AG-2017-000003

BEFORE THE EXECUTIVE DIRECTOR OF THE
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
In the Matter of:
US Magnesium LLC;
UDAQ Notice of Violation and Order to
Comply August 27, 2015
(No. 2015082701)

FINDINGS OF FACT, CONCLUSIONS OF
LAW, AND RECOMMENDED ORDER

JUNE 2, 2017

RICHARD K. RATHBUN,
ADMINISTRATIVE LAW JUDGE

Pursuant to Utah Code Ann. § 19-1-301 the ALJ submits the following Findings of Fact,
Conclusions of Law, and Recommended Order to the Executive Director. This is an
enforcement matter relating to US Magnesium’s Title V Operating Permit 4500030002, issued
December 20, 2013 (last revised February 6, 2015) (Permit).
The Director of the Utah Division of Air Quality filed a Motion for Summary Judgment
on April 14, 2017. In response to that motion, US Magnesium LLC (USM) and the Director
agreed to resolve the Motion for Summary Judgment, and thus this matter, in their Stipulation to
Resolve Administrative Proceedings (Stipulation). I therefore recommend that the Executive
Director approve the parties’ Stipulation to Resolve Administrative Proceedings, attached hereto
as Exhibit A, and dismiss these administrative proceedings with prejudice. A proposed Order of
Dismissal for use by the Executive Director is attached hereto as Exhibit B.
Findings of Fact
1. USM operates a primary magnesium production facility in Rowley, Tooele County, Utah,
producing magnesium metal from the waters of the Great Salt Lake.
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2. The plant uses a series of solar evaporation ponds to extract brine solution from the lake
water, which is then purified and turned into powder in spray dryers. The plant has three
identical spray dryers (01, 02, and 03 Spray Dryers) that evaporate the brine to form dry
magnesium powder. The powder is stored in the 05/06 Magnesium Chloride Storage
Bins equipped with a baghouse and a scrubber.
3. The powder produced in the spray dryers is melted and further purified in the Melt
Reactor before going through an electrolytic process that separates magnesium metal
from chlorine. Fugitive emissions of chlorine in the Melt Reactor building are captured
by the Emergency Off-Gas System.
4. The metal is then refined and/or alloyed and cast into molds. The chlorine from the Melt
Reactor is combusted with natural gas in the chlorine reduction burner and converted into
hydrochloric acid (HCl). The HCl is removed from the gas stream through a scrubber
train. The chlorine that is generated at the electrolytic cells is collected and piped to the
chlorine plant where it is liquefied for reuse or sale.
5. The plant also has a number of diesel engines located in the solar evaporation ponds, and
a Fire Pump diesel engine for a surge pump for fire protection.
6. USM’s production process results in emissions of PM10 (coarse dust particulate matter
2.5 to 10 micrometers in diameter), nitrogen oxide (NOx), Volatile Organic Compounds
(VOCs), and Hazardous Air Pollutants (HAPs)—chlorine and hydrogen
chloride/hydrochloric acid (HCl).
7. USM is a major source of PM10, NOx, VOCs, and chlorine and HCl HAPs.
3
8. DAQ has issued the Permit to regulate USM because it is a major source of these
emissions.
9. USM must comply “with all conditions of the operating permit.”
10. Specifically, the Permit states that USM must comply with the following conditions:
a) perform initial carbon monoxide (CO) emissions testing of the Solar Pond Diesel
Engines (Engines), see Permit 24, Condition II.B.2.d.1;
b) test the 05/06 Magnesium Chloride Storage Bins Scrubber (05/06 Scrubber) HCl
emissions annually, see id. 25, Condition II.B.3.b.1;
c) test Spray Dryers 01, 02, 03 (Spray Dryers) HCl and total suspended particulates
(TSP) emissions annually, see id. 29-31, Conditions II.B.5.a.1 and b.1;
d) test the Melt Reactor chlorine emissions annually and dioxin/furan emissions
every 30 months, see id. 36-37, Condition II.B.8.a.1; id. 39-40, Condition
II.B.8.d.1;
e) test the Emergency Off Gas Stack (EOG Stack) chlorine, HCl, and TSP emissions
every two years, see id. 43-46, Conditions II.B.9.c.1, d.1, and e.1;
f) certify monthly chlorine emission reports by a responsible official, see id. 8,
Condition I.K;
g) record Fire Pump operating hours, see id. 57, Condition II.B.20.a.2;
h) include all deviations from the Permit requirements in the Title V six-month
monitoring report, see id. 11, Condition I.S.2.a;
i) promptly notify the Director of any deviations from the Permit conditions, see id.,
Condition I.S.2.c
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j) submit Title V six-month monitoring reports, see id., Condition I.S.2.a;
k) comply with 05/06 Scrubber PM10 emission concentration limit of no greater than
0.016 grain/dscf (dry standard cubic foot), see id. 26, Condition II.b.3.c;
l) comply with the Melt Reactor HCl emission limit of no greater than 7.2 lb/hr, see
id. 37, Condition II.B.8.b; and
m) comply with the EOG Stack chlorine emission limit of no greater than 26 lb/hr,
see id. 43, Condition II.B.9.c.
CONCLUSIONS OF LAW
With the dismissal of these administrative proceedings, no issues will remain to be
adjudicated. Based on the stipulation of the parties, I make the following conclusions of law:
1. US Magnesium committed the following violations of the Permit:
a) failure to test the Engines within 180 days of May 3, 2013;
b) failure to test 05/06 Scrubber HCl emissions in 2013 and 2014 (last tested on
March 20, 2012);
c) failure to test Spray Dryers HCl and TSP emissions in 2013 and 2014 (last tested
on March 21, 2012 and March 26, 2012);
d) failure to test Melt Reactor chlorine emissions in 2013 and 2014 (last tested on
November 14, 2012);
e) failure to test Melt Reactor dioxin/furan emissions by September 30, 2014 (last
tested on March 20, 2012);
f) failure to test EOG Stack chlorine, HCl, and TSP emissions in 2014 (last tested on
March 27, 2012);
5
g) failure to certify monthly chlorine emission reports by a responsible official prior
to December of 2014;
h) failure to keep record of the Fire Pump hour meter readings prior to November
2014;
i) failure to report deviations listed in this paragraph (subparagraphs “a” through
“h”) above in a Title V six-month monitoring report dated October 2, 2014 that
covered the period from April 1, 2014 to September 30, 2014;
j) failure to submit deviation reports for the violations referenced in subparagraph
“i”;
k) failure to submit a Title V six-month monitoring report for the period covering
October 1, 2014 through March 31, 2015;
l) exceedance of 05/06 Scrubber PM10 emission concentration limit of no greater
than 0.016 grain/dscf—the stack test on March 3, 2015 showed that PM10
concentration averaged 0.021 grains/dscf;
m) exceedance of the Melt Reactor HCl emission limit of no greater than 7.2 lb/hr—
the stack test on March 2, 2015 demonstrated 9.9 lb/hr average (DAQ calculation
showed 10.1 lb/hr average); and
n) exceedance of the EOG Stack chlorine emission limit of no greater than 26
lb/hr—the stack test on February 24-27, 2015 demonstrated average of 35.1 lb/hr
(DAQ calculation showed 35 lb/hr average).
2. This Final Order is effective and final upon the date executed below and, as reflected
in the Stipulation, the parties have waived any right to appeal from this administrative
6
proceeding. Should the Director (or any officer or entity acting for the State of Utah), file a civil
action in district court under Section 19-2-115 of the Utah Code to assess a penalty for the above
violations, the Executive Director recognizes that the parties have preserved their right to present
all relevant evidence and defenses which are available in such civil action.
RECOMMENDED ORDER
Based on the stipulation of the parties, I recommend that the Executive Director
issue an order, approving and incorporating the Stipulated Undisputed Facts and the Stipulated
Violations set forth in Exhibit A (the parties’ stipulation of May 12, 2017) and dismissing this
action with prejudice, in the form of the order attached as Exhibit B.
NOTICE OF OPPORTUNITY TO COMMENT
Parties may file comments to this recommended order of dismissal with the Executive
Director of the Department of Environmental Quality within ten business days of issuance, in
accordance with the requirements of Utah Admin. Code R 305-7-213(4). Comments shall not
exceed 15 pages. A party may file a response to another party’s comments, not to exceed five
pages, within five business days of the date of the service of the comments.
DATED this 2nd day of June, 2017.

/s/Richard K. Rathbun
Administrative Law Judge

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CERTIFICATE OF SERVICE
I certify that on this 2nd day of June 2017, I served by electronic mail a true and correct
copy of the foregoing Findings of Fact, Conclusions of Law, and Recommended Order on the
following:

Administrative Proceedings Records Officer
Utah Department of Environmental Quality
[e-mail]

Bryce Bird
Director, Division of Air Quality
[e-mail]

Christian C. Stephens
Marina V. Thomas
Assistant Attorneys General
[e-mail]
[e-mail]

M. Lindsay Ford
PARSONS BEHLE & LATIMER
[e-mail]

Brad Johnson, Deputy Director
Craig Anderson, Assistant Attorney General
[for the Executive Director, Alan Matheson]
[e-mail]
[e-mail]

/s/ Richard K. Rathbun
Administrative Law Judge

4838-1108-1032 v1
** EXHIBIT A**

M. Lindsay Ford
Michael A. Zody
PARSONS BEHLE & LATIMER
201 South Main Street, Suite 1800
Salt Lake City, Utah 84111
Telephone: [phone]
Facsimile: 801.536.6111
[e-mail]
[e-mail]

Attorneys for US Magnesium LLC

BEFORE THE EXECUTIVE DIRECTOR OF THE
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
In the Matter of:
US Magnesium LLC;
UDAQ Notice of Violation and Order to
Comply August 27, 2015
(No. 2015082701)

STIPULATION TO RESOLVE
ADMINISTRATIVE PROCEEDINGS
May 12, 2017
Richard K. Rathbun, Administrative Law
Judge

This is an enforcement matter relating to US Magnesium’s Title V Operating Permit
4500030002, issued December 20, 2013 (last revised February 6, 2015) (Permit).
The Director of the Utah Division of Air Quality filed a Motion for Summary Judgment
on April 14, 2017. In response to that motion, US Magnesium LLC (USM) and the Director
have agreed to resolve the Motion for Summary Judgment, and thus this matter, by stipulating to
the following factual and legal findings. Based upon this stipulation, the parties request that
Administrative Law Judge Richard K. Rathbun submit the attached proposed Final Order to be
executed by the Executive Director. Should the Executive Director make any revisions to the

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4838-1108-1032 v1
proposed Final Order, the parties reserve their right to withdraw this Stipulation in whole or in
part and to restart this administrative proceeding, with USM being able to withdraw this
Stipulation and file a new response to the Motion for Summary Judgment. Should the Executive
Director issue the proposed Final Order in the form attached, the parties waive any right to
appeal the Executive Director’s Final Order and it will become final upon execution.
STIPULATED UNDISPUTED FACTS
1. USM operates a primary magnesium production facility in Rowley, Tooele County, Utah,
producing magnesium metal from the waters of the Great Salt Lake.
2. The plant uses a series of solar evaporation ponds to extract brine solution from the lake
water, which is then purified and turned into powder in spray dryers. The plant has three
identical spray dryers (01, 02, and 03 Spray Dryers) that evaporate the brine to form dry
magnesium powder. The powder is stored in the 05/06 Magnesium Chloride Storage
Bins equipped with a baghouse and a scrubber.
3. The powder produced in the spray dryers is melted and further purified in the Melt
Reactor before going through an electrolytic process that separates magnesium metal
from chlorine. Fugitive emissions of chlorine in the Melt Reactor building are captured
by the Emergency Off-Gas System.
4. The metal is then refined and/or alloyed and cast into molds. The chlorine from the Melt
Reactor is combusted with natural gas in the chlorine reduction burner and converted into
hydrochloric acid (HCl). The HCl is removed from the gas stream through a scrubber
train. The chlorine that is generated at the electrolytic cells is collected and piped to the
chlorine plant where it is liquefied for reuse or sale.

3
4838-1108-1032 v1
5. The plant also has a number of diesel engines located in the solar evaporation ponds, and
a Fire Pump diesel engine for a surge pump for fire protection.
6. USM’s production process results in emissions of PM10 (coarse dust particulate matter
2.5 to 10 micrometers in diameter), nitrogen oxide (NOx), Volatile Organic Compounds
(VOCs), and Hazardous Air Pollutants (HAPs)—chlorine and hydrogen
chloride/hydrochloric acid (HCl).
7. USM is a major source of PM10, NOx, VOCs, and chlorine and HCl HAPs.
8. DAQ has issued the Permit to regulate USM because it is a major source of these
emissions.
9. USM must comply “with all conditions of the operating permit.”
10. Specifically, the Permit states that USM must comply with the following conditions:
a) perform initial carbon monoxide (CO) emissions testing of the Solar Pond Diesel
Engines (Engines), see Permit 24, Condition II.B.2.d.1;
b) test the 05/06 Magnesium Chloride Storage Bins Scrubber (05/06 Scrubber) HCl
emissions annually, see id. 25, Condition II.B.3.b.1;
c) test Spray Dryers 01, 02, 03 (Spray Dryers) HCl and total suspended particulates
(TSP) emissions annually, see id. 29-31, Conditions II.B.5.a.1 and b.1;
d) test the Melt Reactor chlorine emissions annually and dioxin/furan emissions
every 30 months, see id. 36-37, Condition II.B.8.a.1; id. 39-40, Condition
II.B.8.d.1;
e) test the Emergency Off Gas Stack (EOG Stack) chlorine, HCl, and TSP emissions
every two years, see id. 43-46, Conditions II.B.9.c.1, d.1, and e.1;

4
4838-1108-1032 v1
f) certify monthly chlorine emission reports by a responsible official, see id. 8,
Condition I.K;
g) record Fire Pump operating hours, see id. 57, Condition II.B.20.a.2;
h) include all deviations from the Permit requirements in the Title V six-month
monitoring report, see id. 11, Condition I.S.2.a;
i) promptly notify the Director of any deviations from the Permit conditions, see id,
Condition I.S.2.c
j) submit Title V six-month monitoring reports, see id, Condition I.S.2.a;
k) comply with 05/06 Scrubber PM10 emission concentration limit of no greater than
0.016 grain/dscf (dry standard cubic foot), see id. 26, Condition II.b.3.c;
l) comply with the Melt Reactor HCl emission limit of no greater than 7.2 lb/hr, see
id. 37, Condition II.B.8.b; and
m) comply with the EOG Stack chlorine emission limit of no greater than 26 lb/hr,
see id. 43, Condition II.B.9.c.
STIPULATED VIOLATIONS
1. The parties stipulate to the following violations of the Permit:
a) failure to test the Engines within 180 days of May 3, 2013;
b) failure to test 05/06 Scrubber HCl emissions in 2013 and 2014 (last tested on
March 20, 2012);
c) failure to test Spray Dryers HCl and TSP emissions in 2013 and 2014 (last tested
on March 21, 2012 and March 26, 2012);

5
4838-1108-1032 v1
d) failure to test Melt Reactor chlorine emissions in 2013 and 2014 (last tested on
November 14, 2012);
e) failure to test Melt Reactor dioxin/furan emissions by September 30, 2014 (last
tested on March 20, 2012);
f) failure to test EOG Stack chlorine, HCl, and TSP emissions in 2014 (last tested on
March 27, 2012);
g) failure to certify monthly chlorine emission reports by a responsible official prior
to December of 2014;
h) failure to keep record of the Fire Pump hour meter readings prior to November
2014;
i) failure to report deviations listed in this paragraph (subparagraphs “a” through
“h”) above in a Title V six-month monitoring report dated October 2, 2014 that
covered the period from April 1, 2014 to September 30, 2014;
j) failure to submit deviation reports for the violations referenced in subparagraph
“i” above;
k) failure to submit a Title V six-month monitoring report for the period covering
October 1, 2014 through March 31, 2015;
l) exceedance of 05/06 Scrubber PM10 emission concentration limit of no greater
than 0.016 grain/dscf—the stack test on March 3, 2015 showed that PM10
concentration averaged 0.021 grains/dscf;

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4838-1108-1032 v1
m) exceedance of the Melt Reactor HCl emission limit of no greater than 7.2 lb/hr—
the stack test on March 2, 2015 demonstrated 9.9 lb/hr average (DAQ calculation
showed 10.1 lb/hr average); and
n) exceedance of the EOG Stack chlorine emission limit of no greater than 26
lb/hr—the stack test on February 24-27, 2015 demonstrated average of 35.1 lb/hr
(DAQ calculation showed 35 lb/hr average).
Should the Director (or any officer or entity acting for the State of Utah), file a civil
action in district court under Section 19-2-115 of the Utah Code to assess a penalty for
the above violations, the parties preserve their right to present all relevant evidence and
defenses which are available in such civil action.

DATED May 12, 2017.
/s/ M. Lindsay Ford
M. Lindsay Ford
Michael A. Zody
PARSONS BEHLE & LATIMER

/s/ Christian C. Stephens
Christian C. Stephens
Marina V. Thomas
Assistant Attorneys General
Environment Division
Utah Attorney General’s Office

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4838-1108-1032 v1
CERTIFICATE OF SERVICE
I hereby certify that on this 12th day of May, 2017, a true and correct copy of the
forgoing STIPULATION TO RESOLVE ADMINISTRATIVE PROCEEDINGS was filed
via e-mail with the following:
Richard K. Rathbun
Administrative Law Judge
rencher│anjewierden
[e-mail]
[e-mail]

Administrative Proceedings Records Officer
Utah Department of Environmental Quality
[e-mail]
Bryce Bird, Director
Utah Division of Air Quality
[e-mail]
Christian S. Stephens
Marina V. Thomas
Assistant Attorneys General
Environment Division
Utah Attorney General’s Office
[e-mail]
[e-mail]

/s/ M. Lindsay Ford
M. Lindsay Ford
PARSONS BEHLE & LATIMER
Attorney for US Magnesium LLC

**EXHIBIT B**

BEFORE THE EXECUTIVE DIRECTOR OF THE
UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
In the Matter of:
US Magnesium LLC;
UDAQ Notice of Violation and Order to
Comply August 27, 2015
(No. 2015082701)

FINAL ORDER OF THE EXECUTIVE
DIRECTOR

[DRAFT--JUNE 2, 2017]

RICHARD K. RATHBUN,
ADMINISTRATIVE LAW JUDGE

Pursuant to Utah Code Ann. § 19-1-301 the ALJ has submitted Findings of Fact,
Conclusions of Law, and Recommended Order in the above-captioned adjudicatory proceeding.
Under authority of Utah Code Ann. § 19-1-301, I have reviewed the ALJ’s Findings of Fact,
Conclusions of Law, and Recommended Order (Recommended Order) and the parties’
Stipulation to Resolve Administrative Proceedings (Stipulation), approve and adopt the same in
full, and hereby ORDER:
1. The Undisputed Facts and Violations set forth in the Stipulation are adopted and
incorporated herein by reference;
2. The ALJ’s Findings of Fact, Conclusions of Law, and Recommended Order are
adopted and incorporated herein by reference;
3. This Final Order is effective and final upon the date executed below and, as reflected
in the Stipulation, the parties have waived any right to appeal from this administrative
proceeding. Should the Director (or any officer or entity acting for the State of Utah) file a civil
action in district court under Section 19-2-115 of the Utah Code to asses a penalty for the above
2
violations, the parties preserve their right to present all relevant evidence and defenses which are
available in such civil action; and
4. These administrative proceedings are dismissed with prejudice.
DATED this ___ day of ___, 2017.

___________________________
Alan Matheson
Executive Director

3
CERTIFICATE OF SERVICE
I certify that on this ___ day of _____ 2017, I served by electronic mail a true and
correct copy of the foregoing Final Order of the Executive Director on the following:

Administrative Proceedings Records Officer
Utah Department of Environmental Quality
[e-mail]

Bryce Bird
Director, Division of Air Quality
[e-mail]

Christian C. Stephens
Marina V. Thomas
Assistant Attorneys General
[e-mail]
[e-mail]

M. Lindsay Ford
PARSONS BEHLE & LATIMER
[e-mail]

Richard K. Rathbun, Administrative Law Judge
Rencher and Anjewierden
[e-mail]

________________________________
Alan Matheson
Executive Director