WM Letter to PPL Martins Creek, LLC

2 Public Square Wilkes-Barre, PA 18711-0790 March 4, 2009 Northeast Regional Office PPL Martins Creek, LLC Two North Ninth Street Allentown, PA 18101-1179 Attention: Thomas G. Eppehimer, Plant Manager Re: PPL Martins Creek – Ash Basin No. 4 Permit Modification – Return to Service Lower Mt. Bethel Township, Northampton County Facility ID # 301257 570-826-2511 Fax 570-826-5448 Dear Mr. Eppehimer: Enclosed is a permit modification to Solid Waste Permit # 301257 issued to PPL Martins Creek, L.L.C. for the operation of the Class II Residual Waste Disposal Impoundment known as “Ash Basin No. 4”. Ash Basin No. 4 is an existing Class II Residual Waste Disposal Impoundment used for the disposal of coal ash generated from the coal fired electric generating units at the Martins Creek Steam Electric Station in Lower Mount Bethel Township, Northampton County. Ash Basin No. 4 is approximately 40 acres in size, is lined with a 36 mil hypalon liner and has a discharge structure connected to a pipeline that runs to the Delaware River. The enclosed permit modification authorizes design, construction, and operational changes at Ash Basin No 4. following the August 23, 2005 Ash Basin discharge structure failure, and addresses 25 Pa. Code §289.274(b) (Failure) requirements pertaining to the return of Ash Basin No. 4 to normal service. Design and construction changes, along with required repairs, have been made by PPL in order to provide additional safeguards against the recurrence of any similar type of incident. The Operational changes being made include a new site “Integrated Contingency Plan” (ICP) that replaces the previous site “Comprehensive Spill Prevention & Response” (CSRP) plan, and which incorporates modified operating procedures for Ash Basin No. 4. The Department is allowing the start-up and operation of Ash Basin No. 4 on the basis of the following changes and understandings: 1. Future Ash Management: The Department understands that PPL desires to return its coalburning power plant Units Nos. 1 & 2 to service, which requires a means to dispose of the generated coal ash. a. Coal-derived “fly” ash: PPL is approved to resume disposal of newly generated coalderived fly ash (generated by Units Nos. 1 & 2) in Ash Basin No. 4 upon issuance of this permit modification. Conditions of the permit modification identify several future completion dates that are to be completed in accordance with the specified time frame. Ongoing compliance with the revised Integrated Contingency Plan (ICP) is also a continuing requirement. PPL Martins Creek, LLC -2- March 4, 2009 b. Coal-derived “bottom” ash: The coal-derived bottom ash will be separately managed at a new concrete trough “captive processing” area that will be operated under the 25 Pa. Code §287.102 (Permit-by-Rule “captive processing”) provisions, and stored at a location complying with 25 Pa. Code §299.131-299.133 (Storage piles) and 25 Pa. Code §299.153 (Storage and containment of coal ash). The bottom ash was previously managed at Ash Basin No. 1, which is now inactive. The PPL Permit-by-Rule Notification submittals required by 25 PA Code § 287.102(b)(8) were received on November 16, December 2 & 16, 2005. c. Clean-up/Remediation Wastes: Ongoing disposal of clean-up/remediation wastes from the incident can continue via usage of the approved Ash Basin No. 4 Temporary North Ramp (approved with conditions per the October 14, 2005 Department Letter and certified via 11/10/2005 PPL construction certification), and the pipeline from the ongoing Delaware River clean-up project to Ash Basin No. 4. The North Ramp and pipeline are temporary structures associated with the ongoing clean-up activities, and will be removed when the clean-up activities are completed. 2. Design Changes: PPL has determined that the August incident involved the failure of a wooden “stop log” that was part of a structure (acting like an internal dam/barrier within the Ash Basin No. 4’s internal concrete Discharge Structure), with a resultant large-scale release of coal ash & slurry water. In addition to replacing the entire set of logs that were part of the discharge structure, PPL has made various design changes in order to prevent any similar events. The PADEP Bureau of Waterways Engineering, Division of Dam Safety, has reviewed and approved the design changes via a December 14, 2005 PADEP Letter. In addition, PPL hired a technical consultant (Exponent Failure Analysis Associates) to review the design plans on behalf of PPL. On December 15, 2005, the Ash Basin No. 4 modifications underwent a successful field test witnessed by PPL, the Department, and the Engineers for Lower Mt. Bethel Township (PA) and Harmony Township (NJ). The PPL documents relating to the design modifications are listed below and incorporated in the permit conditions. The approved design changes can be summarized as follows: a. New Concrete Logs/Panels: Replacement of the wooden “stop logs” within the Ash Basin No. 4 internal concrete Discharge Structure by engineered concrete panels and stop logs that can handle much higher pressure loads. b. Additional Metal Barrier: Installation of a new metal barrier consisting of engineered metal plates within the existing “skimmer plate” structure located within the concrete Discharge Structure. This metal plate barrier can act as a separate barrier to any uncontrolled release from the Basin. c. New Valve Inside Discharge Structure: Installation of a new slide gate valve within the concrete Discharge Structure that will allow PPL to control discharges from the Ash Basin No. 4. d. New Manhole with Additional Valve: Installation of a new manhole containing a new gate valve, outside of the Basin, and installation of new “in situ” pipe lining between the Ash Basin No. 4 Discharge Structure and the new manhole. This second valve, in conjunction with the other new valve, will allow for PPL to completely cut-off discharges from the Basin. The new “in situ” pipe lining will protect the existing concrete pipe in event of backpressures generated by valve closure. PPL Martins Creek, LLC -3- March 4, 2009 e. New Water Level Monitoring Instruments in Discharge Structure: PPL has installed new water level measuring devices that are linked to the PPL Units 3 & 4 Control Room. This allows the PPL control room operators to detect water elevation/level changes within the concrete Discharge Structure’s Chamber 1 (between the new metal barrier and the new concrete stop logs) and Chamber 2 (between the new concrete stop logs and valve/gate). 3. Integrated Contingency Plan (ICP): The ICP replaces the previous site “preparedness, prevention, and contingency” plan (known as the “Comprehensive Spill Prevention & Response” a.k.a. CSRP Plan). The PADEP Waste Management Program (with input from other PADEP Programs) has determined that the ICP (as modified by this permit modification) will adequately address the “preparedness, prevention, and contingency” planning requirements for Ash Basin No. 4. a. Contents of the ICP: This ICP was prepared per the (Federal) National Response Team’s Integrated Contingency Plan Guidance found in the Wednesday, June 5, 1996, Federal Register (Vol. 61, No. 109, pages 28642 through 28664) as modified by additional PA requirements set forth in the PADEP “Guidelines for the Development and Implementation of Environmental Emergency Response Plans” (Document # 4002200-001, August 6, 2005). b. Implementation of the ICP: The ICP is the core “preparedness, prevention, and contingency” (PPC) plan for the site, except in the event of a “dam emergency” as defined by the PADEP Dam Safety Program where provisions of the ICP Annex 9 Dam Emergency Action Plan (“Dam EAP”) would take precedence. c. Consolidation of Site Contingency Plans: The ICP has consolidated the site contingency plans. The Ash Basin No. 4 Operating Instructions, Ash Basin No. 4 Maintenance Plan (including Inspection requirements), and the Sinkhole Contingency Plan are now incorporated into ICP Annex 9. The finalized Dam EAP must be incorporated into the ICP when it is finalized. d. General Improvements to the site contingency plan: i. Drawings: Per permit condition, the ICP drawings shall be updated. ii. Emergency Coordinator Duties: The duties of the “emergency coordinator” (a.k.a. “Incident Commander”) have been clarified. iii. Onsite Management During Emergencies: PPL has included a new ICP Annex 9 document (the “IERP” a.k.a. “Integrated Emergency Response Plan”) that clarifies how the PPL site management structure will function during an emergency per the Federal Department of Homeland Security’s “National Incident Management System” (NIMS) guidance available at the FEMA website (www.fema.gov). The IERP addresses the site’s managerial processes, rather than emergency procedures. iv. Notification Requirements: PPL has clarified the notification procedures and requirements for emergency contacts including the local communities, and downstream water users. For example, the local municipalities can now contact PPL at 610-498-2282 or 610-498-6200 in event of a complaint on a 24 hour-per-day basis. PPL Martins Creek, LLC -4- March 4, 2009 e. Modifications to the ICP: The Department has included permit conditions to modify the ICP to address some minor issues. Examples include: i. The “preventive maintenance” section of the previous contingency (CSRP) plan was accidentally omitted from the ICP, and has been incorporated by reference. ii. The PA PPC Plan Guidelines required “material compatibility” section was also omitted by accident, and must be addressed per permit condition. iii. Additional cross-referencing for the benefit of the emergency responders. iv. Clarification of the Incident Commander (a.k.a. the emergency coordinator) authority and duties. f. Sinkhole Contingency Plan: The revised “Sinkhole Contingency Plan” did not contain all previous commitments or relevant information in regard to actions required in event of that contingency. Therefore, the Department is incorporating by reference the “Sinkhole Contingency Plan for Basin No. 4” submitted on 2/8/99 of the (Ash Basin No. 4) Approved Application into the Annex 9 until such time as the Department approves an updated Sinkhole Contingency Plan. In addition, the Department is incorporating by reference the “Section 4.7 Ash Basin Sinkhole Damage Contingency Plan” for Ash Basin No. 1” submitted on 6/15/98 as part of the (Ash Basin No. 1) Approved Application into Annex 9 until such time as the Department approves an updated Sinkhole Contingency Plan or Ash Basin No. 1 closes. g. Finalized ICP: i. When finalized, copies of the ICP must be distributed to the various emergency responders and the PADEP Waste Management Program, Water Management Program, Dam Safety Program, and Storage Tank Program. These other PADEP Programs have overlapping regulatory/permitting involvement in regard to this site contingency plan. ii. The ICP is a “living document” that PPL will have to update as needed during the life of the facility. Therefore, PPL has the duty to update the ICP copies distributed to the relevant Department Programs and emergency responders as needed. This permit modification does not authorize any other change to the facility’s construction or operations, and does not address the separate ongoing site & Delaware River clean-up/remediation activities under the jurisdiction of the PADEP Water Management Program, or the ongoing groundwater assessment activities for Ash Basin No. 4, or the compliance/enforcement issues (including future penalty assessment) being pursued through the PA Commonwealth Court per the November 18, 2005 Complaint (No. 584MD2005 Civil Action) filed by the Department. Please pay special attention to the permit conditions that have been attached to, and which are part of your permit. I also caution you that issuance of this permit modification does not eliminate the need to comply with all applicable federal, state or local requirements at the permitted facility. PPL Martins Creek, LLC -5- March 4, 2009 Any person aggrieved by this action may appeal, pursuant to Section 4 of the Environmental Hearing Board Act, 35 P.S. Section 7514, and the Administrative Agency Law, 2 Pa. C.S., Chapter 5A, to the Environmental Hearing Board, Second Floor, Rachel Carson State Office Building, 400 Market Street, P.O. Box 8457, Harrisburg, PA 17105-8457, 717-787-3483. TDD users may contact the Board through the Pennsylvania Relay Service, 800-654-5984. Appeals must be filed with the Environmental Hearing Board within 30 days of receipt of written notice of this action unless the appropriate statute provides a different time period. Copies of the appeal form and the Board's rules of practice and procedure may be obtained from the Board. The appeal form and the Board's rules of practice and procedure are also available in Braille or on audiotape from the Secretary to the Board at 717-787-3483. This paragraph does not, in and of itself, create any right of appeal beyond that permitted by applicable statutes and decisional law. IF YOU WANT TO CHALLENGE THIS ACTION, YOUR APPEAL MUST REACH THE BOARD WITHIN 30 DAYS. YOU DO NOT NEED A LAWYER TO FILE AN APPEAL WITH THE BOARD. IMPORTANT LEGAL RIGHTS ARE AT STAKE, HOWEVER, SO YOU SHOULD SHOW THIS DOCUMENT TO A LAWYER AT ONCE. IF YOU CANNOT AFFORD A LAWYER, YOU MAY QUALIFY FOR FREE PRO BONO REPRESENTATION. CALL THE SECRETARY TO THE BOARD (717-787-3483) FOR MORE INFORMATION. If you have any questions, please contact me at the above telephone number. Sincerely, William Tomayko Program Manager Waste Management Program Enclosure cc: Lower Mt. Bethel Township Northampton County PADEP Water Management PADEP Dam Safety Patrick Renshaw (PPL) Harmony Township Dave Bean: New Jersey DEP Gary Pearson: New Jersey DEP PPL Martins Creek, LLC -6- March 4, 2009 bcc: R. Wallace/WM File J. Leskosky/D. Fisher R. Ducceschi/T. McGurk/eFACTS J. Berger L. Hannigan Permit Book WT:lms WP: WM-282.doc HP: 12/23/05 TP(F): 12/27/05 PPL Martins Creek, LLC -7- March 4, 2009 ATTN MR THOMAS G EPPEHIMER PLANT MGR PPL MARTINS CREEK LLC TWO N NINTH ST ALLENTOWN PA 18101-1179 ATTN MS LORI A STAUFFER SECY LOWER MT BETHEL TOWNSHIP PO BOX 257 MARTINS CREEK PA 18063 PATRICK RENSHAW PPL MARTINS CREEK LLC TWO N NINTH ST ALLENTOWN PA 18101-1179 MR DAVE BEAN NEW JERSEY DEP NATL RESRC DAMAGE PROGRAM 501 E STATE ST PO BOX 404 TRENTON NJ 08625-0404 GARY PEARSON NEW JERSEY DEP SITE REMEDIATION PROGRAM 7 RIDGEDALE AVE CEDAR KNOLLS NJ 07927-1112 HARMONY TWP CLERK 3003 BELVIDERE RD COUNTY RTE 519 PHILLIPSBURG NJ 08865