Excerpts from Notice of Violation/Notice of Recommendation for Enforcement -

Failure to Submit a Title V Application within 12 Months of Operation,
Hazardous Organic NESHAP (HON) - Failure to meet compliance deadline,

Resins MACT Subpart OOO - Failure to meet compliance deadline
Borden Chemical, Inc., Air Permit No. 03387R26
Fayetteville, Cumberland County, North Carolina

On several occasions in January 2005, the Division of Air Quality discussed with you or your staff, that based on file and records review, Borden Chemical, Inc. has exceeded the Title V and Title III emissions threshold for a single HAP (methanol) and the total HAP emission threshold (primarily methanol and formaldehyde) since 1997. The operation of your facility at this level of emissions has resulted in the following violations:

Failure to Submit a Title V Application within 12 Months of Operation Pursuant to 15A NCAC 2Q .0501(c) a facility that makes a modification that results in being classified as a Title V “major source” must “…file a complete application within 12 months after commencing operation [as a Title V facility].” Based on this most recent information, Borden Chemical, Inc. was required to submit a complete Title V application in 1998. Therefore, this letter serves as a Notice of Violation of 15A NCAC 2Q .0501, “Purpose of Section and Requirement for a Permit.”

Hazardous Organic NESHAP (HON) - Failure to Meet Compliance Deadline
Pursuant to 15A NCAC 2D .1111 “Maximum Achievable Control Technology – Hazardous Organic NESHAP (HON)” as promulgated in 40 CFR Part 63, Subparts F, G, H, and I, including Subpart A, “General Provisions”, existing affected sources were required to be in compliance by 1998. Due to the recent information regarding the emission rates of HAPs in 1997 and the following years, the processes subject to the HON were required to be in compliance by 1998. To date, these processes have not met the requirements of this MACT. Therefore, Borden Chemical, Inc. is in violation of 15A NCAC 2D .1111 “Maximum Achievable Control Technology – Hazardous Organic NESHAP” as promulgated in 40 CFR Part 63, Subparts F/G/H/I, including Subpart A, “General Provisions”.

Resins MACT Subpart OOO - Failure to meet compliance deadline
Pursuant to 40 CFR Part 63, Subpart OOO, existing affected sources shall be in compliance no later than 3 years after 20 January 2000. Therefore, on 20 January 2003, the Urea-Formaldehyde and Phenol-Formaldehyde Resins Manufacturing process at Borden Chemical, Inc. were required to be in compliance with this rule. To date, these processes have not met the requirements of this MACT. Therefore, Borden Chemical, Inc. is in violation of 15A NCAC 2D .1111 “Maximum Achievable Control Technology – Amino/Phenolic Resins” as promulgated in 40 CFR Part 63, Subpart OOO, including Subpart A, “General Provisions”.

You have provided the DAQ with quarterly reports regarding MACT compliance status that indicate you plan to make various changes to process operations, control equipment, and monitoring/recordkeeping procedures. It is my understanding that you have been in discussion with our Raleigh Central Office and have expressed an interest in obtaining a Special Order of Consent for these operations before the controls are fully operational and tested. Please notify our office no later than 7 March 2005 if you decide to pursue this options and if you have any additional information or input to this process.

As stated in the "subject" above, this letter represents not only a notice for the violations documented on 28 January 2005, but puts you on notice that an enforcement report is being prepared by this Office addressing the violation reported. The above violations, and any future violation of an air quality regulation are subject to the assessment of civil penalties as per North Carolina General Statute 143-215.114A. This General Statute provides that civil penalties of not more than ten thousand dollars ($10,000) may be assessed against any person who violates any classification, standard, or limitation established pursuant to General Statute 143-215.107, Air Quality Standards and Classifications. In addition, each day of continuing violation after written notification from the Division of Air Quality shall be considered a separate offense. In the event that you request a Special Order of Consent, penalties may be included in that Order.

Please respond to this NOV/NRE, in writing, as soon as possible, but not later than 7 March 2005. The response should outline any steps or actions that you have not previously addressed in your reports to DAQ. As part of any enforcement action, we will need to determine the difference between the permit fees which have been paid by Borden Chemical, Inc. for a synthetic minor permit and the amount which would have been billed for a Title V source. Because these fees are calculated on a base amount plus a tonnage factor, we are requesting that you submit information documenting the emissions of all billable pollutants for the calendar years 2002, and 2003.