NC0000272_Motion to Compel with Terms Order_20120319

STATE OF NORTH CAROLINA IN THE OFFICE OF
COUNTY OF HAYWOOD ADMINISTRATIVE HEARINGS
Cocke County, Tennessee, et al., )
Petitioners, )
V. )
North Carolina Department of Environment )
and Natural Resources—Division of Water )
Quality, )
Respondent, ) 10 EHR 4341
and )
Blue Ridge Paper Products Inc. )
Respondent-Intervenor. )
STATE OF NORTH CAROLINA IN THE OFFICE OF
COUNTY OF WAKE ADMINISTRATIVE HEARINGS
Cocke County, Tennessee, et al., )
Petitioners, )
V. )
Environmental Management Commission )
acting by and through its NPDES Committee, )
and the NPDES Committee, ) 10 EHR 4982
Respondents, )
and )
Blue Ridge Paper Products Inc., )
Respondent-Intervenor. )
MOTION TO COMPEL COMPLIANCE WITH TERMS OF ORDER
Petitioners move the Office of Administrative Hearings ("OAH")to compel Respondent-
Intervenor Blue Ridge Paper Products, Inc. (`BRPP"), to comply with the OAH's January 19,

2011, order directing BRPP to meet conditions of its National Pollution Discharge Elimination
System Permit("Permit") and Color Variance ("Variance") by September 1, 2011.1
INTRODUCTION
Soon after Petitioners filed these contested cases, BRPP moved the OAH to stay, for the
duration of this litigation, conditions of its Permit and Variance that required it to reduce its color
pollution of the Pigeon River. The OAH declined to grant BRPP's motion in its entirety and
instead stayed only until September 1, 2011, a single condition of the Permit and Variance that
required BRPP to submit an implementation plan for color reduction. On September 1, 2011,
BRPP filed a report with the North Carolina Division of Water Quality("DWQ"),purportedly to
"satisfy the Color Reduction Implementation Plan"requirement,but explicitly declined to
provide a plan for implementing further color reduction measures. (Color Reduction
Implementation Plan (hereinafter"Report") at 1, a copy of which is attached.as Exhibit A.)2
BRPP cited this ongoing litigation as the reason for its noncompliance. (Id. at 1-3.)
Because BRPP has, in effect,unilaterally extended the limited stay order entered by OAH
and given itself the precise relief that the ALJ declined to grant, Petitioners seek an order
compelling BRPP to comply with the terms of the OAH's order and the conditions of the Permit
and Variance.
'Although the OAH originally also stayed another requirement,it later modified its Order to require BRPP to
comply with that requirement by the original deadline. See infra p.6.
2 Exhibits A-D attached to this motion were obtained by undersigned counsel from DWQ pursuant to a public
records requests.
2

BACKGROUND
A. Requirements of the NPDES permit and Color Variance Issued to BRPP
On May 26, 2010, DWQ issued the Permit, allowing BRPP to discharge color into the
Pigeon River. The Permit authorizes BRPP to discharge an annual average of 38,020 lbs of color
per day. See 2010 NPDES Permit No. NC0000272, supplement to permit cover sheet).
Because the Permit allows BRPP to discharge color pollution in an amount that violates North
Carolina's water quality standard for color, the Permit was conditioned upon a variance from that
standard(the "Variance"),which the NPDES Committee of the N.C. Environmental
Management Commission("EMC") subsequently granted.
The Permit imposes conditions on BRPP that specifically address the control of color
pollution from the mill. The Variance subsequently incorporated those same conditions. The
Permit and Variance require BRPP to reduce its discharge of color over the course of a four-year
period. Rather than set a specific pollution limit that must be achieved at the end of that period,
the Permit and Variance require BRPP to reduce its annual average discharge of color to fall
within a range between 32,000 and 36,000 lb per day. See 2010 Permit, at Condition A. (8.)).
Instead of concrete limits, the Permit and Variance describe a process for identifying end-of-
permit pollution limits that defers to BRPP to determine how much pollution reduction it
believes is feasible and to report its findings to DWQ.
Under that process, BRPP is entrusted to "evaluate the technologies identified [in the
Permit] and develop an implementation plan that would either utilize these technologies when
technically, operationally, or economically feasible, or identify other options that will result in
similar increments of color reduction." (Permit at A. (8.) 10 (emphasis added)).
The Permit requires BRPP to report its conclusions about which measures it deems
"technically, operationally, or economically feasible"by submitting a"color reduction
3

implementation plan within the first year of the permit issuance." (Permit at A. (8.) 11). The
stated function of this implementation plan is to allow DWQ to "reopen[] and modify[]"the
Permit to "include interim requirements and dates for their achievement." (Permit at A. (8.) 11).
Then, once BRPP applies the measures it deems"technically, operationally and economically
feasible"in its implementation plan, the Permit may be reopened again to set specific color
pollution limits based on the actual reduction achieved by the measures selected by BRPP as
feasible. (Permit at A. (8.) 6).
These requirements—for the preparation of an implementation plan after one year and
reopening of the permit to include specific interim requirements and dates of their achievement—
were specifically mandated by EPA during the permit writing process. EPA objected to the draft
Permit prepared by DWQ for BRPP, stating:
[T]he permit does not specify a date certain for submittal of[the color reduction
implementation] plan,nor interim requirements and the dates for their
achievement. Since the compliance schedule exceeds one year,pursuant to 40
CFR § 122.47(a)(3),the compliance schedule must include interim requirements
and dates for their achievement. The lack of interim requirements and dates for
their achievement is subject to objection pursuant to 40 CFR §123.44(c)(7).
(EPA Objection letter at 2, Feb. 22, 2010, a copy of which is attached as Exhibit B.) DWQ
responded to this concern by including a requirement that BRPP develop the plan that is at issue
in this motion. As a practical matter, because the Permit does specify an end-of-Permit color
limit, the implementation of measures BRPP identifies as "feasible" in its color reduction
implementation plan will ultimately determine how much color is actually reduced under the
Permit.
In addition to the mandate for an implementation plan, the Permit imposes other color-
related conditions including a mandate that BRPP develop a"low flow contingency plan for
color of control"within the first year of permit issuance. (Permit at A. (8.) 12). The Permit
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separately requires BRPP to "minimize color discharges during periods of lowest river flow and
higher recreational use in the review"by not scheduling "major maintenance outages" during the
summer months. (Permit at A. (8.) 9).
B. BRPP's Motion to Stay Permit and Variance Conditions Pending Resolution of This
Contested Case
On November 10, 2010, BRPP moved the OAH to stay certain conditions of the Permit
and Variance"until a final determination has been made in these proceedings." (Mot. Stay at¶
5). Specifically, BRPP moved to stay:
• Permit Special Condition A. (8.) 4,requiring it to reduce color pollution to a rate
somewhere between 32,000 and 36,000 lbs per day as an annual average;
• Permit Special Condition A. (8.) 8,requiring it to submit an annual progress
report on its efforts to reduce color;
• Permit Special Condition A. (8.) 10 A and B,requiring it to evaluate technologies
for reducing color and to "develop an implementation plan that would either
utilize these technologies when technically, operationally, or economically
feasible, or identify other options that will result in similar increments of color
reduction";
• Permit Special Condition A. (8.) 11, requiring it to "submit the color
implementation plan within the first year of permit issuance" (the Plan) and
providing that DWQ will then in the Permit to "include interim requirements
and dates for their achievement based on the submitted implementation plan;"
and
• Permit Special Condition A. (8.) 12,requiring it to "submit a low flow
contingency plan for color within the first year of permit issuance."
In support of its Motion to Stay, BRPP argued that "[t]here will be significant
engineering costs involved in the preparation of the color reduction implementation plan and the
low flow contingency plan." (Mot. Stay at 13). BRPP claimed that"[g]iven the uncertainty, it
5

is prejudicial and imprudent that Blue Ridge Paper be required to proceed with planning,
evaluation and implementation required in the permit until a final determination in this matter."
(Mot. Stay at¶5.)
The OAH did not grant BRPP's request to stay all color conditions of the Permit and
Variance until the end of this litigation. Instead, the OAH stayed only for a limited time the
requirements that BRPP develop a one-year color reduction implementation plan and a low-flow
contingency plan. (Order, Jan. 19, 2011.) The order provided that:
The provisions of Paragraph A. (8.) 11 of the NPDES Permit and Paragraph 3. B. 11 on
page 14 of the Color Variance are STAYED until September 1,2011. The provisions of
Paragraph A.(8.)23 of the NPDES Permit and Paragraph 3 B. 12 on page 14 of the Color
Variance are STAYED until September 1, 2011
Subsequently, on March 1, 2011, the OAH amended its order to require submission of the low-
flow contingency plan by its original deadline; thus, only compliance with the color reduction
implementation plan was stayed until September 1, 2011. (Consent Order Modifying Order
Issued January 19, 2011.)
DISCUSSION
A. BRPP's Failure to Submit a Schedule for Utilizing Pollution Control Measures
BRPP filed a Report on color reduction with DWQ on September 1, 2011,purporting to
comply with the OAH's order. The Report did not comply with either the Order or the Permit
requirement,however.
Under the plain terms of the Permit, that document must set out a plan for
implementation of color control measures of sufficient clarity for the Permit to be "reopened and
modified to include interim requirements and dates for their achievement based on the submitted
6

implementation plan." (Permit at A. (8) 11). According to the sworn statement submitted by
BRPP in support of its motion to stay, a"color reduction implementation plan must include a
schedule for design and installation of the technologies and processes." (Affidavit of Michael
Ferguson at¶ 11 (emphasis added), a copy of which is attached as Exhibit E.)3
The Report submitted by BRPP does not set a schedule for design and implementation of
color control measures,nor does it enable DWQ to reopen the Permit and set dates for their
achievement. Instead the Report points to this ongoing litigation and explains that BRPP does
not intend to submit the required plan until the litigation ends, which is the precise relief denied
by the OAH. BRPP stated that, because these contested cases "have not yet been resolved(and
may not be resolved until sometime in 2012), and because the Petitioners have alleged that
[DWQ] should have included a requirement to evaluate and implement other technologies and
processes in the Permit and the Color Variance, BRPP has not vet identified the specific
technologies and processes to reduce color." Report at 2-3 (emphasis added). BRPP implies that
its employees may have been too busy to comply with the OAH's order: the Report recounts the
procedural history of this litigation and offers that`BRPP personnel have devoted time and
resources in responding to discovery requests and in assisting the DWQ and EMC with defense
of the Permit and Color Variance." Id. at 4. The report concludes that"[b]ecause the outcome
of these cases may affect the technologies and/or processes that the Canton Mill may use to
reduce color,the company has not yet determined the technical approach and associated time
frames and capital investment, if any,it will employ to achieve additional reductions in color."
Id. at 3 (emphasis added).
3 Because the affidavit was untimely filed,the OAH declined to consider the affidavit in deciding BRPP's motion.
(Order,January 19,2011).
7

In addition,BRPP acknowledges in the Report that the Permit identifies a category of
pollution control measures, "targeted for expedited evaluation in anticipation of the Color
Reduction Implementation Plan."Id. at 3 (emphasis added). But BRPP did not conduct that
expedited evaluation by the Permit deadline or the revised September 1, 2011, deadline set by
OAH.
Instead of providing a schedule for the design and implementation of future color
reduction measures,the Report describes work BRPP has already completed and describes only
near-term plans for testing(not designing or implementing)to two of the specific control
measures mandated by the Permit. For example, with respect to"Best Management Practices,"
an area identified by the Permit and Variance for improvement, the Report alludes only to
projects it has already completed(mostly before the Permit was even issued in 2010) and already
reported to DWQ. See Report at 6; Annual Progress Report on Color, July 1, 2011, a copy of
which is attached hereto as Exhibit C, at 5-10. The Report does not discuss concrete plans for
future improvements in the area of Best Management Practices, and therefore fails to satisfy the
Permit.
The color reduction Report also provides a short discussion of"enhanced extraction
stages," another area BRPP was required to address in its plan. (Permit at A. (8.) 10. A.) With
respect to that color reduction measure, the Permit directs that BRPP submit an"implementation
plan that would either utilize these technologies when technically, operationally, or economically
feasible, or identify other options that will result in similar increments of color reduction."
(Permit at A. (8.) 10.) BRPP's Report,however, neither offers a timeline for utilizing enhanced
extraction stages nor identifies other measures that will result in similar increments of color
8

reduction. Instead, it offers only a timeline for a trial period of the technology and"data
analysis"by early 2012, which does not satisfy the Permit's specific requirements. (Report at 8.)
The final measure mentioned in the Report is "second stage oxygen delignification"of
BRPP's pine pulp production line. Like enhanced extraction stages, the Permit requires that the
implementation plan describe a plan for implementing this technology or an equally effective
alternative measure. (Permit at A. (8.) 10.) The Report does not lay out a timeline for utilizing
this technology,however. Instead, the Report recounts lab-scale investigation of the technology
and forecasts that its "[e]conomic evaluation"of the technology"is not complete." (Report at
10) Neither does the Report identify an alternative color reduction measure that will be
implemented by the mill to achieve comparable pollution reduction. The Report likewise fails to
address the many remaining technologies listed in Permit Condition A.(8.)10 (A) and (B), which
are required to be addressed in the color reduction implementation plan.
The Report submitted by BRPP fails to provide sufficient detail to allow DWQ to reopen
the permit and set interim requirements and deadlines, as required by the plain terms of the
Permit. That failure is evidence by the fact that, to date, DWQ also has not followed through on
its obligation under the Permit, an obligation mandated by EPA, to reopen the Permit and impose
interim requirements and dates for their achievement.
In short, citing the present litigation, BRPP refused to submit the required plan to further
reduce its discharge of color to the Pigeon River in compliance with the Permit. In denying
BRPP's motion to stay its obligations until the resolution of these contested cases,the OAH
concluded that this ongoing litigation did not justify staying the Permit's requirements
9

indefinitely. Yet, in effect,BRPP has unilaterally stayed indefinitely Permit conditions that the
OAH stayed only for three months,until September 2011.
B. Because of BRPP's Noncompliance,the State is in Violation of Federal Requirements
Under limited circumstances, an NPDES permit can set a"schedule of compliance" for a
polluter to bring its facility into compliance with applicable requirements, instead of requiring
immediate compliance. The Permit issued to BRPP authorizes such a schedule.
Federal regulations dictate that"if a permit establishes a schedule of compliance which
exceeds 1 year from the date of permit issuance,the schedule shall set forth interim requirements
and the dates for their achievement."4 40 CFR § 122.47(a)(3). A compliance schedule must
impose"an enforceable sequence of interim requirements"leading to Clean Water Act
compliance. 40 C.F.R. § 122.2 (emphasis added). If, in turn,the interim requirements related to
measures that cannot be completed within one year, then the"permit shall specify interim dates
for the submission of reports of progress toward completion of the interim requirements and
indicate a projected completion date."40 CFR § 122.47(a)(3)(ii).
In the present case, citing this federal law, EPA objected to the draft permit prepared by
DWQ because, while it required BRPP to prepare an implementation plan, it did"not specify a
date certain for submittal of that plan, nor interim requirements and the dates for their
achievement." (EPA Objection letter at 2, Feb. 22, 2010.) Because DWQ cannot issue a permit
over EPA's objection, 33 U.S.C. § 1342(d),DWQ redrafted the permit to require an
implementation plan within one year and to clarify that the permit would be reopened to set
interim requirements and dates for achievement based on that plan. (Permit at A. (8.) 12.)
4 NPDES permits must reflect both technology-based limits and any more stringent requirements needed to meet
water quality standards. Schedules of compliance may not be used to allow gradual compliance with technology-
based standards. EPA Permit Writers Manual,Section p. 9-8 (2010)Even if a compliance schedule can be included
in this Permit,which is denied,it must have one-year interim requirements.
10

Because BRPP has failed to submit an implementation plan sufficient to set interim dates
for the implementation of color reduction measures, DWQ has failed to reopen the permit to set
interim requirements as mandated by federal regulations and EPA's objection.
C. BRPP's Failure to Submit a Low-Flow Contingency Plan
The Permit also requires BRPP to submit a"low flow contingency plan for color control
within the first year of permit issuance." (Permit at A. (8.) 12). BRPP initially asked the OAH
to stay that requirement but subsequently agreed to submit the low-flow contingency plan
according to the original schedule in the Permit. (Consent Order Modifying Order Issued
January 19, 2011.) In support of its initial motion to stay this requirement, BRPP argued that
"[t]here will be significant engineering costs involved in the preparation of. . . the low flow
contingency plan." (Mot. Stay at 13).
Ostensibly in compliance with that requirement, BRPP submitted a three-page Low Flow
Contingency Plan to DWQ on May 26,.2011. That Plan argues that"the best color performance
of the Canton Mill occurs during normal production." (Plan at 2, a copy of which is attached as
Exhibit D.) As an affirmative step to minimize color pollution,the Plan offers that"[t]o
minimize potential color discharges during periods of lower river flow and highest recreation use
of the river, no major(semi-annual) outages are scheduled during the months of June,July or
August." (Id. at 2.) This step is already mandated by the Permit. See Permit at A. (8.) (9) ("To
minimize color discharges during period of lowest river flow and higher recreational use in the
river,no major maintenance outages will be scheduled during the months of June, July and
August.").)
The Plan describes no other measures or extra steps taken to control color pollution
during low-flow conditions that are not already a part of the mill's year-round color control
11

program mandated by the Permit. While the Plan describes a system for identifying and
containing unexpected spills of discoloring pollution,those measures are applied throughout the
year and are part of management practices implemented in a prior permit cycle. Aside from
steps mandated by the Permit or already applied by the mill year round, the only measure for the
control of color during low-flow conditions offered by the Plan is an assurance that"Prevention
of effluent color is a priority for mill operations every day." (Plan at 3.)
Rather than submit a Plan with measures designed to deal with the contingency of low
flow conditions, BRPP submitted a document promising to take steps already required by the
Permit or already implemented by the mill on a year-round basis. This is not the "contingency"
Plan required by the Permit or described by BRPP's motion to stay as requiring"significant
engineering costs"to prepare. (Mot. Stay at¶3.) Rather than submit the Plan required by this
Permit,which BRPP admittedly understood to require significant engineering, BRPP unilaterally
decided to submit a statement that does not comply with the Permit requirement or the Order.
D. OAH Has the Authority to Enforce Comuliance With the Terms of Its Stav Order
BRPP moved the OAH to stay the conditions of the Permit pursuant to N.C. Gen. Stat. §
150B-33(b)(6) which empowers an Administrative Law Judge to issue such a stay"upon such
terms as he deems proper . . . ." In response to BRPP's motion to stay the conditions of its
Permit until the end of this litigation, the OAH declined to grant the relief and issued a limited
stay on terms that required BRPP to comply with all conditions by their original deadline, except
the color reduction implementation plan requirement, which BRPP was required to submit by
September 1, 2011. (Order, January 19, 2011 (as modified)). BRPP has failed to comply with
the terms set by the OAH. The OAH is empowered to enforce the terms of its order through the
contempt power or the imposition of sanctions for violation of procedural rules. N.C. Gen. Stat.
§ 50B-33(b)(8), (10); 26 N.C. Admin. Code 03.0114.
12

CONCLUSION
For the forgoing reasons, Petitioners respectfully move the Office of Administrative
Hearings to order BRPP to comply with the terms of the OAH's Order directing BRPP to submit
a low-flow contingency plan by May,26, 2011 and a color reduction implementation plan by
September 1,2011,both of which must satisfy the terms of the Permit.
This the day of March, 2012.
Austin . erken Jr.
N.C. State Bar No. 32689
[e-mail]
Amelia Y. Burnette
N.C. State Bar No. 33845
[e-mail]
Rebecca Jaffe
N.C. State Bar No. 40726
[e-mail]
Southern Environmental Law Center
22 S. Pack Square, Suite 700
Asheville,NC 28801
[phone]
Julia F. Youngman
N.C. State Bar No. 21320
[e-mail]
Southern Environmental Law.Center
601 W. Rosemary Street, Suite 220
Chapel Hill,NC 27516
[phone]
Counsel for Petitioners
13

CERTIFICATE OF SERVICE
I hereby certify that I served the foregoing Petitioners' Motion to Compel Compliance
With Terms of Order on all parties by U.S. mail, first-class postage prepaid, with a courtesy copy
sent by email, addressed to the following:
Sueanna Sumpter, Esq.
Assistant Attorney General
N.C. Department of Justice
42 N. French Broad Ave.
Asheville,NC 28801
[e-mail]
Counsel for Respondents
Mary L. Lucasse, Esq.
Special Deputy Attorney General
North Carolina Department of Justice
P.O. Box 629
Raleigh,NC 27602
[e-mail]
Counsel for Respondent EMC
William Clarke
Roberts & Stevens,P.A.
PO Box 7647
Asheville,NC 28802
[e-mail]
Counsel for Respondent-Intervenors
Richard W. Krieg, Esq.
Lewis, King, Krieg&Waldrop, PC
One Centre Square
620 Market Street, 5th Floor
Knoxville, Tennessee 37902
[e-mail]
Counsel for Respondent Intervenors
This is the day of March, 2012.
Austi . Gerken Jr.
Counsel for Petitioners
14

e r een,. Canton Office
p+,�u , in 175 Moro Street• Caiitori. ABC 28716
C� C� +
August 26,2011 Hand&Electronic Delivery
Keith Haynes
Acting Regional Supervisor
Division of Water Quality, Surface Water Protection
North Carolina Department of Environment and Natural Resources
Asheville Regional Office
2090 U.S.Highway 70
Swannanoa,North Carolina 28778
Re: Color Reduction Implementation Plan—Report on TRW Recommendations in
May 2010 NPDES Permit
NPDES Permit No.NCO000272
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton Mill
Dear Mr.Haynes—
The enclosed report documents Canton Mill work during the first year of the May 2010 NPDES permit
related to February 2008 recommendations of the EPA Technology Review Workgroup(TRW)that were
incorporated into Part I A.(8.)item 10 of the permit. The report is required by the permit. It is a
supplement to the Annual Progress Report on Color submitted on July 1,2011.
Very truly yours,
BLUE RIDGE PAPER PRODUCTS INC.
DOING BUSINESS AS EVERGREEN PACKAGING
By:
r
Nick McCracken Paul Dickens
Water Compliance Coordinator Manager Environmental Affairs
Canton Mill Canton Mill—Waynesville Plant
nick.mccrackenaDevemack.com paul.dickens(a,evernack.com
828-646-2874 828-646-6141
Enclosure: September 1,2011 Color Reduction Implementation Plan
cc: Billy Clarke,Roberts and Stevens
Internal distribution
Exhibit A

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
I. Introduction
The May 2010 NPDES Permit (the "Permit") [NC DWQ 2010] requires Blue Ridge
Paper Products (BRPP) to submit a Color Reduction Implemention Plan.. The specific
permit condition is:
Part I A.(8.) Item 11. The facility shall submit the color reduction implementation
plan within the first year of permit issuance. The permit will be reopened and
modified to include interim requirements and dates for their achievement based on
the submitted implementation plan.
The revised color variance issued to BRPP in July 2010 (the "Color Variance") [NC
EMC 2010], includes an identical requirement for a Color Reduction Implementation
Plan . This report is being submitted to satisfy the Color Reduction Implementation Plan
in the Permit and in the Color Variance.
The color limits in the Permit and the Color Variance and the specific processes and
technologies identified in the Permit and Color Variance to achieve the specified color
reductions are being challenged in two contested cases filed in the North Carolina Office
of Administrative Hearings (OAH) — 10 EHR 4341 and 10 EHR 4982. Because the
contested cases have not yet been resolved (and may not be resolved until sometime in
2012), and because the Petitioners have alleged that the North Carolina Division of Water
Quality (DWQ) .should have included a requirement to evaluate and implement other
technologies and processes in the Permit and the Color Variance, BRPP has not yet
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
identified the specific technologies and processes to reduce color. Evaluation of the
specific technologies identified in the Permit and Color Variance is ongoing. BRPP has,
since 2006 and before, implemented and continues to utilize a number of best
management practices (BMPs) related to the prevention of effluent color. This report
discussses the ongoing evaluation and implementation of BMPs.
H. Contested Cases
In July 2010, Cocke County, Tennessee and a coalition of environmental groups,
represented by the Southern Environmental Law Center, filed a Petition for Contested
Case in the NC OAH — 10 EHR 4341, challenging color and temperature limits in the
May 2010 NPDES permit. The Petitioners also filed a second Petition for Contested
Case challenging the revised Color Variance for the Canton Mill — 10 EHR 4982. The
two cases were consolidated in October 2010.
The Petitioners in the Contested Cases allege, among other things, that the NC DWQ and
the NPDES Committee of the NC Environmental Management Commission (EMC)
failed to require the Canton Mill to evaluate and implement technologies and processes to
reduce color that were reasonable and economical. Because Part I A.(8.) item 10 of the
Permit (and identical related sections of the Color Variance) identifies specific
technologies and processes for the Canton Mill to evalute and implement, and because
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Petitioners allege that DWQ should have required other technologies and processes,
BRPP moved for an extension of time to submit the color reduction implementation plan.
The date for the plan was extended to September 1, 2011 by Order of Adminstrative Law
Judge(ALJ)Randall May in January 2011.
Discovery in the Contested Cases was conducted from October 2010 through June 2011.
Dispositive motions were filed in July 2011. A hearing on dispositive motions is
scheduled for September 30, 2011. BRPP personnel have devoted time and resources in
responding to discovery requests and in assisting the DWQ and EMC with defense of the
Permit and Color Variance. . Because the outcome of these cases may affect the
technologies and/or processes that the Canton Mill may use to reduce color, the company
has not yet determined the technical approach and associated time frames and capital
investment, if any, it will employ to achieve additional reductions in color.
III. TRW Recommendations in the May 2010 NPDES Permit
Part I A.(8.) item 10 of the May 2010 NPDES Permit incorporates February 2008
recommendations of the EPA Technology Review Workgroup (TRW). These
recommendations are in two lists (A.& B.), the first of which is targeted for expedited
evaluation in anticipation of the Color Reduction Implementation Plan.
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Part I A.(8.) item 10 A. The following suite of items will be implemented by the
permittee, upon further expedited evaluation if necessary to refine detailed design
and operating parameters, during this permit term:
• further improvements in leak and spill prevention and control (BMPs) covering
all process lines, including probable color-generating sources (e.g. sulfide
containing) among white and green liquors in the recovery cycle
• process optimization (enhanced extraction stages, reduced bleach chemical use,
etc);and
• addition of second stage oxygen delignification on the softwood/pine fiber line.
The time necessary for Blue Ridge Paper to implement these items or alternatives in
logical sequence should realistically reflect the Mill's ability to design, fund, and
install or implement them at the earliest possible date. For example, an updated and
detailed evaluation of the addition of second stage oxygen delignification on the
softwood fiber line should identify necessary adjustments to upstream pulp digestion
(e.g. kappa number targets), bleaching (e.g. bleaching chemical usage rates, kappa
factors) and downstream brightness/strength or other relevant process control and
product quality parameters, designing and costing, and refining color projections.
The balance of this report outlines work done by the Canton Mill related to TRW
recommendations during the first year of the May 2010 NPDES Permit.
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
IV. Background on Color
Levels of color in the wastewater effluent from the Canton Mill are among the best of
Kraft pulp and paper mills in the world [EKONO August 2005, NCASI August 2006].
This high level of color performance is achieved by in-process controls and best
management practices. The mill will continue to operate the controls and practices
proven successful for color prevention. These controls and practices go well beyond the
requirements of the EPA Cluster Rule for Pulp and Paper (40 CFR 430, Subpart B).
Many, such as the Bleach Filtrate Recycling (BFR) ProcessTM, are unique to the Canton
Mill. The BFR process includes two technologies — the Minerals Removal Process
(MRP) with D1 stage filtrate recycling on the pine fiberline and the Chloride Removal
Process(CRP)on the black liquor chemical recovery cycle.
The May 2010 NPDES Permit includes a daily maximum effluent true color limit of
105,250 lbs per day. The permit also specifies a monthly average true color limit of
52,000 lbs per day and an annual average (calendar year) true color limit of 38,020 lbs
per day. Compliance with these effluent limits requires significant management of mill
operations related to color. Prevention of wastewater effluent color is a priority for mill
operations every day. The Canton Mill is in compliance with these effluent limits for
color.
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
V. Best Management Practices
On July 1, 2011 the Canton Mill submitted the Annual Progress Report on Color
[Evergreen July 2011] required by Part I A.(8.) item 8 of the May 2010 NPDES Permit.
That report documented 34 color-related capital and maintenance projects completed
between May 2006 and May 2011. During this period the mill also completed 14 color-
related BMP refinements, trials and process improvements. Several of the projects and
process improvements documented in the July 2011 Progress Report are related to 2006
Liebergott recommendations for existing process optimization [GL&V 2006]. These
include projects for brown stock washing improvement and target pulp bleach kappa
factor. Other projects and improvements are related to sewer-generated color and
polymer use optimization, which are TRW evaluation recommendations in Part I A.(8.)
item 10 B. of the Permit.
The complete application to renew the NPDES permit was submitted by the Canton Mill
in May 2006. The Permit renewal process, including review by the TRW, public
comment and public hearings was completed in May 2010. Between May 2006 and May
2010, the Canton Mill implemented further improvement in leak and spill prevention and
control (BMPs)as required in Part I A.(8.)item 10 A. of the May 2010 NPDES Permit.
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
VI. Enhanced Extraction Stases
The Canton Mill evaluated enhancement of the hardwood bleach plant extraction stage
with hydrogen peroxide by full-scale trial during 2002 [Adams 2002a]. For the target
pulp brightness and other process conditions at that time, hydrogen peroxide was
ineffective in off-setting bleach plant chemical use. There was no statistically significant
effect on secondary effluent color. Hydrogen peroxide enhancement of the pine bleach
plant extraction stage ended in August 2001 as part of TRW process optimization
recommendations for pine DI stage kappa factor that were incorporated into the
December 2001 NPDES Permit[Adams 2002b,NC DWQ 2001].
The TRW recommendations incorporated in Part I A.(8.) item 10 A. of the May 2010
NPDES Permit include enhanced extraction as a process optimization for expedited
evaluation. In late 2010, the Canton Mill solicited quotes and sourced equipment for a
new trial of extraction stage fortification with hydrogen peroxide. The process trial plan
was prepared and approved in March 2011. The trial is designed to address TRW
comments concerning previous enhanced extraction work as well as update economics
and potential color reduction. Specifically, the fiberline pH and temperatures will be
adjusted to optimize hydrogen peroxide addition towards delignification in the Dl and Eo
stages, and not D2 brightening. This is the most advantageous fortification process
application to off-set bleaching chemical use. Pulp brightness development, pulp
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
viscosity and bleach plant effluent color will be monitored during the enhanced extraction
trial. Three(3) months of bleach plant and secondary effluent color data before and after
the full-scale trial period will be used to evaluate potential color reduction.
A temporary hydrogen peroxide storage tank, chemical metering pumps and associated
piping were installed at the mill adjacent to the pine fiberline during May 2011. Safety
reviews, equipment checks and employee training were then completed. At the end of
June 2011, the mill began a 90-day full-scale trial of extraction stage fortification with
hydrogen peroxide on both the hardwood and pine fiberlines. The trial start date for the
pine fiberline was June 22. The trial start date for the hardwood fiberline was June 25.
The process trial work will continue through the end of September 2011. Data analysis
should be complete in early 2012.
VII. Second State Oxygen Delienification on Pine
The Canton Mill evaluated addition of second stage oxygen delignification to the pine
fiberline during 2001 as part of a series of laboratory pulp cooking and bleaching trials
conducted by the Pruyn's Island Technical Center (PITC) [PITC 2001]. For the target
pulp brightness and other process conditions at that time,the PITC results showed a small
potential effluent color reduction with a significant commercial risk of adverse effect on
pulp strength.
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May.2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
The TRW recommendations incorporated in Part I A.(8.) item 10 A. of the May 2010
NPDES Permit include expedited evaluation of second stage oxygen delignification on
the pine fiberline. During 4 h Quarter of 2010, the Canton Mill shipped samples of wood
chips and pulp to PITC for a new series of laboratory cooking and bleaching trials to
evaluate the effects of single-stage (0) 45-50% delignification and two-stage (00) 60%
delignification on the D 1-Eo-D2 bleach sequence color development and final pulp
strength characteristics. These trials were designed to address TRW comments
concerning previous PITC oxygen delignification work as well as update economics and
potential color reduction.. Specifically, pulp cooking prior to oxygen delignification was
adjusted to match both current process conditions and to overcome adverse effects on
pulp strength.
Overall results of the 2010 PITC laboratory trials are consistent with the 2001 evaluation
[PITC 2011, McDonough 2011]. To overcome adverse pulp strength effects, pulp
cooking must be adjusted to a higher kappa number prior to two-stage oxygen
delignification which offsets potential bleach plant chemical savings and color reduction
from the two-stage process if no changes were made to current cooking practice. The
projected secondary effluent color reduction from two-stage oxygen delignification with
adjusted pulp cooking to preserve pulp strength properties and accounting for current
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No..NC0000272
filtrate recycling and closure practices with the MRP process on the pine fiberline is less
than 1000 lbs per day. Economic evaluation of the 2010 PITC laboratory trial technical
results is not complete.
VIII. Summary
The Canton Mill will continue to utilize the processes and practices proven technically,
operationally and economically.feasible for effluent color prevention. Prevention of
effluent color is a priority for mill operations every day. During the first year of the May
2010 NPDES Permit, the mill continued work related to February 2008 TRW
recommendations incorporated into Part I A.(8.) items 10 A & B of the Permit.
Specifically:
a. further improvement in leak and spill prevention and control(BMPs)
b. sewer-generated color
c. polymer use optimization
A
d. full-scale trial of enhanced extraction stages
e. laboratory trials of second stage oxygen delignifrcation on pine.
The Contested Cases filed by Cocke County and others in July 2010 challenging the May
2010 NPDES Permit create uncertainty about final permit limits and requirements. The
Contested Cases may not be decided until sometime in 2012. Because the outcome of the
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
cases may affect the technologies and/or processes that the Canton Mill may use to
reduce color, the company has not yet determined the technical approach and associated
time frames and capital investment, if any, it will employ to achieve additional reductions
in color.
References
NC DWQ 2010 — Final National Pollutant Discharge Elimination System (NPDES)
Permit for the Canton Mill, No. NC0000272, North Carolina Department of
Environment and Natural Resources, Division of Water Quality, issued 26 May 2010,
effective July 1, 2010.
NC EMC 2010 — Color Variance— Request for Variance from Water Quality Standard-
Based Effluent Limitations by Blue Ridge Paper Products, Inc. Canton, North Carolina,
heard and decided by NC Environmental Management Commission,July 14, 2010.
EKONO 2005 — Environmental Performance, Regulations and Technologies in the Pulp
and Paper Industry, EKONO Inc,August 2005.
NCASI 2006—Technical Bulletin No. 919 —Review of Color Control Technologies and
Their Applicability to Modern Kraft Pulp and Paper Mill, National Council for Air and
Stream Improvement,August 2006.
GL&V 2006 — Bleach Environmental Process Evaluation and Report prepared for Blue
Ridge Paper Products Inc., Canton Mill, Norman Liebergott and Lewis Shackford,
GL&V, July 2006.
Evergreen 2011 — Annual Progress Report on Color, submitted to NC DWQ to meet
requirements of Part I A.(8) item 8 of the May 2010 NPDES Permit, Evergreen
Packaging Canton Mill,July 1,2011.
Adams 2002a — Blue Ridge Paper Products - Canton Mill — Trial Report — Hydrogen
Peroxide (112O2) on Hardwood Eo Stage, Bill Adams Process Engineer, Blue Ridge
Paper Products Inc. Canton Mill, July 2,2002.
R&S 865344-1

September 1, 2011
Color Reduction Implementation Plan — Report on TRW
Recommendations in the May 2010 NPDES Permit
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
NC DWQ 2001 — Final National Pollutant Discharge Elimination System (NPDES)
Permit for the Canton Mill, No. NC0000272, North Carolina Department of
Environment and Natural Resources, Division of Water Quality, issued November 15,
2001, effective December 1,2001.
Adams 2002b — Blue Ridge Paper Products - Canton Mill — Process History Report —
D-100 Kappa Factors Performance / Monitoring, Bill Adams Process Engineer, Blue
Ridge Paper Products Inc. Canton Mill, July 10,2002.
PITC 2001 — Report 2001-068, Part 1 —Laboratory CK and Lo-Solids Cooking with O-
Do-Eop-D Bleaching Sequences on Softwood Furnish from Blue Ridge Paper, Part 1 —
Softwood Results, Pruyn's Island Technical Center,December 6, 2001.
PITC 2011 — Report 2010-081 — Laboratory Cooking and Bleaching for Evergreen
Packaging Canton,NC, Pruyn's Island Technical Center, January 31,2011.
McDonough 2011 —Laboratory Study of Likely Effects of Installing Two-Stage Oxygen
Delignification at Evergreen Packaging's Canton, NC Mill, Thomas J. McDonough,
consultant to Evergreen Packaging,June 29,2011.
R&S 865344-1

�REO ST��
2,; A UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
W REGION 4
z ATLANTA FEDERAL CENTER
%,Pit 1-,d11' 61 FORSYTH STREET
ATLANTA,GEORGIA 30303-8960
FM 2 2 28W
Ms. Colleen H. Sullins
Director, Division of Water Quality
North Carolina Department of Environment and
Natural Resources
1617 Mail Service Center
Raleigh,North Carolina 27699-1617
Dear Ms. Sullins:
On November 23, 2009,we received your submittal for our review of a draft National
Pollutant Discharge Elimination System(NPDES)permit for Blue Ridge Paper Products,
Permit No. NC0000272. We appreciate your efforts to continue the improvements in the quality
of the Mill's discharges to the Pigeon River through the NPDES permit process and recognize
the tremendous progress made by the Mill over the last 20 years. Your efforts have lead to
significant improvements in water quality in both the North Carolina and Tennessee portions of
the river. We also want to commend you for your decision to increase public participation in this
process by holding a public meeting on the draft permit in Tennessee.
We have had many discussions with your staff during our review of the draft permit and
resolved a number of issues. To provide more time for these collaborative discussions,we
notified you on December 10, 2009,that we would be taking the full 90-day period to complete
our review pursuant to Section IV.B.3 of the NPDES Memorandum of Agreement(MOA)with
the North Carolina Division of Water Quality(DWQ).
At this time, we have completed our review and have remaining concerns with some
provisions of the draft permit. Based on our review and consideration of issues raised at the
recent public meeting and hearing,we are providing specific objections to the draft permit,
which are explained in detail below,pursuant to Section IV.B.3 of the MOA and regulations at
Title 40 Code of Federal Regulations (CFR) §123.44.
Specific Objection 1: Technologv-Based Color Limits and Compliance Schedule
The draft permit includes an initial annual average color permit limit of 39,000#/day and
requires a 37,000#/day limit within four years. Although the 2001 current permit required that
DWQ conduct an analysis of mill performance and possible revision of annual average color
loading to a value in the 32,000-39,000#/day range by March 2006,that revision did not occur.
To assess current performance, the Environmental Protection Agency(EPA)developed 95%
confidence limits for annual average color loadings using monthly average data for the period
2006-2009. EPA typically uses this type of statistical analysis to determine effluent performance
and the use of such confidence limits is consistent with effluent guidelines development. That
analysis indicates that the draft permit's annual average color limits do not fully capture current
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performance or provide a sufficient incentive for the Mill to continue to improve its
performance. These permit provisions are thus not consistent with the case-by-case Best
Professional Judgment requirements of 40 CFR §§ 125.3(c)(2)and(d)(3). The draft permit is
therefore subject to specific objection pursuant to 40 CFR §§ 123.44(c)(4), (6), and(7).
To resolve this specific objection,based on the confidence limits cited above, the permit
must require an initial annual average color permit limit of no greater than 37,900 Wday. Also, it
must require an annual average color limit no greater than the range of 32,000-36,000 Wday at
the end of the four-year compliance schedule. This is consistent with the color range
recommended by the Technology Review Workgroup(TRW)in February 2008.
Also,for the color compliance schedule cited above,the draft permit requires that the
Mill develop an implementation plan for various color reduction efforts and submit annual
reports of progress. However,the permit does not specify a date certain for submittal of that
plan,nor interim requirements and the dates for their achievement. Since the compliance
schedule exceeds one year,pursuant to 40 CFR § 122.47(a)(3),the compliance schedule must
include interim requirements and dates for their achievement. The lack of interim requirements
and dates for their achievement is subject to objection pursuant to 40 CFR§123.44(c)(7).
To address this specific objection, the permit must require the facility to submit an
implementation plan within the first year of permit issuance. The permit must also contain a
reopener clause to include interim requirements and dates for their achievement as enforceable
parts of the permit based on the submitted implementation plan. Once the implementation plan
is submitted and reviewed, the permit should be modified accordingly.
Specific Obiection 2: Effluent Limit for Color:Protection of Water Quality and Status of
Variance to Narrative Color Criterion
The conditions and limits for color in the draft permit are based on the removal of the
variance to the narrative color standard for the Pigeon River,which was adopted by the State on
October 10,2001. Thus,the color effluent limits, in the State's view,are consistent with the
State's water quality standard for color. However, the fact sheet or record supporting the draft
permit does not adequately support this determination. As background, in the absence of a
numeric translation of the narrative standard by either North Carolina or Tennessee,EPA has
historically translated the narrative standard to a numeric standard of 50 platinum cobalt units
(PCU or"color units"); North Carolina has adopted a variance from this standard that was
reflected in previous permits for the Blue Ridge facility. EPA's 50 color unit interpretation was
based on studies conducted by the National Council for Air and Stream Improvement and this
level has been met-at the North Carolina/Tennessee state line in almost all measurements taken
since 2002. North Carolina adopted a variance from this standard in 2001;the terms of that
variance included the following:
"This variance shall extend for an indefinite period of time, subject to consideration
during the water quality standards triennial reviews. Any modification or termination
based thereon shall be subjected to the public hearing process required by N.C.G.S. 143-
215.3(e)."
2

Therefore,until the administrative process for removal of the variance is completed,the 2001
variance remains in effect. Nevertheless,the fact sheet indicates that the variance has been
removed and does not provide an explanation as to how the procedural requirements for its
removal have been met.
Also, as mentioned above,the actions required in Section B.8 of the 2001 variance and
the 2001 permit do not appear to have been completed. That section of the variance required an
evaluation of mill performance related to color and a recommendation by DWQ of the lowest
achievable annual average and monthly average color loading effluent.limitations for the mill.
This section also required that,if the analysis supported a revision to average annual color limits
in the range of 32,000 to 39,000#/day,the revised limit was to become effective on March 1,
2006. However,the current effective annual average limitation for color is 42,000#/day.
In addition to not completing the procedures for variance removal,DWQ also did not
include in the fact sheet a defensible scientific rationale for its determination that the draft permit
will ensure compliance with North Carolina's narrative water quality standard for color. The
fact sheet for the draft permit states that the monthly and annual average color limits are"in
accordance with the TRW recommendations." The fact sheet also states:
Based on actual instream color measured between 2002-2008,DWQ believes that
compliance with the effluent color limits established in the 2001 permit were protective
of NC's narrative water quality color standard. Only under extreme drought conditions
(below 30Q2/7Q10 flows)were instream color values reported to exceed the Prestrude
aesthetic threshold of 100 platinum cobalt units (PCU or"color units"),and NC
regulations do not consider aesthetic color standards violated by the permittee when
stream flows fall below 30Q2 design flow.
The reference to the Prestrude aesthetic threshold of 100 PCU relates to a study entitled, Color.-
Misperceptions About the Aesthetics of River Color(Dr.A. M.Prestrude,July 1996)(the
"Prestrude Report"). The Prestrude Report suggests that color levels become an aesthetic
problem at 100 PCU. However,none of the studies relied upon in the Report are based on
waters that.are similar to the segment of the Pigeon River near Canton. The study of ambient
color levels in the Prestrude Document included consideration of photographs of the Pigeon
River downstream of the facility discharge which were taken in or about 1988. However,the
color discharge from the facility during that time frame was approximately ten times the amount
that is currently discharged.
Further, the document also states, "From a perception standpoint, therefore, it is readily
accepted that the general population can differentiate between colors differing by approximately
50 color units. While this difference is capable of scientific quantification,more refined studies
are required to focus on what level of perceived color is objectionable in natural environments."
Thus,the Prestrude Report does not purport to establish a one-size fits all color standard that can
3

be applied to.different environments. EPA agrees with the Report's suggestion that more
refined,site-specific studies would be useful to determine how the narrative standard should be
interpreted or applied to specific natural environments such as the Pigeon River near Canton.'
The terms of the 2001 variance allowed a monthly average limit of 55,000#/day, which
was selected based on actual performance of color treatment and removal technologies that were
identified in an earlier review by the TRW. In other words, this value was selected based on the
ability of the facility to meet the limit by installing and operating color treatment and/or removal
technologies,rather than factors related to instream water quality.
The monthly average color limit proposed in the draft permit is 52,000#/day; however,
the fact sheet does not clearly indicate whether this limit is based on what can be achieved
through application of available technologies or on protection of water quality. Due to the
absence of a numeric interpretation of the narrative color standard by the State, it is not clear
whether the State has determined that the monthly limit of 55,000#/day, i.e., "the effluent color
limits established in the 2001 permit,"or the monthly average of 52,000 Nday, as proposed in
the current draft permit, is needed to meet the narrative color standard. Using the 30Q2 flow of
the Pigeon River of 89.9 cubic feet per second at Canton, and assuming that the background
color level of the Pigeon River is 13 PCU,the current draft permit allows for a color level
downstream of the discharge of 114 PCU, and the previous 2001 monthly average permit limit of
55,000#/day allowed an instream color level of 120 PCU. The absence of a specific numeric
interpretation of the State's narrative color standard and the ambiguity of the statements made in
the fact sheet make it difficult to determine at what PCU level the State believes ambient
conditions would be consistent with the narrative-color standard. Thus,the effluent limits in the
draft permit would result in instream color levels that exceed both the"Prestrude aesthetic
threshold of 100 platinum cobalt units"and EPA's historical use of 50 PCU as a numeric
translation of the State's narrative standard. However, the fact sheet also does not adequately
explain how 114 PCU will comply with the State's narrative color standard.
The fact sheet states:
NC has generally viewed color as primarily an aesthetic issue,and the interpretation of
color as an aesthetic impact is subjective. Similar to odor issues,the number of
complaints received serves as one means to gage public perception of color impact. The
NC DWQ regional office in Asheville has received only one color complaint in recent
years.
'The Tennessee Department of Environment and Conservation reviewed the studies summarized in the Prestrude
Report and concluded that the appropriate interpretation of its narrative color standard requires that the increase of
ambient color levels in the Hiwassee River should be limited to an increment of 50 color units over levels measured
above the Bowater paper facility outfall.
4

This appears to be the State's justification for the determination that the draft permit will ensure
compliance with its narrative color standard and a variance is no longer necessary. However,
while the presence or absence of complaints may be relevant,-EPA does not find the counting of
complaints to be a sufficiently structured process for establishing a state water quality standard.2
EPA is not aware that the State has notified the public that the frequency of complaints is a factor
that is used in the State's interpretation or application of the narrative color standard.
As noted above,EPA has historically interpreted North Carolina's narrative color
standard for the Pigeon River to be 50 PCU. The rationale provided in the fact sheet does not
establish a scientifically defensible basis'for-the State's interpretation of the narrative standard or
its conclusion that the limits in the draft permit implement the State's water quality requirements
for color, as established in 15A North Carolina Administrative Code(NCAC)2B.0211(3)(f)and
15A NCAC 2B.0206(a)(4).
In summary, EPA is concerned that,the State has insufficient record support for the
conclusion that the effluent limits and conditions for color proposed in the draft permit are
protective of the State's narrative water quality color standard. The fact sheet's discussion of the
basis of the color conditions and limitations does not establish that the draft permit will comply
with the narrative color standard at all flows equal to or greater than the applicable instream
flow,i.e.,30Q2 flow, as established in its water quality standards. Therefore,the draft permit
does not comply with requirements at 40 CFR §122.44(d)(1)(vii)(A) and is subject to objection
under 40 CFR §123.44(c)(8).
To address this specific objection,the State must revise the terms of the variance from the
North Carolina water quality standard for color for the Pigeon River to reflect the proposed
permit conditions and limits for color as referenced in Specific Objection 1 above. The
information necessary to support a variance determination appears to have already been
developed by the facility in conjunction with the TRW. Accordingly,EPA commits to timely
review and act on a request to revise and extend the variance upon the formal submittal of a
proposed variance revision by DWQ.
Recommendation For Site-S ecific Stud
In order to create a better record for any future effort to reinterpret the narrative color
standard, and ensure that authorized discharges are protective of the narrative standard,EPA
recommends the addition of a condition in the draft permit requiring the permittee to provide
funding for an independent study of color levels in the North Carolina segment of the Pigeon
River,or a segment of a watershed that is reasonably similar to the physical characteristics of the
Pigeon River downstream of the mill. The study should focus on the aspects of the'State's
narrative color standard that are relevant to conditions and limits in the permit,and should
address assessment of color levels in ambient waters of the Pigeon River(or other watershed(s),
as specified above)when those levels are in the range of 50 to 120 PCU. The permit could also
include a reopener clause to implement the conclusions of the study if wprranted.
2 EPA notes that,based on comments during the public meeting and hearing,there are citizens who believe there is a
basis to complain about ambient color in the Pigeon River.
.5

EPA believes that an independent, unbiased site-specific study would be useful to
determine how the State's narrative color standard should be interpreted or applied to the Pigeon
River near Canton. Such a study would be valuable in addressing uncertainties relating to the
narrative standard for color because many site-specific factors influence the overall perception of
an individual stream setting and the level of protection needed for a stream or watershed.
Evaluation of the Pigeon River downstream of the Blue Ridge mill is even more critical for
setting regulatory targets,given the color levels in the river,and the public interest in the present
permitting process for the Blue Ridge facility.
The study should be conducted with unbiased observers. For example, college students
were used in some of the studies performed by Prestrude. The results of the study could be used
by the State to address other issues related to the application of the North Carolina narrative
color standard, such as whether it would be more appropriate to establish a regulatory
requirement for the river solely based on a specific color concentration,or as an increMent over
"background"color levels. We also suggest that EPA be involved in the review and approval of
the framework of the plan for conducting the study prior to initiation.
Specific Objection 3: Temperature Variance
Regarding temperature,the permit implements a Clean Water Act(CWA) § 316(a)
variance by requiring: 1)an instream monthly average of 32°C during July-September; 2)an
instream monthly average of 29°C during the rest of the year; and 3)downstream values not to
exceed upstream values by more than a monthly average of 13.9°C. ("Delta T") Compliance
with these three conditions is assessed 0.4 miles downstream from the discharge at Fiberville
Bridge.
To obtain such a variance, an applicant is required by Section 316(a)and applicable
regulations at 40 CFR Part 125,Subpart H,to demonstrate that the proposed variance assures
the protection and propagation of a balanced, indigenous population("BIP")of shellfish, fish,
and wildlife in and on the body of water into which the discharge is made. The information
submitted with the draft permit is not sufficient to make the required demonstration. This
concern is heightened by a North Carolina Wildlife Resources Commission report indicating
that a September 2007 fish kill in the Pigeon River was, in part,due to elevated temperature. As
a result of the absence of a sufficient demonstration that the variance assures protection of a
BIP,the draft permit is subject to objection under 40 CFR§123.44(c)(7).
To resolve this objection, the permit must require completion of an updated study that
includes thermal modeling and demonstrates the protectiveness of the proposed variance;the
updated study should meet the parameters outlined in the enclosure to this letter. Further, in the
interim period before an adequate study is completed,a reduction in the Delta T limit should be
included in the permit to provide additional assurance that the BIP is protected. The current
Delta T limit was based on mill operating conditions prior to the modernization project
completed in the early 1990s, which included the installation of a mechanical draft cooling
tower. Based on daily temperature data taken at the Fiberville Bridge (River Mile 62.9)and just
above the Canton Mill(River Mile 63.8)during January 2005 to December 2009,EPA
determined average Delta T values for warm months(April through October)and cool months
6

(November through March). The 95th percentile values for average Delta T for the warm and
cool periods were 7.4`C. (13.2$°F.)and.8.2`C. (14.69°F.),respectively. EPA believes the
average Delta T value of 8.2`C. will be appropriate for all times of the year and could be
adjusted pending the results of the thermal modeling to be completed as part of the Section
316(a)updated study. Lastly,the permit must require the Mill to monitor and report the daily
maximum and monthly average.effluent temperatures.
Specific Objection 4: Absence of Daily Maximum Dioxin Limit and Fish Tissue Monitoring
The draft permit contains a monthly average dioxin limit; however, it does not include a
daily maximum limit,as required by 40 CFR Part 122.45(d)(1). The draft permit is therefore
subject to objection pursuant to 40 CFR §123.44(c)(7). To address this specific objection, the
permit must contain a daily maximum dioxin limit. That limit may be set at a level equal to the
monthly average limit.
Also,the draft permit contains a new provision that fish tissue monitoring for dioxin will
cease after 2009,unless DWQ determines that a public health hazard exists. EPA routinely uses
ambient fish tissue dioxin monitoring to determine whether water column impairment is
occurring and whether reasonable potential to exceed a state's numeric dioxin criterion exists.
The fish tissue levels indicating water column impairment are typically well below the levels at
which fish advisories are typically adopted. Based on North Carolina's dioxin numeric criterion
of 0.005 parts per quadrillion(ppq), the associated fish tissue value indicating impairment would
be approximately 0.025 parts per trillion(ppt). Out of the last five years of fish tissue data
collected by the facility,levels of dioxin detected in common'carp at Station 4A in upper
Waterville Lake have been 1.1-1.3 ppt,with two years having estimated concentrations reported.
Assuming a linear relationship between water column concentrations and fish tissue
levels, these fish tissue concentrations would indicate a water column concentration in the range
of 0.22-0.26 ppq,thus exceeding the State's numeric criterion. In this case,direct measurement
of dioxin in fish tissue shows evidence of accumulation;reliance on effluent sampling alone
using method detection limits that cannot measure dioxin at the level of the State numeric
criterion does not provide the necessary information to make this determination.
As a result, the removal of the dioxin fish tissue monitoring requirement as proposed in
the draft permit does not ensure that sufficient data is generated to adequately represent the
monitored activity,as required by 40 CFR §§ 122.410)(1)an4122.48(a)-(c). Requiring
monitoring in the event of a public health hazard is not adequate to determine if water quality
standards are being met. The lack of such data also does not allow for a complete evaluation of
the reasonable potential to exceed state water quality criteria,as required by 40 CFR §
122.44(d)(1). Accordingly,the draft permit is subject to objection pursuant to 40 CFR §§
123.44(c)(5)and(7). To address this specific objection,the permit must require that the facility
conduct monitoring of fish tissue for dioxin(as was done in 2009) in the first,third,and fifth
years of the term of this permit. Annual monitoring does not appear to be warranted since fish
tissue levels have shown minor changes in recent years.
7

Specific Objection 5: Absence of Turbidity Monitoring
EPA has previously requested that the State specifically document in the permit fact sheet
the manner in which reasonable potential to exceed North Carolina's Class C criterion for
turbidity was evaluated("the receiving water shall not exceed 50 Nephelometric Turbidity Units
in streams not designated as trout waters"). To the extent that sufficient data to make that
evaluation were not available,we further requested that specific monitoring to obtain the
information be required by the permit. The draft permit and fact sheet did not address these
concerns.
Therefore,the draft permit does not ensure that the discharges authorized under the
permit are protective of North Carolina's numeric criterion for turbidity. The lack of such data
does not allow for a complete evaluation of the reasonable potential to exceed the state water
quality numeric criterion cited above,as required by 40 CFR § 122.44(d)(1),and as a result,the
draft permit does not include effluent limits that may be necessary to protect water quality. The
draft permit is therefore subject to objection under 40 CFR §§ 123.44(c)(5), (7), and(8).
To address this specific objection,the permit must require that the facility conduct
downstream turbidity monitoring at Fiberville Bridge at a minimum frequency of twice per
month during the April-October timeframe for a minimum of one year. Such monitoring must
not occur within 72 hours of a rain event. The permit must also contain a specific reopener to
enable DWQ to add an appropriate turbidity limit if reasonable potential to exceed the State's
numeric criterion is found to exist. Based on North Carolina's numeric criterion,upstream data
are not needed and should not be used to assess reasonable potential.
Specific Objection 6: Absence of Effluent Hardness Monitoring To Evaluate Zinc Toxicity
The draft permit requires quarterly zinc monitoring because DWQ determined that
reasonable potential exists to exceed North Carolina's action level of 50 ug/I based on an
assumed hardness of 50 mg/l. We are aware of a low upstream hardness value of 7.6 mg/l.
Because zinc toxicity increases at lower hardness values,any future evaluation of effluent zinc
data without concurrent effluent hardness monitoring cannot adequately assess reasonable
potential to exceed the action level.
Without concurrent effluent hardness measurements, the draft permit does not ensure that
sufficient data is generated to adequately represent the monitored activity,as required by 40 CFR
§§ 122.410)(1)and 122.48(a)-(c). Further, without such data, the draft permit does not allow for
a complete evaluation of the reasonable potential to exceed the hardness-based state water
quality numeric criterion for zinc, as required by 40 CFR§ 122.44(d)(1), and as a result,the draft
permit does not include effluent limits that may be necessary to protect water quality. The draft
permit is therefore subject to objection under 40 CFR§§ 123.44(c)(5),(7),and(8). To address
this objection,the permit must be revised to include a requirement for quarterly effluent hardness
monitoring concurrent with the quarterly zinc monitoring.
8

EPA also offers the following recommendations for your consideration:
Recommendation 1 Regarding AOX Limits
EPA also has the following comment regarding the draft permit limits for adsorbable
organic halides (AOX),which reflect a 39% increase in loadings from the 2001 permit. The
DWQ presentation at the recent public hearing and meeting indicated that the facility is#2 in the
world in terms of AOX removal. Our analysis of recent AOX effluent data confirms the
facility's performance—the typical discharge is less than 300#/day as a monthly average. Based
on that performance,we recommend that the AOX limits in the 2001 permit be retained.
Recommendation 2 Regarding TRW
The TRW has historically performed a valuable function in assessing color reduction
efforts at the Mill and providing recommendations to DWQ. We recommend that the permit
include a provision ensuring that the TRW will assess color reduction technologies and provide
recommendations to DWQ at the end of this next permit term.
To address the specific objections above, I ask that you redraft the permit and submit a
proposed permit and a revised fact sheet to EPA for review under the provisions of Section
III.B.6 of the MOA. I also ask that you submit a summary of all public comments that have been
received and DWQ's response to them. In accordance with Section IV.B.7 of the MOA and 40
CFR §123.44,within ninety(90)days of your receipt of this letter,DWQ or another interested
person may request that a public hearing be held,pursuant to 40 CFR §123.44(e). If no public
hearing is held, and DWQ does not resubmit a proposed permit that has been revised to meet our
specific objections within ninety(90)calendar days of receipt of this letter,exclusive authority to
issue the permit passes to EPA for one permit term. Any requests for a hearing on the objections
and the procedure for resolving any objection shall be governed by 40 CFR §123.44,as provided
in Section IV.B.7 of the MOA.
If you.have any questions,please have your staff contact Mr.Marshall Hyatt at
404-562-9304.
Sincerely,
?ames . Giattina
Director
Water Protection.Division
Enclosure
9

cc: Dane A. Griswold, Blue Ridge Paper Products Inc.
John S.Curry,Esq., North Carolina Environmental Management Commission
Jeffrey V. Morse, North Carolina Environmental Management Commission
Paul E.Davis,Tennessee Department of Environment and Conservation
David McKinney,Tennessee Wildlife Resources Agency
10

Enclosure
Section 316 a Report and the SqLdy Plan for the Subse uent Permit
Blue Ridge may use existing data in completing its study and may incorporate the
existence of such data into the monitoring program plan design;however,the existing data needs
to be evaluated and presented in the context of a BIP definition that the existing record does not
adequately provide.
Section 316(a)of the CWA contains the term"BIP"but does not define it. However,40
CFR §125.71(c)defines the term"balanced, indigenous community"1 as:
"A biotic community typically characterized by diversity,the capacity to sustain itself
through cyclic seasonal changes,presence of necessary food chain species and by a lack
of domination by pollution tolerant species. Such a community may include historically
non-native species introduced in connection with a program of wildlife management and
species whose presence or abundance results from substantial, irreversible environmental
modifications. Normally,however, such a community will not include species whose
presence is attributable to the introduction of pollutants that will be eliminated by
compliance by all sources with section 301(b)(2)of the Act: and may not include species
whose presence or abundance is attributable to alternative effluent limitations imposed
pursuant to section 316(a)."
The Environmental Appeals Board stated in its decision in In Re Dominion Energy
Brayton Point,LLC, 12 Environmental Appeals Decision(E.A.D.)490(2006)(`Brayton Point"),
"this definition clearly envisions a consideration of more than the population of organisms
currently inhabiting the water body. In this vein,although it permits inclusion of certain
`historically non-native species' that are currently present, it explicitly excludes certain currently
present species whose presence or abundance is attributable to avoidable pollution or previously-
granted section 316(a)variances."
Page 557 of the Brayton Point E.A.D. goes on to further state that a BIP"can be the
indigenous population that existed prior to the impacts of pollutants,not solely the current
populations of organisms."
To the question of how a permittee should identify a BIP in an area that has been altered
by impacts from an existing thermal discharge,the Brayton Point E.A.D.points out that it may
be appropriate to use a nearby water body unaffected by the existing thermal discharge as a
reference area. Examination of an appropriate reference area may be applicable in this case.
The definition of"balanced, indigenous community" at 40 CFR § 125.71(c)contains
several key elements. To be consistent with the regulations-,each of these key elements should
be specifically addressed in the demonstration, and the Pigeon River Section 316(a)monitoring
plan for the next permit cycle should be designed to generate information relevant to these
elements. Those elements include: (1)"a population typically characterized by diversity at all
'-Balanced,indigenous community"and BIP are equivalent terms,

trophic levels;"(2) "the capacity to sustain itself through cyclic seasonal changes;"(3)"presence
of necessary food chain species;"(4) "non-domination of pollution-tolerant species;" and(5)
"indigenous." Each of these elements is discussed in more detail below:
1. "A population Wically characterized by diversity at all trophic levels" means that all of the
major trophic levels present in the unaffected portion of the water body should be present in the
heat affected portions. EPA recognizes that community structure differences will occur,
however,the number of species represented in each trophic level in the unaffected portions
should be reasonably similar in the heat-affected portions of the water body. Sampling and
analysis of fish and invertebrate communities should be done such that the major trophic levels
are identified and represented by reasonably similar species distributions. Also, the study plan
should be expanded to include some observations of wildlife(i.e., water fowl,mammals,
amphibians,etc.)both upstream and immediately downstream of the discharge point that may be
impacted by the thermal discharge.
2. "The capacity to sustain itself through cyclic seasonal changes"means that any additional
thermal stress will not cause significant community instability during times of natural extremes
in environmental conditions. Community data should be collected during normal seasonal
extremes as well as during optimal seasonal conditions. Data should be compared between heat
affected and unaffected portions of the receiving water body to account for normal community
changes corresponding with a change in season.
3. "Presence of necessary food chain species"means that the necessary food webs remain intact
so that communities will be sustaining. We believe that exhaustive food web studies are not
necessary provided that invertebrate,fish and wildlife communities are otherwise healthy,i.e.,
represented by sufficiently high species diversity and abundance(appropriate for that portion of
the receiving water body)for the identified trophic levels and sustaining through normal seasonal
changes.
4. "Non-domination of pollution-tolerant species"means that in the case of a thermal effluent,
community assemblages in heat affected portions of the lake dominated by heat tolerant species
do not constitute a BIP. EPA recognizes that because all species have varying levels of thermal
tolerance,communities in the heat affected portions of the water body may possess altered
assemblages in terms of species present and abundance. All community data should be
collected, analyzed and presented to clearly demonstrate that affected communities have not
shifted to primarily heat tolerant assemblages.
5. "Indigenous"has been further clarified in the regulations: "Such a community-may include
historically non-native species introduced in connection with a program of wildlife management
and species whose presence or abundance results from substantial, irreversible environmental
modifications. Normally,however,such a community will not include spocies whose presence is
attributable to the introduction of pollutants that will be eliminated by compliance by all sources
with section 301(b)(2)of the Act: and may not include species whose presence or abundance is
attributable to alternative effluent limitations imposed pursuant to section 316(a)." EPA
recognizes that non-indigenous species are present in most aquatic systems in the United States.
All community data should be analyzed and presented to demonstrate that community
2

assemblages in the heat affected portions of the receiving water body are not significantly
different from non-affected communities with regard to the number of non-indigenous species in
the assemblages.
In addition to the foregoing components of the BIP definition,the study plan should also
include provisions for the identification of RIS (e.g., a list of threatened,endangered,thermally
sensitive,or commercially or recreationally valuable species up- and downstream of the study
area),as contemplated in 40 CFR §125.72(b). 40 CFR §125.71(b)defines RIS as"species which
are representative,in terms of their biological needs,of a balanced, indigenous community of
shellfish, fish and wildlife in the body of water into which a discharge of heat is made."
The following EPA comments should be specifically addressed in the study plan prior to
Blue Ridge commencing sampling during the term of the next NPDES permit. The plan should:
a) include available information on wildlife in the lake areas based on
communications with North Carolina's Wildlife Management Agency. See
item 1 above.
.b) include a diagram depicting the thermal plume under the worst case scenario
and address the presence or absence of a zone of passage for which fish can
travel around the thermal plume.
e) provide information of which fish collected are either heat-sensitive or
nuisance species. See item 4 above.
d) provide a list of any lake species that are endangered or threaten in accordance with
federal and state regulations.
e) analyze and present data to clearly demonstrate that affected communities
have not shifted to primarily heat tolerant assemblages.
f) include recent data or information on benthic macroinvertebrates. See item 1 above.
g) analyze and present all data to demonstrate that community assemblages in the heat-
affected portions of the receiving water body are not significantly different from non-
affected communities with regard to the number of non-indigenous species in the
assemblages; and
h) include a thermal modeling study based on historical effluent temperatures and
operating conditions to determine appropriate permit limits for temperature.
In order to ensure that Blue Ridge's future study plan for the Pigeon River is adequate to
demonstrate that the Canton Mill should have its Section 316(a)variance renewed during the
term of its next NPDES permit,EPA requests the opportunity to review a-draft Section 316(a)
plan.prior to Blue Ridge commencing the study.
3

evergreen.cff Canton Office
packaging
175 Moin Stet. Conlon, NC 28716
July 1,2011 CERTIFIED MAIL
RETURN RECEIPT REQUESTED
7007 3020 0001 6119 7769
Roger C.Edwards
Regional Supervisor
Division of Water Quality, Surface Water Protection
North Carolina Department of Environment and Natural Resources
Asheville Regional Office
2090 U.S.Highway 70
Swannanoa,North Carolina •28778
Re: Annual Progress Report on Color
NPDES Permit No.NC0000272
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton Mill
Dear Mr.Edwards—
Enclosed is the Annual Progress Report on Color required by Part I A.(8.)item 8 of the May 26,2010
NPDES permit.
Very truly yours,
BLUE RIDGE PAPER PRODUCTS INC.
DOING BUSINESS AS EVERGREEN PACKAGING
By:
Nick McCracken Paul Dickens
Water Compliance Coordinator Manager Environment Health and Safety
Canton Mill Canton Mill—Waynesville Plant
nick.mccrackenO,everpack.com paul.dickensAevemack.com
828-646-2874 828-646-6141
Enclosure: July 1 2011 Annual Progress Report on Color
cc: Billy Clarke,Roberts and Stevens
Internal distribution
Exhibit C

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
I. Introduction
Part I A.(8.) item 8 of the May 2010 NPDES Permit states — The facility will provide
annual progress reports to the Division on the color reduction efforts. This report fulfills
the requirements of Part I A.(8.) item 8. Specifically, the report documents projects and
best management practice (BMP) refinements completed by the Canton Mill Color Team
during the period May 2006 through May 2011. The Color Team continued work on
color performance improvement including several recommendations incorporated into the
final permit between the May 2006 application and May 2010 NPDES permit renewal.
II. Backsround
Levels of color in the wastewater effluent from the Canton Mill are among the best of
Kraft pulp and paper mills in the world [EKONO August 2005, NCASI August 2006].
This high level of color performance is achieved by in-process controls and best
management practices. The mill will continue to operate the controls and practices
proven successful for color prevention. These controls and practices go well beyond the
requirements of the EPA Cluster Rule for Pulp and Paper (40 CFR 430, Subpart B).
Many, such as the Bleach Filtrate Recycling ProcessTM, are unique to the Canton Mill.
The May 2010 NPDES permit includes a daily maximum effluent true color limit of
105,250 lbs per day. The permit also specifies a monthly average true color limit of
52,000 lbs per day and an annual average (calendar year) true color limit of 38,020 lbs
Page 1

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
per day. Compliance with these effluent limits requires significant management of mill
operations related to color. Prevention of wastewater effluent color is a priority for mill
operations every day.
III. Color Performance
Figure 1 illustrates the color performance of the Canton Mill since 1997. The mill has
sustained and continued the color reductions achieved under the 1997 and 2001 NPDES
permits. Annual average effluent true color in Figure 1 is presented in units of 1000 lbs
per day. The calculation of effluent color as a daily mass (lbs) is defined in Part I A.(8.)
items 2&3 of the permit: color (lbs/day) = effluent flow (mgd) x effluent true color
(platinum cobalt units) x 8.34. Effluent true color is measured using NCASI method
253 (1971).
Figure 1 -Annual Average Effluent Color
Blue Ridge Paper Canton Mill, 1997 thru 2010
70
62.2 BFR & Cluster Rule
60 Color Improvement
0 50 _47.8
r 41.1 43.4 42.7 41.2
0 40 -__ -- 39.7 39.1
37.1 . 36.1 36.5 37.9.35.9
ti 30
c
20
W O� 00 00 00 O� Off' O� Off` Oh 00 O� O`b 00 '�O
Page 2

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
The best color performance of the Canton Mill occurs during normal, or full, production.
At normal production, the internal recycling and recovery of process filtrates, pulping
liquors and other process wastewaters are balanced. Color materials are contained within
the Kraft pulping process at efficiency greater than 99 percent. Color performance is
affected by process variability. Color materials can be,lost during startup and shutdown
associated with a process upset, production curtailment or unplanned outage. Because of
both economic impact and adverse affect on color performance, the mill has strong
incentive to maintain process reliability and operate at normal production level.
Effluent color early in 2009 was affected by weak product demand related to the 2008
Financial Crisis and global recession that resulted in a lower overall rate of mill
production. Additionally, there was an unplanned pulp mill outage and color event in
September 2009 associated with a recovery furnace tube failure that required emergency,
life safety shutdown of the No. 10 Recovery Furnace. That single, unplanned outage
event added more than 1000 lbs per day to the 2009 annual average effluent color.
Effluent color at the end of 2009 and during the winter of 2010 was affected by extended
cold wet weather and regional wood supply shortages that resulted in lower than normal
rates of pulp production.
Page 3

i
July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
IV. Color Proiects and Refinements to Best Management Practices
The Canton Mill has a standing Color Team that routinely meets to review color
performance. The Color Team members include managers, supervisors and engineers
involved with production,maintenance, wastewater treatment and regulatory affairs. The
Color Team scope includes:
• Monitor color performance and the effectiveness of mill systems to prevent
effluent color
• Identify and track corrective actions related to Cluster Rule BMP color events
• Plan and review process trials related to effluent color
• Plan and review the effectiveness of capital and expense projects related to
effluent color
The Color Team is continuously evaluating projects, trials and process initiatives. Not all
of these are successful. Significant Color Team activities between 2001 and 2005 are
documented in the May 2006 Color Compliance Report [BRPPI May 2006]. Significant
activities from May 2006 through May 2011 are outlined in Tables 1 and 2. Capital
projects in Table 1 are identified by Capital Improvement Project (CIP) number. Other
projects were completed on operations and maintenance expense. Direct spending on
Color Team related projects, trials and initiatives identified in Tables 1 and 2 during the
period May 2006 through May 2011 exceed $ 3.0 MM capital and expense. These costs
are in addition to the on-going cost to operate and maintain color prevention systems at
the Canton Mill.
Page 4

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Table 1
Color Team Capital and Maintenance Projects
2006 - 2011
Year Project Description and Cost Information for Capital Projects
2006 Check valve installed in the#11 Recovery Boiler sump pump line. This
prevents collected color materials from being inadvertently pumped into the
CRP Feed Tank instead of the Wash Water Tank for processing through the
Evaporators. BMP improvement.
o Completed November 2006, cnsd*
2007 Continued 4th stage hardwood BSW shower replacement begun in 2005.
These shower bars were installed to improve washing and reduce carry-over
into the bleach plant. Liebergott Recommendation.
o Completed during 2007 Hwd semi-annual outage
o CIP-230014
o Cost- $90,000
CRP sump installation and controls. This sump was installed to contain color
material event releases from the CRP system building. Also allows
collection of color material related to CRP maintenance boil out. BMP
improvement related to 2006 and 2007 color events.
o Completed December 2007
o CIP-218675
o Cost- $164,000
Piping to collect Sarco Strainer washes directly to Wash Water Tank instead-
of through sump area. Manual system of piping and valves. BMP
improvement.
o Completed in December 2007
o CIP-232234
o Cost- $64,000
High level interlocks on CRP slurry tank. High-level indicator shuts the#11
Recovery Boiler sump gate and the CRP sewer gate exiting the building.
This allows material to be picked up-in the sump if any overflows. BMP
improvement related to 2007 color event.
o Completed September 2007, cnsd*
Page 5

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Table 1
Color Team Capital and Maintenance Projects
2006 - 2011
Year Project Description and Cost Information for Capital Projects
2007 Mini-Hoods on No. 10 Smelt Dissolving Tank(SMDT). Allows substitution
of weak wash for clean water in SMDT demister creating more process
demand for weak wash and reducing high pH material discharged to sewer.
Related to TRW Recommendations regarding prevention of sewer-generated
color high pH.
o Completed 2Q 2007, cnsd*
Created audible alarms for mill sewers in the DCS for WWTP. Allows
WWTP operators to locate potential elevated color streams in the mill sewers
and contact specific areas of the mill. BMP improvement.
o Completed 2007, cnsd*
2008 Dregs filter feed improvements to improve reliability and reduce frequency
of dregs sewering/overflow. Includes pipe separation,new lines and pump
upgrades. Related to TRW Recommendations regarding prevention of sewer
generated color—sulfide materials and high pH.
o Completed in 2Q of 2008
o CIP-232333
o Cost- $200,000
Creation of sample point inside CRP building to monitor color loading to
mill sewer. This point is being used to monitor operations, in regards to
color,within the CRP system. BMP improvement.
o Completed 2008, cnsd*
Determine CRP boil out strategy. Study included taking boil out water
samples at periodic intervals to determine color load to mill sewer. BMP
improvement possible with CRP recovery sump completed in 2007.
o Completed 2008, cnsd*
New set points for digester hog line conductivity probe. Better detection of
digester liquor heater leaks and better process data for monitoring liquor
heater failures. BMP improvement.
o Completed March 2008, cnsd*
Page 6

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Table-1
Color Team Capital and Maintenance Projects
2006 - 2011
Year Project Description and Cost Information for Capital Projects
2009 Remote activation of shutoff valves on firewater quench to#11 Recovery
Boiler cyclones during Emergency Shutdown Procedure (ESP). This
mitigates potential volume of high color material from cyclone overflow
during an ESP. BMP improvement related to Sep 2009 color event.
o Identified in 4Q 2009
o Completed on No. 11 Recovery Furnace 3Q 2010, cnsd*
o Completed on No. 10 Recovery Furnace 2Q 2011, cnsd*
Curbing around East Camp Branch color material storage tank,pumps and
transfer piping. This is a proactive measure to segregate and prevent losses
of high color material to the#4 sewer. BMP improvement.
o Completed in 2009
o CIP-239011
o Cost—portion of$128,000
Installation of separate sump and conductivity meter for East Camp Branch
tank,pumps and transfer piping. The sump and meter allow any losses from
the East Tank to be monitored and contained before entering the#4 sewer.
BUT improvement.
o Completed in 2009
o CIP -239011
o Cost—portion of$128,000
Installation of 120 ft of concrete barrier around East Heavy Liquor Tank.
BMP improvement in the Recovery area. BMP improvement.
o Completed in 2009
o CIP—264956
o Cost- $20,000
Replacement of section(250 ft)of Wash Water line running from
evaporators to Wash Water Tank. This is a proactive measure to prevent
losses from this transfer line. BMP improvement.
o Completed in 2009
o CIP—292829
o Cost—portion of$160,000
Page 7

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No. NC0000272
Table 1
Color Team Capital and Maintenance Projects
2006 - 2011
Year Project Description and Cost Information for Capital Projects
2009 New flow meter at Evaporator area South Sump. Meter allows operators to
determine if the sump is picking up any losses from the Evaporator area.
BMP improvement.
o Completed March 2009, cnsd*
Level transmitter for Lime Kiln Sample Collection Tank put into DCS.
Allows an operator to monitor tank level to prevent overflows of high pH
material to the sewer and reduce the Sewer Generated Color phenomena.
Related to TRW Recommendations regarding prevention of sewer generated
color—high pH.
o Completed 2009, cnsd*
Manual back to Automatic on sumps. Sump indications now turn red and
alert operators that they are in manual mode on DCS screens. BMP
improvement related to color event.
o Completed January 2009, cnsd*
Replaced pump in the Evaporator area South Sump with a different style
pump for increased reliability. New pump is a submersible type. BMP
improvement related to color event.
o Completed 2009, cnsd*
Modified process lines and equipment on 5t'effect of Swenson evaporators
to allow on-the-run cleaning. BMP improvement for process reliability to
avoid carryover of color material into condensate systems. Reduces the
volume of color material generated by evaporator boil out during outages.
Color material carry over from evaporators into condensates is related to
TRW Recommendations to prevent sewer-generated color.
o Completed 3Q 2009, cnsd*
Replaced slide rails and gates for isolating primary clarifiers at the Primary
Influent Headbox at the WWTP. New gates are faster and easier for WWTP
operators to divert high color material to the spare primary clarifier for
capture,batch treatment and attenuation. BMP sustaining measure and
improvement.
o Completed December 2009
o CIP—287478
o Cost—$265,000
Page 8

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Table 1
Color Team Capital and Maintenance Projects
2006 - 2011
Year Project Description and Cost Information for Capital Projects
2010 East Heavy/Tall Oil Sump transfer line repair. This was a proactive measure
to prevent color material losses from this transfer line. BMP sustaining
measure.
o Completed August 2010, cnsd*
Replaced decant line from Turpentine loading to 4A manhole. This is a
proactive measure to prevent losses from this transfer line. BMP sustaining
measure.
o Completed 2010
o CIP—315223
o Cost- $275,000
Repair and recoating of west side of Camp Branch compound. Project to
maintain integrity of spill containment. BUT sustaining measure.
o Completed 2010
o CIP—315588
o Cost- $235,000
Several black liquor transfer line replacements including East Heavy storage
tank and West GB Discharge. BMP sustaining measure.
o Completed 2010, cnsd*
Replaced conductivity and level switches in East Heavy compound with
new,more reliable type. BMP improvement.
o Completed 3Q 2010, cnsd*
Relocation of sewer conductivity meter below Digester Area sumps. BMP
optimization in this area.
o Completed November 2010, cnsd*
Red Liquor Tank shell replacement/repairs. BMP sustaining measure.
o Completed May 2010
o CIP— 266446
o Cost—$265,000
Page 9

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Table 1
Color Team Capital and Maintenance Projects
2006 - 2011
Year Project Description and Cost Information for Capital Projects
2010 Mini-Hoods on No. 11 Smelt Dissolving Tank(SMDT). Allows substitution
of weak wash for clean water in SMDT demister creating more process
demand for weak wash and reducing high pH material discharged to sewer.
Related to TRW Recommendations regarding prevention of sewer-generated
color—high pH.
o Completed 3Q 2010, cnsd*
North White Liquor Tank shell replacement/repairs. BMP sustaining
measure and project related to TRW Recommendations regarding prevention
of sewer-generated color—high pH white liquor.
o Completed Dec 2010
o CIP—322435
o - Cost—$724,000
2011 Process lines to allow front-end boil out of West GB Evaporator. Allows
more frequent, less intense evaporator cleaning. BMP improvement for
process reliability to avoid carryover of color material into condensate
systems. Reduces the volume of color material generated by evaporator boil
out during outages. Color material carry over from evaporators into
condensates is related to TRW Recommendations to prevent sewer-generated
color.
o Completed May 2011, cnsd*
Repaired drain valves on No. 2 and 3 Primary Clarifiers. Allows isolation of
one of these larger volume clarifiers as the spare clarifier for high color
material diversion during semi-annual outages. BMP sustaining measure.
o Completed March 2011, cnsd*
Pine Weak Liquor Tank shell replacement/repairs. BUT sustaining
measure.
o Completed May 2011
o CIP— 331985
o Cost—$349,000
*cnsd—cost not separately determined, completed on operations and
maintenance expense
Page 10

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Table 2 .
Color Team BMP Refinements, Trials and Process Improvements
2006 - 2011
Years Refinement Trial and/or Improvement
2006 Liebergott Process Improvements
on-going o Improve performance of vacuum washers
o Evaluate the elimination of wash water bypass on 1st decker shower
o Evaluate the elimination of bypass of Eo filtrate to decker filtrate tank
o Improve performance of decker showers on Pine
2007 Metso Project and Training
o Shared savings program
o CLO2 use study to have a lower Kappa factor,knowledge carried
forward
2007 Strategy change in Hardwood Pre-bleach on showers. Original strategy was
on-going to wash better with chance of overflows. Now manage to prevent those
overflows.
2007 Thoroughly clean and jet lines and hardwood washer screens during each
on-going scheduled outage.
2007 More extensive.jetting/cleaning in fiberlines during semi-annual outages.
on-going
2008 MRP improvements/time scheduled maintenance and operator rounds to
on-going increase reliability.
2008 CRP boil out strategy. Amount of time boil out material is picked up.
on-going Possible with CRP sump project completed in 2007.
2008 Use membrane caustic with lower chloride concentration. Helps overall
on-going efficiency of BFR system.
2009 Optimize use of polyamine for black liquor color in primary treatment during
on-going color events. Batch treatment, as well as short period continuous use when
influent is affected by black liquor.
2009 Swenson 5 effect spray bar strategy. Ability to clean evaporator on-the-run.
on-going Improves process reliability and reduces volume of color material to recover
during outages.
2010 Weak wash purge strategy to minimize potential sewer-generated color
on-going during process upset, outage or reduced pulp mill production when demand
for weak wash is out of balance with supply in causticizin .
2011 When both fiberlines are down,process contents of one of the spill tanks
through the evaporators to free up spill tank volume before starting up.
Page 11

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
Table 2
Color Team BMP Refinements, Trials and Process Improvements
2006 - 2011
Year(s) Refinement,Trial and/or Improvement
2011 Alternative polymer study by Chemtreat at WWTP. Compared against
current polyamine polymer in use for batch treatment of black color
materials.No difference in color performance.
2011 West GB Evaporator partial boil out strategy. Ability to clean process during
on-going short outages as opportunities arise. Improves process reliability and
reduces volume of color material to recover during outages.
Several of the projects and process improvements listed in Tables 1 and 2 are related to
2006 Liebergott recommendations for existing process optimization [GL&V 2006].
These include projects for brown stock washing improvement and target pulp bleach
Kappa factor. Other projects and improvements are related to sewer-generated color and
polymer use optimization, which are Technology Review Workgroup (TRW) evaluation
recommendations in Part I A.(8.) item 103 of the May 2010 NPDES Permit. The
complete application to renew the NPDES permit was submitted by the Canton Mill in
May 2006. The permit renewal process including review by the TRW, public comment
and public hearings was completed in May 2010. During this time, the Canton Mill
Color Team continued work on color performance improvement including several
recommendations incorporated into the final permit.
V. Summary
Of the many color improvement initiatives evaluated and implemented at the Canton
Mill,the following are essential to current(2011)effluent color performance:
Page 12

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No. NC0000272
• OD 100TM process — oxygen delignification, elemental chlorine-free (ECF)
bleaching and enhanced fiberline brown stock washing
• Bleach Filtrate RecyclingTM (BFR) with the Minerals Removal Process (MRP)
and the Chlorine Removal Process(CRP)
• Cluster Rule Best Management Practices (BMP) program with color as the BMP
monitoring parameter to detect process upsets and the loss of pulping liquors to
the mill sewer system
• Extensive sumps and systems to detect pulping liquor losses to capture and
recover color materials within the pulp mill process
• Spare primary clarifier maintained to capture, treat and attenuate high
concentration color materials that may exceed capacity of the in-process sump
and spill detection systems
• Mechanical seals on pumps in digester and knotter areas to minimize dilution of
color materials that prevents efficient recovery
• Interconnection of process spill sumps and equipment to increase the working
volume for recovery of color materials during process upsets and outages
Segregation of black liquor from green and white liquor to avoid contamination
that prevents recovery of black liquor materials
• Segregation of bleach plant filtrates from high pH conditions in mill sewers to
reduce sewer-generated color
Page 13

July 1, 2011 — Annual Progress Report on Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
• Management of high pH materials when process filtrates are out of balance due to
process upset or reduced pulp mill production
• Outage cleaning of pulp washers and evaporators to maintain performance and
reduce carry-over of color materials into bleach plants and into condensate
systems
• Low Flow Contingency Plan for Color [Evergreen 2011] and priority given to
color management every day.
The Canton Mill will continue to utilize the processes and practices proven successful for
wastewater effluent color prevention. Prevention of effluent color is a priority for mill
operations every day.
References
EKONO — Environmental Performance, Regulations and Technologies in the Pulp and
Paper Industry,EKONO Inc,August 2005.
NCASI—Technical Bulletin No. 919—Review of Color Control Technologies and Their
Applicability to Modern Kraft Pulp and Paper Mill,National Council for Air and Stream
Improvement,August 2006.
BRPPI — Color Compliance Report prepared to fulfill requirements of the December
2001 NPDES Permit for the Canton Mill,Blue Ridge Paper Products Inc.,May 2006.
GL&V— Bleach Environmental Process Evaluation and Report prepared for Blue Ridge
Paper Products Inc., Canton Mill,Norman Liebergott and Lewis Shackford,July 2006.
Evergreen — Low Flow Contingency Plan for Color, submitted to NC DWQ on 26 May
2011 to meet requirements of Part I A.(8) item 12 of the May 2010 NPDES Permit, May
2011.
Page 14

ev reen. ' Canton Office
packaging
175 M-jrn Scaeat• Canton, NC 2871 c)
May 26,2011 CERTIFIED MAIL
RETURN RECEIPT REQUESTED
7007 3020 0001 6119 7226
Roger C.Edwards
Regional Supervisor
Division of Water Quality, Surface Water Protection
North Carolina Department of Environment and Natural Resources
Asheville Regional Office
2090 U.S.Highway 70
Swannanoa,North Carolina 28778
Re: Low Flow Contingency Plan for Color
NPDES Permit No.NC0000272
Blue Ridge Paper Products Inc.dba Evergreen Packaging
Canton Mill
Dear Mr. Edwards—
Enclosed is the Low Flow Contingency Plan for Color required by Part I A.(8.)item 12 of the May 26,
2010 NPDES permit.
Very truly yours,
BLUE RIDGE PAPER PRODUCTS INC.
DOING BUSINESS AS EVERGREEN PACKAGING
By:
Nick McCracken Paul Dickens
Water Compliance Coordinator Manager Environment Health and Safety
Canton Mill Canton Mill—Waynesville Plant
nick.mccrackenAeverpack.com [e-mail]
828-646-2874 828-646-6141
Enclosure: May 26,2011 Low Flow Contingency Plan for Color
cc: Billy Clarke,Roberts and Stevens
Internal distribution
Exhibit D

May 26, 2011 — Low Flow Contingency Plan for Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
I. Introduction
Part I A.(8.) item 12 of the May 2010 NPDES Permit states— The facility shall submit a
low flow contingency plan for color control within the first year of permit issuance. This
plan fulfills the requirements of Part I A.(8.) item 12.
II. Background
Levels of color in the wastewater effluent from the Canton Mill are among the best of
Kraft pulp and paper mills in the world [EKONO August 2005, NCASI August 2006].
This high level of color performance is achieved by in-process controls and best
management practices. The mill will continue to operate the controls and practices
proven successful for color prevention. These controls and practices go well beyond the
requirements of the EPA Cluster Rule for Pulp and Paper (40 CFR 430, Subpart B).
Many, such as the Bleach Filtrate Recycling ProcessTM, are unique to the Canton Mill.
The May 2010 NPDES permit includes a daily maximum effluent true color limit of
105,250 lbs per day. The permit also specifics a monthly average true color limit of
52,000 lbs per day and an annual average (calendar year) true color limit of 38,020 lbs
per day. Compliance with these effluent limits requires careful management of mill
operations related to color. Prevention of wastewater effluent color is a priority for mill
operations every day.
Page 1

May 26, 2011 - Low Flow Contingency Plan for Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
III. Color Prevention During Lower River Flow and Highest Recreational Use
The best color performance of the Canton Mill occurs during normal production. At
normal production the internal recycling and recovery of process filtrates,pulping liquors
and other process wastewaters are balanced. Color materials are contained within the
Kraft pulping process at efficiency greater than 99 percent. Color materials can be lost
from the process during startup and shutdown associated with a major process outage.
To minimize potential color discharges during periods of lower river flow and highest
recreational use of the river, no major (semi-annual) outages are scheduled during the
months of June,July or August.
IV. Process Upset and Spill Containment
The Canton Mill maintains an extensive spill detection and containment system. The
system includes automatic sumps with conductivity metering and dedicated spill material
tanks to capture, contain and recover color materials within the Kraft pulping process.
The mill also maintains an empty spare primary clarifier to allow for the diversion and
capture of color materials.
The Canton Mill operates a large wastewater treatment plant that includes neutralization,
primary treatment, activated sludge secondary treatment and post aeration to meet limits
in the May 2010 NPDES permit. The mill wastewater treatment operators monitor color
Page 2

May 26, 2011 — Low Flow Contingency Plan for Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
and conductivity in wastewater influent to the treatment plant in order to detect a process
upset or spill. When a process upset or spill of color material is detected by monitoring
or reported by process operators in the mill, the wastewater operators divert the mill
wastewater flow to the spare clarifier to capture and hold this material. The captured
color material is batch treated with polyamine and discharged back into the wastewater
treatment plant at a rate that is non-disruptive to the treatment process. The result is
equalization and attenuation of color that was not contained within the Kraft pulping
process.
V. Summary
The Low Flow Contingency Plan for Color at the Canton Mill consists of five (5)
elements:
1.) Continue to operate the controls and practices proven successful for wastewater
effluent color prevention.
2.) Prevention of effluent color is a priority for mill operations every day.
3.) No major(semi-annual)outages are scheduled during the months of June, July or
August.
4.) Monitor influent wastewater for color to detect process upset or spill.
5.) When a process upset or spill occurs that exceeds the capacity of in-process
sumps and spill collection tanks, divert influent wastewater to a spare primary
clarifier for batch treatment and attenuation of color.
Page 3

May 26, 2011 — Low Flow Contingency Plan for Color
Blue Ridge Paper Products Inc. dba Evergreen Packaging
Canton,North Carolina
NPDES Permit No.NC0000272
References
EKONO — Environmental Performance, Regulations and Technologies in the Pulp and
Paper Industry,EKONO Inc,August 2005.
NCASI—Technical Bulletin No. 919—Review of Color Control Technologies and Their
Applicability to Modern Kraft Pulp and Paper Mill,National Council for Air and Stream
Improvement,August 2006.
BRPPI — Color Compliance Report prepared to fulfill requirements of the December
2001 NPDES Permit for the Canton Mill,Blue Ridge Paper Products Inc.,May 2006.
Page 4

STATE OF NORTH CAROLINA IN THE OFFICE OF
ADMIlVISTRATIVE HEARINGS
COUNTY OF HAYWOOD 10-EHR4341
Cooke County,Tennessee;Clean Water )
Expected for East Tennessee;Clean Water )
for North Carolina;Tennessee Chapter of the }.
Sierra Club;Tennessee Conservation Voters; )
Tennessee Scenic Rivers Association;and )
Western North Carolina Alliance, )
Petitioners, )
V. ) AFFIDAVIT OF AHCHAEL
FERGUSON
North Carolina Department of )
Environmental and Natural Resources— )
Division of Water Quality, }
}
Respondent }
and )
Blue Ridge Paper Products Inc. )
Respondent-Intervenor. }
}
The undersigned,first being duly sworn,deposes and says as follows:
1. That he is the Manager,Pulp Manufacturing/Recovery and Utilities at the Canton Mill
in Canton,North Carolina.
2. That he has been employed at the Canton Mill for more than twenty years,and he has
held various management positions in the Pulp Mill area during that time.
3. That,in his capacity as the Manager,Pulp Manufacturing/Recovery and Utilities,he
manages the resources for the pulping and bleaching processes and for the wastewater treatment
plant.
4. That he is familiar with the process operations of the Canton Mill on a day to day basis.
5. That he met with members of the Technology Review Workgroup,with Norman
Liebergott,Ph.D.,with members of the EPA Tech Team and with representatives of the North
Carolina Division of Water Quality during the 2006 permit renewal and provided information to
MS 812M9-1 Exhibit E
i

each of these groups and individuals regarding the pulping process at the Canton Mill,color
generated in the process and color discharged from the Canton Mill.
6. That he is familiar with the terms and conditions of NPDES Permit NC 0000272, and in
particular,the provisions of Section A(8.)dealing with color.
7. That the Canton Mill has already evaluated and implemented some of the BMP's
identified in the first bullet in Paragraph A(8.) 10 A. of the NPDES Permit.
8. That the Mill has begun an evaluation of the implementation of Second Stage Oxygen
Delignification on the pine fiber line.
9. Thai the Mill is required,in paragraph A(8.)of the NPDES Permit,to submit a color
reduction implementation plan on or before May 26,2011.
10. That the color reduction implementation plan must identify technologies or processes to
be installed and operated by the Mill.
11. That the color reduction implementation plan must include a schedule for design and
installation of the technologies or processes.
12. That the BMP's and technologies and processes identified in Paragraph A(8.)10 A.have
to be installed in an operating pulp mill. There are significant space limitations,and the
technologies under consideration require complex and precise mechanical equipment,tankage
and piping. Space constraints and complexity of design and construction result in increased
engineering and constriction costs.
13. Technologies and process improvements implemented to reduce color may have negative
effects on pulp quality and strength.Reductions in color in the Pulp Mill may not be realized in
the effluent
14. That the installation of certain technologies and processes may preclude the use of other
technologies,both operationally and in terms of space.
15. That the approximate cost of the engineering and other work necessary to evaluate and
identify technologies and processes,projected color reductions, and scheduling for design and
construction of the same is three hundred thousand dollars($300,000).
16. That the estimated cost of installing second stage oxygen delignification on the pine fiber
line is five million five hundred thousand dollars($5,500,000).
17. That the estimated time period for design,procurement,installation and startup of second
stage oxygen delignification on the pine fiber line is twenty-two(22)to twenty-six(26)months.
Further Affiant sayeth not
R&S 812649.1

Michael Ferguson j
STATE OF NORTH CAROLINA
COUNTY OFOp
j, l`'ht A/ &AAIEY a Notary Public for 4n&aa County,
North Carolina,do hereby certify that . 'chael Ferguson personally appeared before me this day
and acknowledged the due execution of the foregoing instrument.
Witness my hand and official seal this the day of January,2011.
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My Commission Expires:
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RM 812WI