS applicability determinations for the recovery furnace work in 2010 — Similar work is planned in 2013 for the No. 10 Recovery Furnace •gryreen�I DWQ ARO 2 Feb 2012 7 Canton Mill — Environmental Stewardship • Protecting the Pigeon River is important — More than$300 million spent to protect the river since 1990 — Biological health of river is good and designated uses are supported — Wastewater from mill including color is among the best of pulp and paper mills in the world • Improving air quality and reducing fossil carbon emissions are important — More than$19 million spent since 2000 on new air emission controls — Mill meets applicable standards and is actively planning to meet expected future requirements for Boiler MACT and Regional Hate — More than 40 percent of the mill's total energy input comes from renewable sources(biomass) — Mill uses combined heat and power,the most efficient way to make energy from fossil and biomass fuels — In 2011,mill is completing the Pinch Projects which will improve thermal efficiency by additional 3 percent w4wWOMi=�%NasnOl • Recovery of the Pigeon River is a Clean Water Act success story — Mill is committed to continued improvement as technology allows — NC DWQ support defending the May 2010 NPDES permit contested cases is important to business confidence for Pigeon River Below Clyde sustaining capital investment in the Canton Mill DWQ ARID 2 Feb 2012 8 ranton andthePigeon River Annual Average Effluent Color Greater than 90 percent Blue Ridge Paper Canton Mill,1980 thru 2011 color reduction since 1988 0° Greater than 40 percent reduction since 1997 a znn p 1pp I—viss nnHy n al^>19.1 M y,al ar ar as la as y Current performance at a a 36,000 Wday effluent color 1 £ € : aeEl3ld � RR ® RRR Ra is among best of mills in Produnlon-Normalized Effluent Color world Blue Po,Iq Peer Call MU,1M rh u 2g11 so - - - Me•a.,eW ww - eps„�,,,xiMei Typical bleached Kraft mill '•' in 2010 with same t a •••�� ,, n;L production has more than $ V '• n _' s^ ss° 100,000Wday of effluent A 20 ' color t0 INN last 1.200v 2001=2 aYn 2nG M areal 20r1 NFe aR9 2010 At, Biological assessments in 2000&2005 found a diverse and healthy aquatic community in the Pigeon River below the Canton Mill The next biological assessment under the NPOES Photos of Unrv<ney of Tennessee wildlife and fisheries scientist during 205 Permit is scheduled for summer of 2012 biological assessment work DWQ ARO 2 Feb 2012 9 r PigeonCanton Mill Support of River Restoration Pr. - Non-Game Species Re-introduction Project for Pigeon River, managed by University of Tennessee • Canton Mill personnel actively promoted concept and brought key parties together in 2000 & 2001 — Non-game fish species historically present in Pigeon River did not return with improved water quality due to geographic barriers and other factors — Project focus is science-based targeted re-introduction and monitoring of these non-game fish — Re-introductions began in TN in 2001 and in NC in 2004 — 15 species and more than 26,000 individuals have been re-introduced — Established populations of 9 re-introduced fish species are present — Project is internationally recognized and has produced new science • Participate in TN and NC steering committees • Leverage financial and technical support with others Pigeon River Restoration Project *evergreen- paCkaging I� as • conservation f .ram,.... QD `r t Progress Energy DWO ARO 2 Feb 2012 10 Canton • Canton Mill permits 6 primary permits, 1 - Wastewater permit-3outfalls(2internal) license, 3 registrations - Stormwater permit-26outfalls and more than200 - Title V air permit-82 regulated sources, pages of permit 58 in-significant activities conditions to remember - Landfill operating permit and track - RCRA-Small Quantity Generator(SQG) - Radioactive source license, 32 sealed sources - X-ray source registration Primary activity of 40 salaried and hourly employees is • Waynesville Plant permits permit compliance All mill employees have - Minor source air permit-13 sources compliance as pan of their job. - Non-contact cooling water permit-1 outfall - Stormwater No-exposure Certification - RCRA ID-Conditionally Exempt SQG Company legal name for environmental permits is Blue Ridge Paper Products Inc.dba Evergreen Packaging 41 Canton Overview • Permit writer-DWQ Central Office-Sergei Chernikov in Permits Section • Permit oversight-ARO Regional Office-Chuck Cranford,DWQ Regional Supervisor; Keith Haynes,Jason Smith and Wanda Frazier,DWQ Field Inspectors • Other oversight-DWQ Central Office Environmental Science Section-Toxicity Testing and 316a Study #of Parameters&Sample Annual#of Self-Monitoring&Reporting Points Records Daily samples and gosv 11 parameters,ouHall 001 4015 Weekly,monthly,annual samples 24 parameters,outfalls 001,002&003 400 River monitoring-daily&weekly 6 parameters,7 river run sites 11,570 TOTAL 15,985 • Other requirements include: - Wastewater effluent toxicity tesling-quarterly - Dioxin testing-annual, Waterville lake fish tissue in 2011,2013&2014 - Cluster Rule BMP Program - Special conditions for effluent color - Special conditions for temperature including 316a Study • - Laboratory certification, one year special turbidity monitoring lyl.ON16 DWQ ARO 2 Feb 2012 11 I OverviewCanton Mill — Air Permit • Permit writer—DAQ Central Office-Don van der Wart's staff in Permits Section • Permit oversight—ARO Regional Office-Paul Muller,DAQ Regional Supervisor; Brendan Davey and Mike Parkin,DAQ Field Inspectors • Other oversight—DAQ Central Office, Stationary Source Compliance Branch-Alan Drake&lames Hammond(CEMs/COMB reports,stack test protocols&reports( Self Monitoring& #of Parameters& Annual#of Records Reporting Inspection Points CEMs(NOx,TRS)/COMs 24 pKTOTALiiR ources 154,600 / 615.960 Parameter monitoring 95 paources 907,400 LVHC monitoring 700,800 VE"normalcy"observalions 1,150 WAR inspections 8300 2,388,210 • Other requirements include: — Fuel analysis/certification records,production&downtime records — Annual compliance certification&semi-annual summary of monitoring reports — Annual emissions inventory,2&5 year stack testing — I&M records,calibration records,RMP program,ODC program DWQ ARO 2 Feb 2012 12 Evergreen Packaging Mill Tour evergreens packaging orth l ins C Ca aroflina iiesh by design , I Sold world evergreen f/ From • to Paper JA I _ Canton Mill Tour Materials-Feb 2012 • Overview(slides 2-9) • Details(slides 10-30) evergr rkx p6 Mill Tour Materials - Feb 2011 1 You use paper products every day rAtswo�► A, All evergreen You use products made with Evergreen Packaging paper and paperboard every day JA Siu.,.,ya"R',,�� evergreen�I Mill Tour Materials - Feb 2011 2 We grow and harvest and re-plant trees Wood products industry is leader in sustainable forestry. At Evergreen Packaging more than 70 percent of the wood fiber that we use comes from responsibly managed forests. FSC FORESTRY POUVIVE 3'd-Party Certification of Wood Sourcing • We make our products with renewable energy Wood products industry uses biomass—wood materials left over from the manufacturing process—to make the energy used to make paper and other products. Biomass is a carbon- .R. neutral, renewable energy resource. F::�—ritvergreen Solar Farm in Canton, At Evergreen Packaging more Klsa large solar panel installatioM than 50 percent of the energy on a closed landfill site,a first in that we use is from renewable North Carolina and the Southeast sources. Mill Tour Materials - Feb 2011 3 We recycle paper and water to resourcesconserve Modern paper mills are highly water efficient. Internal water reuse and recycling at the Evergreen Canton Mill is 45 percent. Paper recycling is an important part of the industry. In 2010, 63.5 percent of paper produced was recovered for recycling. N'e Recycle Car 6rs Ww.recycleca rto ns.com l�U We are socially andenvironmentally responsible Pulp and paper mills are regulated by strict environmental permits protecting water and air. Safety and environmental performance are a top priority every day. The wastewater treatment performance of the Evergreen Packaging Canton Mill is among the best of pulp and paper mills in the world. Mill Tour Materials - Feb 2011 4 High quality paper i using the s made Kraft . . _ - The basic steps are: • Wood chips are cooked(digested) — to free cellulose fibers Imo •The cellulose fibers called { brownstock pulp are washed to ry recover cooking chemicals for reuse nm •The washed pulp is bleached to make high quality Kraft pulp ,� ,, µlMi6M •The bleached Kraft pulp is converted into paper and paperboard on large — rtx�rx. paper machines •,,,, , garW More detailed information follows in n »es. the mill tour handout CANTON MILL If Mill Tour Materials - Feb 2011 5 7�Qnlon Fully integrated bleached Kraft Pulp mill er in the Blue Ridge Mountains of Western NC e in downtown Canton rdwood fiber lines very Furnaces •5 Power Boilers •3 Paper Machines—800 ton per day •1 Paper Board Machine—1000 ton per day Waynesville Plant • 250,000 scl ft paper board extrusion coating plant • 3 extrusion lines—900 ton per day • R&D package testing laboratory CantonUnique • Bleach Filtrate Recycling(BFRTm)—only Kraft pulp and paper mill in the world with this process — Pollution prevention technology for containing Kraft pulp color within the process and reducing wastewater load to treatment • Elemental chlorine free(ECF)bleaching with OD100TM — Current"state of art"minimum environmental impact technology for bleached Kraft pulp production • Activated sludge wastewater treatment,foul condensate steam stripping — Many pulp and paper mills use lagoons and the clean condensates alternative • Wastewater treatment performance including color is among best of Kraft pulp mills in the world — Extensive sump systems,real time sewer process monitoring,and BMP focus on prevention of effluent color • Lined process waste landfill with leachate collection Many pulp and paper mills and electric power plants use unlined lagoons for disposal of sludge,ash and other process waste material Mill Tour Materials - Feb 2011 6 Canton Mill — Basic Process Flow Pulp CHIPS Production LIME 1 KILNS SCREENING CaOH 1 I CaCO3 1 White Liquor DIGESTERS CAUSTICIZING 11 Green Liquor j FIBERLINES Black Liquor Washing EVAPORATORS — RECOVERY FURNACES Bleaching PAPER MACHINES PAUCr c Production Recoveerya Cycl e Canton Process Descriptionof • The Canton Mill is a fully-integrated Kraft pulp and paper mill with one exception- due to space constraints the mill does not have a wood yard. The mill purchases hardwood and softwood(pine)chips from suppliers in Western North Carolina, Upstate South Carolina and Eastern Tennessee. The wood chips are shipped to Canton by truck and by rail. The mill receives about 5600 short tons of wood chips per day. • Primary products of the mill are FDA food-grade paperboard and uncoated free- sheet paper. Rolls of paperboard from the mill are moved by truck from Canton to the Waynesville Plant where the rolls are extrusion coated with polyethylene and other plastics. The extrusion coated paperboard is then shipped to converting facilities owned by Evergreen and by other companies where the board is made into fiber-based liquid packaging including gable top cartons,drink cups and ovenable trays. Rolls of uncoated free-sheet paper are shipped to a variety of customers around the world for conversion into envelopes,printing papers and other consumer and commercial products including drywall tape,freezer wrap and billboard paper. erargwm�#� Mill Tour Materials - Feb 2011 7 Canton • cess Description 2 of • The art of papermaking is the furnish,or recipe,for making fine paper and paperboard from a blend of hardwood and softwood cellulose pulp fiber. Hardwood pulp fibers are short and give paper properties of opacity and printability. Pine fibers are long and give paper tensile strength. Sizing such as starch and other additives are used to give paper and paperboard surface properties and wet strength required for different customer uses. • The Canton Mill has four(4)paper machines with a nominal production capacity up to 1800 short tons per day. Three of the paper machines—Nos.11,12 and 20 —produce uncoated free-sheet paper. The No.19 paper machine produces FDA food-grade paperboard. • Parts of the Canton Mill are old,but the process is fully modern with automation and distributed controls. CantonPhoto Tour Primary Input is Wood Chips 5600 tons per day 7-1 Chip Piles on western end h of Canton Mill property. Hardwood and pine wood chips are delivered by truck and by rail from suppliers in Western North Carolina, Upstate South Carolina and Eastern Tennessee. • Mill Tour Materials - Feb 2011 8 Canton Mill Photo Tour s " A"d ar � . No. 11 & 12 PM r No. 20 PM Canton Mill Photo Tour No 19 Paper Board Machine Aa 1 � n aa• � Depoly Plant to recover extrusion coated broke Mill Tour Materials - Feb 2011 9 Canton Process Description 3 of • The Canton Mill manufactures bleached Kraft hardwood and softwood slush pulp to supply the paper machines. The mill's nominal pulp manufacturing capacity is 1420 short tons per day. The mill also purchases paper broke and dry furnish pulp fiber as required to supply the paper machines. The mill purchases some post- consumer recycled paper fiber to make paper grades containing recycled fiber content as requested by customers. • In the Kraft pulping process,wood chips are screened and then loaded into large batch digesters where the chips are cooked with pulping chemicals call white liquor. The digesters are large pressure cookers heated by both direct and indirect steam. The cooking process is necessary to dissolve lignin in the wood to free cellulose pulp fibers which are used to make paper. Lignin is nature's glue that binds cellulose fibers together to make wood. CantonProcess Descriptionof • After cooking with white liquor in the digesters,the cellulose fibers freed from the wood are washed and then bleached in fiberlines to make bleached Kraft pulp. The Canton Mill uses elemental chlorine free,or ECF bleaching. The specific bleaching chemical is chlorine dioxide which is manufactured on site. Bleached Kraft pulp is a high quality virgin cellulose fiber necessary for making fine papers and food-grade paperboard. • In the pulp washing process,the spent pulping chemicals called black liquor are collected and concentrated in multi-stage evaporators. Black liquor is a mixture of lignin dissolved from wood and spent chemicals from wood digestion. The black liquor,which is mostly lignin or dissolved wood,is burned in recovery furnaces to recover pulping chemicals and to make energy for the pulping process. Black liquor is a biomass fuel with a high energy content. Mill Tour Materials - Feb 2011 10 • •Process • The heart of the Kraft pulping process is chemical recovery. Pulping chemicals in the black liquor accumulate as molten smelt in the bottom of the recovery furnace. The smelt is withdrawn from the furnace and reacted with steam and water to make green liquor. The green liquor is then slaked with lime to re- manufacture white liquor that is used to digest wood. The recovery furnaces and associated lime kilns and slakers allow the Canton Mill to continuously regenerate and recycle its Kraft pulping chemicals. The recovery furnaces make the Kraft process efficient and economical. The furnaces generate steam as a by-product that provides more than 40 percent of the total energy input to the Canton Mill. • The process of cooking wood to make cellulose pulp makes two by-product chemicals—tall oil and turpentine. The Canton Mill sells tall oil and turpentine as feed stock chemicals to other companies. Canton Mill Photo Tour Pulp manufacturing — Pine Fiberline and Recovery Furnaces Mill Tour Materials - Feb 2011 11 Canton Process Descriptionof • The Canton Mill includes a large utility complex to support mill operations. These utilities include a raw water plant,a steam plant with electrical power generation and wastewater treatment. In addition to black liquor solids,the mill burns coal, wood and fuel oil to make steam and electricity. The mill uses combined heat and power which is a very efficient process for extracting maximum energy value from fuel. The mill generates electric power in turbines powered by steam from the recovery furnaces and power boilers. The steam extracted from turbines is then reused for process heat. Overall thermal efficiency of 65 to 70 percent is obtained. The typical electric utility power plant without combined heat and power achieves only 35 to 40 percent thermal efficiency. • The mill self-generates 80 percent of its total power needs and purchases additional electrical power from Progress Energy. Canton Mill Photo Tour Site utilities include raw water treatment to make process water to operate the mill y Hill Filter Plant Low Head Dam Impoundment for Riverintake Mill Tour Materials - Feb 2011 12 Canton Mill Photo Tour Steam Plant Utilities include 5 power boilers and two recovery furnaces Fuels include wood, coal, #' black liquor solids and oil III Canton Mill Photo Tour Power Boilers, Generator Room and Emission Monitoring ,..,, ,. . Generator room _ t Y•' and boiler operators Mill Tour Materials - Feb 2011 13 Canton Mill Photo Tour tom: Wastewater Treatment Plant Effluent quality is among the best of Kraft pulp and paper mills in the world Color performance is excellent— Canton Mill is recognized as an industry leader Canton Mill Photo Tour Landfill No.6 Evergreen Landfill and Solar Farm The Evergreen Landfill No.6 is a state of art process waste landfill with liner and leachate collection. The landfill is home to the Evergreen Solar Farm—a demonstration project built in partnership with Progress Energy and FLS Energy. The solar farm is the first of its kind to be built on a closed landfill cell and one of the largest PV installations in NC at 0.55 MW. Evergreen Solar Farm on Closed Cell at Landfill No.6 Mill Tour Materials - Feb 2011 14 Canton • • ' Questions • Why can't the mill use 100 percent recycled fiber to make paper and save trees? Paper and cellulose fiber recycling is an important industry that the Canton Mill supports by producing virgin fiber which starts the paper recycling process. A cellulose fiber breaks down when recycled and can only be recycled a few times before it falls apart. Virgin pulp mills are necessary to have paper recycling. The high quality papers and paperboard manufactured at the Canton Mill require virgin bleached Kraft pulp. The mill does manufacture some paper grades with post- consumer recycled fiber content. The recycled fiber is purchased from paper recycling mills. • Why can't the mill use total chlorine free,or TCF bleaching? For several technical reasons the fiber-based packaging products and paper products made by Evergreen and our customers require the ECF bleaching process. The TCF process destroys cellulose fiber strength and is detrimental to paper quality. Canton • • Questions • Are Canton Millwood supply practices sustainable? yes,Canton Millwood sourcing abides by sustainable forestry practices and has done so for many years. We are third-party certified to the Sustainable Forestry Initiative or SFI standards for responsible wood source procurement and harvesting. We actively work with our loggers and chip supply partners to help them maintain SFI standards and certification. We are also third-party certified for chain-of-custody wood source product labeling. The mill is an important part of the forest products industry and provides a regional outlet for wood residuals,particularly hardwood,that would otherwise go to waste when trees are harvested for more valuable purposes such as telephone poles,lumber,plywood and veneer. Sustainable Solutions �evergreerr p�ckpmq (Lj)WSTANAW FORESTRY INITWTIVE YYY c>nd�.ww rma�,a� yam evergreen Mill Tour Materials - Feb 2011 15