1. Arizona ChemicalA World of Good Ideas Industry Perspective on Air Issues Richard Lee, Environmental Manager

2. Wholly owned by International Paper World-class supplier of pine chemicals 1,800 employees worldwide 14 manufacturing facilities worldwide 3 manufacturing facilities in Florida Headquarters in Jacksonville, Florida Welcome and respected corporate citizen Who is Arizona Chemical?

3. United States Where are we located? FLORIDA Panama City Port St. Joe Pensacola GEORGIA Savannah Valdosta MISSISSIPPI Picayune OHIO Dover H H H H HH H

4. 1930International Paper & American Cyanamid JV formed 1936Begin crude sulfate turpentine fractionation in Panama City 1949Begin crude tall oil fractionation in Panama city 1985Wholly-owned subsidiary of International Paper 1986Sylvachem acquisition, Port St. Joe 1989 Reichhold/Newport division acquisition, Pensacola History

5. KRAFT PULPING Crude Turpentine (CST) Crude Tall Oil (CTO) Beta Pinene Other Distillates Pressure Sensitive Adhesives Specialty Packaging Adhesives Nonwoven Adhesives Anise Flavoring Alpha Pinene Other Distillates Tall Oil Fatty Acids Tall Oil Rosin Paints & Coatings Flexographic Inks Ink Solvents Adhesives Packaging Nonwovens Bookbinding Tapes Lithographic Inks Lithographic Gravure Inks Chewing Gum Synthetic Rubber-making Pine Oil Cleaners Packaging Adhesives Pressure Sensitive Adhesives Polymer Additives Chewing Gum Ore Flotation Rubber Processing Emulsifiers

6. Adhesives Agriculture Automotive Chewing Gum Coatings Construction Flavor & Fragrance Food & Beverages Graphic Arts Lubricants Metalworking Mining Oil Field Paper Polymer Additive Rubber Soaps & Cleaners Textiles Customer Industries

7. 80+% reduction in TRI emissions (EPA Hammer Award) 60+% reduction in hazardous waste generation 51% reduction in consumptive use of well water 300+ TPY reduction in air emissions (VOCs and TRS) Panama City Plant P2 Activities

8. Factors Affecting the Project Major production units installed prior to air permitting regulations Major production units remained unregulated in the Title V Permit issued in 1998 Very high potentials to emit for these unregulated units. EPA’s PSD reinterpretation Challenge to increase production quickly

9. Options Modify process only (Construction Permit required) Modify the process and install new pollution control equipment (Construction Permit required) Emission increase, decrease, or no change Complete or partial emissions control

10. Our Solution Installation of pollution control device pictured at the right Partial control of process emissions Emissions reductions exceeding 300 TPY Increase in allowable production rates of >25% Met project timelines

11. Thermal Oxidizer Process Flow

12. Lessons Learned Involve FDEP early and often If possible, treat your regulator as a project team member Put yourself in the regulator’s place, the more you can offer the faster the project timeline Make sure that all parties involved are getting something from the project