August 4, 2009

Ms. Soumaya Ghosn

Louisiana Department of Environmental Quality
Public Participation Group
P. O. Box 4313
Baton Rouge, LA 70831-4313

RE: Public Comments on Murphy Oil USA, Inc.’s Meraux refinery

Proposed Part 70 Air Permit Modification (proposed permit) and Associated EAS AI
No. 1238, Permit No. 2500-00001-V5, (“V5”), Activity PER20090002

Dear Ms. Ghosn:

Concerned Citizens around Murphy (CCAM) is a neighborhood association formed to

improve the quality of life in the neighborhoods around the Murphy Oil facilities
in Meraux, Louisiana, to address air quality issues in the community of St Bernard
Parish, and for resident advocacy.

Members of CCAM are concerned about the adverse health, safety and environmental
effects of both the proposed permit’s increased air emissions and the totality of
emissions from Murphy Oil’s Meraux facility(s). CCAM members seek to preserve what
little good air quality is left in their neighborhoods.

As residents of these neighborhoods, we know the chemical emissions and associated

chemical odors emanating from the Murphy Oil facility are a public nuisance and a
source of many adverse effects to our health, safety, and quality of life. We also
experience the effects from the refinery's excessive noise and vibrations, which
have caused sleep deprivation, hearing loss, and structural damage to our restored
homes.

Louisiana law prohibits Louisiana DEQ from issuing a permit which creates or
maintains a nuisance or is a danger to public health or safety. LAC 33.III.303.C
Regulatory permits shall not authorize the maintenance of a nuisance or a danger
to public health or safety.
COMMENTS ON PERMIT
Murphy Oil’s proposed permit application is deficient: it fails to include the
basis of the emissions calculations. Without such information, it is difficult, if
not impossible, to comment on PSD review or BACT applicability. The Louisiana DEQ
has a constitutional duty to make an objective third party review and must not
rely exclusively on data provided by Murphy Oil or its consultant.

PSD review and BACT applicability decisions for the proposed permit must be for
all emissions and shall not be allowed on the BenFree Unit as a stand alone
project.

The proposed permit seeks to use gasoline tanks with fixed roof(s), to route the
BenFree Unit (BFU) to an inadequate gas recovery system, and to route H2S rich
vent streams to the flare. To protect public health and safety, Louisiana DEQ must
require stringent application of the best available controls to achieve the lowest
emissions into the air we breathe.

Murphy Oil is a major source of TAPs. Murphy Oil's proposed permit seeks to emit
toxic air pollutants (TAPs) with minimum emission rates (MER's) greater than the
rates in applicable LAC: 33 Chapter 51 Tables. When a major source of TAP’s
applies to emit additional TAP’s at a rate greater than Chapter 51’s MER’s, BACT
must apply for all TAP’s. Murphy Oil’s proposed permit does not meet this
standard. Therefore, Louisiana DEQ must deny the application.

Best Available Control Technology (BACT) and Lowest Achievable Emissions Rate
(LAER): The existing condition of the plant infrastructure at the Murphy Oil
Meraux refinery, recently issued CO/NOPP(s), various violations of local zoning
regulations, and the citizen's enforcement suit should all be considered in the
analyses for BACT and LAER. The Louisiana DEQ should require Murphy Oil install
the most effective control mechanisms to achieve the lowest emissions; effectively
lowering the emission limits of Murphy Oil‘s Title V air permit and significantly
reducing emissions from malfunction, shutdown and startup activity (MSS).

We have an unfortunate zoning situation with heavy industry adjacent to our

residential neighborhoods. No neighborhood should be subjected to chemical
releases, yet the associated odors continue to disturb us. Therefore, measures
that are appropriate for normal industry practice may be inadequate under these
circumstances. Murphy Oil must recognize the need to do more than other refineries
who are properly buffered from residences.

The proposed permit is a major modification. Murphy Oil’s Meraux refinery seeks to
change its batch processing of gasoline to include blending, mixing and
dispatching of different processing batches of gasoline in the tanks and tank
farms. The proposed permit substantially changes previously issued tank permits
from storage to include processing. This change in processing is a major
modification.

Comprehensive enforceable compliance plan. Given the current condition of Murphy

Oil Meraux refinery’s infrastructure, recently issued CO/NOPPs, the citizen’s
enforcement suit (alleging violations of the clean air act), and various
violations of local zoning regulations, the proposed permit should not be issued
until a comprehensive, achievable, and enforceable compliance plan is formulated.

Flaring Reduction in Neighborhood. Murphy Oil promised residents, over two years
ago, a flaring reliability program at the Meraux refinery. Now, Murphy Oil seeks
to route the BenFree Unit (BFU) to an inadequate gas recovery system (GRS) (EDMS
38894488, EDMS 42227489). Further, Murphy Oil seeks to route two of its highest
H2S rich vent streams to the flare, canceling the oily water stripper (OWS) vent
stream route, as applied for in modification 2500-001-V2. Instead, Louisiana DEQ
must require Murphy Oil comply with its existing Title V air permit, as applied
for, or reopen the permit applications.

The proposed permit cannot assure compliance and is not enforceable, as the
inability of the GRS to achieve air permit limits is still under analysis (EDMS
42227489). Louisiana DEQ doesnot have the authority to issue such a permit.

Murphy Oil fails to identify an enforceable plan to achieve compliance with local
parish performance standards for noise, vibration, radiation, fire and explosive
hazards and local parish requirements for industrial parking lots (St. Bernard
Parish Zoning Regulations Codes 22-9-10 and 22-9-8, noted in EDMS 41045636).

Murphy Oil constructed and operates, without a Louisiana DEQ solid waste permit,
an industrial waste (sludge) processing, treatment and storage facility. Murphy
Oil failed to notify residents of the type and amount of chemical emissions and
denied the public an opportunity to comment. This is a violation of the Clean Air
Act and of local parish code Chapter 5 and Chapter 11. Yet, in a recently
submitted odor abatement plan (EDMS 41464076) Murphy Oil prioritized odors
associated with the chemical releases from this sludge press facility.

Murphy Oil emits toxic air pollutants from this sludge facility, along with the
benzene streams and other chemicals emitted from both the open sewer system and
open treatment tanks of the wastewater management units. These chemical emissions
must be included in the Title V air permit emissions calculations and the air
model.

Murphy Oil reported VOC emissions from Tank 200-7 at nearly 500 times the
permitted level (page 286 EDMS 38894488). How are these emissions included in
the Title V Permit and in air modeling? School bus stops are within close distance
to Tank 200-7. To better protect our school children, the Louisiana DEQ should
require more frequent monitoring of VOC emissions from Tank 200-7, with public
alerts and notification.

Current H2S emissions

Murphy Oil allegedly omitted H2S emissions from its Title V air permit (EDMS
38108188). Murphy Oil must be required to reopen the previous permit,
recalculating netting analysis for PSD review and BACT applicability.

Given the totality of H2S emissions from all its Meraux facilities, Murphy Oil
must be made to install the best available controls which will result in the
lowest achievable emissions.

With the construction of a new petrochemical testing laboratory on the residential

properties acquired to create the court-ordered buffer, residents expect Murphy
Oil to utilize the lab 24 hours, 7 days a week to test and adjust processing
streams for H2S.
Murphy Oil's Meraux refinery has over 190 vent streams (EDMS 42227489). Of all
these vent streams, three contribute more than 10lbs/day of H2S to the flare, and
all three are used in continuous mode. Two of these three vent streams are from
the OWS unit; the same vent streams Murphy Oil seeks to flare (canceling the vent
streams route previously applied for in modification “V2”).

Frequent and routine flaring practices are not considered ’good pollution control
practice’ and ’may violate clean air act' ( EPA Enforcement Alert, October 2000,
Volume 3, Number 9 Office of Regulatory Enforcement).

As public health trustee, Louisiana DEQ must identify mitigating measures which
could be implemented to protect residents’ health to a higher standard. Louisiana
DEQ must consider the totality of emissions from all of Murphy Oil’s facilities in
Meraux, including, but not limited to; the entire processing campus, marketing
terminal, loading dock and dock flare, various pipelines (EXXON-Houston, Chalmette
Refinery, LLC, Collins Pipeline, and Air Products), tanks and tank farms, tank
deconstruction, open tanks and sewer system ditches of waste water treatment
plant, and industrial waste (sludge) processing, treatment and storage facility.
The totality of emissions must be included in an updated air model.

Air modeling
CCAM requests an updated air model for Murphy Oil’s Meraux facility(s). Louisiana
DEQ must require the updated air modeling, before the agency can make any
determinations on this permit.

In February, 2009 (EDMS 40169977) Murphy Oil USA, Inc submitted a “significant
modification” application to its Title V Part 70 air permit to construct and
operate a benzene saturation unit. "The toxics modeling results listed...were
submitted in March 2002 and are the only facility-wide modeling submitted since
the issuance of Title V Permit No2500-00001-V0".

Air modeling must be updated every five (5) years and include the current levels
of SO2, H2S, VOC’s and other TAPs and criteria pollutants emitted into our
neighborhoods’ air. Air modeling must include emissions from all aspects of the
Murphy Oil Meraux facilities (as mentioned before) and take into consideration the
present capacity and efficiency of control devices.

Air Monitoring
CCAM requests a fenceline and neighborhood air monitoring program similar to the
Baton Rouge area’s successful “HRVOC AOC” program. We suggest this air monitoring
program include H2S, SO2, NOx, VOC’s and TAP’s, and begin during the construction
and turnaround timelines. This neighborhood and fenceline air monitoring program
should continue, until such time;

(1) Murphy Oil has demonstrated the achievability of its Title V air permit
limits, associated compliance/violation plans;

(2) the public is assured protection of public health, avoidance of offensive

chemical exposure and chemical odors, and implementation of long term, sustainable
solutions; and

(3) Murphy Oil agrees to:

a. Finance and establish comprehensive, real-time, independent fenceline and
neighborhood air monitoring for S02, H2S and other TAPs, NOx, benzene and other
VOCs, with results made public in real time. Monitors would be placed around both
the east and west sides of the refinery and tank farms and results would be
uploaded and displayed, in real-time, to a publicly accessible website. Results
would be available and accessible for 5 years.
b. Supply publicly accessible computers to access pertinent public information,
including the real-time air monitoring results.

Abatement Plans
Before issuance of this permit, the Louisiana DEQ must require independent
abatement studies for both the chemical releases and associated chemical odors,
and the noise and vibrations emanating from the refinery into the neighborhoods. A
comprehensive, achievable and enforceable compliance plan must be developed,
before issuance of this permit.

Tanks and tank farms.

The mixing, blending, sampling and dispatching of different processing batches to
and from storage tanks leads to increased tank activity and a greater propensity
to leak, spill or emit VOCs and other chemicals. Given the community still remains
concerned about spills and soil contamination in the tank farms, the Louisiana DEQ
should require more frequent tank inspections, for all tanks. The results of the
ongoing tank inspections should be made public, including the gasoline tanks’
status.

As an example of tank inspection requirements, Murphy Oil could be required to

more frequently inspect all tanks with the use of “Fourier Transformation Infrared
Spectroscopy” (“FTIR”)" or, for leak detection, “differential light absorption and
ranging” (“DIAL”). “D IAL”, which, “compared with emission factor estimates, has
been found to detect 33 times more VOC and 96 times more benzene (a known
carcinogen) from storage emissions, and 12 times more VOC and 8 times more benzene
from fugitive emissions.” (Allan Chambers, P.Eng. and Mel Strosher, “Refinery
Demonstration of Optical Technologies for Measurement of Fugitive Emissions and
for Leak Detection,” (Alberta Research Council, 3/31/06 at iv,
http://www.arc.ab.ca/ARCAdmin/UploadedDocs/Dial%20Final%20Report%20Nov06.pdf).

The older gasoline tanks located on the refinery’s eastern boundary are within
close proximity of residential trailers, mobile homes and adjacent residential
neighborhoods. Yet, these are some of the few tanks to receive a postKatrina
upgrade for air emissions controls. To fulfill its constitutional duties as public
trustee of the environment, Louisiana DEQ must require Murphy Oil to install
internal floating roof(s) with external domed roof(s) and other more protective
air emissions controls on the gasoline tanks.

The tank farm expansion, permitted in November 2007, could be placed at an

alternative site, instead of on the National Historical Area of the Villere brick
ruins and historical tree line. The National Historical Villere Area is also the
location of a natural waterway, the Panel Ditch. Soil subsidence is prevalent in
this area and should be addressed for all tanks and containment berms.

Given the community still remains concerned about spills and soil contamination in
the tank farms, Murphy Oil should make drainage improvements for storm water and
process water discharges. Discharges from the tank farm should be rerouted for
treatment or detoured so they no longer foul the neighborhood canals and nearby
wetlands. Process water discharge capacities should be increased to reflect the
common five to eight inch rain events in the community.

Given the community still remains concerned about the SPCC at the Murphy Oil
Meraux facilities, assurance must be given that our neighborhoods and community
will be protected in the event of a manmade or natural disaster. Its hurricane
season and as residents implement their game plan for hurricanes, we want
assurances that Murphy Oil will implement their hurricane preparedness plans, too.

COMMENTS ON EAS
Louisiana DEQ must require Murphy Oil to resubmit the proposed permit with
adequate answers to the five IT Questions (EAS).

(1) potential and real adverse environmental effects; The EAS fails to demonstrate
Murphy Oil's avoidance of adverse environmental effects to the maximum extent
possible.

Murphy Oil's proposed permit seeks to use tanks with fixed roof(s), to route the
BFU unit to an inadequate gas recovery system, and to route H2S rich vent streams
to the flare. These are not state of the art emission controls. Louisiana DEQ
should require stringent application of the best available controls to protect
public health and safety.

Murphy Oil‘s containment and drainage systems donot filter the contaminated tank
farm’s storm water runoff, which fouls our neighborhood canals and nearby
wetlands.

Murphy Oil’s WWTP doesnot avoid the real adverse effects experienced in our
neighborhood from the open sewer systems and open treatment tanks.

Murphy Oil has not provided enough information on the BenFree Unit project and how
it will adversely effect our homes, health and safety.
What will it sound and smell like when the BenFree Unit is operating?
What will it sound and smell like when the re boiler is fueled by natural gas?
What will it sound and smell like when the re boiler is fueled by refinery fuel
gas?
What will it sound and smell like when the BenFree Unit shuts down?
What are the expected shutdown emissions?
What will this do to our homes, swimming pools, gardens and health?
What alternatives has Murphy Oil examined to siting all the different boilers so
not to cause further damage to our homes?
(2) cost - benefit analysis; The proposed permit seeks modifications other than
the BFU Unit.

The EAS fails to quantify:

- an economic impact analysis, including how increased TAPSs and criteria air
pollutants will cause St. Bernard Parish to lose its ability to attract other
industry and more families to locate to the community
- medical bills, hearing loss, effects of sleep deprivation on school children,
and other health costs
- loss of what good air quality may be left in our neighborhood
- fire and explosion hazards
- adverse quality of life effects

(3-4-5) alternative projects or sites or mitigating measures; Alternative

projects, which could comply with EPA MSAT II, do exist. The EAS fails to provide
the necessary information for the Louisiana DEQ to make appropriate comparisons of
any. The BenFree Unit itself could make varying usage of steam and hydrogen.

Alternatives to the proposed permit’s benzene hydrogenation may include addition

of a benzene splitter which would send feed to the platformer or prefractionation
of the reformer feed and / or benzene extraction facilities as described in “Cost
Effective Solutions for Reduction of Benzene in Gasoline” By Maarten J. Almering,
Kerry L. Rock, Arvids Judzis – CDTECH

Alternative projects, which could comply with the EPA mandate, maybe located at
alternative sites within the existing processing campus, offering greater
protection of public health, hearing loss, sleep deprivation, noise and
vibrations, fire and explosion hazards. What are the alternative locations for
each steaming source and boiler, which would prevent sleep deprivation and
structural damage to our homes? Louisiana DEQ must identify the alternative sites
and projects before a decision can be made.

There are alternatives to use of flares as a pollution control device and these
alternative methods must be evaluated. Alternative methods may include a more
adequate gas recovery system, vapor combustors/thermal combustors, use of staged
flaring or other flaring minimization projects. Each project has its own
advantages and disadvantages, emission amounts and effects on the neighboring
community. Louisiana DEQ must require Murphy Oil identify alternative pollution
control devices, other than flaring, before the agency can make a determination.

The EAS failed to identify the mitigating measures which could be implemented in
the plant to protect the residents’ health and safety. As public health trustee,
Louisiana DEQ can not make a determination on this permit until such mitigating
measures are identified.

Mitigating measures which would be more protective of public health, may include:
-air monitoring in the neighborhood and at the fenceline
-more frequent inspections of tanks and monitoring of tank emissions
-explosion resistant windows at the nearby local high school
-chemical release, chemical odor and noise abatement measures
-testing and adjusting for H2S, 24 hours / 7 days a week
-allowing process changes only if simultaneously coupled with adequate pollution
control devices
-drainage improvements to storm water and process waste water discharges
-siting alternatives for all the boilers and burners

For all the above reasons, Louisiana DEQ must reject the proposed permit and
require Murphy Oil resubmit an application.
Respectfully submitted by Suzanne Kneale, as an individual, and on behalf of CCAM,
2114 Corinne Drive, Chalmette, St Bernard Parish, LA 70043

Both parties reserve the right to supplement these comments and to adopt and rely
on comments made by others in this and any future proceedings regarding the
proposed permits.