KEAN MILLER ‘Mcron tesstQREANIMLERCOM October 9, 2008 Hearings Cletk, Legal Division Office of the Secretary Department of Environmental Quality Post Office Box 4302 Baton Rouge, LA 70821-4302 RE: Murphy Oil USA, Ine, - Meraux Refinery Enforcement Tracking No. AE-CN-08-0122 Agency Interest No. 1238 File No.: 18543-11 To: Hearing Clerk, Legal Division Our firm has been retained to represent Murphy Oil USA, Inc, (“MOUSA") in this matter. MOUSA was served with the above-referenced Compliance Order and Notice of Potential Penalty (CO/NOPP”) on September 9, 2008. The purpose of this letter is to request that the Department grant an administrative adjudicatory hearing on the portions of the order described in the attached formal Request for Hearing. Please file the attached Request for Hearing into the record of this matter and retum a copy to us with the stamp showing the date and time of filing. MOUSA is interested in resolving this matter without adjudication and requests that the Deparminent enter into a Dispute Resolution Agreement with MOUSA to allow discussions for appropriate resolution, Please let us know which of the Department’s legal counsel will be assigned to this matter so that we may contact them regarding dispute resolution. Thank you for your assistance in this matter. If you have any questions, please call me at 225.382.3412, or Kyle B. Beall at 225.382-3493 Very truly yours, Dt Pehgnit— Lluceect Harbour Co: Lourdes lturralde, LDEQ Jane Licour, LDEQ Alice Fredlund, LDEQ Stanley Carpenter, LDEQ Claudia Rush, LDEQ Kent Veron, MOUSA TWTHFLOOR ONE AMENEAN PLACE POST OFFICE DOX3S BATON ROUGE, LOUISIANA TEE2L PHONE 2253874909 FAX 252889122 Kennilorcom BATON ROUGE NEWORLEANG LAKECHARLES —PLAGUEMINERe, STATE OF LOUISIANA R Sg DEPARTMENT OF ENVIRONMENTAL QUALITY OF 9 es ag tio ‘wD OFFICE OF ENVIRONMENTAL COMPLIANCE Sy IN THE MATTER OF MURPHY OIL USA, INC. ENFORCEMENT TRACKING NO. ST. BERNARD PARISH AE-CN-08-0122 ALT ID NO 2500-00001 AGENCY INTEREST NO. 1238 PROCEEDINGS UNDER THE LOUISIANA ENVIRONMENTAL QUALITY ACT, La. R.S. 30:2001, et seq. REQUEST FOR ADMINISTRATIVE ADJUDICATORY HEARING Murphy Oil USA, Inc. (‘MOUSA") hereby requests an administrative adjudicatory hearing pursuant to La. R.S. 30:2050.4 to contest portions of Consolidated Compliance Order and Notice of Potential Penalty No, AE-CN-08-0122 (“the CO/NOPP”), which was served on the agent for service of process for MOUSA by the Louisiana Department of Environmental Quality (“the Department”) on September 9, 2008, This request is based on the following grounds: L With respect to Paragraph | of the CO/NOPP entitled “Findings of Fact,” MOUSA admits that it owns and operates a refinery located at 2500 East St. Beard Highway in Meraux, St. Bernard Parish, Louisiana. MOUSA further admits that the MOUSA facility currently operates under Title V Title V permit (Permit No. 2500-00001-V3) issued on May 8, 2008. Prior to modification of that permit on May 8, 2008, MOUSA operated under versions VO, V1, and V2 of the permit 184432_1,00CIs : With respect to Paragraph If of the CO/NOPP entitled “Findings of Fact,” MOUSA denies that the entire facility is Subject to 40 CFR Part 60, Subpart J — although MOUSA asserts that there are some vent streams and equipment at its refinery that are sulbject t6 such rule TILA. iz With respect to the allegations of Paragraph IIL.B. of the CO/NOPP, MOUSA acknowledges that emissions of SO2 exceeded the permit limit and that MOUSA discovered and self-reported this issue. MOUSA asserts, however, that not all of the excess emissions reported by MOUSA were violations as some of the emissions were caused by upset events and/or : : startup/shutdown/malfunction events. MOUSA further asserts that although $O2 emissions exceeded the pound per hour and'ton per year emission limits, such emissions are believed to have been in compliance with the underlying applicable regulatory standards for SO2. mB With respect to the allegations of Paragraph IILB. of the CO/NOPP, MOUSA acknowledges that it did not specifically quantify H2S emissions, from the flares in. the application; but asserts that it did include an H2S control efficiency for the flares showing'that less than 100% of the H2S is converted to S02; thui, the application did disclose the existence of HS, Further, this was customary practice in permit applications for both, LDEQ and other refineries. MOUSA does not object to inclusion of H28 permit limits in the permit and will seck to amend the perimit to include such while complying with the interim limits of this CO/NOPP; however, MOUSA asserts that this should be treated as a permit reconciliation and not’ violation. 148492,1.D0¢