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August 2011 VALE KRONAU PROJECT Project Proposal REPORT
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Page 1: 10-1362-0008 Report 30Aug2011 Project Proposalpublications.gov.sk.ca/documents/66/98208-10-1362-0008_Report... · MCC motor control centre ... PROJECT PROPOSAL August 2011 iii Table

August 2011

VALE KRONAU PROJECT

Project Proposal

REP

OR

T

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PROJECT PROPOSAL

August 2011 i

List of Acronyms AAOC Ambient Air Quality Objectives for Canada

ASL above sea level

BSG below ground surface

CaCl2 calcium chloride

CEAA Canadian Environmental Assessment Act

CHPP Combined Heat and Power Plan

CN Canadian National

COSEWIC Committee on the Status of Endangered Wildlife in Canada

CP Canadian Pacific

D&R decommissioning and reclamation

EA environmental assessment

EH&S Environment, Health and Safety

EIS environmental impact statement

ELC Ecological Landscape Classification

EMCPs Environmental Management/Construction Plans

EOP education and orientation plan

EPP environmental protection plan

EQMS Environmental Quality Management System

ERCB Energy Resource Conservation Board

GIS Geographic Information System

HRIA Heritage Resource Impact Assessment

KCl potassium chloride

LiDAR light detection and ranging

LSA local study area

MCC motor control centre

MEE Multiple Effect Evaporation

MgCl2 magnesium chloride

MOA Saskatchewan Ministry of Agriculture

MOE Saskatchewan Ministry of Environment

MVR Mechanical Vapour Recompression

NaCl sodium chloride

NAPS National Air Pollution Surveillance

NO2 nitrogen dioxide

NOx nitrogen oxide

NWA Noxious Weeds Act

PM particulate matter

PM10 10 microns or less

PM2.5 2.5 microns or less

Project Kronau Project

PSGs Project-specific Guidelines

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PROJECT PROPOSAL

August 2011 ii

R.M. Rural Municipality

RSA regional study area

S.I.I.T. Saskatchewan Indian Institute of Technologies

SAAQS Saskatchewan Ambient Air Quality Standards

SARA Species at Risk Act

SKCDC Saskatchewan Conservation Data Centre

SLRU Saskatchewan Land Resource Unit

SO2 sulphur dioxide

SPRR Saskatchewan Parks and Renewable Resources

SRC Saskatchewan Research Council

SSR Stuart Southern Rail

SWA Saskatchewan Watershed Authority

TDS total dissolved solids

TMA tailings management area

TSP total suspended particulate

Vale Vale S.A.

VCs valued components

VPCL Vale Potash Canada Ltd.

W2M West of the Second Meridian

WHMIS Workplace Hazardous Materials Information System

WHPA Wildlife Habitat Protection Act

List of Units % percent

˚C degrees Celsius

µm microns

cm centimetres

GJ/hr gigajoule per hour

ha hectares

km kilometres

km2 square kilometres

m Metres

m/s metres per second

m3/s cubic metres per second

mm millimetres

Mm3 million cubic metres

Mt million tonnes

Mtpa million tonnes per annum

psig pounds per square inch gauge

t/m3 tonnes per cubic metre

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PROJECT PROPOSAL

August 2011 iii

Table of Contents

1.0  INTRODUCTION ............................................................................................................................................................... 1 

1.1  Project Proponent ................................................................................................................................................ 1 

1.1.1  Sustainable Development Policy .................................................................................................................... 1 

1.1.2  Sustainability, Biodiversity, and the Precautionary Principle .......................................................................... 1 

1.2  Project Location and Environmental Setting ........................................................................................................ 2 

1.3  Project Overview.................................................................................................................................................. 4 

1.4  Project Schedule.................................................................................................................................................. 4 

1.5  Project Need and Benefits ................................................................................................................................... 7 

1.5.1  Increased World Demand for Potash and Fertilizers ...................................................................................... 7 

1.5.2  Saskatchewan Greenfield Potash Development ............................................................................................ 7 

1.5.3  Project Investment Benefits ........................................................................................................................... 7 

1.6  Approval Process ................................................................................................................................................. 8 

1.7  Report Approach and Organization ..................................................................................................................... 9 

1.7.1  Report Approach ............................................................................................................................................ 9 

1.7.2  Report Organization ..................................................................................................................................... 10 

2.0  PROJECT ALTERNATIVES ........................................................................................................................................... 11 

2.1  Project Location ................................................................................................................................................. 11 

2.2  Mining Method ................................................................................................................................................... 11 

2.3  Well-field Pipelines ............................................................................................................................................ 13 

2.4  Processing ......................................................................................................................................................... 13 

2.5  Power Supply .................................................................................................................................................... 13 

2.6  Construction Camp ............................................................................................................................................ 14 

3.0  PROJECT DESCRIPTION .............................................................................................................................................. 14 

3.1  Introduction ........................................................................................................................................................ 14 

3.2  Geologic Setting ................................................................................................................................................ 14 

3.3  Construction ...................................................................................................................................................... 17 

3.3.1  Facilities and Infrastructure Required During Construction .......................................................................... 17 

3.3.2  Environmental Design Features Implemented During Construction ............................................................. 17 

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August 2011 iv

Table of Contents (continued)

3.4  Mining Operations .............................................................................................................................................. 19 

3.4.1  Introduction .................................................................................................................................................. 19 

3.4.2  Mine Plan ..................................................................................................................................................... 19 

3.4.2.1  Cavern Design .......................................................................................................................................... 19 

3.4.2.2  Drilling/Pad Design ................................................................................................................................... 20 

3.4.2.3  Well-field Piping ........................................................................................................................................ 20 

3.4.2.4  Brine Disposal .......................................................................................................................................... 20 

3.4.3  Mining Method ............................................................................................................................................. 20 

3.4.3.1  Cavern Development ................................................................................................................................ 22 

3.4.3.2  Primary Mining .......................................................................................................................................... 22 

3.4.3.3  Secondary Mining ..................................................................................................................................... 22 

3.4.3.4  Cavern Closure ......................................................................................................................................... 22 

3.4.4  Environmental Design Features of the Mine Plan and Mining Methods ....................................................... 23 

3.5  Potash Processing ............................................................................................................................................. 23 

3.5.1  Overview ...................................................................................................................................................... 23 

3.5.2  Process Details ............................................................................................................................................ 23 

3.5.2.1  Well Field Water and Brine Injection and Brine Recovery ........................................................................ 23 

3.5.2.2  Tank Farm Facility .................................................................................................................................... 25 

3.5.2.3  Brine Evaporation and Crystallization ....................................................................................................... 25 

3.5.2.4  Sodium Chloride and Potassium Chloride Debrining and Clarification ..................................................... 25 

3.5.2.5  Product Drying, Screening and Compaction ............................................................................................. 26 

3.5.2.6  Standard and Granular Product Storage and Loadout .............................................................................. 26 

3.5.3  Environmental Design Features for Potash Processing ............................................................................... 26 

3.6  Tailings Management Area ................................................................................................................................ 27 

3.6.1  Waste Salt Storage ...................................................................................................................................... 27 

3.6.2  Brine and Site Water Management .............................................................................................................. 27 

3.6.3  Deep Well Injection ...................................................................................................................................... 28 

3.6.4  Environmental Design Features for the Tailings Management Area ............................................................ 28 

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PROJECT PROPOSAL

August 2011 v

Table of Contents (continued)

3.7  Site Infrastructure .............................................................................................................................................. 29 

3.7.1  Permanent Buildings .................................................................................................................................... 29 

3.7.2  Hazardous Substance Storage .................................................................................................................... 29 

3.7.3  Other Buildings ............................................................................................................................................ 29 

3.7.4  Environmental Design Features for Site Infrastructure ................................................................................. 30 

3.8  Supporting Infrastructure ................................................................................................................................... 30 

3.8.1  Water Supply ............................................................................................................................................... 30 

3.8.2  Electrical Power ........................................................................................................................................... 30 

3.8.3  Natural Gas .................................................................................................................................................. 31 

3.8.4  Telecommunications .................................................................................................................................... 31 

3.8.5  Access and Transportation .......................................................................................................................... 31 

3.8.5.1  Roads ....................................................................................................................................................... 31 

3.8.5.2  Rail ........................................................................................................................................................... 31 

3.8.6  Environmental Design Features for the Supporting Infrastructure ............................................................... 33 

3.9  Domestic and Industrial Waste Management .................................................................................................... 33 

3.9.1  Waste Management Planning ...................................................................................................................... 33 

3.9.2  Domestic Waste ........................................................................................................................................... 34 

3.9.3  Non-hazardous Industrial Waste .................................................................................................................. 34 

3.9.4  Hazardous Industrial Waste ......................................................................................................................... 34 

3.9.5  Environmental Design Features for Waste Management ............................................................................. 34 

3.10  Decommissioning and Reclamation ................................................................................................................... 35 

3.11  Human Resources ............................................................................................................................................. 35 

4.0  ENVIRONMENT, HEALTH, AND SAFETY MANAGEMENT SYSTEM .......................................................................... 36 

4.1  Environmental, Health and Safety Plans ........................................................................................................... 36 

4.2  Environmental Protection Plan .......................................................................................................................... 37 

4.3  Emergency Response and Contingency Plan ................................................................................................... 37 

4.4  Occupational Health and Safety Plan ................................................................................................................ 37 

4.5  Human Resources Plan ..................................................................................................................................... 37 

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Table of Contents (continued)

4.6  Reclamation Plan............................................................................................................................................... 38 

4.7  Education and Orientation Plan ......................................................................................................................... 38 

4.8  Monitoring and Follow-up Plan .......................................................................................................................... 38 

4.9  Auditing and Continuous Improvement Plan ...................................................................................................... 38 

5.0  PUBLIC, ABORIGINAL, AND REGULATORY ENGAGEMENT .................................................................................... 39 

5.1  Introduction ........................................................................................................................................................ 39 

5.2  Engagement Approach ...................................................................................................................................... 39 

5.3  Preliminary Engagement Activities .................................................................................................................... 39 

5.3.1  Community Engagement .............................................................................................................................. 39 

5.4  Summary of Issues and Concerns ..................................................................................................................... 40 

6.0  KEY ISSUES AND POTENTIAL ENVIRONMENTAL EFFECTS ................................................................................... 41 

6.1  Key Issues ......................................................................................................................................................... 41 

6.2  Environmental Effects Pathways ....................................................................................................................... 42 

6.3  Summary of Potential Effects Related to Key Issues ......................................................................................... 42 

6.3.1  Water Supply ............................................................................................................................................... 42 

6.3.2  Groundwater Protection ............................................................................................................................... 47 

6.3.3  Air Quality .................................................................................................................................................... 47 

6.3.4  Ground Subsidence ..................................................................................................................................... 47 

6.3.5  Wildlife and Fish Populations ....................................................................................................................... 48 

6.3.6  Employment, Training and Economic Development .................................................................................... 48 

6.3.7  Cumulative Effects ....................................................................................................................................... 48 

7.0  EXISTING ENVIRONMENT ............................................................................................................................................ 49 

7.1  Atmospheric and Acoustic Environment ............................................................................................................ 49 

7.1.1  Overview of Existing Conditions ................................................................................................................... 49 

7.1.2  Baseline Studies .......................................................................................................................................... 50 

7.2  Geology and Hydrogeology ............................................................................................................................... 51 

7.2.1  Overview of Existing Conditions ................................................................................................................... 51 

7.2.1.1  Geology .................................................................................................................................................... 51 

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Table of Contents (continued)

7.2.1.1.1  Bedrock Geology ................................................................................................................................... 51 

7.2.1.1.2  Quaternary Geology .............................................................................................................................. 53 

7.2.1.1.3  Empress Group ..................................................................................................................................... 53 

7.2.1.1.4  Sutherland Group .................................................................................................................................. 54 

7.2.1.1.5  Saskatoon Group .................................................................................................................................. 54 

7.2.1.1.6  Hydrogeology ........................................................................................................................................ 54 

7.2.1.1.7  Bedrock Aquifers ................................................................................................................................... 55 

7.2.1.1.8  Quaternary Aquifers .............................................................................................................................. 56 

7.2.2  Baseline Studies .......................................................................................................................................... 57 

7.3  Surface Water Environment ............................................................................................................................... 58 

7.3.1  Overview of Existing Conditions ................................................................................................................... 58 

7.3.2  Baseline Studies .......................................................................................................................................... 59 

7.3.2.1  Hydrology ................................................................................................................................................. 59 

7.3.2.2  Water Quality, Fish and Fish Habitat ........................................................................................................ 59 

7.4  Terrestrial Environment ..................................................................................................................................... 60 

7.4.1  Overview of Existing Conditions ................................................................................................................... 60 

7.4.2  Baseline Studies .......................................................................................................................................... 61 

7.4.2.1  Terrain and Soils....................................................................................................................................... 61 

7.4.2.2  Vegetation ................................................................................................................................................ 61 

7.4.2.3  Wildlife ...................................................................................................................................................... 62 

7.5  Heritage Resources ........................................................................................................................................... 63 

7.5.1  Overview of Existing Conditions ................................................................................................................... 63 

7.5.2  Baseline Studies .......................................................................................................................................... 63 

7.6  Traditional and Non-Traditional Land Use ......................................................................................................... 64 

7.6.1  Overview of Existing Conditions ................................................................................................................... 64 

7.6.2  Baseline Studies .......................................................................................................................................... 65 

7.7  Socio-Economic Environment ............................................................................................................................ 65 

7.7.1  Overview of Existing Conditions ................................................................................................................... 65 

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Table of Contents (continued)

7.7.2  Baseline Studies .......................................................................................................................................... 65 

8.0  ANALYSIS AND ASSESSMENT APPROACH .............................................................................................................. 66 

8.1  Introduction ........................................................................................................................................................ 66 

8.2  Valued Components .......................................................................................................................................... 66 

8.3  Pathway Analysis ............................................................................................................................................... 66 

8.4  Spatial and Temporal Boundaries...................................................................................................................... 67 

8.5  Project-Specific Effects Analysis........................................................................................................................ 68 

8.5.1  General Approach ........................................................................................................................................ 68 

8.5.2  Discipline-specific Approach and Methods ................................................................................................... 68 

8.5.2.1  Air Quality ................................................................................................................................................. 68 

8.5.2.2  Noise Quality ............................................................................................................................................ 68 

8.5.2.3  Hydrogeology ........................................................................................................................................... 69 

8.5.2.4  Surface Hydrology .................................................................................................................................... 69 

8.5.2.5  Surface Water Quality ............................................................................................................................... 69 

8.5.2.6  Fish and Fish Habitat ................................................................................................................................ 69 

8.5.2.7  Terrain and Soils....................................................................................................................................... 70 

8.5.2.8  Vegetation ................................................................................................................................................ 70 

8.5.2.9  Wildlife ...................................................................................................................................................... 70 

8.5.2.10  Heritage Resources .................................................................................................................................. 71 

8.5.2.11  Traditional and Non-traditional Land Use ................................................................................................. 71 

8.5.2.12  Socio-economics ...................................................................................................................................... 71 

8.6  Approach to Cumulative Effects ........................................................................................................................ 72 

8.7  Determination of Significance ............................................................................................................................ 72 

8.8  Uncertainty ........................................................................................................................................................ 72 

8.9  Monitoring and Follow-Up .................................................................................................................................. 73 

9.0  REFERENCES ................................................................................................................................................................ 74 

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August 2011 ix

Table of Contents (continued)

TABLES

Table 5.3-1: Community Information Sessions Completed to Date .......................................................................................... 40 

Table 6.2-1: Potential Effects Pathways to the Biophysical Environment ................................................................................. 43 

Table 6.2-2: Potential Effects Pathways to the Socio-Economic Environment ......................................................................... 45 

Table 7.3-1: Bedrock Geology and Hydrogeology of the Study Area ....................................................................................... 53 

FIGURES

Figure 1.2-1: Project Location. ................................................................................................................................................... 3 

Figure 1.3-1: General Site Layout .............................................................................................................................................. 5 

Figure 1.4-1: Project Schedule ................................................................................................................................................... 6 

Figure 2.1-1: Plant Location Options. ....................................................................................................................................... 12 

Figure 3.2-1: Stratigraphic Sequence for the Project Area. ...................................................................................................... 16 

Figure 3.2-2: Conceptual Mining.Boundary .............................................................................................................................. 18 

Figure 3.4-1: Cavern Design .................................................................................................................................................... 21 

Figure 3.5-1: Process Flow Diagram ........................................................................................................................................ 24 

Figure 3.8-1: Proposed Site Access Roads and Railway Lines ................................................................................................ 32 

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PROJECT PROPOSAL

August 2011 1

1.0 INTRODUCTION

1.1 Project Proponent Vale Potash Canada Limited (VPCL) is the Kronau Project (Project) proponent and is a wholly owned subsidiary

of Vale S.A. (Vale), which is headquartered in Rio de Janeiro, Brazil. The head office for the Project is located

at:

1874 Scarth Street

Suite 1900

Regina, Saskatchewan,

S4P 4B3

The principle contact person for the Project is Mr. Will Longworth who is President of VPCL. Mr. Longworth can

be reached at (306) 791-4500 or [email protected].

1.1.1 Sustainable Development Policy

Vale‘s Sustainable Development Policy is summarized as follows:

Mission - Vale’s Mission is to transform mineral resources into prosperity and sustainable development.

Sustainable Development - For Vale, sustainable development is achieved when its activities, particularly its

mining operations, add value to its shareholders and stakeholders whilst contributing to social strengthening,

economic development of regional vocations and environmental conservation and restoration, through a

conscious and responsible management approach, voluntary corporate actions and the establishment of

partnerships with governments, public institutions, the private sector, and civil society.

Sustainability as a Legacy - Vale’s principle is to act with the objective of leaving a positive social, economic,

and environmental legacy in the areas where it operates, by encouraging social inclusion through work

education and human development, economic growth and diversification, strengthening of local institutions –

supporting the responsible public institutions with the planning of appropriate urban infrastructure, whilst

contributing to the conservation and restoration of the ecosystems, biodiversity and cultural heritage of the

region. Mining is by nature a finite activity, limited to the life cycle of the mineral deposit. The sustainability

legacy of our operations depends on the development of new economic vocations that may guarantee the

perpetuity of the social well being in balance with the environment and conservation.

1.1.2 Sustainability, Biodiversity, and the Precautionary Principle

VPCL understands the purpose of environmental assessment (EA) in Project planning. VPCL is committed to

the concept of sustainable development, that is, development that meets the needs of the present without

compromising the ability of future generations to meet their own needs. Environmental assessment is an

important element in the planning of major capital projects, as it enables the necessary integration between

environmental planning, engineering design, and economic feasibility to help achieve sustainable development

at a local and regional level. VPCL has a holistic perspective of the environment that includes biophysical,

socio-economic, and socio-cultural aspects.

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August 2011 2

Environmental assessment principles will be applied throughout the planning and development of the Project.

VPCL is developing a comprehensive baseline of environmental characteristics and attributes in the region.

Baseline information will be used to:

gain an understanding of the biodiversity in the region as a fundamental element of the issue scoping

process and the identification of areas of focus in the Environmental Impact Statement (EIS);

evaluate potential adverse environmental effects of the Project, as well as potential cumulative

environmental effects of the Project in combination with other past, present and likely future projects in the

region;

provide context for the consideration and application, as appropriate, of the Precautionary Principle in the

Project design and planning;

design proven technology into the Project to reduce or mitigate potential adverse environmental effects;

and

support the analysis of the sustainable use of renewable resources as part of the evaluation of residual

adverse environmental effects.

1.2 Project Location and Environmental Setting The Project will be located in south central Saskatchewan approximately 20 kilometres (km) southeast of Regina

within the Rural Municipality (R.M.) of Edenwold (Figure 1.2-1). More specifically, the Project is situated within

subsurface mineral permit KP336, which is located on approximately 51,840 hectares (ha) of land in Townships

15 to 18, Ranges 15 to 17, West of the Second Meridian (W2M). Kronau is the community nearest to the Project

site. The Mosaic Company operates a solution potash mine at Belle Plaine (Mosaic Potash Facility) located

approximately 60 km to the west of the Project.

Within the region, an existing network of municipal grid roads, provincial highways, and rail lines provide access

among the various communities. Primary access to the Project will be by existing grid roads from Highway 33,

near Kronau. A rail line parallels Highway 33 from Regina heading south through Kronau and continues on to

Stoughton.

The Project will be located within the Moist Mixed Grassland Ecoregion of the Prairie Ecozone. The terrain is

characterized by knob and kettle topography with very gentle to gentle slopes (Acton et al. 1998). The majority

of the landscape has been cultivated, with remnant patches of wetlands and natural vegetation communities

(woodland and grassland) located in areas that are unsuitable for cultivation (e.g., coulees, creek banks). The

Moist Mixed Grassland Ecoregion contains approximately 55 percent (%) of Saskatchewan’s population

(Acton et al. 1998). Agriculture is the major land use throughout the Ecoregion; however, mining activity such as

oil, gas, potash, salt, and coal also occur.

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FILE No.SCALE AS SHOWN

FIGURE: 1.2-1REV. 0

PROJECT

TITLE

PROJECT DESIGN

GISCHECK

GENERAL PROJECT LOCATION

REVIEWSaskatoon, Saskatchewan

MK 24/08/11

10-1362-0008

DeepLake

MissionLake

KatepwaLake

Echo Creek

ChapleauLakes

Wascana Creek

Wascana Creek

Moose Jaw River

Kronau Creek

6

1

1

1

6

46

33

48

11

11 10

48

99

56

22

35

39

621

619

617

617

606

619

734

642

641

621

620

364

KP 335

KP 336KP 337

Regina

Lemberg

Lumsden

Rouleau

Francis

Balgonie

Wolseley

Sintaluta

Qu'Appelle

White City

Indian Head

Pilot Butte

Ft. Qu'Appelle

Gray

Pense

Davin

Lebret

Craven

Disley

Mclean

Milaty

Rowatt Vibank

KronauOdessa

KendalEstlin Lajord

Sedley

Wilcox

Bethune

Edgeley

Jameson

Riceton

Edenwold

Abernethy

Richardson

Drinkwater

Montmartre

Briercrest

Sandy Beach

St. Joseph's

Grand Coulee

Belle Plaine

Lumsden Beach

Katepwa Beach

Twp 1

8Tw

p 20

Twp 1

7Tw

p 19A

Twp 1

9Tw

p 16

Twp 1

3Tw

p 15

Twp 1

4

Rge 11 W2MRge 13 W2MRge 17 W2M Rge 12 W2MRge 14 W2MRge 16 W2MRge 18 W2MRge 19 W2MRge 25 W2M Rge 20 W2MRge 23 W2M Rge 9 W2MRge 10 W2MRge 22 W2M Rge 15 W2MRge 24 W2M Rge 21 W2M

LegendPermit BoundaryTownship / Range BoundaryCemeteryParkUrban MunicipalityHighwayRailwayCommunityShrine

Mining BoundaryProposed Core Facilities

10 100SCALE 1:400,000 KILOMETRES

Reference:

G:\C

LIENT

S\VAL

E\Vale

Kron

au Po

tash P

rojec

t\Figu

res\10

-1362

-0008

Vale

SK Po

tash\W

P022

Proje

ct Pr

opos

al\10

-1362

-0008

-Gen

eral P

rojec

t Loc

ation

.mxd

VALE KRONAUPOTASH PROJECT

DMTI Highways and RoadsInformation Services Corporation of SaskatchewanNTS Mapsheets 62E/L 72G/H/INAD 83 UTM Zone 13

SASKATCHEWAN

Saskatoon

Regina ValeProject

Area

MFGAM

24/08/1124/08/11

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PROJECT PROPOSAL

August 2011 4

1.3 Project Overview The potash ore (sylvinite) will be extracted via solution mining from the Patience Lake, Belle Plaine, and

Esterhazy Members of the Prairie Evaporate Formation. Mining will employ both primary and secondary mining

techniques that have been proven at the Mosaic Potash Facility. Both primary and secondary solution mining

employ the injection of hot water or brine to the sylvinite beds to dissolve the potash, which is then recovered

from solution in the processing plant.

The core facilities area for the Project will include the processing plant, administration offices, a shop and

warehouse building, substations, water treatment plant, a product storage building, a cogeneration and/or boiler

facility to provide hot water and brine, rail load out, cooling pond, and a tailings management area (TMA;

Figure 1.3-1). Hot water/brine will be pumped from the main facility to well pads where the liquids will be injected

into the mining caverns. Each pad will support between nine and twelve caverns with pairs of directionally drilled

injection/recovery wells. The brine from the caverns will be returned to the processing plant via pipeline through

the same piping corridors used to deliver the injection fluids. Potash processing will consist of the following

phases:

injection and solution recovery;

evaporation and crystallization;

salt and potash debrining;

potash drying and product screening; and

potash storage and shipping.

Support infrastructure for the Project will include water, power, natural gas, communications, road access, and

rail access. SaskWater will be the utility provider of water for the Project, which would be delivered to the main

facility via a pipeline from Lake Katepwa. SaskPower, TransGas, and SaskTel will be the utility providers of

power, natural gas, and telecommunication services, respectively, for the Project. Road access will be provided

from Highway 33 via an upgraded intersection and new road to be constructed to the core facilities area. Two

options are being considered for rail access; a tie in to the Canadian Pacific (CP) rail line adjacent to the main

facility and a tie in to the Canadian National (CN) rail line approximately 10 km north of the facility. Potash will

be shipped to port via covered rail cars. A rail load out facility will be developed within the core facilities area.

1.4 Project Schedule The key dates and milestones for the Project are provided in Figure 1.4-1. The planned life span for the Project

is around 70 years based on the anticipated mining rates and identified resources. After VPCL has received an

approval to proceed and the required licensing, the proposed Project would proceed in three phases:

construction;

operation; and

decommissioning and reclamation (D&R).

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FILE No.SCALE AS SHOWN

FIGURE: 1.3-1REV. 0

PROJECT

TITLE

PROJECT DESIGN

GISCHECK

GENERAL SITE LAYOUT

REVIEWSaskatoon, Saskatchewan

MK 24/08/11

10-1362-0008

HV SUBSTATION

COGEN/BOILERSWATER TREATMENT PLANT

CONSTRUCTION MANAGEMENTTRAILERS

CONSTRUCTIONLAYDOWN

CONSTRUCTION PARKING

PRODUCT STORAGE BUILDING

CAR PARKING

SERVICE BUILDING

RAIL CARS

EMERGENCYDUMPPOND

PROCESS BUILDING

COOLINGTOWER

SEWAGELAGOON

RAWWATER

PUMPHOUSE

FRESHWATER

PIPELINE

COMBINEDFRESH WATER/STORM WATER

STORAGE POND

PRODUCTSCREENING

PRODUCTLOADOUT

NATURAL GASSUPPLY

33

14151617

11100908

02030405

Twp 1

6

Rge 17 W2M

LegendTownship / Range BoundarySection BoundaryQuarter Section BoundaryCemeteryUrban MunicipalityHighwayRailwayRoad

Mining BoundaryProposed Core FacilitiesFresh Water PipelinePipelineSite LayoutMain Building

400 4000SCALE 1:20,000 METRES

Reference:

G:\C

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SK Po

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ite La

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VALE KRONAUPOTASH PROJECT

Site Layout provided by Worley Parsons2000-VS-L-04001AENAD 83 UTM Zone 13 MF

GAM24/08/1124/08/11

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1.5 Project Need and Benefits With the world population expected to grow more than one third by 2030, there will be an increased need to feed

people through increased crop yields and better diets. To address the need for increased crop production, there

will be growing demand for fertilizers, and in particular potash.

Potash, also known as potassium chloride (KCl), is a term widely applied to naturally occurring potassium salts.

It is mainly applied to large yielding crops such as cereals, oil seeds, potatoes, sugar beets, pulses, and forage

crops. Potash has no commercial substitute as a potassium fertilizer source.

1.5.1 Increased World Demand for Potash and Fertilizers

World demand for potash is expected to grow to some 71.5 million tonnes (Mt) KCl by 2019. This is 30% above

the peak production year of 2007 and 144% above 2009 production levels. Key drivers for increase potash

demand include:

population – population will increase by over one third by 2030;

better nutrition – increased meat consumption means more fertilizer;

less arable land – need to increase yields on remaining land;

nutrient balances – under application of potash needs to be corrected to maximize yields in key markets

such as India and China;

commercial crops – potash is used in commercial crops such as maize, soybean, palm oil, sugar, and

farmers can afford to buy potash; and

industrial use of potash – accounts for only a small percentage of total potash consumptions but demand is

growing.

Benefits of using potash includes, but is not limited to slow growth of crop diseases, reduces water loss,

improves drought resistance, and generally reduces the development of weak stocks, leading indirectly to

increased crop yields. Potash is also used as a feed supplement, as it contributes to both animal growth and

milk production.

1.5.2 Saskatchewan Greenfield Potash Development

To date, the increase in potash demand has been met by current Saskatchewan potash mines exploiting existing

capacity or through brownfield expansions. There has not been a Greenfield potash development in

Saskatchewan for decades. The Project could cost in the order of US$3 billion and produce around 2.9 million

tonnes per annum (Mtpa) of KCl with a possible expansion of up to 3.3 Mtpa if secondary mining is completed.

The proposed Project would provide the province with a new world class large scale potash development. The

Project would require a construction workforce of approximately 1,500 people and an operational workforce of up

to 500 people.

1.5.3 Project Investment Benefits

Although there is only one potash solution mine operating in Saskatchewan, it has operated successfully for over

40 years. Benefits of a solution mine as compared to conventional mining include:

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shorter project development schedule;

lower initial investment;

more flexible production rates;

personnel not required to work underground (safer);

no potential risk of flooding;

ability to exploit more of the province’s resource; and

no requirement for installations of shafts, which reduces ground disturbance.

In addition to the creation of construction and operating jobs, the Project would provide benefits to the province

through taxes and royalties. Development of the Project would also mean an increase in the requirement for

service industries such as hospitality and housing construction. The Project has the potential to increase the

quality of services to the immediate areas surrounding the Project. This could be through the upgrade of power,

gas, and water transmission lines.

1.6 Approval Process Two sets of parallel legislation could apply to the Project: provincial requirements through the Environmental

Assessment Act (Government of Saskatchewan 2002) and federal requirements through the Canadian

Environmental Assessment Act (CEAA) (Government of Canada 1992). These two EA review processes have

been harmonized to reduce overlap and redundancy. To confirm the Project study team’s understanding of the

regulatory process, various meetings and discussions were held with federal and provincial regulatory agencies.

Based on the current understanding of the Project, the Project is not anticipated to trigger a federal review under

CEAA. However, the Project will require a provincial EA. Other relevant federal legislation, such as the

Navigable Waters Protection Act, the Fisheries Act, the Species at Risk Act (SARA), and the Migratory Birds

Convention Act will be considered.

The provincial EA process begins with the submission of a Project Proposal to the EA Branch of the

Saskatchewan Ministry of Environment (MOE) to determine if the Project is considered a ‘development’.

According to provincial legislation (Government of Saskatchewan 2002), a ‘development’ is any project,

operation or activity or any alteration or expansion of any project, operation, or activity, which is likely to:

have an effect on any unique, rare, or endangered feature of the environment;

substantially use any provincial resource and in so doing pre-empt the use, or potential use, of that resource for any other purpose;

cause the emission of any pollutants or create by-products, residual or waste products which require handling and disposal in a manner that is not regulated by another Act or regulation;

cause widespread public concern because of potential environmental changes;

involve a new technology that is concerned with resource use and that may induce significant environmental change; or

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have a significant effect on the environment or necessitate a further development, which is likely to have a

significant effect on the environment.

Project-specific Guidelines (PSGs) will be drafted by the MOE EA Branch after considering the nature of the

development, information and issue scoping contained in the Project Proposal, and input from technical

specialists within the MOE and the Government of Saskatchewan. The PSGs outline the required scope of the

EIS and provide a set of criteria to judge the completeness of the EIS.

Once the EIS has been submitted according to the PSGs, MOE will review the document and, if needed, request

additional information. Following the MOE review, the EIS will be open to public review and comment. Once

these reviews are completed, the MOE will make a recommendation to the Minister for a decision on whether the

proposed Project can proceed. The Minister may or may not include approval conditions on a decision to allow

the Project to proceed. Once approval is granted, the necessary regulatory permits and authorizations would be

obtained.

1.7 Report Approach and Organization 1.7.1 Report Approach

This Project Proposal introduces the Project to the regulatory agencies and stakeholders, and also identifies

potential effects of the Project on the environment. The Project Proposal uses an “effects pathway” approach to

describe the interactions between Project activities and environmental components. An effects pathway is the

means by which a Project activity could interact with the environment and lead to effects on valued components

(VCs) of the biophysical and socio-economic environments.

From the outset of Project planning, Vale implemented an integrated environmental and engineering planning

team. This planning team is made up of senior practitioners and specialists who are responsible for

incorporating the key sustainability aspects, namely the balanced integration of environmental, social, and

economic considerations into the Project development planning.

Environmental and socio-economic issues identified from the initial technical assessment and preliminary

meetings are included in the identification and analysis of all potential pathways that link the Project with effects

on VCs. The Project Proposal provides a discussion of the effect pathways that relate to the key environmental

and socio-economic issues for the Project. Future field studies and analyses, and public engagement are

planned to confirm the effects pathways, and focus the EIS on key environmental and socio-economic issues.

Environmental design features (mitigation practices and designs) have been developed through an iterative

process of Project design and EA. They are used to remove pathways or limit (mitigate) effects to biophysical

and human receptors (i.e., VCs). Four key programs that are being undertaken to support the EA and

engineering design of the Project include:

subsidence analysis;

Light Detection and Ranging (LiDAR) mapping and ground reconnaissance is being completed over the

entire mineral lease area to support the assessment of ground subsidence and the potential environmental

effects;

aerial electromagnetic surveys are being undertaken to assist in the interpretation of the suitability of

ground conditions at potential locations for siting the TMA, and for other geotechnical considerations; and

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a screening evaluation of the capacity of potential deep injection horizons for selecting suitable zones for

brine disposal.

The EIS will assess the residual effects of the Project with the environmental design features incorporated into

the Project design. Additional mitigation may be identified during the EA to address uncertainty in Project

effects.

After the key pathways have been identified, the Project Proposal introduces the approach that will be used to

assess environmental effects in the EIS. This Project Proposal not only shows how the Project interacts with the

environment, but also provides an overview of how the effects of these interactions will be assessed in the EIS.

1.7.2 Report Organization

The Project Proposal document is organized into eight main sections.

Section 1: A brief introduction is provided, which includes an introduction of VPCL, an overview of the proposed

Project including location and schedule, the need for the Project, and a description of the regulatory process.

Section 2: Provides a description of any alternative means of carrying out the Project that were considered

during the project planning phase. A description of the alternative and an explanation of why it was rejected are

provided.

Section 3: The Project Description describes the ore deposit, mining and processing methods, waste

management, supporting infrastructure, D&R, and human resources. This information is needed to identify

pathways that have the potential to influence VCs (i.e., biophysical, cultural, social, and economic receptors).

Project environmental design features that remove a pathway or limit (mitigate) effects to the environment are

provided.

Section 4: A summary of Vale’s commitment to Environment, Health, and Safety. This section provides

information on how the Project will be managed to create a safe work area for employees, the public, and the

environment.

Section 5: The approach to engage communities, First Nations and Métis people, regulatory agencies, and the

general public in the EA process is described in this section. This section includes a summary of the meetings

and discussions that have occurred and the issues raised, and describes additional engagement activities to be

completed during the EA process.

Section 6: The pathways associated with the Project that may result in changes to the environment and effects

on VCs are identified. Pathways are identified through the preliminary technical assessment (environmental

screening and constraints analysis); preliminary meetings with communities, First Nations and Métis, regulatory

agencies, and the general public; and current baseline programs completed for the Project.

Section 7: A summary of the available baseline data that are used to describe the existing environment is

provided. Future field studies to help focus the forthcoming EIS and address uncertainties in the initial baseline

information are described.

Section 8: The assessment approach, including VCs, spatial and temporal boundaries, effects analysis, residual

effects classification, and determination of significance is described.

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2.0 PROJECT ALTERNATIVES

2.1 Project Location A total of four locations within the KP336 permit area were considered for the core facilities location

(Figure 2.1-1). The following criteria were used to assess the locations and select the preferred location for the

core facilities area:

the location must be within the permit area;

the location should not be in an area of high grade reserves so as to avoid sterilizing the reserves;

the location should have surficial materials consisting of clays to provide a proper foundation for the TMA;

the location should allow for future expansion; and

the location should attempt to avoid the diversion of drainage systems (i.e., streams or creeks) to limit

potential effects to the environment.

Clayey soils represent better containment conditions for brine, thus the selection of the proposed site was

primarily influenced by the geologic conditions in the area. Options 2 and 3 were rejected as the surficial

materials in the area consist of sands and gravels, which are considered less suitable for TMA foundation than

the clays in the selected plant location. In addition, Option 2 would have required the expansion of the TMA

between the Kronau and Manybones creeks to accommodate an increase in mine life beyond 40 years and this

was not considered acceptable due to potential effects on the creeks. Option 4 was rejected as location of the

plant and TMA in the northern section of the lease would prevent access to the high grade ore that underlies this

area.

The preferred site location (Option 1) is in the southern part of the lease, west of Kronau Creek. The preferred

site location has suitable geologic conditions to provide natural containment for brine from the TMA. The core

facilities area is located at an adequate distance from Kronau Creek to permit construction of the process plant,

TMA, and associated infrastructure without having a direct effect on fish or fish habitat. In addition, there is

sufficient buffer between the TMA and Kronau Creek for mitigation of brine migration using an engineered

containment, if required. There is sufficient space to allow the TMA to be designed to accommodate a 70 year

mine life using a phased approach. This phases approach will allow for flexibility in the mine plan. Finally, the

core facilities area, including the TMA, is located above a lower grade ore.

2.2 Mining Method Solution mining has been chosen as the method to extract the ore. In comparison to conventional mining

methods (i.e., mine shaft, room, and pillar) solution mining limits the surface disturbance, while allowing efficient

resource extraction. It has been proven as a technology in Saskatchewan for over 40 years. Solution mining

also has greater production flexibility, a quicker time to production and avoids the need for personnel to work

underground.

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FILE No.SCALE AS SHOWN

FIGURE: 2.1-1REV. 0

PROJECT

TITLE

PROJECT DESIGN

GISCHECK

PLANT LOCATION OPTIONS

REVIEWSaskatoon, Saskatchewan

MK 24/08/11

10-1362-0008

Option 1 Option 2

Option 4

Option 3

KP 336

KP 337

KP 335

McGill Creek

Hunter Creek Kronau Creek

Wascana Creek

Wascana Creek

Manybone Creek

1

33

48

621

620

35

1

619

10

306

6

734

Regina

Balgonie

Qu'Appelle

White City

Indian Head

Pilot Butte

Davin

Mclean

Milaty

RowattVibank

Kronau

Odessa

KendalEstlin

Jameson

Richardson

St. Joseph's

Twp 1

5Tw

p 19A

Twp 1

8Tw

p 16

Twp 1

7

Rge 15 W2MRge 17 W2M Rge 12 W2MRge 13 W2MRge 16 W2MRge 18 W2MRge 19 W2MRge 20 W2M Rge 14 W2M

LegendPermit Boundary (KP 335/336/337)Township / Range BoundaryCemeteryParkUrban MunicipalityHighwayRailwayCommunityShrine

Mining BoundaryOption 1Option 2Option 3Option 4

4 40SCALE 1:200,000 KILOMETRES

Reference:

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Proje

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-Plan

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Opti

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VALE KRONAUPOTASH PROJECT

DMTI Highways and RoadsInformation Services Corporation of SaskatchewanNTS Mapsheets 62l/05 72I/08NAD 83 UTM Zone 13 MF

GAM24/08/1124/08/11

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PROJECT PROPOSAL

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2.3 Well-field Pipelines VPCL assessed two options for the pipelines that will be used to transport the brine from the well heads to the

process plant. The first was the installation of pipelines underground and the second was to have the pipelines

aboveground.

Underground pipelines require surface disturbance for installation, however, this disturbance can be quickly

reclaimed and the land returned to a productive use. Leak detection and appropriate pipeline isolation will be

provided so that any potential leaks are detected early and the effects limited. The leak detection system will be

continuously monitored.

Surface pipelines, while easier to monitor for leaks, prevent the use of the land along the pipeline right-of-way for

other purposes (e.g., agriculture) and may require the installation of ramps to facilitate wildlife movement through

the well-field. Therefore, the alternative selected for the Project is to install underground pipelines.

2.4 Processing VPCL is currently evaluating three technology options for potash processing: Mechanical Vapour

Recompression (MVR) and Multiple Effect Evaporation (MEE) for brine evaporation and potash crystallization. A

third option would combine both MEE and MVR evaporator technologies. A decision on the options will be made

prior to submission of the EIS.

An external cooling pond is being considered as an alternative method for recovery of an additional 0.5 Mtpa by

KCl precipitation from a portion of the exit brine flow from the vacuum cooled crystallization stage. That KCl is

recovered from the bottom of the cooling pond using a floating dredge and transported to the process plant by

slurry pipeline where it is debrined in centrifuges. After drying, the cooling pond KCl solids are combined with

other potash as feed to the compaction and screening circuit for separation of Granular and Standard products.

The low-KCl cold brine from a cooling pond is preheated by heat recovery in the vacuum crystallization circuit

before being sent back to secondary mining. This process takes advantage of Saskatchewan’s cold climate to

precipitate KCl during colder month which would result in the consumption of less energy per tonne of potash

produced. Since secondary mining cannot take place until primary mining caverns have been developed, the

cooling pond will not be required during the early years of plant operation.

2.5 Power Supply VPCL is currently assessing two options for electrical power at the site, in consultation with SaskPower.

Option one is to construct a Combined Heat and Power Plant (CHPP), which is a natural gas fired cogeneration

plant producing both electricity and steam for processing operations. The CHPP is being designed to meet the

entire thermal (process steam) demand and power demand for the processing plant. This would determine the

quantity of power to be imported or exported from SaskPower grid. During initial operations, prior to the ramp

up to full production, the CHPP may have the capability to export power to the provincial grid. A tie in with the

SaskPower distribution system would still be required to provide backup emergency power. Option two consists

of purchasing all required electrical power from SaskPower, which will be delivered via an overhead power line

to be constructed from the existing distribution system by SaskPower, and meeting the thermal (process steam)

demand from natural gas fired boilers.

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2.6 Construction Camp VPCL considered developing a camp to house the construction workforce for the Project. However, it was

decided that a camp was not necessary as the existing infrastructure in surrounding communities is sufficient to

support both the construction and operations workforce.

This will reduce or eliminate the social issues that often accompany a camp and will reduce the requirements for

waste disposal, sewage and water treatment, and power requirements during construction. Although it may

result in increased traffic on Highway 33, VPCL is evaluating options to address the increased traffic, including

upgrading the highway and intersections near the site location.

3.0 PROJECT DESCRIPTION

3.1 Introduction The purpose of the Project Description is to provide the information needed for a technical review by the MOE

and other relevant agencies to determine the level of assessment that is required. It must also provide sufficient

information to allow the MOE EA Branch to develop PSGs for the preparation of an EIS. This section presents a

clear description of the proposed Project based on the information available at this stage of the EA process. The

EIS will contain additional details of Project activities and components, where required, to support a

comprehensive assessment of the potential effects from the Project on the biophysical and socio-economic

environments.

Section 3.0 summarizes the following information:

geological setting;

construction;

mining operations (mine plan, methods);

potash processing;

tailings management (salt storage, brine and site water management);

site infrastructure;

supporting infrastructure (utilities, road and rail access);

management of domestic and industrial waste;

D&R; and

human resources.

3.2 Geologic Setting The Project permit area is located in the south central part of Saskatchewan, and is part of the Elk Point Basin,

which stretches from northern Alberta through Saskatchewan to Manitoba and into North Dakota and Montana.

Potash mineralization is found in the Prairie Formation of middle Devonian age and is generally a mixture of

sylvinite, halite, and insolubles. The thickness of the potash mineralization is variable depending on location. In

the Project permit area, the potash mineralization is found within the top section of the Prairie Evaporite

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Formation. The potash can be further sub-divided into three distinct members: Patience Lake Member, Belle

Plaine Member, and Esterhazy Member. The average total thickness is approximately 55 metres (m), and

includes the Interbed Halite units. The average depth from surface to the top of the Prairie Evaporate Formation

is 1,650 m within the permit area. Stratigraphy is shown on Figure 3.2-1.

The Patience Lake Member is composed of a number of sylvinite rich beds inter-layered with halite rich beds,

and contains abundant clay minerals throughout. In the permit area, the Patience Lake Member varies in

thickness from 10 to 15 m. There is an Interbed Halite unit (approximately 1 m thick) that separates the Patience

Lake Member and Belle Plaine Member.

The Belle Plaine Member consists of a series of aerially extensive halite, sylvinite, and clay bands, although

there are less clays and insolubles compared to the Patience Lake Member. The Belle Plaine Member is

approximately 9 to 10 m thick throughout the permit area, and can be subdivided into three beds of nearly equal

thickness by major continuous clay bands.

The Esterhazy Member exhibits the greatest variation in grade, mineral texture, and thickness (the average total

thickness is 15 to 18 m). Between the Belle Plaine Member and the Esterhazy Member there is a layered

sequence of an Interbed Halite unit, the White Bear Marker, and another Interbed Halite unit. The total thickness

of this sequence is approximately 10 m. The lower portion of the Esterhazy Member has very large crystal size,

which accounts for the high variation of KCl grades. As such, the lower portion of the Esterhazy Member tends

to be the highest grade that contains sufficient potash mineralization suitable for solution mining.

Mineral resources and KCl grades have been determined for the Project through an exploration program that

included both drillholes (with core samples) and an advanced 3-D seismic survey to determine the continuity of

the deposit between widely spaced drillholes. The Potash Mineral Resource was classified based on the radial

distance from each drillhole, as follows:

measured resource was less than or equal to 800 m;

indicated resource was greater than 800 m and less than 1,500 m; and

inferred resource was greater than 1,500 m and less than 3,000 m.

The initial mine area has an indicated resource of approximately 150 million metric tonnes of KCl. Depending on

ultimate production, this would indicate a mine life of around 40-50 years. A secondary mine area is also being

evaluated and is anticipated to provide sufficient resource to extend the mine life to 70 years. The conceptual

mining boundary, which includes both the initial and secondary mine areas, is shown in Figure 3.2-2.

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VALE KRONAUPOTASH PROJECT

FILE No.SCALE AS SHOWN

FIGURE: 3.2-1REV. 0

PROJECT

TITLE

PROJECT DESIGN

GISCHECK

STRATIGRAPHIC SEQUENCEFOR THE PROJECT AREA

REVIEWSaskatoon, Saskatchewan

MK 28/07/11

10-1362-0008

Reference:

G:\CLIENTS\VALE\Vale Kronau Potash Project\Figures\10-1362-0008 Vale SK Potash\WP022 Project Proposal\10-1362-0008-Stratigraphic Sequence for the Project Area.mxd

PERIOD FORMATION Depth mTVD GEOLOGICAL NOTES

Devonian

1st Redbeds1580

1595Dolomite

Dawson Bay

1640

Limestone

2nd Redbeds 1645 DolomitePrairie Evaporite

Upper Salt1655

Halite

Patience Lake Member

1655

Potash member-Halite/Sylvite/Clay

Interbed Halite - 1 1666 Halite

Belle Plaine Member

Interbed Halite - 2White Bear MarkerInterbed Halite - 3

Esterhazy Member

1676168116821685

1702

1732

Potash member - Halite/Sylvite/Clay

Halite1 m potash marker - Halite/Sylvite/ClayHalite

Potash member-Halite/Sylvite

Halite

1738

1795

Shell Lake

Whitcow Salt

Winnipegosis

Anhydrite

Halite

Dolomite

Figure provided by Worley Parsons 2011 MFGAM

29/07/1129/07/11

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3.3 Construction 3.3.1 Facilities and Infrastructure Required During Construction

The facilities required during Project construction would include:

construction management and first aid trailers;

contractor trailers;

lunchroom/washroom trailers with toilet and wash facilities;

construction parking;

construction laydown and assembly areas;

storage warehouse;

security trailer;

site fencing;

temporary equipment maintenance area;

fuel storage area;

temporary power supply;

temporary water supply;

sewage disposal (tank and pump out via vacuum truck); and

concrete batch plant.

The planned location of the temporary construction management trailers, construction parking, and laydown

areas are shown on Figure 1.3-1. All temporary facilities and infrastructure listed above will be located within the

core facilities area.

3.3.2 Environmental Design Features Implemented During Construction

The following practices will be implemented during the construction phase to reduce or eliminate potential effects

to the environment. Access roads to the construction site will be treated with calcium chloride (CaCl2) to control

fugitive dust. A water truck will be used to wet down the internal roads, as required, to supplement the use of

CaCl2.

Diesel and gasoline will be stored in accordance with applicable regulations. Spill control kits will be maintained

at the storage area. Contaminated soil from spills would be stored in sealed containers and removed from site

by a licensed contractor and transported to an appropriate disposal facility. Waste material anticipated to be

generated on-site during construction includes metal, wood, plastics, miscellaneous waste, and domestic

garbage. In addition, items such as waste lubricating oil and filters from vehicle maintenance, oily rags, and

paint will require disposal. A licensed waste contractor will be engaged to provide appropriate waste containers

on-site and to remove waste materials to licensed recycle and disposal facilities.

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FIGURE: 3.2-2REV. 0

PROJECT

TITLE

PROJECT DESIGN

GISCHECK

CONCEPTUAL MINING BOUNDARY

REVIEWSaskatoon, Saskatchewan

MK 30/08/11

10-1362-0008

KP 336

48

33

621McGill Creek

Hunter Creek

Kronau Creek

Wascana Creek

Wascana Creek

Manybone Creek

Mine Area 1

Mine Area 2

040506010203040506010203040506010203

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29 2830252627282930252627282930252627

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040506010203040506010203040506010203

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Davin

Kronau

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p 16

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Rge 15 W2MRge 17 W2M Rge 16 W2MRge 18 W2MLegend

Permit BoundaryTownship / Range BoundarySection BoundaryQuarter Section BoundaryCemeteryUrban MunicipalityHighwayRailwayRoadCommunityShrine

Mining BoundaryProposed Core Facilities

1.5 1.50SCALE 1:75,000 KILOMETRES

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VALE KRONAUPOTASH PROJECT

DMTI Highways and RoadsInformation Services Corporation of SaskatchewanNTS Mapsheets 62l/05 72I/08NAD 83 UTM Zone 13 MF

GAM30/08/1130/08/11

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The laydown areas will be covered with a geo-textile and then gravel to provide a solid base for construction

activities. Sewage disposal for the construction phase will use temporary septic tanks, which will be pumped out

as required by a licensed contractor and the sewage will be disposed of off-site at an appropriate facility. Once

the on-site sewage facilities are completed, the construction trailers will be connected to these facilities.

Environmental Management/Construction Plans (EMCPs), based on Vale’s Environment, Health and Safety

(EH&S) Management System (Section 4.0), will be developed for the Project prior to construction. These will

include plans for activities such as erosion control, spill response and control, and waste management training

for the EMCPs will be provided for all employees and contractors on-site.

3.4 Mining Operations 3.4.1 Introduction

Solution mining will be used to extract the sylvinite (KCl and NaCl [sodium chloride]) and the resulting brine will

be processed by evaporation and crystallization to produce potash. The solution mining techniques used for the

Project will be similar to those used at the Mosaic Potash Facility.

3.4.2 Mine Plan

The mine plan for the Project involves using solution mining to recover potash from sylvinite ore located

approximately 1,650 m below the ground surface. The mining zone has been identified through an extensive

exploration program, as described in Section 3.2.

Solution mining will use two directional wells drilled to the bottom of the potash deposit. Through injection of

water and subsequent dissolution of the salts, a single solution mining cavern will form. The wells will be

directionally drilled from a central pad with approximately 9 caverns (18 wells) on a single pad. This will reduce

the surface disturbance compared to the use of vertical wells for each cavern. The planned initial drilling

consists of five drilling pads, each with 18 wells to support a total of 40 solution mining caverns. As the solution

mining progresses, the number of solution, mining caverns in operation will increase, but will be ultimately limited

by solution mining economics and cavern stability. The conceptual mining boundary is shown in Figure 3.2-2.

The Project will initially use primary mining methods for the 2.9 Mtpa production. Primary mining involves the

injection fresh water to dissolve the sylvinite and produces both KCl and NaCl. Once experience is gained with

primary mining, secondary mining will be considered to add an additional 17% to 3.3 Mtpa. This injects a brine

high in NaCl and low in KCl, to preferentially extract more KCl with adding extra NaCl (which doesn’t have to be

processed or disposed).

3.4.2.1 Cavern Design

The cavern design is based on the geology of the deposit, the assumed in situ potash temperature, expected

creep of the surrounding halite and sylvinite, and a planned vertical growth rate of solution mining that is

dependant on local geology, grade, mining strategy, and injection pumping. The shape of the cavern is similar to

the other solution mining operation in Saskatchewan and is estimated to range in width from 120 to 160 m,

length from 180 to 220 m, with pillars of 90 to 110 m. Pillars will be left between caverns to increase stability and

reduce the effects of subsidence. This results in an ideal aerial extraction ratio of around 33%. However each

cavern shape will vary depending on the local geology and cavern development. Figure 3.4-1 represents an

ideal cavern shape.

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Cavern layout and spacing is based on the expected creep of the surrounding halite and sylvinite beds, the

expected cavern shape, the areas of impurities (such as carnalite) and geological anomalies identified from the

two and three dimensional seismic surveys. The configuration of the caverns was arranged to optimize the

extraction while reducing potential effects from subsidence. The well-field layout will continue to evolve over

time as more is known about the geology.

3.4.2.2 Drilling/Pad Design

Solution mining will be initiated by directional drilling a pair of wells from a surface pad through the sylvinite

seam. Each pad will contain between 9 and 12 caverns. The surface wellheads are anticipated to be grouped in

a parallel arrangement with 5 m spacing between pairs of wells. This reduces the overall width of the pad, which

is expected to be approximately 78 by 165 m. Each solution mining well will be connected to a pad valve station

using two buried lined steel pipes.

This arrangement is anticipated to reduce the surface disturbance, as compared to drilling vertical wells with one

pad per cavern. In some locations, surface features, geological considerations, grade limitations, or impurities

may mean less or more caverns per pad (or pad location needs to be adjusted). Studies are being undertaken

to increase the number of caverns per pad to further reduce the surface disturbance. However increasing the

number of caverns per pad is dependant on the local geology, geomechanical, and drilling techniques.

Existing public roads will be used where possible to provide access to the vicinity of the various well pads to

reduce the amount of new road construction required for the Project.

3.4.2.3 Well-field Piping

The processing plant is located southeast of the well-field and will be connected by several main pipelines.

These pipelines will be underground, and leak detection and appropriate pipeline isolation will be provided so

that any potential leaks are detected early and the effects limited. The leak detection system will be continuously

monitored. The piping and valve arrangements will be routed in such a way that each cavern can work

independently from the others at different stages of cavern development and production.

3.4.2.4 Brine Disposal

Brine reclaimed from the TMA and weak development brine will be sent to disposal wells located on-site. These

wells will be developed near the core facilities area to reduce piping requirements and will only be used for brine

disposal. Oil from early brine will be removed using an oil-water separator.

3.4.3 Mining Method

Solution mining uses controlled dissolution to remove the sylvinite seam approximately 1,650 m below the

ground surface. The general solution mining process has four phases, which are outlined below:

cavern development;

primary mining;

possible secondary mining; and

cavern closure.

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3.4.3.1 Cavern Development

Each cavern will be developed in three phases; sump development, cavity connection and roof area

development. Each individual well is anticipated to have a 10 to 15 m sump developed in the halite immediately

beneath the sylvinite. The sump is required to accommodate the following:

insoluble materials within the sylvinite seam;

NaCl which may precipitate from solution or remain undissolved in the cavern; and

convergence from creep deformation of the halite above and below the cavern.

The sump will be developed by injecting cold fresh water down the tubing of each well and recovering partially

saturated NaCl (weak brine) through the well annulus. An oil blanket will be maintained at the base of the

sylvinite zone to prevent vertical growth. The cavern shape and size will be monitored though the quantity of salt

produced and/or by down hole sonic survey.

Once the sump development is completed, the well tubing will be raised 4 to 5 m. Cold fresh water injection will

continue and the oil blanket at the base of the sylvinite will be maintained. The purpose of this phase is to grow

the caverns from each well in the halite zone to connect the caverns.

Upon successful sump connection, dual well operation to develop the cavity roof will be initiated. One well will

be used to inject cold fresh water and the other to recover partially saturated brine. The wells can change mode

from injection to recovery as required for consistent, even roof development. Oil will be continually added to

maintain an oil blanket at the base of the sylvinite seam. Roof development will continue until approximately

60% of the total roof area for primary mining is established.

3.4.3.2 Primary Mining

Once the initial caverns are developed, primary solution mining is initiated. Primary mining uses heated water to

dissolve the sylvinite. The roof oil blanket is used to control the upward dissolution through the sylvinite seam,

and the outward development of the cavern. Once one sylvinite seam has been completed, solution mining will

move onto the second seam. This will mean either repeating the cavern development under the next potash

seam, or using fracturing techniques to move between the potash beds. The mining of multiple potash beds

depends on the local grade, geology, impurities, and geomechanics. The decision to mine more than one seam

is made on a cavern by cavern basis based on the exact geology of each well to improve recovery.

The Project will initially use primary mining methods for the 2.9 Mtpa production. Once experience is gained with

primary mining, secondary mining will be considered.

3.4.3.3 Secondary Mining

Secondary mining may be completed to provide up to an additional 17% production (3.3 Mtpa). This method

uses saturated NaCl brine to selectively dissolve KCl, and produces KCl at a lower rate than primary mining

which provides additional KCl without extracting new NaCl which has to be processed and disposed.

3.4.3.4 Cavern Closure

Cavern closure involves removing the liner and dilution strings of the wells. The drill hole casings will be left open

to relieve pressure as the cavern begin to close naturally (i.e., salt creep). Once the cavern has been completely

closed, the casings can be plugged with cement.

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3.4.4 Environmental Design Features of the Mine Plan and Mining Methods

The mine plan and mining method include several environmental design features that have been incorporated

into the Project to reduce or limit effects on the environment. The pad design incorporates direction drilling of

well pairs to develop between nine and twelve caverns from one pad (depending on cavern location and

availability), thus reducing the surface disturbance. Further investigations are being undertaken to increase the

number of caverns per pad. Existing public roads will be used where possible to provide access to the vicinity of

the various well pads to reduce the amount of new road construction required for the Project. Pillars will be left

between caverns to increase stability and reduce the effects of subsidence. The pad and cavern layout will be

refined as additional modelling is completed and experience gained with the deposit to optimize potash recovery

while limiting effects of subsidence and surface development.

3.5 Potash Processing 3.5.1 Overview

The Project process plant and associated facilities include the following main components:

well field water and brine injection and brine recovery;

tank farm facility;

brine evaporation and crystallization;

NaCl and KCl de-brining and clarification;

product drying, screening, and compaction; and

standard and granular product storage and load out.

The process plant will consist of evaporators and vacuum cooled crystallizers that will be designed for a

production of 2.9 Mtpa of fertilizer-grade KCl from primary mining. If secondary mining is initiated, the plant

capacity will be increased to 3.3 Mtpa with the addition of surface cooled crystallizers in series with the vacuum

cooled crystallizers. The use of natural cooling pond instead of the surface cooled crystallizers is one of the

alternatives being considered for the Project (Section 2.3).

The process design is based on producing two high quality potash products at the process plant; standard and

granular. The overall process flow diagram for the Project is illustrated in Figure 3.5-1.

3.5.2 Process Details

3.5.2.1 Well Field Water and Brine Injection and Brine Recovery

Solution mining, surface processing of brine, and containment of brines and solids are components of an

integrated system that is designed to produce agricultural grade potash products. Solution mining and potash

processing are linked by the inventory of brine that is circulated in the combined production system.

There are three different stages of solution mining:

well development using ambient temperature water;

primary mining using heated brine and water; and

secondary mining using low-KCl heated brine.

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FILE No.SCALE AS SHOWN

FIGURE: 3.5-1REV. 0

PROJECT

TITLE

PROJECT DESIGN

GISCHECK

PROCESS FLOW DIAGRAM

REVIEWSaskatoon, Saskatchewan

MK 12/08/11

10-1362-0008Reference:

G:\C

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VALE KRONAUPOTASH PROJECT

Process Flow Diagramprovided by Worley Parsons2011-08-12 MF

GAM12/08/1112/08/11

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Initial solution mine cavern development is achieved by injecting ambient raw water into the wells. The “early

brine” from this source will be delivered to disposal wells located on the plant site, until the caverns are

converted to primary mining. High NaCl, low-KCl early brine may also be used in primary and secondary wells,

or combined with tailings pond or evaporator feed brine. After the caverns are connected underground, primary

production mining will begin by dissolving KCl and NaCl in the ore body. During primary mining, hot brine,

heated by process steam and condensate, will be injected into caverns. During secondary mining, various

low-KCl process brines will be combined and pre-heated with steam and injected into caverns. Brine produced

from the caverns is then fed to the process plant for processing.

3.5.2.2 Tank Farm Facility

A tank farm is required to segregate and manage brines that are used in different phases of solution mining and

for preparation of the main process brine feed stream. The tank farm facility, located in the process plant,

includes injection pumps, heaters, and storage tanks.

3.5.2.3 Brine Evaporation and Crystallization

Brines from solution mining are combined in the primary process feed tank, heated with steam, and fed to

evaporators that precipitate and separate salt (NaCl) and concentrate the process liquor in KCl close to the

composition at which both NaCl and KCl are co-saturated.

Brines recovered from solution mining caverns contain the main solutes KCl, NaCl, magnesium chloride (MgCl2),

and other minor solutes. In the process plant, this solution is heated and evaporated to precipitate and separate

NaCl solids, while keeping KCl in solution. The hot output brine from the evaporation stage is cooled in two

series of parallel vacuum crystallizers in which the brine is cooled in stages by additional brine evaporation. The

KCl crystal product is removed from the circuit as a slurry and separated prior to drying, screening and

compaction as described below..

After secondary mining commences, a fraction of the liquor from the last vacuum crystallizers is sent to a set of

surface cooled crystallizers to recover more KCl and to provide the lower concentration KCl brine needed for

secondary mining. This is anticipated to yield an additional 0.4 Mtpa of potash and to lower the KCl

concentration for use in secondary mining.

The exit brine from vacuum cooled crystallizers is recycled to primary mining caverns. Low temperature,

low-KCl exit brine from surface cooled crystallizers or the optional cooling pond is recycled to secondary mining

caverns. Some process brine is removed from the total brine inventory to control the concentration of MgCl2 that

can adversely affect the recovery of KCl during solution mining. That purged brine flow is pumped to the

disposal wells.

3.5.2.4 Sodium Chloride and Potassium Chloride Debrining and Clarification

Solid salt that is precipitated during high temperature evaporation is separated from hot process brine, debrined

in hydrocyclones and centrifuges, re-slurried with reclaimed TMA brine, and pumped to the TMA for storage.

Residual fine particles in the brine are removed in clarifiers before the hot high-KCl brine is delivered to the

vacuum crystallizers for KCl production. The slurries from the vacuum cooled and surface cooled KCl

crystallizers are debrined using hydrocyclones and centrifuges and the low-moisture centrifuge cake is conveyed

to product dryers.

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3.5.2.5 Product Drying, Screening and Compaction

Centrifuge cake from the vacuum crystallizer and surface cooled crystallizer are fed to dedicated dryers that

evaporate moisture from the respective coarse and fine particle feeds. Natural gas will be used as fuel for the

dryer. The product from the coarse dryers will be screened and a portion of the contained standard fertilizer

grade potash will be separated, cooled, and dispatched to storage.

The product from the fines dryer will be transported to the compaction plant, where it will be combined with the

rejects from the screening plant. Roller presses will be used to compact the particles into a flake which will be

then crushed and screened into granular-grade product and rejects that are recycled back to the compactors.

The granular fertilizer grade potash will be glazed, dried, and cooled to improve particle durability and product

quality.

Air-entrainable fine particles of KCl are generated in the process by evaporation of brine droplets during fluid bed

drying and by impact and abrasion during crushing and materials handling. Cyclones in combination with

baghouses will be used to handle emissions from the KCl dryers. Cyclones and pulse jet dust collectors will be

used to collect the dust from all dry potash handling equipment such as conveyors, bucket elevators, screens,

dryers, and coolers. The dust-laden gas from different dust generating points will be treated by the dust

collectors and the clean air will be then vented to the atmosphere through stacks. Exhaust from process dryers

will first pass through high efficiency cyclones to limit emissions of particulate matter and recover the coarser

particles as compactor feed. The cyclone exhaust will be treated in high energy scrubbers operating at a high

pressure drop. The dryer burners will be high efficiency, low nitrogen oxides (NOx) burners to limit the amount of

NOx present in the exhaust stream.

3.5.2.6 Standard and Granular Product Storage and Loadout

Both standard and granular products are transferred separately in covered conveyor galleries and dropped onto

segregated warehouse inventory piles. Products are reclaimed from the storage warehouse for transfer to

railcars. Each product is treated with anti-caking and dust control in the dry end of the plant and/or at the

loadout. The product storage warehouse will have a capacity of approximately 250,000 tonnes of potash. The

load-out station is designed to dispatch standard and granular potash product into railcars.

3.5.3 Environmental Design Features for Potash Processing

Throughout the process, design elements and control will be included to reduce the effect of potash processing

on the environment. Liquid, solid spills, and wash-down within the processing facilities will be contained within

the mill facility or the engineered site area. Salvageable product from centrifuging, drying, screening, and

compaction will be recycled back to the process.

The process plant will contain a number of features to reduce air and dust emissions. Since dust is generated

by the drying and handling of potash product, it is necessary to control emission levels to achieve an acceptable

working environment and meet government standards. This will be accomplished by a combination of dust

collection and suppression practices. Dust collection equipment such as wet scrubbers, cyclones, and

baghouse filtration technologies are included in the process plant to limit emissions. Dust suppression on roads

for the project will be accomplished through the use of CaCl2 and water trucks as required.

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3.6 Tailings Management Area 3.6.1 Waste Salt Storage

Solution potash mining produces waste salt (NaCl) tailings. Clays associated with the potash beds are insoluble

and therefore are not brought to surface as they are with conventional potash mining. The waste salt tailings will

be contained within the TMA boundary shown on Figure 1.3-1, throughout operations and decommissioning.

This boundary will be refined for the EIS, using the results of ongoing baseline programs.

Based on an annual KCl production of 2.9 Mtpa, the estimated production of waste salt is approximately

6.8 Mtpa. If secondary mining is initiated, brining total KCL production to 3.3 Mtpa, waste salt production would

increase to 7.0 Mtpa. Preliminary sizing of the waste salt storage area, was based on the 3.3 Mtpa production

case (7.0 Mtpa waste salt), over approximately 70 years of mine life. This would result in the production of

approximately 470 Mt of waste salt which corresponds to a volume of approximately 300 million cubic

metres (Mm3) based on an assumed waste salt density of 1.55 tonnes per cubic metre (t/m3). The waste salt

storage area will be designed with capacity to safely store the estimated volume of waste that will be generated

over the 70-year mine life. The maximum pile height applied to the preliminary sizing was 80 m. Coarse tailings

piles from conventional potash mines in Saskatchewan are currently up to 70 m in height, with theoretical

maximum pile heights of up to 100 m. The final design of the waste salt storage area will provide future flexibility

to expand the storage of waste salt by modifications to the base footprint and/or increasing the pile height in the

future should additional storage be required.

A containment system will be designed to control both deep migration of brine from the waste salt storage area

to groundwater resources (i.e., underlying aquifers) and shallow horizontal migration that may result in surface

expression of brine, as required, based on site-specific geologic information. Geological and hydrogeolgical site

characterization studies were used to identify potential waste salt storage area locations where containment

would be provided primarily by natural soils, thereby reducing the reliance on engineered containment systems.

The highly plastic clay and underlying clayey till of the lacustrine plains in the Project region are the main

geological units that would mitigate the vertical migration of seepage from the proposed waste salt storage area.

The performance of clayey soils used to contain brine has been well documented in Saskatchewan. Further site

characterization studies will be conducted, which will focus on defining thicknesses and hydrogeologic properties

of soils below the waste salt storage area.

A perimeter dyke will be constructed around the waste salt storage area to contain both waste salt and decanted

brine, and divert fresh water around the perimeter. Perimeter dykes will be keyed into surficial materials as

necessary to mitigate lateral migration of brine through jointed oxidized clay or shallow stratified sand and gravel

deposits. Salt will be discharged to the storage area through a slurry pipeline, and the area will be graded to

drain free brine to the reclaim pond by gravity. Internal salt dykes and ditches will be required to direct surface

flow to the collection ditch during early stages of deposition. In the event of high flows due to precipitation

events, additional flow capacity from the collection ditch to the reclaim pond would be provided by an overflow

spillway in the embankment. Monitoring programs for the waste salt storage area will be incorporated in the

design and will include key attributes of pile stability and brine migration.

3.6.2 Brine and Site Water Management

The Project plant site and waste salt storage area will be designed based on LiDAR survey data to divert

uncontaminated surface water around the Project site and thus allow the freshwater to remain part of the natural

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water cycle. Site drainage for the plant site and waste salt storage area will also be designed to collect all

precipitation falling within these areas within the brine reclaim pond (Figure 1.3-1) and be stored until it is either

used as process make up water or disposed of through deep-well injection into a suitable deep formation. The

water management plan will be developed to both safely store on-site runoff and divert freshwater runoff for a

design storm consisting of 300 millimetres (mm) over a 24 hour period. This water management plan for the

Project site would be developed in a fashion similar to the plans developed for all operating potash mines in

Saskatchewan.

The brine reclaim pond will be designed to provide containment of brine over the operating and

decommissioning life of the mine. The primary portion of the brine reclaim pond will be slightly deeper than the

rest of the pond to reduce the surface area of the brine during normal operations. This will help to reduce

evaporation from the pond, so that more brine is available for reuse in the process.

The brine reclaim pond will provide adequate storage to accommodate storage of process streams under normal

and extreme operating conditions and design storm events. Sufficient freeboard will be provided to account for

wind induced set-up and wave run-up on the sides of the dykes. Maximum operating levels will be developed to

provide adequate storage volumes for the design storm event. Provisions for monitoring the brine reclaim pond

will be incorporated as part of the design of the brine reclaim pond and surface water diversion works. It is

anticipated that provisions for measuring the following will be included to assess the pond’s performance over

time:

subsurface brine migration;

volumes of surface water diversion around the site;

volumes of excess brine disposed of through deep-well injection; and

key attributes within the deep well disposal horizon.

3.6.3 Deep Well Injection

Deep injection requirements will be developed as part of the waste salt management plan over the life of the

project. It is anticipated that injection wells will be added progressively over the life of the Project as the footprint

of the waste salt storage area develops and additional capacity is needed to dispose of excess brine. An

evaluation is of the capacity of potential deep injection horizons will be conducted to allow selection suitable

zones for brine disposal.

3.6.4 Environmental Design Features for the Tailings Management Area

Environmental design features have been integrated into the proposed waste salt storage area to prevent or limit

the effects of the proposed Project to the natural environment at the Project site. A containment system will be

designed to control migration of brine from the waste salt storage area to underlying aquifers and control the

horizontal migration of brine, as required. Site characterization studies will be conducted to optimally locate the

waste salt storage area for the Project in an area that provides natural containment. Information collected from

field studies and transport modelling will be used to devise a containment strategy to control migration of brine

from the waste salt storage area. In addition, the brine reclaim pond will provide adequate storage to

accommodate storage of process streams under normal and extreme operating conditions and design storm

events.

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Environmental design features will also be incorporated to reduce the water supply requirements for production

and potable use. For example, the Project plant site and waste salt storage area will be developed using LiDAR

survey data and designed for diversion of fresh surface water around the Project site. In addition, a surface

water management plan will be developed for the Project, which will include the capture and reuse of site runoff

water to reduce makeup water requirements.

3.7 Site Infrastructure 3.7.1 Permanent Buildings

The proposed major buildings for the Project are described below and shown on Figure 1.3-1.

Administration/Service Complex – This will consist of an office area to be used for administration, training

and support activities, such as computer support, at the Project. The building will also include a service

area for site equipment that will include a wash bay, service bays, welding and machining area, and

warehousing. The maintenance area will have a concrete floor which will drain to a sump area to contain

any spills that may occur during maintenance activities.

Process Plant – The majority of the potash processing equipment will be located in the process plant, which

will be a multi storey building. The building will also include the process control room, offices, and a

lunchroom and a maintenance area for process equipment.

Product Storage Building - The product storage building will be located adjacent to the rail line and will be

sized to hold 28 days of production. The storage building will be fed by conveyor belt from the process

building.

Product Loadout Building – The product loadout will house the equipment necessary to load standard

potash rail cars.

3.7.2 Hazardous Substance Storage

Hazardous substance storage for the Project will consist of reagents for potash processing, diesel fuel and

gasoline, and maintenance/service materials such as glycols, oil, lubricants, and batteries. Diesel fuel and

gasoline will be stored in accordance with applicable regulations.

Processing reagent will be stored in containers located in the processing building. The processing building will

be designed to contain any materials spilled within the building through the use of door curbs, sloped floors,

sumps and other measures. Reagents expected to be on site include: ammonia, dedusting oil, flake anti-caking

amine and hydrochloric acid.

Maintenance/service materials will be stored in the maintenance building in appropriate containers and the

building will be designed for spill containment.

3.7.3 Other Buildings

In addition to the major buildings described above, there will be a number of other buildings required on-site,

including:

multi celled cooling tower;

CHPP and/or boiler house;

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sewage and potable water treatment facilities;

electrical substations and motor control centre (MCC) rooms;

pump houses; and

security gates/buildings.

3.7.4 Environmental Design Features for Site Infrastructure

Environmental design features have been incorporated into the site infrastructure design process to reduce or

eliminate potential environmental effects from the Project. These include:

the processing building will be designed to contain any materials spilled within the building through the use

of door curbs, sloped floors, sumps and other measures;

the maintenance area will have a concrete floor which will drain to a sump area to contain any spills that

may occur during maintenance activities; and

diesel fuel and gasoline will be stored in accordance with applicable regulations..

3.8 Supporting Infrastructure 3.8.1 Water Supply

Raw water for the Project will be provided by the Saskatchewan Watershed Authority (SWA) via a pipeline from

Lake Katepwa to the Project core facilities area. Application has been made to the SWA for the required water

supply and a positive response has been received, providing preliminary assurance that the watershed can be

successfully operated to meet the needs of SaskWater for VPCL. .

The water supply requirements for the Project are estimated at 21 Mm3 per year for a mining rate of 2.9 Mtpa.

The raw water will be used for solution mining, process and utility requirements within the processing plant,

cooling water, fire suppression water, and boiler feed water. Water will be stored on-site in the fresh water pond,

which will also provide water for the fire suppression system. The plant design is based on recycling and reuse

of storm water, drains, waste streams and process water to reduce the amount of fresh water required for the

Project.

3.8.2 Electrical Power

VPCL is currently assessing two options for electrical power at the site, in consultation with SaskPower. Option

one is to construct a CHPP, which is a natural gas fired cogeneration plant producing both electricity and steam

for processing operations. The CHPP is being designed to meet the entire thermal (process steam) demand and

as much power demand as possible for the plant. This would determine the quantity of power to be imported or

exported from SaskPower grid. During initial operations, prior to the ramp up to full production, the CHPP may

have the capability to export additional power to the provincial grid. A tie in with the SaskPower distribution

system would still be required to provide backup power in case of problems with the CHPP. Option two consists

of purchasing all required electrical power from SaskPower, which will be delivered via an overhead power line

to be constructed from the existing distribution system by SaskPower, and meeting the entire thermal (process

steam) demand from natural gas fired boilers.

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A sub station will be required for either option and will be constructed on the Project site. Anticipated electrical

demand for the Project is 190 megawatts. An overhead power line will be required from the Project site to the

nearest SaskPower distribution line. SaskPower has been contacted regarding the Project’s power

requirements.

3.8.3 Natural Gas

TransGas will be the natural gas supplier for the Project and has been contacted with regards to the Project’s

natural gas requirements. Gas may be purchased from a number of different suppliers, however, the delivery of

gas will be through TransGas. Natural gas requirements for the Project will depend upon the option chosen for

electrical power. For Option One (CHPP), natural gas requirements are anticipated to be 1,850 to

2,800 gigajoule per hour (GJ/hr) based on the latest change in brine concentration and primary mining of

2.9 Mtpa. On-site infrastructure for Option One may not require a compressor station if the natural gas is

available at pressures between 270 to 350 pounds per square inch gauge (psig). A distribution piping system

on-site to deliver the gas to the cogeneration power plant will be required. . In addition, a let-down station will be

required to reduce the gas pressure from 320 to 60 psig for building heating purposes.

For Option Two (steam generation, see 3.9.2), the requirements are anticipated to be 800 to 2,500 GJ/hr based

on the latest change in brine concentration and primary mining of 2.9 Mtpa. A let down station will be required to

reduce the gas pressure from 320 to 60 psig for building heating purposes, as well as a distribution piping

system on site to deliver the gas from the let down station to its end use point.

3.8.4 Telecommunications

SaskTel, the provincial Crown Corporation, has been contacted regarding telecommunications requirements for

the Project.

3.8.5 Access and Transportation

3.8.5.1 Roads

It is anticipated that the existing local grid road that intersects with Highway 33 will need to be upgraded. This

will involve intersection improvements that may include constructing new acceleration, deceleration, and bypass

lanes. It anticipated that a new access road from the existing grid road will be required to the access the site

(Figure 3.8-1). The new access road is intended to facilitate safe access to the Project site and support the

increased transportation requirements during construction and operation. Access roads to the well pads for

mining will be developed off of existing grid roads, to the extent possible, to reduce surface disturbance. VPCL

will work with the local R.M. with regards to road improvements and/or new access roads.

3.8.5.2 Rail

The rail connections for the Project have been designed to use existing infrastructure as much as possible to

reduce new construction. It is anticipated that shipments from the Project will be to the Pacific Coast ports. Two

rail connections will be constructed as part of the Project to allow flexibility in shipping and carrier choice. The

first connection is to Stuart Southern Rail (SSR) Tyvan (CP Rail) west of the Project site where it is parallel to

Highway 33 (Figure 3.8-1). This will require the construction of an approximately 3 km long spur to connect the

Project to the existing rail line. The second connection is to the CN rail line at the Glenavon subdivision, north of

the Project site, which will require the construction of a 10 km spur.

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FILE No.SCALE AS SHOWN

FIGURE: 3.8-1REV. 0

PROJECT

TITLE

PROJECT DESIGN

GISCHECK

REVIEWSaskatoon, Saskatchewan

MK 24/08/11

10-1362-0008

NATURAL GASEXISTING RAIL

EXISTING HIGHWAY

NEW RAIL

CONSTRUCTIONLAYDOWN PLANT SITE

FRESH WATERPIPELINE

KP 336

48

33

111009080712

020304050601

353433323136

262728293025

232221201924

141516171813

111009080712

020304050601

353433323136

Kronau

Jameson

Twp 1

5Tw

p 17

Twp 1

6

Rge 17 W2MRge 18 W2M

LegendPermit BoundaryTownship / Range BoundarySection BoundaryQuarter Section BoundaryCemeteryUrban MunicipalityHighwayRailwayRoadCommunity

Mining BoundaryProposed Core FacilitiesFresh Water PipelinePipelineSite Layout

1 101:40,000SCALE KILOMETRES

Reference:

G:\CLIENTS\VALE\Vale Kronau Potash Project\Figures\10-1362-0008 Vale SK Potash\WP022 Project Proposal\10-1362-0008-Proposed Site Access Roads and Railway Line.mxd

PROPOSED SITE ACCESS ROADSAND RAILWAY LINES

VALE KRONAUPOTASH PROJECT

Site Layout provided by Worley Parsons2000VS-L-04001AE, July 18, 2011DMTI Highways and RoadsInformation Services Corporation of SaskatchewanNTS Mapsheets 62l/05 72I/08NAD 83 UTM Zone 13

MFGAM

24/08/1124/08/11

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The rail design is based on unit trains of 170 cars and five locomotives. It is anticipated that for the initial years of

the Project, unit trains will consist of 100 to 140 cars and three locomotives. The proposed rail spur is a single

track which will carry both inbound and outbound traffic. The spur will lead to a load out and car storage area at

the processing plant. This area will be designed for maintaining safety and efficiency during loading operations

and train movements on and off-site. At this time, the spur is planned to dead end with provisions for turning the

locomotives. There is a potential for development of a rail loop around the process plant and TMA in the future if

it appears such a loop would increase loading efficiency.

The proposed rail spur connecting to the CN railway will cross two watercourses: Hunter Creek and McGill Creek

(Figure 3.8-1). The crossing structure proposed for the Hunter Creek crossing is a heavy duty corrugated steel

pipe sized to accommodate 1 in 50 year flood occurrences. The crossing structure proposed for McGill Creek

would consist of a multi-pipe installation of heavy duty corrugated steel pipes designed to accommodate 1 in 50

year flows. Installation of the culverts will be completed such that effects to fish and fish habitat are mitigated.

Construction activities will be completed with best management practices for construction activities in or adjacent

to fish bearing waters, and will be completed outside of the timing window for spring spawning species in

Southern Saskatchewan. As such, the installation of the proposed crossing structures is not anticipated to

require an Authorization from DFO or trigger CEAA. However, it is anticipated that DFO will issue a Letter of

Advice concerning the installation of these crossings.

3.8.6 Environmental Design Features for the Supporting Infrastructure

Environmental design features have been incorporated into the supporting infrastructure design process to

reduce or eliminate potential environmental effects from the Project. These include:

the existing road system in the area will be used where possible to limit surface disturbance from new road

construction;

where possible, roads, railroads and utility lines (gas, water, power) will be routed along existing utility

corridors to limit effects to undisturbed areas;

the new site access road from Highway 33 will be paved to reduce fugitive dust emissions from road traffic;

and

the plant design is based on recycling and reuse of storm water, drains, waste streams and process water

to reduce the amount of fresh water required for the Project.

3.9 Domestic and Industrial Waste Management 3.9.1 Waste Management Planning

VPCL will develop an EH&S Management System (Section 4.0) for the Project, which will include a Waste

Management Plan. The EH&S Management System will be based on the standard policies and practices that

Vale uses at it’s operations worldwide and will be revised to meet Saskatchewan regulatory requirements, as

well as site-specific requirements of the Project. The Waste Management section of the EH&S Management

System will identify expected wastes at the Project and develop procedures for collection, handling, and

disposal.

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3.9.2 Domestic Waste

Domestic waste generated on-site during the life of the Project includes food wastes, wastes from construction,

operations and administration offices and sanitary sewage. Food wastes will be collected in suitable containers

and covered to reduce wildlife attraction and effects. Recyclable materials will be sorted and collected in

appropriate containers. All domestic wastes will be collected and transferred to appropriate off-site disposal

facilities by a licensed contractor.

Sanitary sewage will be collected from washroom and toilet areas and directed to a sewage pumping station,

from where it will be pumped to a two cell sewage lagoon treatment system.

3.9.3 Non-hazardous Industrial Waste

Non-hazardous wastes that will be generated during mine and processing operations will typically include

plastics, wood, metal, and other inert materials. VPCL will establish a recycling program for these wastes to

reduce the amount of material that ultimately goes to the off-site landfill. Appropriate waste containers will be

provided where materials are generated and the materials will be segregated at source for recycling. The

material will then be transferred to off site recycling companies. Inert wastes will be collected and transferred to

an off-site, permitted landfill for final disposal by a licensed contractor.

3.9.4 Hazardous Industrial Waste

All storage and handling of hazardous materials and hazardous waste will meet the requirements of the

Hazardous Substances and Waste Dangerous Goods Act and Regulations and Transportation of Dangerous

Goods Act and Regulations, including employee training, storage facility design and operation, labelling and

material control (e.g., Workplace Hazardous Materials Information System [WHMIS]).

Hazardous industrial waste expected to be generated at the site during operations includes waste hydrocarbons,

chemicals, glycols, solvents, antifreeze, and batteries. The Waste Management Plan discussed above will

include collecting these wastes in suitable containers and storing them for shipment off-site to either recycle or

disposal facilities via a licensed contractor. Where suppliers will accept them, empty containers used to ship

these materials to site will be returned to the supplier. Those that can not be returned will be shipped to recycle

or disposal facilities.

The EH&S Management System to be developed for the Project will include a Spill Response Plan specific to

the site and the materials expected to be on-site. Spill containment will be incorporated into the plant design and

spill response kits will be located at strategic locations around the site. In the event of a spill, materials

recovered and collected will be stored in appropriate containers and shipped off-site for disposal at approved

facilities.

3.9.5 Environmental Design Features for Waste Management

Environmental design features have been incorporated into the Waste Management Plan to reduce or eliminate

potential environmental effects from the Project. These include:

development of an EH&S Management System for the Project that will include a Waste Management Plan

and a Spill Management Plan;

development of a recycling program to reduce wastes;

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collecting and storage of food wastes in suitable receptacles to limit the attraction or effects to wildlife;

training for employees on waste management;

training for employees on spill reduction, control and clean up; and

use of licensed contractors to remove recyclables and wastes from site for proper disposal.

3.10 Decommissioning and Reclamation A Project–specific D&R Plan is required so that lands disturbed by mining activities are returned to a condition

that is physically stable, safe, and environmentally sustaining. The EIS will present a conceptual description of

how the proposed Project site will be decommissioned and reclaimed upon closure of the operation.

The D&R Plan provides a framework for the decommissioning of facilities and infrastructure at the site, in such a

way that the environment and the public will be protected over the long term. Geotechnical, geochemical, and

hydrogeological considerations will be integrated into the plan. At a minimum the D&R Plan will describe the

following:

the salvage, removal, and disposal of surface infrastructure and buildings;

sealing of the underground workings;

dissolution and removal of the TMA over an extended period of time;

the extended use of the injection well and ponds, and then eventual closure;

site grading, contouring, and drainage;

reassessment of the environmental implications following completion of the D&R;

evaluation of the effects of the eventual mine closure on the local community;

monitoring to assess the predictions of contaminant transport modelling; and

achievement of the intended post-closure land use.

It is understood that MOE is working to establish closure requirements specific to the potash mining industry.

Once these requirements are in place, the D&R Plan will be revised accordingly.

Financial assurance will be put in place to cover the costs associated with VPCL’s commitment to D&R, likely in

the form of a letter of credit held by the Province of Saskatchewan. The D&R Plan and associated financial

assurance will be updated at each operational licensing renewal.

3.11 Human Resources The supply of labour will be critical to the successful construction and operation of the Project. Most major

construction trades will be required during the construction phase (e.g., electricians, welders, pipe fitters,

carpenters, concrete workers, equipment operators, and sheet metal workers). While preference will be given to

local hiring, it is anticipated that some of the construction workforce will be drawn from across and outside the

province. The peak construction workforce is estimated between 1,200 and 1,500 employees with an average of

800 employees. The construction of the Project is anticipated to be completed in approximately 33 months.

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Once the commissioning stage is reached, VPCL will begin hiring permanent staff for the operational phase of

the Project. It is anticipated that the permanent workforce will be around 500 employees.

4.0 ENVIRONMENT, HEALTH, AND SAFETY MANAGEMENT SYSTEM Vale manages all projects worldwide in a proactive manner to create a safe work environment for humans and

the natural environment. The EH&S Management System provides VPCL with the necessary tools to manage

the environment, health, and safety components of the Project. To support this goal, Vale has developed a

number of policies and programs which are described below.

Vale maintains a Global Sustainable Development and Health and Safety Policies, as well as Global Rules for

Accountability in Health, Safety, and the Environment. This system focuses on continuous improvement on

health and safety for the workforce and local communities. This system is adapted at each operation to reflect

local regulatory and legislative standards.

Vale maintains an active Environmental Quality Management System (EQMS) that is based on the ISO 14001

standards. The EQMS is adapted at each operation to meet the unique requirements of individual mines and

local regulatory and legislative standards. The EQMS also provides tools to manage potential adverse

environmental effects of mining and associated mineral processing activities. The Global Sustainable

Development Policy and EQMS are based on continuous improvement and, as such, Vale maintains an internal

audit program for both.

4.1 Environmental, Health and Safety Plans At the Project, the Global Policies and the EQMS will be used as the basis to develop site-specific occupational

health and safety plans, and environmental management plans. The development of such plans will be based

on: the residual adverse environmental effects identified in the EIS; hazards and risks identified for the Project

throughout the planning stages; and regulatory requirements.

The VPCL EH&S plans will be updated on a regular basis and at important milestones in the Project life as the

scope and content of the EH&S plans will vary by the Project phase (i.e., construction, mine operation, and

decommissioning).

Each plan, as appropriate, will include a training component for employees, who must complete the applicable

training programs prior to working on-site. The EH&S Plans include:

Environmental Protection Plan (EPP);

Emergency Response and Contingency Plan;

Occupational Health and Safety Plan;

Human Resources Plan;

Reclamation Plan;

Education and Orientation Plan;

Monitoring and Follow-up Plan; and

Auditing and Continuous Improvement Plan.

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4.2 Environmental Protection Plan The EPP is the foundation for implementing environmental protection practices as they provide consolidated

documentation of environmental protection procedures. The EPP is a practical document that outlines

site-specific protection practices or procedures to be implemented during each phase of the Project. This plan

serves as the guidance document for VPCL employees to implement mitigation and monitor effects predictions

made in the EIS. The EPP provides a quick reference for Project personnel and regulatory authorities to assess

performance and make suggestions for improvement.

The EPP will be used for the following purposes:

identify EH&S concerns and develop appropriate protection practices and procedures for these concerns;

list all required permits and approvals and their associated terms and conditions;

provide concise and clear instructions for procedures that protect the environment;

provide a reference document for personnel when planning and/or completing specific activities;

communicate changes in the program through the revision process; and

provide a reference to applicable legislative requirements.

VPCL has been completing exploration activities in the permit area since 2009. To meet the EH&S needs of the

exploration phase, an EPP was developed specifically for the Project. The EPP was created in accordance with

the global Vale Health and Safety Policy and Provincial and Federal regulatory requirements. Specifically the

EPP includes procedures for activities, including but limited to, clearing of vegetation, handling of fuel and

hazardous materials, and erosion prevention. Many of the procedures provided in the EPP will also apply to

other phases of Project (e.g., construction, operations, decommissioning); however, changes may be necessary

to reflect specific aspects of the activities occurring at each phase and any changes in regulatory requirements.

4.3 Emergency Response and Contingency Plan Emergency preparedness and response are critical functions during all Project phases. Key components of the

EH&S Management System will focus on prevention and implementation of emergency procedures. Emergency

response plans will be established for injury, fire, spills, and other identified potential issues. An Emergency

Response Team will be formed on-site and trained to implement the Emergency Response and Contingency

Plan.

4.4 Occupational Health and Safety Plan VPCL will implement an Occupational Health and Safety Plan so that employees have a healthy and safe

workplace. Fundamental components of this program include employee involvement through committees and

meetings, appropriate safety practices, compliance with regulatory requirements, continuous safety awareness

and training, and risk management.

4.5 Human Resources Plan The purpose of the VPCL Human Resources Plan will be to:

address human resource needs during the life of the Project;

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provide an employment atmosphere that will attract, develop and retain qualified personnel;

provide work facilities and conditions that safeguard the health, safety and general well-being of

employees;

enhance the economic and industrial benefits that will accrue to the province from direct and indirect

expenditures made through the purchase of goods and services; and

meet all obligations under provincial and federal legislation governing human resources.

Human resources planning is an ongoing and dynamic process; the plan will be reviewed and updated

periodically to address the changing human resource requirements throughout the life of the Project.

4.6 Reclamation Plan Reclamation will form an integral part of the overall mine plan and will be ongoing throughout the life of the

Project. Planning for closure will be an underlying theme supporting VPCLs approach to site reclamation.

Surface disturbances associated with the construction and operation of the Project will be managed and

mitigated through reclamation plans developed to restore disturbed areas to a safe and environmentally stable

condition. Progressive reclamation will provide an opportunity to reduce the extent of disturbed land over the life

of the Project and re-establish conditions which permit the land to return to previous land uses in a timely

manner. These reclamation plans will be complimentary to the overall D&R Plan described in Section 3.10.

4.7 Education and Orientation Plan An Education and Orientation Plan (EOP) will be implemented to help employees, contractors, and visitors

understand their EH&S responsibilities, the Project commitments to environmental protection, and to promote a

safe and healthy work place. All employees and contractors working at the Project must attend an EH&S

education and orientation session. The session will provide workers with an understanding of VPCLs policy and

principles for environmental management. Records will be kept to confirm that new employees and contractors

have received awareness training before beginning work on site.

4.8 Monitoring and Follow-up Plan VPCLs monitoring and follow-up plan will be developed prior to the start of construction and will include

recommendations made by regulatory agencies and stakeholders, as appropriate, during the EIS review

process. Monitoring and follow-up plans will be developed by VPCL to comply with regulatory requirements,

permits, and corporate commitments. The program will focus on forward planning requirements, evaluating the

environmental effect predictions made in the EIS, and will also act as an early detection system should adverse

effects be identified. The follow-up portion of the plan will integrate the results of the monitoring programs and

evaluate the effectiveness of mitigation. Monitoring and follow-up will continue throughout the life of the Project.

4.9 Auditing and Continuous Improvement Plan VPCL is committed to reviewing and continually improving the EH&S Management System, with the objective of

improving overall EH&S performance and promoting sustainable development. The auditing and continual

improvement plan will provide mechanisms for checking performance and corrective action such as monitoring

and measurement, non-conformance reporting, corrective and preventative action plans, record keeping and

documentation control, and EH&S system audits.

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5.0 PUBLIC, ABORIGINAL, AND REGULATORY ENGAGEMENT

5.1 Introduction VPCL’s Community Relations Plan is based on working in an integrated manner with government departments

and society to provide training for workers and community support that will leave a positive effect once mining

operations are complete. The overall engagement program encompasses four major elements; public,

Aboriginal (First Nations and Métis communities), adjacent landowners, and regulatory agencies.

5.2 Engagement Approach The key aspects of the engagement program for the Project include community information sessions, Aboriginal

engagement meetings, a neighbour relations programs, as well as regulatory workshops. An important aspect of

the engagement program is the linkage of various engagement activities with different phases or milestones of

the project.

The objective of the community information sessions is to foster an understanding of the Project and provides an

opportunity for people in the area to show support and/or identify concerns about the effects of the Project. The

information collected during community information sessions will be included in the EIS, along with an indication

of how any concerns raised will be addressed. Community information sessions were held in March 2011 to

introduce the Project and VPCL to the surrounding communities. The outcome of these community information

sessions is described further in Section 5.3. A second round of community information sessions is currently

being planned to correspond with the submission of the Project Proposal. The timing of the third round of

community information sessions is to coincide as closely as possible with the submission of the EIS to the MOE.

The objectives of the Aboriginal community engagement program is to provide a solid foundation for the

Aboriginal engagement activities that will occur throughout the EA and Project development, identify any specific

issues that will be of interest locally and establishing relationships with Aboriginal leadership in the Project area.

The discussions with Aboriginal communities are also used to establish the basis for collecting baseline data

related to traditional knowledge and land use in the Project area.

Local landowners will have very specific concerns and questions associated with living and owning land in close

proximity the Project. The purpose of the neighbour relations program is to establish solid relationships with

landowners and residents closest to the Project. The program provides VPCL the opportunity to engage with

these folks and discuss Project-specific details and potential environmental and socio-economic effects.

Information gathered from the neighbour relations program will be documented in the EIS.

VPCL will meet with government and regulatory agency staff throughout the EA process. In particular, VPCL will

initiate a workshop to discuss the Project Proposal and request feedback from the regulators. A subsequent

workshop will present the initial findings of the EA.

5.3 Preliminary Engagement Activities 5.3.1 Community Engagement

In March 2011, VPCL held two come-and-go style community information sessions, one in Emerald Park and

one in Kronau (Table 5.3-1). The purpose of the community information sessions was to introduce the Project

and the Project Team to the local communities, as well as address any questions that the public may have with

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respect to the proposed Project. The sessions provided attendees the opportunity to meet key Project personnel

and have informal discussions about the company and about the Project.

Table 5.3-1: Community Information Sessions Completed to Date

Location of Community Information Session Date Time

Great Plains Auctioneers, Emerald Park Wednesday, March 9, 2011 4 to 8 p.m.

Kronau Memorial Hall, Kronau Thursday, March 10, 2011 4 to 8 p.m.

The community information sessions were advertised in three local newspapers/newsletters, through posters

that were placed around the nearby communities, and a copy of the poster was posted on the R.M. of Edenwold

website. An advertisement was also placed in the March 2011 edition of Krier Kountry; a local newsletter that is

distributed to 315 households in the communities of Kronau, Richardson, and Lajord. Advertising also occurred

in the Regina Leader-Post and in the Regina SUN. Posters advertising the meetings were placed in ten

locations in five different communities (i.e., Balgonie, Emerald Park, Kronau, Lajord, and Richardson),

approximately one week in advance of the meetings.

Comments made during the sessions were recorded and attendees were encouraged to fill out feedback forms.

The feedback from both sessions was generally positive and showed the overall interest in the Project. A

Question and Answer document was prepared to address the questions received from the sessions and was

mailed out to attendees who provided their mailing address.

5.3.2 Aboriginal Engagement

A number of Aboriginal communities that may have interests in the Project area were identified for involvement

in the engagement process. Initial contact has been made with the key Aboriginal communities identified and

with Aboriginal educational and business agencies such as the Saskatchewan Indian Institute of Technologies

(S.I.I.T.), Gabriel Dumont Institute and Clarence Campeau Agency. The goals of the meetings are to:

1) introduce VPCL to the elected representatives of each Aboriginal community; 2) present the proposed Project;

3) describe the environmental assessment process; and 4) obtain information on how the Aboriginal

communities would like relevant baseline data collection to occur. As with the public engagement activities,

questions and concerns raised during the meetings will be recorded.

5.3.3 Government and Regulatory Engagement

VPCL has had introductory meetings with the R.M.’s of Edenwold (No. 158) and Lajord (No. 128). The purpose

of these meetings were to introduce representatives of VPCL to the R.M. administration and councillors, and to

provide high level information on the Project. It is VPCL’s intent to request time at the R.M. Council meetings to

coincide with the submission of the Project Proposal, as well as the submission of the EIS.

5.4 Summary of Issues and Concerns Overall, the feedback from the preliminary engagement activities has been positive. Stakeholders are interested

in the Project and want to be involved in the engagement process. All have expressed an interest for additional

information as the Project progresses. Questions and concerns from the initial community information sessions

were generally focused on water requirements for the Project, the location of the mine site, tailings management

and subsidence.

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VPCL is committed to providing Project details to adjacent landowners, the public, and Aboriginal communities

as they become available. Following submission of the Project Proposal, these stakeholders will be notified

about activities and events associated with the EA for the Project and invited to provide input.

6.0 KEY ISSUES AND POTENTIAL ENVIRONMENTAL EFFECTS The objectives of this section of the Project Proposal are to present a summary of the key environmental issues,

and to link these key issues to the pathways through which Project components and activities (e.g., footprint,

mining activities, mine plan, water and waste management plans) can affect the biophysical and socio-economic

environments. A preliminary technical site screening review for the proposed Project was completed to identify

high level risks to the environmental and socio-economic environments that may result from the Project. The

screening review facilitated the identification of potential environmental effect pathways.

Effects pathways represent potential changes to VCs of the biophysical and socio-economic environments

resulting from the Project components or activities. These pathways are then used to guide the design of

scientifically robust baseline programs to describe the existing environment and to assess environmental effects.

Information on the existing environments and the approach for assessing environmental effects is provided in

Sections 7.0 and 8.0, respectively. It is expected that the identification of environmental issues and effects

pathways will evolve through the Project design process. In addition, environmental effect pathways that are

identified through VPCL’s engagement process, or that are contained within the PSGs for the Project will also be

incorporated into the EA.

The identification of potential pathways and associated environmental effects builds on the preliminary Project

scoping meetings with government, public, and First Nations and Métis people, and focuses the assessment on

the key pathways that likely lead to residual effects on VCs. The key environmental issues that have been

identified for the Project are summarized in Section 6.1. The environmental effects pathways that will be

evaluated in the EA for the Project are summarized in Section 6.2.

6.1 Key Issues Key environmental issues related to the proposed Project were identified from a number of sources including:

a review of the Project Description (Section 3.0) and completion of a site screening review study by the environmental and engineering teams for the Project to scope potential environmental effects;

socio-economic issues defined during initial scoping and other engagement activities with the public (i.e., local communities, landowners, and other concerned members of the public), Aboriginal communities, and governmental and regulatory agencies;

scientific knowledge and experience with other potash mines in Saskatchewan;

professional experience and judgment of potential interactions between the Project components and the socio-economic characteristics and structures of the regional and local communities; and

issues identified by MOE in recent PSGs for other proposed potash mine projects.

Potential areas of concern identified for the Project and include:

water supply;

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protection of groundwater resources related to tailings management;

ground subsidence;

air quality; and

cumulative effects.

Additional issues identified during preliminary engagement activities include:

protection of wildlife and fish populations;

employment and training opportunities; and

economic development.

6.2 Environmental Effects Pathways The potential environmental effects pathways for the biophysical and socio-economic environments are

summarized in Tables 6.2-1 and 6.2-2, respectively. Effects to the biophysical environment (Table 6.2-1) can

also influence the socio-economic environment. The related effects of changes to the biophysical environment

on the socio-economic environment will also be considered in the EIS.

The assessment of effects from the Project will consider all pathways that may lead to environmental effects,

after implementing environmental design features. Environmental design features are incorporated into the

Project design to reduce or prevent environmental effects, and can include Project design considerations and

environmental best practices, management policies and procedures, and social programs. Environmental

design features are developed through an iterative process of Project design and EA, and are used to remove

the pathway, limit (mitigate) effects of the Project or increase benefits. Key environmental design features that

have been incorporated into the Project design are listed in Tables 6.2-1 and 6.2-2.

The EIS will also address the potential for Project effects to contribute to cumulative effects to the biophysical

and socio-economic environments. The cumulative effects assessment includes the predicted residual effects

from the Project, as well as other previous, existing, and reasonably foreseeable projects and activities.

6.3 Summary of Potential Effects Related to Key Issues The key environmental issues identified for the Project include water supply, protection of groundwater

resources, air quality, and ground subsidence. Wildlife and fish populations, employment, training, economic

development, and cumulative effects will also be important issues. These issues have also been identified by

MOE in recent PSGs for other proposed potash mining projects. A summary of concerns identified, the

pathway(s) for effects, and environmental design features incorporated into the Project for each of the key issues

is provided below.

6.3.1 Water Supply

The availability of fresh water for potash production supply is one of the primary issues of concern. Due to the

number and location of current and proposed potash projects, there is growing pressure on groundwater and

surface water sources within the province. The water supply requirements for production and potable use are

estimated to be approximately 21 Mm3 per year for a mining rate of 2.9 Mt per year.

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Table 6.2-1: Potential Effects Pathways to the Biophysical Environment

Project Activity Effect Pathways Potential Environmental Effect(s)

Environmental Components

Key Environmental Design Features

Project footprint

Direct ground disturbance

Loss or degradation of local soil, crop/pasture land, vegetation and wildlife habitat

Indirect effects to wildlife behaviour and movement

Alteration of local surface drainages and potential effects to fish and wildlife habitat

Surface Water Resources

Terrestrial Resources

Site selection

The layout of the mine footprint will limit the area that is disturbed by the Project

Directional drilling from a centralized pad will limit the surface footprint

Transportation and utility corridors (road, rail, electrical, natural gas, water)

Access roads, railway lines, and utility corridors will be located along existing corridors to reduce disturbance to undisturbed lands, where practical

Surface water control on-site

Changes to local flow pattern in water courses

Effects to flows and water levels in nearby streams, lakes, and wetlands

Surface Water Resources

Terrestrial Resources

Site selection

Site water management plan

TMA (salt storage, and brine pond)

Vertical and lateral seepage of brine

Effects to shallow aquifers

Effects to local surface water quality, fish, and wildlife

Groundwater Resources

Surface Water Resources

Terrestrial Resources

Site selection

TMA design

Deep well injection of excess brine from the TMA

Effects to deep groundwater aquifers

Deep well brine injection has the potential to result in leakage of brine though confining layers to fresh-water aquifers.

Groundwater Resources

Deep well injection is a proven practice used to manage brine and prevent release to surface waters and potable aquifers

Solution Mining Ground subsidence

above underground cavern development

Changes in local surface drainage patterns, flows and water levels in lakes, streams, and wetlands

Surface Water Resources

Terrestrial Resources

Pillars will be left between the caverns to increase stability during solution mining

Using secondary mining helps to reduce total subsidence, as more of the material (i.e., NaCl) stays in the cavern

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Table 6.2-1: Potential Effects Pathways to the Biophysical Environment (continued)

Project Activity Effect Pathways Potential Environmental Effect(s)

Environmental Components

Key Environmental Design Features

Air and noise emissions (stacks, mobile equipment, fugitive dust)

Change in ambient air quality and deposition

Increase in noise levels

Effects of deposition on local crop/pasture land, vegetation, wildlife, habitat, and surface water quality

Effects to wildlife behaviour and movement

Air Quality

Surface Water Resources

Terrestrial Resources

Emission controls on stationary emission sources

Dust control systems will be used

Compliance with stack emission and ambient air quality standards

Decommissioning, closure and reclamation plan

Residual ground disturbance after closure

Permanent alteration of local soil, vegetation and wildlife habitat

Terrestrial Resources

The layout of the mine footprint will limit the area that is disturbed by the Project

Access roads, railway lines, and utility corridors will be located along existing corridors to reduce disturbance to undisturbed lands, where practical

Directional drilling from a centralized pad will limit the surface footprint

Long-term seepage from TMA

Effects to local groundwater resources

Effects to local surface water quality

Groundwater Resources

Surface Water Resources

Terrestrial Resources

Site selection

TMA designed to reduce potential for long-term seepage

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Table 6.2-2: Potential Effects Pathways to the Socio-Economic Environment

Project Activity Effect Pathways Potential Environmental Effect(s) Environmental Components Key Environmental Design Features

Construction/ Operation

Workforce and procurement requirements of the Project

Increase in employment and business opportunities

Increased education and training

Increase in labour income

Increase in economic activity in nearby communities/region

Household incomes

Community well-being

Enhancement of employment benefits generated by the Project

Procurement of goods and services locally and regionally

Construction/ Operation

Increase in traffic

Nuisance to human populations due to increase in noise or dust emissions

Reduced road safety

Longer driving time due to traffic congestion

Deterioration of road surface

Human safety

Visual Aesthetics

Quality of life

Quality of road infrastructure

Practices to reduce number of vehicles driving to/from site

Dust-control measures on roads

Improved road conditions (e.g., upgrading and paving of primary access roads)

Construction/ Operation

Increase in tax revenue

Improved fiscal position of municipalities, province, and nation

Local, regional and national economy Not applicable

Construction/ Operation

Influx of workers required by the Project

Increased pressure on community infrastructure (including recreational facilities), and possible deterioration of services (e.g., health, education)

Lack of integration of new workers into community

Increased pressure on housing sector (i.e., inflationary effects and housing shortages)

Increase in recreational hunting or fishing activity in nearby areas, with possible effects on wildlife or fish populations

Community facilities and infrastructure

Social cohesion

Community well-being

Outdoor recreational opportunities

Size of wildlife and fish populations

Establishment of first-aid clinic at the Project site

Worker transportation will be explored to reduce commuter traffic, especially at night

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Table 6.2-2: Potential Effects Pathways to the Socio-Economic Environment (continued)

Project Activity Effect Pathways Potential Environmental Effect(s) Environmental Components

Key Environmental Design Features

Construction/ Operation

Air emissions from power generation, vehicles, machinery

Sensory disturbance (e.g., odours, lights)

Changes in air quality, with possible effects on human health and/or visual aesthetics

Nuisance to human populations

Human health

Visual aesthetics

Quality of life

Installation of appropriate noise- and odour-reduction mechanisms in Project facilities/installations and vehicles

Lighting design to control off-site light disturbances

Physical Project footprint

Conversion of agricultural land to other (i.e., mining/ industrial) uses

Reduction in available agricultural land

Upward pressure on rural land prices

Capacity for agricultural land use

The layout of the mine footprint will limit the area that is disturbed by the Project

Access roads, railway lines, and utility corridors will be located along existing corridors to reduce disturbance to undisturbed lands, where practical

Directional drilling from a centralized pad will limit the surface footprint

Alteration of rural landscape

Visual impact of Project facilities/installations

Aesthetic value of rural landscape

Use of colours and features that reduce visual impact of the Project

Disturbance or loss of cultural resources

Reduction in number of undisturbed sites of cultural importance

Cultural heritage sites

Appropriate mitigation/monitoring practices for cultural resources

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Raw water for the Project will be provided by the Saskatchewan Watershed Authority (SWA) via a pipeline from

Lake Katepwa to the Project core facilities area. Application has been made to the SWA for the required water

supply and a positive response has been received, providing preliminary assurance that the watershed can be

successfully operated to meet the needs of SaskWater for VPCL. As such, the cumulative effects assessment in

the EIS will consider Project-specific effects, in combination with potential effects from SaskWater’s water supply

project.

6.3.2 Groundwater Protection

Protection of groundwater is a major concern for the MOE and the public, as there is the potential for

groundwater contamination by the Project. A containment system will be designed to control migration of brine

from the TMA to underlying aquifers and control the horizontal migration of brine, as required. VPCL will be

undertaking extensive site selection studies to locate the TMA for the Project in an area with a high degree of

natural containment. In addition, contaminant transport modelling will be completed to demonstrate the

acceptable long-term environmental performance of the TMA. Information collected from field studies and

transport modelling will be used to devise a containment strategy to control migration of brine from the TMA to

underlying aquifer units. Design of containment systems will facilitate protection of groundwater resources over

the design life of the TMA, which will span the operation and decommissioning phases of the Project.

6.3.3 Air Quality

The construction, operation, and closure of the Project will result in changes to air quality from air and dust

emissions. Potential pathways through which the Project can modify air quality in the local receiving

environment include emissions from stacks, mobile equipment, and fugitive dust from access roads. Changes in

ambient air quality and deposition may have indirect effects on surface water quality and fish and fish habitat.

Air and dust emissions may also affect the quality of soils, vegetation, and wildlife habitat, which could

subsequently lead to changes in wildlife populations. As such, environmental design features (e.g., emission

controls on stationary emission sources, and dust control systems) will be incorporated during the design of the

Project to limit potential effects associated with air emissions. In addition, compliance with regulatory emission

requirements will be maintained. Effects of air emissions on the terrestrial and surface water resources, and on

the socio-economic environment will be assessed in the EIS.

6.3.4 Ground Subsidence

The potash will be mined using a solution mining process which will result in subsidence, or settlement of the

ground surface overlying the mined areas. Most of the effects from subsidence are related to the anticipated

topographic changes at surface in areas overlying the mined caverns. Subsidence can develop over mined

caverns concurrent with mining and continuing through post-mining as the caverns continue to close due to pillar

creep and the nature of the overlying strata. Subsidence is a very gradual process, and topographic changes

may require hundreds of years to fully develop.

Most of the subsidence effects are related to the anticipated topographic changes on the surface area overlying

the mining works. Subsidence is expected to result in adjustments to watershed boundaries as topography

adjusts. In general, it is anticipated that the gradient of the stream channels in the Project area (e.g., McGill

Creek, Kronau Creek, and Manybone Creek) may increase toward the east and decreases toward the west of

the mine area. However, it is anticipated that these potentially affected streams will retain the same general

shape and slope after subsidence has occurred. Because subsidence occurs over hundres of years, there is

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much uncertainty related to predicting potential effects as surface and drainage systems are continuously

undergoing modification due to erosion processes. Over the hundreds of years required for maximum

subsidence, many periods of wet years and numerous occurrences of extreme floods will modify the existing

drainage channels and flow paths.

As a result of these uncertainties, VPCL is proposing to implement a monitoring program that will assist VPCL in

gaining a deeper understanding of subsidence and assessing the response in the local environment. Depending

on the findings, adaptive management practices may be applied to mitigate potential effects from subsidence.

6.3.5 Wildlife and Fish Populations

Project effects on wildlife and fish population abundance and distribution are expected to be associated primarily

with direct and indirect changes to habitat quantity and quality. Alteration to wildlife habitat from the Project may

result from changes to soil quality, vegetation, and effects to surface water resources during the construction,

operation, and closure of the Project. Changes to the local surface drainage patterns, flows, and water levels in

lakes and streams have the potential to affect fish habitat. Where appropriate, environmental design features

will be incorporated during the development of the Project to address these issues by either eliminating or

limiting potential pathways, and associated effects. For example, existing corridors will be used where possible

to reduce the direct ground disturbance from the Project. Installation of culverts for the railway line will be

completed such that effects to fish and fish habitat are mitigated. Construction activities will be completed with

best management practices for construction activities in or adjacent to fish bearing waters, and will be completed

outside of the timing window for spring spawning species in Southern Saskatchewan. As described above, it is

anticipated that streams will retain the same general shape and slope after subsidence has occurred. Therefore,

it is anticipated that fish habitat characteristics in these major streams (McGill, Kronau, and Manybone Creeks)

should continue to support similar small-bodied fish populations.

6.3.6 Employment, Training and Economic Development

Socio-economics are influenced by all components of the physical, biological, and cultural environments. For

example, traditional and non-traditional uses of water, plants, animals, and other biophysical properties are

connected to the cultural, social, and economic aspects of the environment. Potential effects from the Project to

the socio-economic environment will likely be assessed through predicting positive and negative changes to a

number of components (e.g., employment, training, and economic development). For example, workforce and

procurement requirements of the Project may increase employment and business opportunities, education and

training, and economic activity in nearby communities/region. Conversely, influx of workers required by the

Project may increase pressure in community infrastructure, and possible deterioration of services (e.g., health

and education). Environmental design features will continue to be developed through information gathered from

key informant interviews, First Nations and Métis engagement activities, and through an economic assessment

using input/output modelling.

6.3.7 Cumulative Effects

Cumulative effects represent the sum of all natural and human-induced influences on the biophysical, cultural,

and socio-economic environments over time and across space. Cumulative effects will be assessed where the

incremental effects of the Project could overlap with the combined effects of other existing, approved, and

reasonably foreseeable developments. For example, a number of additional potash production sites are being

proposed for southern Saskatchewan, some of which are in close proximity to the Project. Not every VC

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requires an analysis of cumulative effects. The key is to determine if the effects from the Project and one or

more additional developments/activities overlap (or interact) with the temporal or spatial distribution of the VC.

7.0 EXISTING ENVIRONMENT This section provides an overview of existing environmental conditions for the biophysical and socio-economic

components that may be influenced by the Project-related effects pathways identified in Section 6.0. The

overview is mostly focused on those biophysical, cultural, and socio-economic components that are likely to be

valued and important to society (e.g., air quality, surface water levels, listed plant and animal species, heritage

resources, and employment). Much of the information in the overview was obtained from preliminary field

surveys and reviews of existing literature. Potential pathways and associated effects from the Project identified

in Section 6.0 were used to focus baseline study designs (i.e., intensity, duration, and spatial distribution of

sampling) and the type of data to be collected. Subsequently, this section also presents a description of the

baseline studies to be completed and data that will be used to fully assess Project-environment interactions, and

predict the incremental and cumulative effects from the Project and other developments in the EIS for the

following environmental components:

air quality and noise (Atmospheric and Acoustic Environment);

geology and hydrogeology;

surface water resources (hydrology, water quality, fish and fish habitat);

terrestrial resources (terrain and soils, vegetation, and wildlife);

cultural resources (heritage and traditional and non-traditional land use); and

socio-economics.

7.1 Atmospheric and Acoustic Environment 7.1.1 Overview of Existing Conditions

The Project is located in a region that has a semi-arid continental climate with mild, warm summers and cold, dry

winters. The mean annual temperature is 2.8 degree Celsius (˚C), with temperatures below zero degrees

Celsius from November to March. January is the coldest month with a daily mean temperature of -16.2˚C while

July is the warmest month with a daily mean temperature of 18.8˚C (Environment Canada 2010).

According to the climate normals for 1971-2000 available from Environment Canada the mean annual

precipitation is 388 mm, of which 78% falls as rain and the remaining 22% as snow. Most of the rainfall (97%)

occurs over the period April to October while most of the snowfall (82%) occurs over the period November to

March.

The average wind speed is fairly uniform over the year with mean monthly values ranging between 16 and

20 metres per second (m/s), generally from the southeast. April is the month with the highest wind speed

velocity (20 m/s) while the lowest wind speed tends to occur in July (16 m/s) (Environment Canada 2010).

Existing sources of air, fugitive dust, and noise emissions include traffic on public roads, rail transportation, and

agricultural and residential activity. Wind, birds, frogs, and insects contribute to background noise levels, while

wind also can generate fugitive dust from fields and roads.

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Air emissions include sulphur dioxide (SO2), oxides of nitrogen (NOX), and particulate matter (PM). Sulphur

dioxide and NOX are emitted directly from the combustion of fossil fuels (diesel), and PM is emitted directly from

combustion and also forms as a secondary process in the atmosphere after combustion.

Noise is typically considered a perception issue and therefore the focus of noise studies is normally on human

response. Data gathered for human response will also be used to model potential wildlife disturbance issues.

7.1.2 Baseline Studies

The study area for the air quality assessment of the Project was selected to include a region within the expected

zone of influence of the core facilities area. The study area for completing predictive modelling on changes to air

quality was defined by a 20 by 20 km region centred on the core facilities area. Ambient air quality and

meteorological data will be collected at and around the Project prior to its development.

Existing climate data from the Class A meteorological station in Regina would be compiled and tabulated for the

Project. Historical climate records are also available from Environment Canada at the meteorological station

located at the Regina Airport. On-site meteorological monitoring will supplement the available data and will

include precipitation, temperature, wind speed and direction, relative humidity, and barometric pressure. The

intended use of the data is to support the development of an air quality assessment that will be required as part

of the project application. Baseline air quality and meteorological data will be used as inputs to the dispersion

model that forms the basis of the assessment.

The focus will be on the monitoring and modelling of air quality compounds that are relevant to the potash mining

industry, specifically on the monitoring of particulate matter including total suspended particulate (TSP), PM

having a nominal aerodynamic diameter of 10 microns (µm) or less (PM10), and particulate matter having a

nominal aerodynamic diameter of 2.5 µm or less (PM2.5). A future air quality assessment would also require

baseline information on additional compounds including data on ambient concentrations of SO2 and nitrogen

dioxide (NO2).

Baseline sampling is proposed for the duration of the 1-year air quality baseline monitoring program with a

24 hour sample being drawn every sixth day in accordance with the National Air Pollution Surveillance (NAPS)

schedule. The results of the baseline sampling will be compared to the SO2 and NO2 standards provided in the

Saskatchewan Ambient Air Quality Standards (SAAQS) and the Ambient Air Quality Objectives for Canada

(AAOC).

The focus of the noise baseline study will be on public exposure. The baseline study will be completed in the

summer of 2011 and will determine ambient noise levels at locations considered sensitive to noise from the

human perspective. This includes residences, parks, campgrounds, schools, hospitals, nursing homes, and

spiritual areas (churches and First Nation’s sites).

In Saskatchewan, there are no provincial noise requirements or standard methods for completing baseline noise

surveys. For the purposes of this project, the Alberta Energy Resource Conservation Board (ERCB)

Directive 38: Noise Control methods will be used (ERCB 2007). By including a wider range of noise sensitive

land uses than cited in the ERCB method in the study, the baseline noise study will also be consistent with

Health Canada noise guidance.

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7.2 Geology and Hydrogeology 7.2.1 Overview of Existing Conditions

Existing surface, subsurface, and groundwater information were compiled to provide a preliminary geological

characterization within the study area. Compilation of existing information included the collection of existing

borehole logs, study reports, and publications. The information was received from several parties including

Saskatchewan Research Council (SRC) and SWA. Approximately 500 borehole logs were reviewed. The

borehole logs included geophysical traces and soil lithology descriptions. Approximately 50 borehole logs were

considered unusable or redundant; the remaining 450 borehole logs were used to compile a conceptual site

model.

The geology and hydrogeology study area was defined at a regional scale to encompass portions of Last

Mountain Lake, and the Qu’Appelle River, which constitute the major topographic features within the region and

exert a controlling influence on groundwater flow in the area of the Project. The lateral extents of the geology

and hydrogeology study area roughly correspond to regional groundwater flow boundaries surrounding the

Project and will be suitable for defining the domain for subsequent development of a regional numerical

groundwater flow model.

7.2.1.1 Geology

The surficial geology of southern Saskatchewan is the result of multiple glacial advances and retreats, taking

place between approximately 20,000 and 14,000 years ago. As a result of these events, a layer of glacial “drift”,

consisting of till interbedded with stratified deposits of silt, sand and gravel, overlies much of the bedrock in the

southern half of the province. The thickness of the glacial drift can range from 0 to 300 m (Maathuis 1992).

Thick Cretaceous age deposits of highly over-consolidated silt and clay shale comprise the underlying bedrock

throughout the region. The extent of these shale deposits is great and they are considered to be a reliable

geological datum (Saskatchewan Agriculture 1986). Due to the thickness and low permeability of these shales,

the top boundary is taken to be the base of regional groundwater near surface flow systems (Maathuis and van

der Kamp 1988). The outcropping of these shale deposits is minimal and is associated with river valleys and

other erosional features.

Ground surface elevations range from approximately 691 m above sea level (ASL) in the highlands north of the

proposed development area to 475 m ASL within the eastern reaches of the Qu’Appelle River valley, which

constitutes regional topographic lows. The Cretaceous bedrock surface generally slopes toward the northeast

within the study area and is typically encountered at elevations ranging from 350 to 650 m ASL. The bedrock

surface is present at elevations up to 600 m ASL directly below the proposed development area.

7.2.1.1.1 Bedrock Geology

The basement rock in the geology and hydrogeology study area is igneous and of Precambrian age. Bedrock

exists at depths below surface greater than approximately 2,400 m below ground surface (BGS). In and around

the study area, there are four wells penetrating into the Precambrian rock with some associated geophysical

logs. Adjacent to the study area, borehole 121/04-25-13-19 W2M has detailed geophysical logs and interpreted

geological intervals. This borehole, together with two other boreholes in and around the study area was used to

create a cross-section of the bedrock. Depths for certain geological units provided in this section are derived

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from these boreholes and cross-section. These depths, however, are expected to vary within the study area.

These data are available through the commercial geological database geoScout.

Immediately overlying the basement rock are the limestones and shales of the Cambrian Deadwood Formation.

Above the Deadwood Formation are strata of Ordivician and Silurian ages. These are comprised of various

assemblages of sandstone with shales, siltstones, limestone, and dolomites (Bernatsky 1998).

Middle Devonian strata overlying Silurian rocks host the Prairie Evaporite Formation, consisting of the extensive

potash deposits of southern Saskatchewan. These deposits exist at approximately 1,900 m BGS in the study

area.

Other rocks of the Middle and Upper Devonian, Mississippian, Triassic and Jurassic overlie the Prairie Evaporite.

These consist predominantly of limestone, carbonates, dolomites, shale, argillites and anhydrite

(Bernatsky 1998). Total dissolved solids (TDS) values in this sequence increase with depth (Jensen et al. 2006).

In and around the study area, there are 46 wells penetrating the Upper Devonian sequence (geoScout 2010).

Above the Jurassic units lies the Lower Cretaceous Mannville Group, containing sandy fluvial-lacustrine

deposits. The Mannville Group exists across the southern province and is well known for hosting heavy oil

deposits in the Lloydminster region (Bernatsky 1998; Saskatchewan Ministry of Energy and Resources 2004).

The Mannville Group is a complex arrangement of filled-in channels, blanket sands and interbedded shale,

which has historically presented water inflow issues during the sinking of conventional shafts at existing potash

mines in Saskatchewan (Glass 1990). This deposit exists at approximately 700 m BGS in the study area, and is

approximately 100 m thick. There are 70 wells in and around the study area that penetrate the Mannville Group

sediments (geoScout 2010).

Above the Mannville Group and overlapping the Lower Cretaceous into the Upper Cretaceous, lies the Colorado

Group, consisting almost entirely of shale deposits. Above the Colorado Group lies the top-most sequence of

shale continuing upwards to the base of the Quaternary/Tertiary deposits. In western Saskatchewan these

consist of the Lea Park Formation, Judith River Formation and the Bearpaw Formation, in ascending order. The

Lea Park and Bearpaw Formations are lithologically identical deposits of shale, separated by the fine-grained

sandstone and siltstone of the Judith River Formation. In eastern Saskatchewan, where the Judith River

Formation pinches out, the Lea Park and Bearpaw Formations are referred to collectively as the Pierre Shale

(Simpson 2004). Table 7.3-1 presents a summary of the bedrock geology and hydrogeology of the study area.

Several processes altered the bedrock topography within the study area (Simpson 2004). These included

preglacial erosion and deposition, fluvio-glacial and glacial erosion, and collapse. Preglacial rivers flowing from

the Rocky Mountains eastward across Saskatchewan created channel features within the bedrock surface.

Glacial action and meltwater created moraine features, and glaciofluvial meltwater channels, especially within

the Qu’Appelle River and Arm River valleys. The bedrock surface has been further modified by salt dissolution

from the stratigraphically lower Prairie Evaporite Formation. Collapse has caused distortion of the upper

bedrock units within the region, including the Judith River and Bearpaw Formations; however, there is no direct

evidence of salt collapse within or immediately adjacent to the proposed development area.

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Table 7.3-1: Bedrock Geology and Hydrogeology of the Study Area

Hydrologic Group Geologic Age Stratigraphic Unit

Confining Layer Bearpaw shale

Upper Cretaceous Late Cretaceous Milk River, Belly River, Medicine Hat, Viking Formations

Confining Layer Joli Fou Formation

Mannville Early Cretaceous Mannville Group

Confining Layer Vanguard shale

Jurassic Jurassic Vanguard, Shaunavon, Gravelbourg and Watrous Formation

Confining Layer Watrous shale and evaporates

Madison Mississippian Big Snowy Group; Charles, Mission Canyon and Lodgepole Formations

Confining Layer Three Forks Group

Saskatchewan Late Devonian Birdbear and Duperow Formations

Manitoba Middle Devonian Souris River, First Red Beds, Dawson Bay and Second Red Beds Formations

Elk Point Middle Devonian Prairie Evaporite, Ratner, Winnipegosis and Ashern Formations

Silurian Silurian - Ordovician Interlake Formation and Big Horn Group

Deadwood Ordovician - Cambrian Winnipeg and Deadwood Formations

Confining Layer Precambrian

Source: Bernatsky 1998.

7.2.1.1.2 Quaternary Geology

The sediments in southern Saskatchewan consist of multiple layers of Quaternary stratified drift underlain by

Tertiary/Quaternary fluvial deposits. The fluvial deposits, overlying the bedrock within the geology and

hydrogeology study area, are referred to as the Empress Group. Above this, in ascending order are the glacial

drift deposits of the Sutherland Group and Saskatoon Group. Each group has distinct geological compositions

and geographic extents.

7.2.1.1.3 Empress Group

The Empress Group, where it exists, is located between the bedrock and the Sutherland Group and was

deposited prior to and during glaciation. Its thickness within the study area ranges from approximately 0 to 100 m

and is comprised of stratified gravel, sand, silt and clay sediments. As a result of the variable composition, the

Empress Group may comprise an aquifer in one region or an aquitard in another (Maathuis and van der

Kamp 1988).

The most notable Empress Group feature in southern Saskatchewan is a buried glacio-fluvial channel known as

the Hatfield Valley. It is approximately 550 km long and extends from the south-east Manitoba border to the

north-west Alberta border (Maathuis 1992). Though the Empress Group sediments exist over a wide range of

Saskatchewan the Empress Group sediments (with only a few exceptions) are largely discontinuous in the

southern portion of the province. The thickest Empress Group deposits within the study area correspond to the

Hatfield Valley buried channel to the northeast of the proposed development area.

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7.2.1.1.4 Sutherland Group

Sutherland Group tills were deposited between the Empress Group and Saskatoon Group. This group of

sediments is differentiated from the overlying Saskatoon Group by carbonate content, stratigraphic sequence,

texture, colour, plasticity, and by electrical resistance (Sauer and Christiansen 1996). In addition, the tills of the

Sutherland Group are harder, more massive, have lower carbonate content, and possess a lower permeability

compared to tills in the overlying Saskatoon Group. The Sutherland Group tills also have higher clay and lower

sand content, and therefore exhibit a lower electrical resistance. There are sporadic sandy and silty zones within

the Sutherland till that comprises the Sutherland Aquifer. These zones generally occur in isolated pockets with

little to no inter-connectivity, and can be up to 50 m in thickness. In addition, the presence of a sub-aerial

weathering horizon or inter-till sediments that sometimes occurs between the Sutherland and Saskatoon groups

serves to differentiate these units. However, these definitive horizons are not always present because they may

be removed by erosional mechanisms. Where present, the intertill sediments generally appear in large

continuous beds. The Sutherland group can be up to 123 m thick.

7.2.1.1.5 Saskatoon Group

All sediments occurring from the top of the Sutherland Group to the ground surface including the Floral and

Battleford Formations, and surficial stratified drift deposits comprise the Saskatoon Group. The tills of the

Saskatoon Group are commonly sandier, more electrically resistive, with higher carbonate content than

Sutherland Group tills (Simpson 2004).

The Floral Formation is divided further into the Lower Floral sand and gravel, Lower Floral till, interglacial

sediments, Upper Floral sand and gravel, and Upper Floral till. The interglacial sediments are composed of

fossiliferous, carbonaceous silt, and sand and gravel (Maathuis and van der Kamp 1988).

Above the Floral Formation lies the Battleford Formation. This formation is composed entirely of soft, unjointed

till. The Battleford Formation is the most recent glacial deposit and therefore it is the main component of the

present-day landscape (Saskatchewan Agriculture 1986).

Stratified sand and gravel deposits within the Saskatoon group tills have been mapped across significant

portions of the study area and exist as a number of relatively large variably interconnected pockets with

thicknesses up to 40 m.

Surficial stratified drift deposits are composed of modern deposits of eolian, glaciolacustrine, glaciofluvial and

alluvial sediments. Within the study area, the most aerially extensive surficial deposit is stratified drift from

Glacial Lake Regina. Additionally, along the Qu’Appelle Spillway, large quantities of alluvial silt, sand and gravel

were deposited. These alluvial deposits intersect both the bedrock Bearpaw and Judith River Formations, due to

erosion of the Quaternary materials within the spillway channel (Simpson 2004).

7.2.1.1.6 Hydrogeology

The geologic units within the geology and hydrogeology study area can be grouped as hydrostratigraphic units of

aquifers and aquitards. An aquifer is composed of sediments that are sufficiently permeable to supply economic

quantities of water. An aquitard refers to low permeability deposits that act as a confining layer, which is capable

of storing water and transporting it from one aquifer to another, but is not capable of supplying useable quantities

of water (Fetter 2001). A hydrostratigraphic unit has considerable lateral extent, and is connected to the

hydrological system through groundwater recharge and discharge.

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Aquifers can be defined as geologic units that are relatively permissive to groundwater flow. In the study area,

aquifers may be composed of poorly-sorted or well-sorted gravel and/or sand. Aquitards can be defined as beds

of relative low permeability that separate aquifers. Though they contain water, it cannot be readily extracted by

means of a well. In the study area, aquitards may be composed of glacial till, lacustrine silt and clay deposits, or

marine silt and clay bedrock deposits.

Hydrogeology in the region is complex and involves the interactions among surficial sands and gravels, inter-

and intra-till granular sediments, and preglacial valley fills. Aquitards include lacustrine clays, glacial tills, and

bedrock shale layers.

The main aquitards in the study area are the clayey tills of the Saskatoon and Sutherland Groups that confine

the stratified intertill sand and gravel deposits; and the clay shale of the Bearpaw Formation that acts to confine

the lower surface of Empress Group stratified sand and gravel deposits. As well, within the lowland plains the

surficial stratified drift are composed of lacustrine clays that behave as aquitards and act to restrict infiltration of

surface water.

7.2.1.1.7 Bedrock Aquifers

Cretaceous Mannville Group

The Mannville Group consists of marine sandstone, shale and mudstone arenite deposits. Within the potash

industry, the Mannville Group can also be referred to as the Blairmore Formation, a unit which caused significant

water inflow problems during the sinking and development of the first potash mine shafts in Saskatchewan

(Nyman 1998). The Mannville Group is located approximately 720 m BGS and has a thickness of approximately

100 m (geoScout 2010).

Cretaceous Lower Colorado Group Viking Formation

Although the Lower Colorado Group is mainly composed of shale deposits, the Viking Formation is a shaly

sandstone sequence that can contain granular sandy units. These sandstone and sandy units may act as a

local aquifer, although their extent and continuity within the study area is not well defined. The Viking Formation

is located approximately 670 m below ground surface, and is approximately 30 m thick where it has been

mapped (geoScout 2010).

Cretaceous Montana Group Judith River Formation

The Judith River Formation is the upper-most aerially extensive bedrock aquifer within the study area. It is

composed of noncalcareous, carbonaceous, greyish brown and gray silt and sandy silt; fine- to medium-grained,

indurated and friable sand, locally cemented with calcite, and thin coal seams (Sauer and Christiansen 1996).

However, it is not highly used as a source of groundwater (Simpson 2004). The Judith River thins and pinches

out towards eastern Saskatchewan, and the average depth to the top of the aquifer can range from less than

150 m to greater than 300 m within the study area. In areas where erosion has removed the upper Cretaceous

stratigraphy, the Judith River may be hydraulically connected to Empress Group sediments of the Hatfield Valley

to the north, and the Surficial Stratified Drift of the Qu’Appelle River alluvium (Simpson 2004).

Cretaceous Montana Group Bearpaw Formation Sands

Although the Bearpaw Formation consists mainly of shales that act as an aquitard between the bedrock aquifers

and the Quaternary stratified drift, silty sand beds may exist in the Regina area that can act as local aquifer

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systems. The extent of these sand members are not well documented, and they are generally discontinuous

(Simpson 2004).

7.2.1.1.8 Quaternary Aquifers

Empress Group Aquifers

The aquifers belonging to the Empress Group are primarily of fluvial origin and lie just above the bedrock surface

within local bedrock depressions and valleys incised within the bedrock surface. Due to their fluvial nature, the

spatial extent of the Empress Group aquifers is limited, although there are several important sand and gravel

deposits taking the form of buried valleys. Other showings of Empress Group aquifers occur in bedrock

depressions and are generally localized. Where it occurs in the study area, the Empress Group ranges from

10 to 200 m BGS, and its thickness ranges up to 70 m.

The Hatfield Valley Aquifer is the most significant groundwater resource of the Empress Group, and has resulted

from the infilling with fluvial deposits of an expansive bedrock valley that runs southeast from the Alberta to

Manitoba borders through central Saskatchewan. At its closest, the Hatfield Valley Aquifer passes

approximately 60 km north of the proposed development area, and is, on average, 30 km wide. The sediments

that comprise the Hatfield Valley are medium to medium-coarse sand and gravels with minor amounts of silt and

till and is typically 30 to 50 m thick, though thicknesses of up to 80 m have been noted (Maathuis 1992;

Simpson 2004). The Hatfield Valley Aquifer is also truncated, to a limited extent, on its southern flank by the

deep alluvium of the Qu’Appelle Valley. The Hatfield Valley Aquifer is connected to and recharged by several

other aquifers farther north and east: the Meacham, Pathlow and Wynyard-Melville blanket aquifers and the

Bredenbury Aquifer. These aquifers together comprise the Hatfield Valley Aquifer System (Maathuis 1992).

Other Empress Group aquifers exist in the study area, however these are more limited in terms of connectivity

and overall rechargeability and constitute a questionable groundwater resource (Maathuis 1992).

Sutherland Group Aquifers

Sutherland Group aquifers are located within the tills of the Sutherland Group as stratified sandy and silty lenses.

The Sutherland Group aquifer has a limited geographic extent and connectivity within the study area. Depth to

the top of the Sutherland Group aquifers ranges from approximately 20 to 120 m BGS, and thickness ranges

from 2 to 45 m. Though these aquifers are common, they are not extensive and limited data exist on the

interconnection and continuity of these aquifers within the region (Simpson 2004); however, data compiled within

the study area indicates significant deposit of stratified Sutherland Group sediments to the east of the proposed

development area.

Intertill Aquifer

Where present, the intertill aquifer overlies the Sutherland Group till and is overlain by the Saskatoon Group till.

Within the northern portion of the study area, the intertill aquifer is present at thicknesses ranging up to 45 m.

Compiled data indicate isolated deposits in and around the potential development area.

Saskatoon Group Aquifers

Saskatoon Group aquifers refer to aquifer systems located above the Sutherland Group, and below surficial

stratified deposits. These aquifer systems are quite extensive within the study area, and consist of sand and

gravel units within the Saskatoon Group tills. Prior to the use of Buffalo Pound Lake as the chief source of

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Regina’s water supply, the city relied solely upon these aquifers. As a result, there have been extensive studies

on these groundwater resources (Simpson 2004).

The Lower Floral Sands and Gravels exist to the northeast of Regina in two aquifer systems: the Zehner Aquifer

System, and more distally, the Northern Aquifer System. The typical depth at which the Lower Floral Sands and

Gravels are encountered in this region ranges from 12 to 107 m. The thickness of these aquifers ranges from

2.5 to 21 m but are more generally between 5 and 15 m in thickness. These aquifers are described as “systems”

due to their complex nature. The extent of the Zehner Aquifer system is not accurately defined and it has been

suggested that there may be hydraulic continuity with the Upper Floral Sands and Gravels. Accordingly, it has

been suggested that Upper and Lower Floral Sands and Gravels and interbedded till be considered as one

complex aquifer/aquitard system. There is less information available to delineate the bounds of the Northern

Aquifer System, due to its greater distance from the City of Regina (Maathuis and van der Kamp 1988).

The Upper Floral Sands and Gravels can be encountered at depths between 0 and 65 m. Closer to the City of

Regina, the depth is in the range of 20 to 40 m and varies in thickness between 10 and 30 m. The Regina

Aquifer is located in this unit. As with the Lower Floral Sands and Gravels, the Upper Floral Sands and Gravels

are not accurately known in their extent and connectivity to surrounding aquifer systems. Despite their good

aerial extent, the groundwater resources of the Upper Floral Sands and Gravels are not well quantified with the

exception of scattered farm wells (Maathuis and van der Kamp 1988).

The Condie Aquifer is both a surface and near-surface unconfined aquifer than runs from the east side of

Regina, skirting along the northeast city limits, ending at Wascana Creek to the northwest. It has an

approximate 18 by 6 km outcrop 12 km to the east of Regina, beneath White City and Pilot Butte. The Condie

Aquifer is a major regional Saskatoon Group aquifer, and because of its shallow depth and close proximity to

Regina, it is an important groundwater resource for the surrounding area (Maathuis 1992). Stratigraphically, it

corresponds to the Armour Member of the Battleford Formation, and is situated above the lower Battleford and

Floral Formations, and below the unsaturated sands of the Condie Moraine, the upper Battleford Formation tills

and Regina Clay sediments (Simpson 2004; Maathuis and van der Kamp 1988). The Condie aquifer is

composed of coarse to very coarse sandy gravel grading upwards to silt, and ranges in thickness from

approximately 5 to 20 m (Maathuis and van der Kamp 1988).

7.2.2 Baseline Studies

The primary objectives of the baseline studies are to compile existing geologic and hydrogeologic information, to

develop a conceptual geologic and hydrogeologic model to be used in the development of a numerical

groundwater flow model for the geology and hydrogeology study area. The preliminary assessment of existing

surface, subsurface, and groundwater information within the Project area will be used to define additional data

gathering phases, as necessary. The regional geologic and hydrogeologic model will provide the basis for the

assessment of the regional groundwater resources, and for siting key project components (i.e., TMA, brine

ponds, and site infrastructure).

Geological and engineering data collected through stratigraphic and geotechnical drilling completed in 2011 will

support the integration of site specific data into the regional geologic and hydrogeologic model, which will form

the foundation of key waste management facilities design and the numerical groundwater flow model. In total,

eleven stratigraphic boreholes were drilled within the study area. Following the stratigraphic drilling program, the

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geological model will be updated with the results in the study area. The numerical model will be used as a tool

to assess the groundwater flow pathways in connection with the Project.

7.3 Surface Water Environment 7.3.1 Overview of Existing Conditions

The Project is drained by Wascana Creek tributaries located on the north side of the Wascana Creek

Watershed. The study area for the surface water environment is defined by the maximum expected spatial

extent of direct and indirect effects from the Project. At least six small sub-drainage systems may be delineated

in and or in the vicinity of the surface water study area.

From west to east, the main streams of the small sub-drainage catchments are referred to as McGill Creek,

Kronau Creek (also known as Fahlman Creek), Manybone Creek (also known as Oyama Creek), and three

unnamed creeks. All of these streams flow south-westward to discharge in Wascana Creek which flows

north-westward towards the City of Regina, and discharges to the Qu’Appelle River near Lumsden,

Saskatchewan. Between these streams there are small areas with short stream pathways draining directly to

Wascana Creek.

There are two small manmade waterbodies in the area. Oyama Lake is located west of Manybone Creek and

Fahlman Lake which is located at the headwaters of Kronau Creek. Oyama Lake has an open surface area of

approximately 0.4 square kilometres (km²) and was built in the 1940’s to mitigate floods in the low areas of the

watershed. Fahlman Lake has approximately 0.073 km² of open surface area and is used as a store for

irrigation purposes.

The surface hydrology component focuses on the spatial and temporal distribution of the surface water occurring

within the Project area. The Project lies within the north side of the Wascana Creek Watershed and is drained by

small tributaries that discharge to Wascana creek south west of Regina.

Based on information from long-term hydrometric stations approximately 60% of the annual flow volume is

expected to occur in April and is associated with the spring freshet, while other high flows in late spring and

summer are in response to heavy precipitation events in the area. Most of the Wascana tributaries in the region

are ephemeral with their flow mainly occurring during the spring freshet and during heavy precipitation events.

At these tributaries, trace flow could be expected after the spring freshet in absence of precipitation events and

eventually zero flow during the winter period when any remaining water will freeze. No flow records are

available for Wascana Creek below Kronau Marsh during the winter period with the exception of some short

records in November where low flows (daily averages of about 0.03 cubic metres per second [m³/s]) were

measured.

Surface water quality is influenced by factors such as groundwater quality and quantity, surface hydrology, and

sediment and soil chemistry. Land use activities (e.g., agriculture) also influence water quality through air

emissions, changes in drainage patterns, infiltration and soil chemistry. In turn, changes to surface water quality

can affect aquatic and terrestrial organisms, human health, and traditional and non-traditional land use activities

(e.g., fishing, trapping, and hunting).

Oyama Reservoir was the only previously known fish bearing waterbody sampled for this project. The reservoir

is reported to contain the following fish species: fathead minnow (Pimephales promelas), northern pike (Esox

lucius), and walleye (Sander vitreus) (Saskatchewan Parks and Renewable Resources [SPRR] 1991). Through

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fish and fish habitat assessments in 2010, and known historical data (SPRR 1991), the following waterbodies in

the surface water study area are confirmed to be fish bearing and have associated fish habitat present:

Wascana Creek;

Kronau Creek;

Manybone Creek; and

Oyama Reservoir.

Manybone Creek feeds Oyama Reservoir; however, a water control structure at the outflow of the reservoir

controls discharges. Manybone Creek feeds into Wascana Creek. Kronau Creek flows on a parallel course

northwest of Manybone Creek and feeds Wascana Creek. McGill Creek is located north west of Kronau Creek,

and flows on a parallel course into Wascana Creek.

7.3.2 Baseline Studies

7.3.2.1 Hydrology

The hydrology baseline data will be used for water management purposes and effects assessments. Baseline

mapping and data will serve as a point of comparison against which future environmental changes or effects

from Project activities will be assessed.

Stream discharges and continuous monitoring levels were established in five locations within the Wascana

Creek tributaries. Streamflow monitoring stations were established during the spring of 2010 and were

monitored continuously between the 2010 melting period and freeze-up at the end of October. Monitoring will be

continued at these stations for 2011 and potentially in 2012.

7.3.2.2 Water Quality, Fish and Fish Habitat

The aquatic ecology baseline data collection includes the assessment of fish health, fish habitat, and water

quality. The purpose is to collect site-specific information to document baseline conditions within the study area.

Information gathered will be used to assess any potential future project-related effects, as well as providing

information for the existing conditions should an authorization under the Fisheries Act and any associated habitat

compensation be required.

Water and sediment quality samples were collected in the spring, summer, and fall of 2010 within the surface

water study area from Oyama Regional Park Lake, located immediately southwest of Wascana Creek,

downstream of the confluence with Kornau Creek and Manybone Creek. Surface water was collected and

limnological measurements (i.e., temperature, dissolved oxygen, conductivity, and pH) were recorded. Water

and sediment samples will provide data on physical parameters, nutrients, major ions, and metals. The field and

analytical results will be compared to established guidelines for the protection of aquatic life, wildlife, and human

health.

Field surveys were completed in the spring, summer, and fall of 2010 to determine the extent of the fish habitat

and the likelihood of occurrence of fish species. Surveys and fish habitat mapping was completed at road

crossings (i.e., locations where roads crossed portions of a stream). Non-lethal fish inventories occurred

concurrently at these locations. Fish and fish habitat assessments confirmed that water bodies in the surface

water study area support a variety of both, fish species and fish habitats.

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An additional field survey during the spring and summer of 2011 will assess fish habitat and species occurrence

in streams within the local drainage area that may be directly or indirectly influenced by the Project. This

program will be completed in conjunction with surface water quality field surveys to identify potential spatial and

temporal trends in water and sediment quality.

Results from the 2010 and 2011 field sampling programs will provide baseline data for assessing potential

effects from Project pathways on surface water quality such as fugitive dust and air emissions, changes in

groundwater, and erosion and transportation of sediment.

7.4 Terrestrial Environment 7.4.1 Overview of Existing Conditions

The Project will be located within the Regina Plain Landscape Area within the Moist Mixed Grassland Ecoregion

near the border of the Aspen Parkland Ecoregion of the Prairie Ecozone. The terrain is characterized by knob

and kettle topography with very gentle to gentle slopes (Acton et al. 1998). The Project is located within the

Dark Brown soil zone of Saskatchewan (Government of Saskatchewan 2006). Orthic Vertisolic soils are

dominant within the terrestrial study area and have been developed on fine textured lacustrine deposits

(Saskatchewan Land Resource Unit [SLRU] 2004).

The majority of the landscape has been cultivated, with remnant patches of wetlands and natural vegetation

communities (woodland and grassland) located in areas that are unsuitable for agricultural cultivation. The

Aspen Parkland Ecoregion contains approximately 20% of Saskatchewan’s population while the Moist Mixed

Grassland Ecoregion is sparsely populated and comprised largely of farms, acreages, smaller towns, and First

Nation communities. Agriculture is the primary industry in the Aspen Parkland Ecoregion while agriculture and

potash mining represent the primary industries in the Moist Mixed Grassland Ecoregion.

Stunted trembling aspen clones or willows characteristically occur around the potholes and sloughs as well as

along river terraces or shaded slopes of valleys in the Moist Mixed Grassland Ecoregion. Native mixed

grassland vegetation is restricted to narrow sections of stony or sandy hummocky moraines that are infrequently

scattered within cropland. The primary land use is agriculture, particularly ranching and crop production,

including cereal grains, feed grains, forage crops, and oilseeds. Prior to agricultural development, flat areas in

the Aspen Parkland Ecoregion were typically dominated by grassland, while hummocky areas were dominated

by wetlands and aspen-dominated woodlands.

Although the majority of the Moist Mixed Grassland and Aspen Parkland Ecoregions have been previously

modified for agricultural use, a variety of wildlife habitat types remain. Mammalian species commonly found in

the region include ungulates such as white-tailed deer and mule deer and furbearers such as coyote, red fox,

badger, beaver, mink, muskrat, and striped skunk. Wetlands, grasslands, treed habitats, and disturbed areas

support a large number of avian species such as waterbirds, raptors, and upland breeding birds (songbirds

including crows and magpies, shore birds, and grouse). Amphibian and reptile species, such as boreal chorus

frog, wood frog, and western plains garter snake also occur in the region, and are typically associated with

wetland, riparian, and grassland habitats. Ungulates, furbearers, and waterfowl provide hunting and trapping

opportunities for traditional and non-traditional land users.

Federal and provincial status documents were reviewed to determine listed species that may occur within the

terrestrial study area. The federal SARA uses the list produced by the Committee on the Status of Endangered

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Wildlife in Canada (COSEWIC) as a mechanism to identify and protect species at risk in Canada and their

associated habitats. Based on the Saskatchewan Conservation Data Centre (SKCDC), which includes the

COSEWIC list, eleven listed species that have the potential to occur in the Project area are listed under

Schedule 1 of SARA (2010). There are an additional 48 species that are tracked by the province of

Saskatchewan (SKCDC 2010) and are protected under the Wildlife Act (Government of Saskatchewan 1998);

none of these 48 species are listed under SARA (2010) or COSEWIC (2010).

The Project is located entirely on privately owned lands; however, protected areas within the study area include

provincial and regional parks, Ministry of Agriculture (MOA) lands designated under the Wildlife Habitat

Protection Act (WHPA), MOE Crown Resource Lands, as well as lands designated under by the Fish and

Wildlife Development Fund and Saskatchewan Wildlife Federation.

Oyama Regional Park is located in NE 36-15-17 W2M, approximately 5.5 km southeast of the Project. Within

the terrestrial study area there are 21 quarter sections of land designated as Agricultural Crown Land, two

quarter sections protected under WHPA, and ten quarter sections designated as MOE Crown Resource Lands.

Six quarters of Fish and Wildlife Development Fund Lands can also be found in the terrestrial study area. Ducks

Unlimited does not own any land within the regional terrestrial study area (L. Boychuck, pers. comm. 2010).

7.4.2 Baseline Studies

For the purposes of the terrestrial environment baseline surveys, the study area has been separated into the

regional study area (RSA) and local study area (LSA). The wildlife and vegetation RSA consists of an

approximate 2,672 km2 area, and the soils RSA is approximately 1,906 km2. The RSA was selected to measure

the existing baseline conditions at a scale large enough to capture the maximum predicted spatial extent of the

combined direct and indirect effects (i.e., zone of influence) from the Project on terrestrial components. The

terrestrial LSA includes a 1.6 km buffer around the core facilities area and mining boundary.

7.4.2.1 Terrain and Soils

Baseline terrain and soil data will be collected from existing literature and field studies (including laboratory

analysis of soil samples) to determine quality, quantity, and distribution of soil in the study area. Qualitative

interpretations of soil data will include reclamation suitability, soil capability for agriculture, soil sensitivity to

acidification, sensitivity to compaction, wind erosion risk, and water erosion potential.

The spatial boundary for the study area will be selected to document baseline conditions and predict small-scale

direct and indirect effects from Project activities. Direct effects on terrain and soil include soil removal for

construction, soil erosion, loss of soil productivity, admixing, compaction, and contamination and are limited to

the Project footprint.

7.4.2.2 Vegetation

The prime objective of the vegetation component is to collect baseline vegetation data within the terrestrial study

area to prepare an environmental baseline report and EIS. A limited vegetation classification program was

completed in 2010 to collect ground-truthing data for Ecological Landscape Classification (ELC) mapping. The

ELC map for the Project will be used in more detailed vegetation surveys that will be completed in the spring and

summer of 2011.

Detailed vegetation surveys will be completed to obtain site-specific, descriptive information on the nature and

characteristics of plant communities within the ELC map units within the study area. Species composition and

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cover of the understorey vegetation layers (e.g., shrub, forb, grass, moss and terrestrial lichen) will be

determined during these vegetation surveys.

Surveys for provincial and federal listed plant species will be completed within the study area to document their

occurrence. The sampling effort will largely be dependent upon the extent of viable habitat within the terrestrial

study area but will be concentrated in habitats with the highest potential to support listed plant species. Surveys

will be completed during the spring and summer to capture the different phenology of listed plants. A meander

search will be completed at sites of interest identified during the field planning stage, with a focus on habitat with

high listed species potential and across the range of micro-habitat variation. The length of each meander will

vary according to the complexity and number of micro-habitats at each location.

In Saskatchewan, the worst agricultural weeds are declared noxious under the Noxious Weeds Act (NWA).

Section 13 (1) of the Act states: "Every owner or occupant of land shall destroy noxious weeds on his land and

prevent the spread of noxious weeds to other lands" (Government of Saskatchewan 1984). To address this Act,

weed surveys will be completed within the terrestrial study area to adequately document the distribution and

types of invasive species. In addition, other types of weeds that may be unwanted in a natural habitat will also

be surveyed. Together, these weeds can be described as non-native and native invasive species.

Searches for agricultural weeds will likely be concentrated along roadsides, ditches, and agricultural fields,

modified grasslands and wetlands. Searches for other invasive plants will occur in native habitat (e.g., wetlands,

grasslands and undisturbed shrubland or forest land). Sampling can be carried out at any time during the

sampling period (i.e., spring and summer periods).

7.4.2.3 Wildlife

Wildlife species represent an integral part of the terrestrial environment and many species have important

cultural, social, and/or economical value (i.e., ecological services). Baseline information will be used to develop

wildlife mitigation, management, and monitoring plans for protection of wildlife near the Project. The majority of

wildlife baseline surveys completed in 2010 and the winter of 2011 focused on the terrestrial RSA.

Stick nests that could potentially be used by raptors were identified throughout the baseline data collection in

2010. The location of raptor stick nests in the terrestrial RSA were determined from roadside surveys completed

between April and May 2010. Incidental sightings of raptors were recorded during all wildlife surveys in 2010.

Waterbird breeding and productivity surveys were completed to determine waterbird densities and species

occurrence within the terrestrial LSA and RSA. A fall migration survey was also completed in 2010 to identify

important waterbird staging areas as well as species occurrence within the terrestrial RSA.

Semi-aquatic mammal (e.g., muskrat, beaver, and mink) surveys were completed in conjunction with the

waterbird surveys. Observers recorded semi-aquatic mammal sightings, as well as evidence of semi-aquatic

mammal activity (i.e., lodges, dams, push-ups, slides) for all wetlands that were assessed.

Carnivore and other furbearer presence, relative activity, and relative habitat use were determined from winter

2011 track surveys. Winter track surveys occurred a minimum of 0.5 days after a snowfall of 2 centimetres (cm)

or more. Snow conditions were rated by observers as good, fair, or poor. Surveys were postponed during high

winds, or during a snowfall event.

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An aerial survey was completed in February 2011, to estimate the density, distribution, and habitat use of

ungulates within the terrestrial RSA. The aerial survey was flown along pre-determined transects using a Bell

206 helicopter. Ungulates observed within the survey strip width were considered to be on-transect. All

ungulates observed outside of the survey strip width were recorded as incidental observations. Information

recorded included species, group size, group composition (if possible), and habitat type, as well as ambient

weather conditions.

In the spring and summer of 2011, further baseline collection will be completed to estimate the presence,

abundance, and distribution of wildlife and wildlife habitat. Field surveys will have a greater focus within the

terrestrial LSA, but will also include sufficient sampling to capture regional variation in wildlife and wildlife habitat.

Surveys for amphibians, raptor nest sites, and sharp-tailed grouse leks will occur in the spring. Ground surveys

of wetlands in June and July will be used to estimate waterbird breeding density and production. Surveys also

will record the presence and relative abundance of semi-aquatic mammals (muskrat, beaver, and mink). In

June, upland breeding bird surveys will provide estimates of species richness and density among habitat types in

the terrestrial LSA and RSA, and identify potential listed species.

Baseline data from 2010 and 2011 will be used to assess potential incremental and cumulative effects from the

Project and other developments on wildlife populations that occur in the local and regional study area for part or

all of the year. Data from the ELC mapping and wildlife surveys will be used to complete habitat fragmentation

analyses and generate habitat suitability models to assess direct and indirect Project effects on wildlife

populations.

7.5 Heritage Resources 7.5.1 Overview of Existing Conditions

Heritage resources include all of Saskatchewan’s historic and pre-contact archaeological sites, architecturally

significant structures, and paleontological resources. Although the majority of the study area is located on

previously cultivated land, intact portions of native prairie adjacent to creeks in the heritage study area are

considered heritage sensitive. Because of public and Aboriginal interest in heritage resources, there are

linkages to traditional land use, non-traditional land use, and socio-economics.

The provincial heritage resources database, maintained by the Ministry of Tourism, Parks, Culture and Sport,

was queried to determine if previously recorded archaeological sites are present in the regional area. The

results show that seven known archaeological sites are located in the study area. Given the presence of native

prairie and the previously recorded sites in the regional area, the Heritage Conservation Branch determined that

the heritage potential for portions of the study area is considered moderate to high (Heritage Conservation

Branch File No. 10-1159).

7.5.2 Baseline Studies

The study area for heritage resources was designed to measure existing conditions and then predicts direct

effects from Project on heritage resources. The objective of the baseline study was to assess areas of intact

native prairie for previously unrecorded heritage resources and revisit known heritage resources and evaluate

their heritage significance.

A heritage baseline study was carried out under Archaeological Resource Investigation Permit No. 10-298.

Areas of native prairie along Kronau Creek and McGill Creek in the northwest corner of the Study Area were

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assessed, and four heritage resources (EcNb 5, EcNb 22, EcNb 23, and EcNb 24) were re-evaluated. One new

site, EbNb 8, was identified along Kronau Creek. In addition, two historic cemeteries (St. Peter’s Kathrintal

Cemetery and the Newton Cemetery) were also documented. Thus far, eight out of 22 quarter sections

containing native prairie or known heritage resources have been assessed. Inclement weather prevented the

remaining 12 from being examined in 2010. These remaining areas will be assessed in 2011.

7.6 Traditional and Non-Traditional Land Use 7.6.1 Overview of Existing Conditions

The Project will be located in a region where agriculture is the primary land use, and practices related to crop

and hay production have modified the majority of the natural landscape. Non-agricultural land (e.g., native

grassland, wetlands, and aspen clones) exists within the region in remnant patches.

There are no First Nations Reserve lands directly affected by the Project. The nearest Indian Reserve is Piapot,

which is approximately 42 km northwest of the Project. Other First Nations and Métis organizations that have

been identified as stakeholders in the Project include the following:

Muscowpetung First Nation;

Pasqua First Nation;

Standing Buffalo First Nation;

Carry the Kettle First Nation;

Ocean Man first Nation;

Pheasant Rump First Nation;

White Bear First Nation;

Métis Eastern Region III; and

Métis Western Regions III.

Traditional land use includes the use of the land by Aboriginal people for activities such as hunting, trapping,

fishing, and gathering plants, as well as any other ceremonial purposes. Non-traditional land use includes

recreational, agricultural, and industrial activities. Water, plant, and animal resources in the area influence the

way the land is used and, therefore, the biophysical environment is linked to the traditional and non-traditional

land uses of the area.

Big game hunting includes white-tailed deer, elk, and moose. Trapping animals for their pelts also occurs

including coyote, red fox, least weasels, beaver, and muskrat. Numerous game birds either reside in the area or

pass through during migrations. Upland game birds that are typically hunted include sharp-tailed grouse and

partridge although; ducks, geese, and sandhill cranes are also hunted. The most common plant species

gathered include Saskatoon berries, chokecherries, pincherries, and hazelnuts. In addition, medicinal plants

may be collected by First Nations or Métis people from the region.

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7.6.2 Baseline Studies

For traditional and non-traditional land use, the study area is the same as the heritage resources study area but

also includes towns, villages, Aboriginal communities, and rural municipalities within reasonable road access to

the Project. This definition of the study area is based on the expectation that communities located in the

immediate vicinity of the Project have the potential to experience most of the direct effects, and also on a

reasonable commuting distance for people potentially employed by the Project.

The baseline study for the traditional and non-traditional land use component will rely extensively on secondary

data obtained from land users in the area. Secondary sources include databases maintained by Statistics

Canada (e.g., 2006 National Census of Population, Agricultural Census) and provincial government agencies

such as the Ministry of First Nations and Métis Relations. Additional information will be acquired during the

community engagement process. Traditional land use by First Nations and Métis will be obtained primarily from

meetings with First Nations and Métis stakeholders. The data from these meetings will be incorporated into the

baseline studies for other environmental components (e.g., vegetation, fish, wildlife, heritage resources, and

socio-economics), and used to support the assessment of effects from the Project on land use activities, such as

agriculture, hunting, and trapping. Information was gathered to determine how the area has been used in the

past, as well as how it is presently being used.

7.7 Socio-Economic Environment 7.7.1 Overview of Existing Conditions

The objective of this component is to provide information to characterize the current level and availability of

socio-economic infrastructure and services, and the influence of the Project on these components. Potential

changes to the receiving environment and surrounding communities would be considered; for example, changes

in the demographic make-up of community and changes in the labour market and employment status of the

community.

The economic effects from the Project will be assessed at the regional and provincial scale. Accordingly, the

socio-economic study area includes large services centres, communities within 50 km (reasonable commuting

distance) of the Project and the rural population of R.M.s that are largely or wholly within the 50 km radius.

Given the small size of the population in the immediate vicinity of the project, it is expected that workers will be

recruited primarily from the city of Regina.

The Regina Enterprise Region will be used as the RSA for the purpose of the economic model. The boundaries

of Saskatchewan Enterprise Regions are based on where people live and work and take into consideration road

patterns and natural boundaries such as rivers (Enterprise Saskatchewan 2009a). The Regina Enterprise

Region has a population of almost 220,000, over 80% of which reside in the city of Regina itself (Enterprise

Saskatchewan 2009b).

7.7.2 Baseline Studies

The socio-economic study area is designed to measure existing conditions and then predict direct effects from

the Project on the socio-economics of neighbouring communities. The baseline study for the socio-economic

component relies on secondary data and key informant interviews. Secondary data were obtained from

databases maintained by Statistics Canada (e.g., 2006 National Census of Population) and provincial

government agencies. Data will also be obtained from reports provided by municipal and provincial government

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agencies. To supplement secondary data, interviews were completed with key informants (i.e., persons with

specific and detailed knowledge of one or more aspects of socio-economic trends in the area) during a visit to

the study area in March 2011. Key informants are often in a position to supply additional data, and to assist in

the interpretation of secondary data already collected. Key informants include representatives from municipal

government and service providers (e.g., Rural Municipalities and town councils) and regional economic

development authorities.

8.0 ANALYSIS AND ASSESSMENT APPROACH

8.1 Introduction This section describes the approach that will be used for analyzing effects, and classifying and determining the

environmental significance of effects from the Project on the biophysical and socio-economic components in the

EIS. The approach will be applied to the analysis and assessment of the effects from the Project using

information from the Project Description and existing conditions.

8.2 Valued Components Valued components represent physical, biological, cultural, social, and economic properties of the environment

that are considered to be important by society. The inter-relationships between components of the biophysical

and socio-economic (human) environments provide the structure of a social-ecological system. Examples of

physical properties that can be considered VCs include groundwater, surface water, soil, and air. Traditional and

non-traditional uses of water, plants, and animals and other biophysical properties (e.g., ecological services or

resources) can be VCs of the cultural, social, and economic environment. The EIS will integrate Project-related

effects on biophysical and socio-economic VCs for the people who likely will be directly and indirectly influenced

by the Project.

8.3 Pathway Analysis Pathway analysis identifies and assesses the issues and linkages (or interactions) between the Project

components or activities, and the correspondent potential residual effects on VCs (e.g., surface water quality,

fish and fish habitat, wildlife, and socio-economics). The first part of the analysis is to produce a list of all

potential interactions through which the Project could affect biophysical and socio-economic VCs. Each pathway

is initially considered to have a linkage to potential effects on VCs. This step is followed by the development of

environmental design features and mitigation that can be incorporated into the Project to remove the pathway or

limit (mitigate) the effects to VCs. Environmental design features include Project designs, environmental best

practices, and management policies and procedures. Environmental design features were developed through

an iterative process between the Project’s engineering and environmental teams to avoid or mitigate effects.

Knowledge of the ecological system and environmental design features and mitigation is then applied to each of

the pathways to determine the expected amount of Project-related changes to the environment and the

associated residual effects (i.e., after mitigation) on VCs. For an effect to occur there has to be a source (Project

component or activity) that results in a measurable environmental change to the environment (pathway), and a

correspondent effect on a VC.

Project activity → change in environment → effect on VC

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Pathway analysis is a screening step that is used to determine the existence and magnitude of linkages from the

initial list of potential effects pathways for the Project. This screening step is largely a qualitative assessment,

and is intended to focus the effects analysis on pathways that require a more comprehensive assessment of

effects on VCs. Pathways are determined to be primary, secondary (minor), or as having no linkage using

scientific and traditional knowledge, logic, and experience with similar developments and environmental design

features. Each potential pathway is assessed and described as follows:

no linkage – pathway is removed by environmental design features so that the Project results in no

detectable (measurable) environmental change and residual effects to a VC relative to baseline or guideline

values;

secondary - pathway could result in a minor environmental change, but would have a negligible residual

effect on a VC relative to baseline or guideline values; or

primary - pathway is likely to result in a measurable environmental change that could contribute to residual

effects on a VC relative to baseline or guideline values.

Primary pathways require further effects analysis and effects classification to determine the environmental

significance from the Project on VCs. Pathways with no linkage to VCs or that are considered minor (secondary)

are not analyzed further or classified in the EIS because environmental design features will remove the pathway

(no linkage) or residual effects can be determined to be negligible through a simple qualitative or quantitative

evaluation of the pathway. Pathways determined to have no linkage to VCs or those that are considered

secondary are not predicted to result in environmentally significant effects on VCs.

8.4 Spatial and Temporal Boundaries Individuals, populations, and communities function within the environment at different spatial (and temporal)

scales. Effects from the Project on the biophysical environment are typically stronger at the local scale, and

larger (regional) scale effects are more likely to result from other ecological factors and human activities.

For the EIS, the spatial boundaries of the LSAs will be designed to measure baseline environmental conditions

and then predict direct effects from the Project footprint and activities on the VCs. Local study areas will be

defined to assess small-scale indirect effects from Project activities on VCs such as changes to soil and

vegetation from dust and fuel emissions. The boundaries for regional study areas will be designed to quantify

baseline conditions at a scale that is large enough to assess the maximum predicted geographic extent

(i.e., maximum zone of influence) of direct and indirect effects from the Project on VCs. Cumulative effects are

typically assessed at a regional spatial scale and, where relevant, may consider influences that extend beyond

the regional study area.

Spatial and temporal boundaries are tightly correlated because processes that operate on large spatial scales

typically occur at slower rates and have longer time lags than processes that operate on smaller spatial scales.

The approach used to determine the temporal boundaries of effects from natural and human-related

disturbances on VCs is similar to the approach used to define spatial boundaries. In the EIS, temporal

boundaries will be linked to two concepts. The first is linked to the development phases of the Project and the

second is the predicted duration of effects from the Project on a VC, which may extend beyond closure. Thus,

the temporal boundary for a VC is defined as the amount of time between the start and end of a relevant Project

activity or stressor plus the duration required for the effect to be reversed. After removal of the stressor,

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reversibility is the likelihood and time required for a VC or system to return to a state that is similar to the state of

systems of the same type, area, and time that are not affected by the Project.

8.5 Project-Specific Effects Analysis 8.5.1 General Approach

In the EIS, the effects analysis will consider all valid pathways that likely result in measurable environmental

changes and residual effects to VCs (i.e., after implementing environmental design features). Thus, the analysis

will be based on residual Project-specific (incremental) effects that are verified to be valid in the pathway

analysis. Residual changes to VCs will be analyzed using effects statements in the EIS. Effects statements may

have more than one valid pathway that link a Project activity with a change in a VC.

8.5.2 Discipline-specific Approach and Methods

A detailed description of the methods used to analyze residual effects from the Project on VCs will be provided in

for each discipline. Where possible and appropriate, the analyses will be quantitative, and may include data

from field studies, modelling results, scientific literature, government publications, effects monitoring reports, and

personal communications. Due to the amount and type of data available, some analyses will be qualitative and

include professional judgement or experienced opinion.

8.5.2.1 Air Quality

The assessment is focused on predicting the change in air quality due to the Project construction, operations

(including commissioning) and decommissioning phases. The assessment of air emissions for the Project is

completed by:

establishing existing air quality levels;

predicting the air emissions from the Project; and

comparing the predictions to existing federal and provincial criteria to determine effects.

The air quality assessment will use AERMOD to complete dispersion modelling for primary sources of air

emissions from the Project. The dispersion model will be used to determine the changes in ambient air quality

concentrations due to Project activity from a selected list of pollutants. The following pollutants will be assessed:

suspended particulates (including TSPs, PM2.5, and PM10), sulphur dioxide, carbon monoxide, nitrogen dioxide,

and particulate deposition, including potash and salt. Results from the modelling will be used by other

disciplines to evaluate the Project’s effect on surface water quality, fish and fish habitat, soil, vegetation, and

wildlife. The data will also be used to assess effects to the socio-economic environment.

8.5.2.2 Noise Quality

To complete the analysis of noise effects, the amount of noise emitted by the Project will be determined. Project

design data, equipment lists and development plans will be used to establish the major noise emitting activities.

Noise levels from these activities will be established using measurements of similar equipment/activities, data

from potential vendors and reference acoustic formulae.

Once the sources of noise have been established, a noise model will be developed that provides a

three-dimensional calculation of noise propagation from the Project over a designated study area. The noise

model will incorporate Project activities and processes that generate noise. The model will predict noise levels

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at any identified noise sensitive receptors, which are typically residences. Other receptors may be

campgrounds, churches or any location where there is a reasonable expectation of quiet. Results at the

receptors will be compared to selected Project criteria and the incremental change in the acoustic environment

near the Project evaluated.

8.5.2.3 Hydrogeology

A numerical groundwater flow model will be developed and calibrated based on existing information. The model

incorporates a conceptual representation of the regional hydrostratigraphy, and can accommodate spatial

variations of hydraulic properties associated with the various hydrostratigraphic units. The model will provide the

basis for interpretation of the regional groundwater flow system. Some refinement of the model will be

undertaken as additional data becomes available from site characterization studies.

A local three dimensional groundwater flow model will be developed with a focus on the development site and

immediate surrounding area. This model will incorporate the results of site-specific baseline characterization

data to accommodate finer resolution of changes in the geologic and engineering properties of the

hydrostratigraphic units. The model will be used as a tool to interpret local groundwater flow conditions and

identify potential pathways between the Project components and the environment.

Solute transport and fate analysis will be completed to predict the direct effects of the Project on the

hydrogeologic system and will be based on one and two dimensional finite element models. Potential sources of

solute migration will be identified and characterized to develop source terms as inputs to the analysis. The local

groundwater flow model will provide the basis for defining flow conditions along pathways and identifying

potential receptors. Receptors may include groundwater resources (aquifers) as well as surface waterbodies.

8.5.2.4 Surface Hydrology

Hydrology modelling in combination with measured field data will be used to quantify effects of the Project on the

flow volumes and storage of surface water in the watershed(s) adjacent to and downstream of the Project.

Potential changes to drainage pathways and stream channel geomorphology will also be evaluated. A water

balance for a range of precipitation scenarios will be completed for the Project site and the surrounding

watersheds(s). The input received from the geotechnical engineering group will be used in the assessment to

evaluate the effects of ground subsidence to surface hydrology.

8.5.2.5 Surface Water Quality

An assessment of the Project effects on surface water quality will be completed for the valid pathways identified

in the pathways analysis. This is expected to include the effect of air emissions (dust and salt) from the Project

on surface water quality. Input received from the geotechnical engineering group will be used in the assessment

to evaluate changes in groundwater quality from the TMA on surface water quality.

8.5.2.6 Fish and Fish Habitat

An assessment of the Project effects on aquatic resources will be completed for the valid pathways identified in

the pathways analysis. This is expected to include changes to water quality and effects to fish and fish habitat.

A high level assessment will be completed for the rights-of-way associated with the infrastructure needs of the

Project. Input received from the geotechnical engineering group will be used in the assessment to evaluate the

effects of ground subsidence on fish habitat.

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8.5.2.7 Terrain and Soils

An assessment of the Project effects on soil quantity, quality, and distribution will be completed for the valid

pathways identified in the pathways analysis. The following will be including in the assessment.

An assessment to evaluate the direct effects of clearing activities to soil quantity and distribution during

construction. This assessment will identify the soil quantity and distribution required for agricultural use.

An assessment to evaluate the direct effects on soil quality from soil salvage, stockpiling, and transport.

This will be carried out through a soil reclamation suitability analysis using information obtained from

baseline data. Baseline horizonation and soil salinity data will be used to determine if admixing will affect

the soil capability for agriculture. A Geographic Information System (GIS) spatial overlay analysis using the

Project footprint and the baseline soils data will be used in the assessment to determine soil distribution.

Input received from the geotechnical engineering group will be used in the assessment to evaluate the

effects of ground subsidence on soil quality and distribution.

The effect from air emissions (NO2, SO2, and salt deposition) on soil will be compared to thresholds for NO2

and SO2 to determine if there is potential for effects to soil quality. It is assumed that salt deposition will

primarily occur within the boundary of the disturbance area for the Project. Effects of salt deposition will be

evaluated qualitatively for any soils that are sensitive to salt deposition.

An assessment to evaluate the effects of soil erosion during the construction phase will be mitigated

through an erosion and sediment control plan. Soils affected by construction of the Project will be

assessed for wind and water erosion potential.

8.5.2.8 Vegetation

An assessment of the Project effects on vegetation VCs will be completed for the valid pathways identified in the

pathways analysis. The following will include the assessment.

An assessment to evaluate the direct effects of clearing activities to the vegetation VCs during construction

will be carried out through a GIS spatial overlay analysis using the Project footprint and the baseline

vegetation map.

An assessment to evaluate the effects of ground subsidence caused by mine operations on vegetation VCs

will be carried out through a qualitative discussion based on input received from the geotechnical

engineering group.

The indirect effect from air emissions (NO2, SO2, and salt deposition) will be compared to the thresholds for

NO2 and SO2 to determine if there is potential for effects to vegetation. Effects of salt deposition will be

evaluated qualitatively for any vegetation communities that are sensitive to salt deposition.

8.5.2.9 Wildlife

An assessment of the Project effects on wildlife VCs will be completed for the valid pathways identified in the

pathways analysis. The following will be included in the assessment.

To assess the direct effects to wildlife VCs from habitat loss and fragmentation, a habitat fragmentation

analysis will be completed using the program FRAGSTATS within a GIS. Information obtained during the

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vegetation and wildlife baseline surveys will be used to develop the ELC for the Project area. A GIS

overlay analysis will be completed using the Project footprint and the ELC to determine the change in

landscape metrics from the Project. Landscape metrics to be determined for each habitat will include total

area, number of patches, mean area of patches, mean distance to the nearest similar patch, and coefficient

of variation of mean distance to the nearest similar patch.

In addition to direct habitat effects, changes to habitat quality resulting from changes to air quality, soil and

vegetation, alteration of flows, water levels and water quality have the potential to indirectly affect the

abundance and distribution of wildlife in the study area, through altered movement and behaviour. Sensory

disturbance (e.g., presence of human, noise, lights) also indirectly affect habitat quality.

The input received from the geotechnical engineering group will be used in the assessment to evaluate the

effects of ground subsidence on habitat quality.

8.5.2.10 Heritage Resources

The location of the Project footprint will be submitted to the Heritage Resources Branch to determine the

heritage sensitivity in the Project area. The scope of work for the assessment of effects to heritage resources

includes the completion of an independent Heritage Resource Impact Assessment (HRIA). The information from

the field assessment will be documented in HRIA, and included in the EIS as a support document to assess

Project-related effects on heritage resources.

8.5.2.11 Traditional and Non-traditional Land Use

Residual effects to traditional and non-traditional land use practices (e.g., assessment endpoint including,

agriculture, hunting, fishing, plant and berry gathering) will be assessed. For example, analysis of

Project-related effects to soil quantity and quality will be used to determine the associated influence on the land

to sustain agriculture. Analysis of changes to waterfowl abundance and distribution will be used to assess the

effect of the Project on the continued opportunity for harvesting ducks and geese. Therefore, effects to

assessment endpoints for traditional and non-traditional land use will be analyzed and assessed within discipline

sections that contain the applicable biophysical or socio-economic VC.

8.5.2.12 Socio-economics

Residual effects from the Project to the socio-economic environment will be assessed by estimating positive and

negative changes to a number of VCs such as:

education and training;

opportunities for youth;

household and business income;

quality and development of community infrastructure;

family and community cohesion;

capacity for agricultural land use;

capacity for traditional land use;

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potential for recreational activities; and

long-term social, cultural, and economic sustainability.

Some of these measurement endpoints can be analyzed quantitatively (e.g., number of jobs created, estimated

income levels). Other endpoints such as community cohesion and traditional land use are more difficult to

quantify, and involve information from public engagement, literature, examples from similar projects under similar

conditions, and experienced opinion. The effects analysis considers the interactions among the unique and

common attributes, challenges, and opportunities related to social, cultural, and economic VCs. A key aspect of

the effects analysis is to predict the influence from the Project on the development and sustainability of

socio-economic conditions in the region.

8.6 Approach to Cumulative Effects Cumulative effects represent the sum of all natural and human-induced influences on the physical, biological,

cultural, and economic components of the environment through time and across space. Some changes may be

human-related, such as increasing agricultural and industrial development, and some changes may be

associated with natural phenomenon such as extreme rainfall events, and periodic harsh and mild winters. It is

the goal of the cumulative effects assessment to estimate the contribution of these types of effects, in addition to

Project effects, to the amount of change on the VCs.

Not every VC requires an analysis of cumulative effects. The key is to determine if the effects from the Project

and one or more additional developments/activities overlap (or interact) with the temporal or spatial distribution

of the VC. For some VCs, Project-specific effects are important and there is little or no potential for cumulative

effects, because there is little or no overlap with other developments. For other VCs that are distributed, or

travel over large areas and can be influenced by a number of developments, the analysis of cumulative effects

can be necessary and important. Socio-economic components also must consider the potential cumulative

effects of the Project and other developments and human activities.

In the EIS, cumulative effects will be identified, analyzed, and assessed in a separate section from the

Project-specific assessment for those VCs where it is applicable. Similar to Project-specific effects, the analysis

of cumulative effects involves pathway and effects analyses, and the classification and determination of

significance of residual effects.

8.7 Determination of Significance Environmental significance is used to identify predicted effects that have sufficient magnitude, duration, and

geographic extent to cause fundamental changes to a VC. It is difficult to provide definitions for environmental

significance that are universally applicable to each VC assessment endpoint. Consequently, specific definitions

will be provided for each VC in the EIS. The evaluation of significance uses ecological principles, to the extent

possible, but also involves professional judgement and experienced opinion.

8.8 Uncertainty Most assessments of effects embody some degree of uncertainty. The uncertainty section of the EIS will identify

the key sources of uncertainty and discuss how uncertainty is addressed to increase the level of confidence that

effects will not be worse than predicted. Confidence in effects analyses can be related to many elements,

including the following:

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adequacy of baseline data for understanding existing conditions and future changes unrelated to the

Project (e.g., extent of future developments, climate change, catastrophic events);

model inputs (e.g., estimates of the spatial distribution of salt concentrations in deep groundwater);

understanding of Project-related effects on complex ecosystems that contain interactions across different

scales of time and space (e.g., how and why the Project will influence wildlife); and

knowledge of the effectiveness of the environmental design features for reducing or removing effects

(e.g., environmental performance of the TMA).

Uncertainty in these elements can result in uncertainty in the prediction of environmental significance. Where

possible, a strong attempt is made to reduce uncertainty in the EIS to increase the level of confidence in effects

predictions. Where appropriate, uncertainty may also be addressed by additional mitigation, which would be

implemented as required. Each discipline section will include a discussion of how uncertainty has been

addressed and provide a qualitative evaluation of the resulting level of confidence in the effects analyses and

determination of significance.

8.9 Monitoring and Follow-Up In the EIS, monitoring programs will be proposed to deal with the uncertainties associated with the effects

predictions and environmental design features. In general, monitoring is used to test (verify) effects predictions

and determine the effectiveness of environmental design features (mitigation). Monitoring is also used to identify

unanticipated effects and implement adaptive management. Typically, monitoring includes one or more of the

following categories, which may be applied during the development of the Project.

Compliance inspection: monitoring the activities, procedures, and programs undertaken to confirm the

implementation of approved design standards, mitigation, and conditions of approval and company

commitments.

Environmental monitoring: monitoring to track conditions or issues during the development lifespan, and

subsequent implementation of adaptive management.

Follow-up: programs designed to test the accuracy of effects predictions, reduce uncertainty, determine

the effectiveness of environmental design features, and provide appropriate feedback to operations for

modifying or adopting new mitigation designs, policies, and practices. Results from these programs can be

used to increase the certainty of effects predictions in future environmental assessments.

These programs form part of the environmental management system for the Project. If monitoring or follow-up

detects effects that are different from predicted effects, or the need for improved or modified design features,

then adaptive management will be implemented. This may include increased monitoring, changes in monitoring

plans, or additional mitigation.

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9.0 REFERENCES Acton, D.F, G.A. Padbury, and C.T. Stushnoff. 1998. The Ecoregions of Saskatchewan. Canadian Plains

Research Centre, University of Regina. Hignell Printing Limited, Winnipeg, Manitoba. 205pp.

Bernatsky, R. 1998. Hydrogoechemistry of Formation Waters in Southern Saskatchewan. M.Sc. Thesis,

University of Regina. Department of Geological Sciences, Regina.

Boychuk, L. 2010. Personal communication on Ducks Unlimited owned lands within the RSA. Manager of GIS

and Inventory Programs, Western Region, Ducks Unlimited Canada. Email communication to L.

Dagenais of Golder Associates on December 8, 2010.

COSEWIC. 2010. Canadian Species at Risk, October 2010. Available at:

http://www.cosewic.gc.ca/eng/sct0/rpt/rpt_csar_e.pdf. Accessed: December 2, 2010.

EC (Environment Canada). 2010. Canadian Climate Normals, 1971-2000, Regina, Saskatchewan. Available at:

http://climate.weatheroffice.gc.ca/climate_normals/index_e.html. Accessed: November 2010.

Enterprise Saskatchewan. 2009a. Enterprise Region Program FAQ’s. Available at:

http://www.gov.sk.ca/adx/aspx/adxGetMedia.aspx?mediaId=781&PN=Shared. Accessed March 2, 2011.

Enterprise Saskatchewan. 2009b. Saskatchewan Enterprise Regions Map, February 7, 2009. Available at:

http://www.gov.sk.ca/adx/aspx/adxGetMedia.aspx?mediaId=782&PN=Shared. Accessed March 2,

2011.

Energy Resources Conservation Board (ERCB). 2007. Direct 038: Noise Control. February 2007. Energy

Resources Conservation Board, Calgary, Alberta. 56 pages.

Fetter, C.W. 2001. Applied Hydrogeology. Fourth Edition. Prentice-Hall Inc. United States of America.

Fisheries and Oceans Canada (DFO). 2009. Operational Statement Temporary Stream Crossing -

Saskatchewan Version 3.0.

geoScout. 2010. Geologic Systems Ltd., Calgary, AB. Accessed February, 2010.

Glass, E.J. 1990. Lexicon of Canadian Stratigraphy Western Canada. Volume 4. Canadian Society of

Petroleum Geologists. Calgary, Alberta.

Government of Canada. 1992. The Canadian Environmental Assessment Act.

Government of Saskatchewan. 1984. Noxious Weeds Act.

Government of Saskatchewan. 1998. Wildlife Act. 

Government of Saskatchewan. 2002. The Environmental Assessment Act.

Government of Saskatchewan. 2006. Soils Zones of Saskatchewan. Saskatchewan Agriculture and Food,

Geomatics Unit.

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Jensen, G.K.S., Rostron, B.J., Duke, M.J.M. and C. Holmden. 2006. Chemical Profiles of Formation Waters

from Potash Mine Shafts, Saskatchewan. Summary of Investigations, Volume 1. Saskatchewan

Geological Survey.

Maathuis, H., 1992. Quaternary Aquifers and Aquitards. Proceedings, Engineering Geology of Glacial Deposits.

December 10. Saskatoon, SK.

Maathuis H. and van der Kamp, G. 1988. Comprehensive Evaluation of Groundwater Resources in the Regina

Area. Saskatchewan Research Council Technical Report No. 209.

Nyman, J., 1998. Water Recovery from the Mannville Group Aquifer: Numerical Modelling of a Complex Channel

System. M.Sc. Thesis, University of Saskatchewan, Department of Geological Sciences, Saskatoon.

Saskatchewan Agriculture, 1986. The Soils of Indian Head Rural Municipality No. 156. Saskatchewan Institute

of Pedology. Publication S202.

Saskatchewan Land Resource Unit (SLRU). 2004. SKSISv2, Digital Soil Resource Information for Agricultural

Saskatchewan, 1:100,000 scale. Agriculture and Agri-Food Canada, Saskatoon, Saskatchewan.

Saskatchewan Ministry of Energy and Resources. 2004. Saskatchewan Stratigraphic Correlation Chart.

http://www.ir.gov.sk.ca/stratchart

Saskatchewan Parks and Renewable Resources (SPRR). 1991. Fish Species Distribution in Saskatchewan.

Technical Report 91-7. 102pp.

Sauer E.K. and E.A. Christiansen. 1996. Geological Site Characterization: A Framework for Geohydrological and Geotechnical Applications in Saskatchewan. Saskatchewan Environment and Resource Management.

Simpson, M.A. 2004. Geology and Groundwater Resources of the Regina Area (72I), Saskatchewan.

Saskatchewan Research Council Technical Report. Publication No.10420-1E04

Saskatchewan Conservation Data Centre (SKCDC). 2010. Saskatchewan Conservation Data Centre Sensitive

Species Web Site. Saskatchewan Ministry of Environment. Available at:

http://gisweb1.serm.gov.sk.ca/wildlifelogin/ form.asp. Accessed: December 2, 2010.

SKCDC. 2010a. Tracked Species List for Vertebrates. Available at: http://www.biodiversity.sk.ca/

Docs/vertstrak.pdf. Accessed: December 2, 2010.

Species at Risk Act. (SARA). 2010. Chapter 29. Government of Canada.


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