Draft Feasibility Elizabeth Falls

Elizabeth Falls Hydroelectric Generating Station Feasibility Study

Two-Unit, 42 MW Scheme Cost Estimate

Memorandum EF-22

FOR PROPRIETARY REASONS MEMORANDUM EF-22 HAS BEEN OMITTED FROM THIS ABRIDGED VERSION OF THE

FINAL DRAFT FEASIBILITY STUDY VOLUME 2 APPENDICES

Elizabeth Falls Hydroelectric Generating Station Feasibility Study

Financial Analysis Memorandum EF-23

FOR PROPRIETARY REASONS MEMORANDUM EF-23 HAS BEEN OMITTED FROM THIS ABRIDGED VERSION OF THE

FINAL DRAFT FEASIBILITY STUDY VOLUME 2 APPENDICES

EF-24

GPS Survey of Water Levels on Black Lake and Middle Lake

R:\P\P1570000's\P1571600_Elizabeth_Falls\_19_Site_Surveys_&_Investigations\EF-24_GPS Survey Water Levels on BL&ML\EF-24_Memo.doc

Acres Office Memorandum

Date September 6, 2005 To Mr. D. A. Pashniak

File No. 1571600.19

From R. A. Rodríguez cc J. L. Groeneveld W. L. Gendzelevich

Subject Elizabeth Falls Hydroelectric Generating Station Feasibility Study GPS Survey of Water Levels on Black Lake and Middle Lake Memorandum EF-24

1 Introduction Acres International is conducting feasibility studies for Black Lake First Nation for the proposed Elizabeth Falls Hydroelectric Project at Elizabeth Falls on the Fond du Lac River in northern Saskatchewan. Water levels upstream and downstream of the proposed site are required as part of these studies. Acres International conducted a water level survey on August 23, 2005. 2 Site Location The proposed Elizabeth Falls Hydroelectric Development is located on the Fond du Lac River, approximately 4 km downstream of Black Lake, northern Saskatchewan. The project will be located on Black Lake First Nation reserve land. The community of Stony Rapids, Saskatchewan, is located approximately 18 km west of the site, while the community of Black Lake is located 7 km southwest of the site. The site can be readily identified on NTS map sheets 74P3 and 74P4. 3 Survey Program 3.1 Personnel and Equipment Mr. John Remi, a hydraulic engineer from the Calgary office and Mr. Ricardo A. Rodríguez from the Winnipeg office traveled to Stony Rapids on August 22, 2005. The water level survey was conducted with Leica System 1200 Dual Frequency RTK GPS survey equipment (sub-centimetre

D.A. Pashniak - 2 September 6, 2005


accuracy) on August 23, 2005. Boats were used to travel on the lakes and transportation was provided to travel between the communities of Stony Rapids and Black Lake. Mr. Remi and Mr. Rodríguez left Stony Rapids on August 24, 2005. 3.2 Chronology Mr. Donald Sayazie met Mr. Rodríguez and Mr. Remi both of Acres International Ltd., at the Stony Rapids air strip on the evening of August 22 and informed us that he was unfortunately leaving on the flight to meet with a minister. Mr. Sayazie had arranged for Band Council members and others involved in the water level survey to meet with Acres’ personnel that evening. Mr. Remi and Mr. Rodríguez met with Leon Alfonse, Elizabeth Alfonse, Albert Sayazie, and Mag Sayazie to discuss the work to be done, the approach to executing it, the transportation required, and the number of helpers needed. Travel by boat on Black Lake did not begin until 1:00 pm on the 23rd because all the GPS equipment did not arrive the evening of the 22nd as anticipated. Transwest Air had bumped two baggage pieces as excess in Saskatoon and did not put them on a flight until the morning of the 23rd. By 1:30 pm we were ready to begin the 1.2 km hike to the GPS base station location. The hike was made difficult by dense bush, steep terrain within a burn out area and fallen trees scattered throughout. Once we reached the top of the ridge we realized we hiked slightly off course and had to travel about 0.5 km along the ridge to locate the base station monument. Monument data was provided by Information Services Corporation of Saskatchewan, Surveys Branch. The data was retrieved from the Saskatchewan Geodetic Data Base and provided to Acres in November 2002. The monument is a first order survey control station; Station Name – Black SH 23, Unique Number – 60510 (see photograph). It was essential to set up at this monument as previous surveys for the project also used this location; therefore, all survey data gathered is “tied –in” with high confidence.



The base station was set up and the rover GPS unit was checked and ready to go by 3:50 pm. At this time we set off back to the boats to begin the water level survey. An attempt was made to mark the route with survey flagging. When we arrived at the boats a fantastic shore lunch awaited us; fresh Pickerel, potatoes, and tea. By 5:00 pm we observed the water levels at the outlet of Black Lake into Fond du Lac River upstream of Elizabeth Falls. We were then picked up and driven to Middle Lake where a boat awaited us to survey water levels on Middle Lake, its outlet to the Fond du Lac River, and near the tailrace area of the project. By the time all observations were done it was too dark to return to retrieve the base station (9:30 pm.), it was decided to leave it until the next day. The morning of the 24th we headed out on Black Lake by boat to pick up the base station and return to Stony Rapids in time to get on our flights home. 3.3 Local Help and Supplies 30 gallons of fuel was purchased to supply the boats used for the project. Mr. Leon Alfonse drove us back and forth between the communities of Stony Rapids and Black Lake; 2 return trips. August 23; two boats were used and three local helpers accompanied us. August 24; one boat was used and one local helper accompanied us. 4 Results Water levels were measured at seven locations, labeled 11 to 17 as shown on Figure 1.



Figure 1

Survey data shown in Table 1 is reported in UTM zone 13 coordinates, NAD 83. Table 1

Location Northing (m) Easting (m) Elevation (m) 11 6 555 419.179 468 852.711 277.132 12 6 556 688.077 468 752.930 277.126 13 6 561 647.441 466 090.086 240.897 14 6 564 711.064 467 278.683 240.887 15 6 565 416.299 468 425.860 240.894 16 6 561 445.309 467 595.908 240.950 17 6 561 099.189 467809.970 240.968



RAR:jsb Ricardo A. Rodríguez, C.E.T.

EF-25

Strategic Planning Study Report, June 2005

Prepared by Acres International

Black Lake First Nation

Elizabeth Falls Hydroelectric Development Strategic Planning Study

June 2002 P14177.00

Elizabeth Falls Feasibility Study Report Reference EF-25

Acres International Limited Winnipeg, Manitoba

Table of Contents

Executive Summary 1 Introduction .................................................................................................. 1-1

1.1 Mandate................................................................................................ 1-1 1.2 Location ............................................................................................... 1-1 1.3 Access .................................................................................................. 1-2

2 Physical Features .......................................................................................... 2-1 2.1 Site Description.................................................................................... 2-1 2.2 Regional Overburden Geology ............................................................ 2-1 2.3 Regional Bedrock Geology.................................................................. 2-2 2.4 Structural Geology............................................................................... 2-3 2.5 Geological Terms................................................................................. 2-3

3 Generation Planning ..................................................................................... 3-1 3.1 Streamflow........................................................................................... 3-1 3.2 Available Head for Development ........................................................ 3-2 3.3 Installed Capacity................................................................................. 3-2 3.4 Energy.................................................................................................. 3-2

4 Project Description ....................................................................................... 4-1 4.1 General Arrangement........................................................................... 4-1 4.2 Intake Approach Channel and Structure .............................................. 4-1 4.3 Power Tunnel and Bifurcation ............................................................. 4-2 4.4 Powerhouse Complex and Tailrace Channel ....................................... 4-3 4.5 Transmission ........................................................................................ 4-4

5 Environmental Considerations ..................................................................... 5-1 5.1 Legislative Requirements..................................................................... 5-1

5.1.1 Saskatchewan Environmental Assessment Act ........................ 5-1 5.1.2 Canadian Environmental Assessment Act ................................ 5-1 5.1.3 Other Approvals........................................................................ 5-2

5.2 Environmental Issues/Effects............................................................... 5-2 5.2.1 Aquatic Environment ................................................................ 5-2 5.2.2 Terrestrial Environment ............................................................ 5-4 5.2.3 Socio-Economic Environment .................................................. 5-4

5.3 Environmental Costs............................................................................ 5-5 5.4 Schedule for Environmental Assessment and Approvals .................... 5-5

6 Construction Considerations ........................................................................ 6-1 6.1 Access .................................................................................................. 6-1 6.2 Diversion/Dewatering.......................................................................... 6-2 6.3 Schedule............................................................................................... 6-2 6.4 Benefits to Black Lake First Nations ................................................... 6-3

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7 Cost Estimate................................................................................................ 7-1 7.1 Capital Cost Estimate........................................................................... 7-1 7.2 Annual Costs........................................................................................ 7-2

7.2.1 Operating and Maintenance Costs ............................................ 7-2 7.2.2 Replacement Costs.................................................................... 7-3 7.2.3 Insurance ................................................................................... 7-3 7.2.4 Transmission O&M .................................................................. 7-3 7.2.5 Other Annual Costs................................................................... 7-3

7.3 Levelized Cost of Energy..................................................................... 7-3 8 Conclusions .................................................................................................. 8-1 9 Recommendations ........................................................................................ 9-1 List of Plates Plate 1 Area Map - Northern Saskatchewan Plate 2 Project Location Plan Plate 3 Project General Arrangement Plate 4 Geological Mapping - Bedrock Plate 5 Principal Structures - Cross Sections Plate 6 Intake - Plan Plate 7 Powerhouse - Plan Plate 8 Master Planning and Construction Schedule Appendices A Site Photographs B SaskPower B Cost Estimate

Executive Summary

• The preliminary cost of developing a 25 MW hydroelectric development at Elizabeth Falls on the Fond du Lac River, downstream of Black Lake, has been estimated to be in the order of 95 million dollars (Year 2002 dollars). The project would be capable of producing approximately 208,000 MWhr annually. The levelized cost of energy production has been determined to range between 4.5 and 5.0 cents per kilowatt hour.

• Historical flow data from the Water Survey of Canada indicates that an

adequate year-round water supply exists at the Elizabeth Falls site to meet the flow requirements of the proposed 25 MW hydroelectric generating station and to maintain flow over the waterfalls.

• The hydroelectric development can be built and operated without the need for

river control works such as a dam or weir, thereby retaining the river in its natural state without any major environmental impact to existing fisheries habitat. The natural environment of the falls and river would be maintained and the water levels in both Black Lake and Middle Lake would continue to fluctuate close to their natural operating ranges.

• There are no developments or settlements in the immediate project area that

would be affected negatively by the project either during construction or long term. The development would create both short term and long term employment opportunities for the local community.

• The location of the proposed hydroelectric development is close to existing

access roads and transmission line facilities. • A permanent access road and bridge will be provided to the east bank of the

river for construction of the development. This permanent road will provide access for long term operation and maintenance of the project as well as providing access to other potential natural resources located on the east shore of the Fond du Lac River.

• The project would require 24 months to construct. The earliest

commissioning date is estimated to be the end of 2006.

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• It is recommended that a detailed feasibility and planning study be undertaken immediately to determine the economic viability of the proposed Elizabeth Falls GS.

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1 Introduction

1.1 Mandate

The Black Lake First Nation through Indian and Northern Affairs Canada (INAC) retained the services of Acres International Limited by letter of engagement dated January 29, 2002 to undertake the Strategic Planning Study for the Elizabeth Falls Hydroelectric Development on the Fond du Lac River downstream of Black Lake in northern Saskatchewan. The scope of work of the Strategic Planning Study is to: • identify the hydroelectric power potential of the Fond du Lac River between

Black Lake and Middle Lake including Elizabeth Falls; • determine the technical viability of developing the hydroelectric power

potential of the existing waterfalls at Elizabeth Falls without the construction of a storage dam and with minimum interference to the natural flow regime of the Fond du Lac River; and

• assess the preliminary economic viability of the proposed hydroelectric

development in sufficient detail to warrant proceeding with the next phase. There may be several instances where the engineering terminology used throughout the text of this report may be unfamiliar. However, efforts will be made during the upcoming discussions to explain or clarify any misunderstanding. 1.2 Location

The proposed Elizabeth Falls Hydroelectric Development would be located on the Fond du Lac River approximately 4 km downstream of Black Lake. The project would develop the natural drop in head from the existing Black Lake elevation to a point in the Fond du Lac River immediately downstream of Elizabeth Falls. The Elizabeth Falls consist of a series of rapids over a 600 m length of the river. In addition, several rapid sections exist along the river upstream towards Black Lake.

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1.3 Access

Presently the site is not accessible by road. All-weather access is available to the general area via the existing Provincial Highway 905 from the south that connects to the local access road between Stony Rapids and Black Lake First Nations community as shown on Plate 1. A four wheel drive trail from the existing access road leads towards the Fond du Lac River at which point it is necessary to use a boat or canoe to gain access to the opposite (east) shore where the proposed intake and powerhouse would be located.

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2 Physical Features

2.1 Site Description

The physical geography of the region has been described in detail in the Saskatchewan Department of Mineral Resources Report No. 58. by Colborne1 in 1961 and by Gilboy2 in 1978. A brief summary is included in the following paragraphs. The terminology used in describing the geology is explained at the end of this section. The topography in the Elizabeth Falls area is primarily controlled by bedrock. Upstream of the falls the area is one of low to moderate relief with irregular hills and ridges rising up to about 72 m above the surface of Black Lake as shown in Plates 2 and 3. Downstream of the falls the ground surface rises up to 18 m above the surface of Middle Lake. The hills on the east side of the Fond Du Lac River are underlain by granitic rocks and tend to be well-rounded. The hills on the west side of the river are underlain by sedimentary sandstone and tend to form flat-topped ridges covered with lacustrine and fluvial deposits of clay, silt and sand. The area is well drained and forms part of the Lake Athabasca drainage basin. The area is well treed, consisting of black and white spruce on the west side of the river. Jack pine are mainly confined to the east side of the river where granitic bedrock is near the surface. Birch and poplar are common in the sandy areas along both sides of the river. Some stands of larch were reported to exist in the marshy areas. Muskeg is expected in the low lying areas. The area is situated in a discontinuous permafrost zone and permafrost may be expected. Site photographs are provided in Appendix A. 2.2 Regional Overburden Geology

The overburden on the west side of the river in the vicinity of the proposed project consists primarily of fine grained glacial lacustrine deposits of clay and

1 Colborne, G.S. (1961); The Geology of the Clut Lakes Area (East Half) Saskatchewan;

Saskatchewan Department of Mineral Resources, Geological Sciences Branch, Precambrian Geology Division, Report No. 58.

2 Gilboy, C.F. (1978); Reconnaissance Geology, Stony Rapids Area (Part of NTS area 74P); in Summary of Investigations 1978, Saskatchewan Geological Survey, Saskatchewan Department of Mineral Resources, Miscellaneous Publication 78-10, p 35-42.

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silt with some sand and pebbly gravel size particles. In a geological time frame, the glacio-lacustrine soils were sediments deposited in the bottom of a lake formed by a receding glacier. Near Black Lake there is a 10 km long westward trending esker that should contain sufficient sand and gravel materials to meet the construction requirements for access roads and concrete production. In addition, sandy materials are expected to be contained in a west-northwest trending chain esker located south of the Stony Rapids settlement. The eastern limit of Stony Rapids Esker is about 4 km from the project site. The effects of glaciation are evident on the east side of the river, where the granitic bedrock is exposed. In low lying areas the rock surface is covered by soils that are predominately glacio-lacustrine clay and silt with some sand and pebbly sized gravel. Fluvial deposits consisting of gravel, sand, silt and clay are expected to exist in stream beds. 2.3 Regional Bedrock Geology

The bedrock geology of the area around the proposed Elizabeth Falls Hydro-electric development was investigated and mapped by C. F. Gilboy(2). This geology is briefly described below. Geological mapping of the bedrock surface surrounding the proposed development is reproduced in Plate 4. Black Lake Shear Zone: The most prominent geological structure is the NNE-striking westward dipping Black Lake Shear Zone that is defined by a belt of mylonitic rocks with a variable width from 150 m to about 800 m near the proposed inlet plug. The characteristics of bedrock are different on either side of this major structure. Northwest of the Black Lake Shear Zone: The bedrock is granitic of Precambrian age, identified as being of the Hybrid Gneiss Complex geological group. This rock unit is coarse grained and consists of white and pink felsic gneisses. The powerhouse, power tunnel, and penstocks will be founded on this granitic rock. West Side of Fond du Lac River: The bedrock is primarily a sedimentary sandstone belonging to the Athabasca Formation. The rock unit is white or pale

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pink, consisting of layers of conglomerates and sandstones. A potential iron ore deposit was investigated in 1956 by Triana Explorations Ltd. by diamond drilling. In the vicinity of Elizabeth Falls, the drilling indicated the sandstone formation is approximately 65 m thick and overlies Precambrian Helikian rock unit. Glacial fluting is indicated on the west side of Middle Lake downstream of the proposed hydro development. In this area the ice movement was SE to NW. 2.4 Structural Geology

The structure of the area is complex and will not be clearly understood until more detailed mapping has been carried out. However, between the Black Lake Shear Zone and the east bank of the Fond Du Lac River, the regional structural jointing trend is northeast with moderate to steep dips to the northwest. The rock formations are said to be tightly folded. There is no information in the published literature that relates to the quality of the rock. Faults and shear zones are widespread and cut all rock units mapped in the area. As mentioned, a prominent mylonite zone, the Black Lake Shear Zone, extends for more than 50 km northwest near the Northwest Territories border. There is one well-defined major joint set that is considered to be a master fracture for which no evidence of relative movement has been established. This feature trends north in line with five small lakes and crosses the Black Lake Shear Zone in the vicinity of the intake structure. 2.5 Geological Terms3

glacio- to denote the relationship to glaciers. lacustrine produced by or formed in a lake. fluvial produced by river action. esker stratified accumulations of sand and gravel that occur in long

ridges. They are located in the general direction of drainage and are taken to mark channels in the decaying ice sheet (glacier)

3 Dictionary of Geological Terms, revised edition, completed by more than 90 specialists under

the direction of the American Geological Institute. An abridged edition of the AGI Glossary of Geology, 1972 edition.

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through which streams washed much of the finer materials leaving the coarser sand and gravel between ice walls.

drumlinoid a series of smooth, streamlined hills composed of glacial till. ridge glacier a mass of ice, with definite lateral limits and moving, originating

from the accumulation of snow. glaciation alteration of the earth=s solid surface through erosion and

deposition by glacier ice. glacial till non-sorted, non-stratified sediment deposited and subsequently

compressed by glaciation. shear zone a zone in which extensive lateral shearing movement has

occurred on a large scale so that the rock is crushed and brecciated. A healing of the shear zone may occur over time, resulting in competent bedrock.

strike is the direction or course of a horizontal line in the plane of an incline, joint, fault, bed or structure. The strike is perpendicular to the direction of the dip.

dip the angle at which a planar feature is inclined from the horizontal. The dip is at right angles to the strike.

mylonite a fined grained, laminated rock/mineral formed by milling of rocks during movement on fault surfaces.

Precambrian a geological time era, i.e., all rocks formed before the Cambrian. Precambrian is the oldest geological time era.

granite rock consisting essentially of alkali, feldspar and quartz. gneiss a banded metamorphic rock with alternating layers of light and

dark minerals. Athabasca a geological formation described as being a sedimentary deposit

consisting essentially of conglomerates and sandstone. conglomerates rounded, waterworn fragments of rock or pebbles, cemented

together by another mineral substance. sandstone cemented or otherwise compacted sediment composed of

predominately sand sized quartz grains. glacial fluting deep smooth furrows worn in the surface of rocks by glacial

action. felsic term applied to a light coloured granite comprised of feldspar

and silica.

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3 Generation Planning

3.1 Streamflow

The Fond-du-Lac River emerges in northeastern Saskatchewan and flows west- northwest to Lake Athabasca. The two main sources include Wollaston Lake to the east-southeast and Cree Lake to the south as shown on Plate 1. Natural outflows from Wollaston Lake are routed to two major river systems, the Fond du Lac River to the north and west, and the Churchill River via the Cochrane and Reindeer Rivers to the east and south. Recorded flows are published by Water Survey of Canada (WSC), and are available for gauge 07LE001 (1946 to 1963) and gauge 07LE002 (1963 to date) located at the outfall of the Fond du Lac River from Black Lake. Monthly flows have been used as a design basis throughout this study. Due to the good flow regulation provided by Black Lake there are no significant differences in daily and monthly flow duration curves and the monthly flows are sufficiently accurate for strategic planning studies such as this. Detailed flood frequency analyses were not undertaken during this study, as the proposed development will not alter the existing discharge carrying capacity of the Fond du Lac River. Project development will only result in the diversion of that part of the flow necessary for power generation. All remaining river discharges will continue to pass through the unaltered river channel. As in the natural condition, the discharge through the river will be directly related to the prevailing water level in Black Lake. Detailed field surveys and flood frequency analyses will be undertaken in subsequent study phases to establish the correct elevations of the project features. From a review of the most recent flow data, 1963 to date, the long term average annual mean discharge is in the order of 306 m³/s, with a minimum mean monthly discharge of 209 m³/s in March and a maximum mean monthly discharge of 418 m³/s in June. Over the same time period, the minimum monthly discharge has been as low as 125 m³/s in March 1982 and as high as 786 m³/s in October 1997. A nominal flow of 111 m³/s is being contemplated for power development for the purpose of this strategic planning study.

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3.2 Available Head for Development

Based on available 1:50,000 scale mapping (see Plate 2), the naturally occurring water level of Black Lake is +el 277 m, while the naturally occurring water level of Middle Lake, downstream of Elizabeth Falls, is +el 242 m. This results in a gross head for development of approximately 35 m. 3.3 Installed Capacity

Based on the available flow and head at this site, an installed capacity in the order of 25 MW was deemed reasonable for initial consideration. A rated discharge in the order of 111 m³/s would be required to produce 25 MW. Based on the preliminary design of the conveyance system to deliver the rated discharge (flow) from the lake to the powerhouse, the total head loss would be 9.8 m. This results in a net head for power generation of approximately 25.2 m under open water conditions. Allowances for variations in the natural water levels of Black Lake and losses in the tailrace channel and in the river from the falls to Middle Lake are provided for in this estimate. 3.4 Energy

A naturally formed rock control (rapids) exists at the outlet of Black Lake limiting the release of flow to the Fond du Lac River. As noted above, only a portion of the river discharge would be utilized for power generation; the balance would continue to pass down the natural river channel as before. As the rated discharge is significantly less than the normal minimum natural river discharges, the plant should be capable of operating at full load throughout the year. The invert of the intake would be set so that it would be possible to divert the rated discharge to the powerhouse under all lake levels. As the full plant discharge would always be available for power generation, it is assumed the plant would be capable of producing some 208,000 MWhr annually. This assumes a plant availability factor of 95%, which is considered realistic. This allowance provides time for generation interruptions due to transmission outages and unit shutdown for maintenance and servicing.

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4 Project Description

4.1 General Arrangement

The proposed Elizabeth Falls Hydroelectric Development consists of a new intake channel and intake structure, power tunnel, a two-unit powerhouse, tailrace channel, switchyard, transmission line and access road including a bridge crossing. The general layout and location is as shown on Plate 3. Capital cost estimates were prepared, at a conceptual level, for an installed capacity of 25 MW. The conceptual design and layout for the project has been based on available information obtained from existing records, mapping at 1:50,000 scale, reports and a two day cursory site visit along the west side of the river. No additional site surveys or field investigations were undertaken for the purpose of this study. The study objective was to establish a realistic layout and design for a proposed hydroelectric development utilizing the existing resources at site. The main components of the preliminary development are described in the following sections. 4.2 Intake Approach Channel and Structure

The layout of the intake channel and structure is shown on Plates 5 and 6. The channel is excavated into the rock at the shoreline of Black Lake a little over 2.5 km southeast of Elizabeth Falls. The width and depth of the channel inlet are designed to control the velocity of the water flowing into the intake. The channel invert slopes down to a rock trap immediately upstream of the intake base slab. As the invert level drops, the channel width decreases to maintain the prescribed flow velocity. The intake consists of a reinforced concrete structure with provision for steel stoplogs and trashracks, and a streamlined water passage to direct the flow to an excavated tunnel. The intake channel and structure have been designed to withdraw the required plant discharge from Black Lake over the full range of the anticipated lake levels.

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The size of the intake is sufficient to ensure the formation of a stable ice cover in the channel during winter operation. The soffit of the water passage is set low enough to prevent the entrainment of air into the tunnel. The level of the intake deck is set one metre above the estimated maximum level of the lake. This is considered sufficient freeboard because the orientation of the intake shields it from the prevailing winds and minimizes the possibility of overtopping by waves. The upstream portion of the water passage is divided into two bays by a central concrete pier. This avoids imposition of excessive spans and associated loads on the reinforced concrete base slab and roof, and on the steel stoplogs and trashracks. The trashracks are provided at the inlet to prevent entry into the tunnel of debris and ice, which could result in blockage of the water passages and the powerhouse turbines. The stoplogs would be required for dewatering the intake, power tunnel and downstream water passageways for inspection and maintenance work. The deck of the intake structure is large enough to allow a mobile crane to be positioned adjacent to the slots for handling the stoplogs and trashracks. The stoplogs will be stored in an adjacent area when not in use. The access road to the intake leads directly onto the deck and to the storage area. The concrete roof of the downstream portion of the water passage is overlaid with compacted fill and road topping to bring it up to the same level as the access road. A hatch is provided immediately downstream of the stoplogs in order to gain access into the power tunnel for inspection and maintenance. 4.3 Power Tunnel and Bifurcation

The power tunnel from the intake is excavated through rock to the powerhouse approximately 3300 m to the northwest. The cross section of the power tunnel is shown on Plate 6. Flow velocities in the power tunnel are low enough that, for the majority of its length, the power tunnel does not require a concrete lining. Near the powerhouse, a reinforced concrete transition section bifurcates just upstream of the generating units. The bifurcation has a steel lining backed by concrete and grout.

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4.4 Powerhouse Complex and Tailrace Channel

The powerhouse and service bay complex is located in a rock excavation to the east northeast of Elizabeth Falls, illustrated in Plates 5 and 7. Adjacent facilities are the parking/vehicle manoeuvring area and the switchyard. The steel conduits pass through the upstream wall of the powerhouse into chambers containing butterfly valves, which would be used for emergency closure to shut off the flow to each unit. The steel conduits then transform into the steel lined spiral cases, which direct the flow through the stay vanes, wicket gates and down past the turbines into the draft tubes. The water is discharged downstream from the draft tubes into the tailrace channel and into the river below Elizabeth Falls. Each unit has a relief valve connected just downstream of the butterfly valve to dissipate sudden water pressure build up caused by sudden closure of the turbine wicket gates. On the downstream side of the powerhouse are steel guides to facilitate installation of draft tube gates in order to dewater the draft tubes for inspection and maintenance. The powerhouse structure will house two 12.5 MW generating units, for a total rated plant capacity of 25 MW as shown on Plate 7. A two-unit plant was selected on the basis of flexibility of plant operation and better scheduling of outages. While a single unit may cost less, a two-unit plant will result in less lost generation of energy due to forced and planned outages and equipment components will be smaller and easier to handle. The reinforced concrete powerhouse substructure encases and supports all the electrical and mechanical equipment associated with the generating units, in the central area of the main powerhouse floor level. Governor equipment used to control the generating units is installed in areas adjacent to the generator enclosures. Upstream of this, above the valve chambers, there is a gallery containing electrical equipment and covered hatches. The main mechanical equipment is located in a gallery on the downstream side. The roof slab of this gallery provides access for a mobile crane to handle the draft tube gates. The main transformers are located in the switchyard to the west of the powerhouse. A dewatering and drainage sump is provided at the lower elevation of the powerhouse. The dewatering system consists of a set of pumps and associated

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controls that will operate to completely dewater the power tunnel, steel conduits, turbine water passageways and draft tubes for inspection. Initial dewatering will be done by draining the power tunnel by gravity to tailwater level. Valving in the sump will permit filling of the turbine water passageways and a portion of the power tunnel up to tailwater elevation by gravity. Final filling will be achieved via manual valves in the intake stoplogs. Other auxiliary mechanical systems include fire protection, service water, compressed air and heating and ventilating. Immediately adjacent to the powerhouse units on the west side is a service bay consisting of a slab on excavated rock, the central portion of which serves as an erection area for assembly of the larger turbine and generator components. Along the southwest side of the service bay there are rooms associated with station control, servicing and maintenance, as well as storage areas, washrooms etc. A steel-framed structure enveloped by insulated cladding encloses the powerhouse generator floor and service bay erection area and supports an over-head travelling crane with sufficient capacity to lift the heaviest of the assembled turbine/generator components. A large overhead door is located in the down-stream portion of the southwest wall of the service bay. Adjacent to the service bay, on the southwest side, there is a levelled area for manoeuvring large delivery vehicles and for parking. To the downstream of this, south-west of the tailrace channel, is the switchyard, from which transmission lines run approximately 11 km to the west to join up with an existing line. Downstream of the powerhouse, the water exiting from the draft tubes enters a tailrace channel approximately 250 m long excavated into rock, which directs the water back into the river downstream of Elizabeth Falls. The channel width and depth are set to maintain a maximum design flow velocity of 2.5 m/s. 4.5 Transmission

As shown on Plate 2, a transmission line of approximately 11 km in length would have to be constructed to interconnect the Elizabeth Falls Hydroelectric Development to the existing 138 kV, single circuit, three phase, wood-pole transmission line northwest of the community of Black Lake. No additional

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system reinforcements are necessary. The cost estimate includes the construction of the 11 km, 138 kV line and the terminal switching equipment at the power-house switchyard (provided by SaskPower, in Appendix B).

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Public consultation is required under CEAA. A minimum of one public meeting (or open house) is recommended. A second public meeting may be desirable if significant environmental issues or significant public concerns deem it to be warranted.

5.1.3 Other Approvals

Federal permits will be required from the Department of Fisheries and Oceans from the fish Habitat Branch regarding fish habitat compensation/mitigation. In addition, approvals may also be required from the following agencies: • SERM – Forestry Branch for the transmission line and access road; • SERM – Fisheries Branch for the transmission line, access road, and plant

construction and operation; • SERM – Wildlife Branch for the transmission line and access road; • Saskatchewan Highways and Transportation for the transmission line,

borrow pits and access road; • Archaeological Resources Management, Heritage Branch for the

transmission line, borrow pits, access road and plant construction; • Saskatchewan Energy and Mines for the borrow pits; and • Saskatchewan Water Corporation Act – Approval for use of water.

5.2 Environmental Issues/Effects

5.2.1 Aquatic Environment

The Fond du Lac River upland eco-region contains numerous lakes and steams. Fish species of recreational or commercial importance include lake trout, whitefish, Arctic grayling, northern pike and walleye. Effects of hydroelectric development on the aquatic environment can be categorized into several groups including: • Effects of construction such as changes in water quality due to spillage of

hazardous materials and construction site runoff and direct mortality of fish or disruption of fish habitat due to in-water work and blasting. These

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effects are generally temporary and the extent of them is usually dependent on the size of the project;

• Effects of access road where it traverses water courses; • Effects of transmission line where structures are placed in water bodies;

and • Mortality of fish due to turbine entrainment and passage. The Elizabeth Falls Hydroelectric Development will involve the construction of an intake at Black Lake and a power tunnel to a powerhouse located down-stream of the waterfalls, an access road and bridge across the Fond du Lac River, and an 11 km long transmission line. The potential impacts on the aquatic environment due to construction of the plant can be minimized by environmentally sound construction practices such as providing proper containment around fueling and chemical storage areas, and development of an appropriate drainage plan for the construction site, stockpile and spoil disposal areas which will minimize the potential for deleterious substances entering the river. Construction of the facility will not require placement of any earthfill cofferdams. Instead, rock plugs will be left in place immediately upstream of the intake and downstream of the tailrace channel so that blasting and excavation for the structures can be conducted in the dry. Once construction is complete, the rock plugs at the intake and tailrace channels will be removed. In constructing the access road and bridge crossing, the standards of the Saskatchewan Department of Highways and Transportation and any environmental guidelines with respect to stream crossings resulting from the EA should be followed. A new transmission line will be required from the plant to connect to the SaskPower network at Black Lake. To minimize the impact of transmission line construction on the aquatic environment, a route for the transmission line should be selected that will, to the extent possible, not require the placement of in-water transmission structures.

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As the facility will not significantly alter water levels in Black Lake, no changes in the water quality, or fisheries are anticipated. A reduction in turbulence and aeration of water passing through the turbines compared to that passed through the natural river channel and waterfalls may result in reduced oxygen concentrations downstream of the facility. This will need to be evaluated during the EA process. Some excavation of the riverbed immediately below the waterfalls will be required for the tailrace. If this area is currently a spawning bed for fish habitat, an alternative spawning area will need to be developed or the location of the powerhouse would need to be changed.

5.2.2 Terrestrial Environment

The principal effects of the hydroelectric development on the terrestrial environment include: • Removal of trees and vegetation for construction yards and camp, access

roads and transmission corridors; • Disruption of wildlife and their habitats; • Use of terrestrial resources such as aggregate; and • Disposal of excavated rock and spoil. In selection of routes for the access road and transmission line corridor care should be taken to avoid any terrestrial habitats of unique importance for wildlife.

5.2.3 Socio-Economic Environment

Socio-economic effects of the hydroelectric development often include the following: • Land acquisition for site facilities; • Increased traffic, noise and dust in nearby communities; • Increased local employment during the construction phase but few

employment opportunities during operation; • Influx of a labour force during construction, placing stress on local

services and amenities; and

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• Alteration of cultural, historical and archaeological sites. The construction of this hydroelectric development will have a few minor adverse impacts on the socio-economic environment; the construction will offer both short and long term employment opportunities. The close proximity of the construction site to the community of Black Lake will result in the need for indirect services from the community during the period of construction such as security, camp, catering, recreation, etc.. Construction activities will create noise and dust in the area of the site and to a lesser extent in the area of the borrow pits. Construction traffic will likely cause some temporary inconvenience and delays to local traffic. Since there will be minimal changes in the water level of Black Lake or downstream flows, impacts on recreation (fishing, boating, canoeing, etc.) or local outfitters are not anticipated.

5.3 Environmental Costs

With the current information it is difficult to accurately assess the exact costs associated with environmental issues. However, an order of magnitude cost has been included in the overall cost estimate provided in Section 7. 5.4 Schedule for Environmental Assessment and

Approvals

Generally, an allowance of a year and a half should be provided to complete the Environmental Assessment and to obtain all environmental permits and approvals.

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6 Construction Considerations

6.1 Access

The existing four-wheel-drive trail from Provincial Highway 905 west of the Fond du Lac River, shown on Plate 2, would have to be rebuilt and widened to be suitable for heavy vehicular traffic. Access to the project area would be achieved by construction of a new road running north and then bending to the east to cross the river at a tentative location about 3 km north of Black Lake as shown on Plate 3. The road would divide on the east side of the river into two roads, one fork leading to the proposed powerhouse complex about 2 km to the north, and the other fork turning south toward the location of the proposed intake structure. About 1 km south of the powerhouse, the road would give access to the contractors’ construction areas, including the concrete batch plant, stores, maintenance areas and fabrication shops etc. The road to the south would provide access to the site of the intake channel and structure, both during construction and, subsequently, as a permanent roadway. The road would initially follow the east bank of the river for about 1.5 km before curving around the high terrain to the east and running northeast along the Black Lake shoreline to the intake structure. The length of the intake access route from the fork in the road would be approximately 5.5 km. To facilitate the road crossing of the river, a bridge of three spans is envisioned, with the centre span supported on two piers built very close to each bank, perhaps encroaching slightly into the river. The two outer spans would be carried on the piers and on approach abutments. The bridge would be designed to carry the heaviest loaded delivery vehicle. The selection of the route of the access road and the location and arrangement of the bridge over the river are tentative due to geological uncertainties and environmental considerations. These include: the steepness of the river banks, the geological characteristics of the possible locations where bridge pier foundations and abutments may be located, the spans that may be involved, and difficulties associated with construction of the bridge pier foundations. Site investigations would be needed before the road and bridge arrangements can be finalized.

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The construction camp facilities would be located west of the river, approximately 0.5 km east of the new road leading to the bridge. There would be an access road running due east from the new road into the camp area as shown on Plate 3. 6.2 Diversion/Dewatering

Because it is unnecessary to control or divert the natural river discharge for the development of the hydroelectric project, there will be no need for river diversion structures during project construction. All components of the project are located away from the river such that, during construction, only local inflows into the project area will need to be handled. To allow for the excavation of both the powerhouse tailrace channel and the intake approach channel to be carried out in the dry, rock plugs would be left in place adjacent to the respective bodies of water. The plugs would remain in place until the concrete structures were complete and the necessary gates in place to prevent flooding of water into the water passages. The plugs would then be removed in the wet down to the design invert levels of each of the respective channels. 6.3 Schedule

Plate 8 represents the preliminary Master Planning and Construction Schedule of the major studies and work items which would be required to carry the project through to commissioning. The schedule has been prepared using a Fast-Track Approach to accelerate the approvals and construction of the project. The success of this schedule will depend upon the time required to complete the feasibility study (site exploration and investigations) and to obtain environmental approval for the construction of the generating station, the transmission line and the permanent access road. It has been assumed in the preparation of this schedule, that there will be no construction contracts awarded until the project has been given environmental approval. The schedule is divided into two main phases: the first phase is the study, evaluation and approval phase, while the second is the construction and commissioning phase of the project.

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It is contemplated that the preparations for site exploration and investigations will commence in the spring of 2002 in order to complete the feasibility study early in 2003. If the feasibility study indicates that the proposed development is economically viable, the environmental assessment studies could commence as the feasibility study is nearing completion. This would allow the environmental approval phase to begin as early as possible. The tender design for the major equipment and the general civil works could proceed during the final licensing phase to permit contract award shortly thereafter. Project approval is shown to occur in mid 2004. Construction of the access road, bridge crossing and construction site facilities would commence immediately upon project approval. This would permit the general civil contractor to mobilize over the winter months and avoid the load restrictions on the access roads from the south during the spring and summer months. The two year time frame for project construction and commissioning is deemed sufficient for a project of this scope and magnitude. During the first year of construction, 2005, the main activities would focus on excavation for all structures. Construction of the powerhouse would be carried out in the summer and fall of 2005 to allow commencement of installation of the generating equipment and controls early in 2006. The intake structure, including the stoplogs and trashracks would be completed during the spring and summer of 2006. The installation of the mechanical/electrical equipment would be completed in the latter half of 2006 to permit project commissioning by the end of that year. 6.4 Benefits to Black Lake First Nations

The Elizabeth Falls Hydroelectric Development is ideally suited to provide power to the Black Lake First Nations community as well as the communities of Stony Rapids and Fond du Lac. Furthermore, SaskPower and two large mining firms in the area are potential buyers of the power, which would generate large revenues for the Band.

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7 Cost Estimate

7.1 Capital Cost Estimate

Plate 3 depicts the general arrangement of the proposed Elizabeth Falls Hydroelectric Development with an installed capacity of 25 MW at a rated design discharge of 111 m³/s. The development consists of a powerhouse containing two vertical shaft fixed blade propeller turbines and generators. The flow would be directed to the powerhouse via a power tunnel approximately 3,300 m in length with a submerged intake control structure located on the west bank of Black Lake. Additional features of the development including the access road and transmission line are shown on Plate 2; project details of the powerhouse, intake, tunnel, etc. are shown on Plates 5, 6, and 7. The Master Planning and Construction Schedule is shown on Plate 8.

The total estimated cost of the proposed Elizabeth Falls Hydroelectric Development is approximately $95 million (Year 2002 dollars), including a contingency allowance of 20% on total direct and indirect costs, and interest during construction (assumed at 10% over a two year construction period), but excluding escalation. The breakdown of the total estimated cost, including transmission, is summarized in Table 7.1. Table 7.1 Preliminary Cost Estimate (Year 2002 dollars)

Description Amount Total Estimated Direct Costs $ 51,490,000 Total Estimated Indirect Costs 20,150,000 Total Estimated Directs and Indirects $71,640,000 Contingency (20%) 14,330,000 Interest During Construction (at 10% over 2 years)

9,030,000

Total Estimated Cost (Year 2002 dollars) $ 95,000,000 Appendix C contains a more detailed breakdown of the cost estimate for the proposed Elizabeth Falls Hydroelectric Development.

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The direct cost estimates for the major civil work items such, as excavation and concrete works, were based on quantity take-offs from the attached Plates and supporting sketches. Unit prices were based on recent in-house practice and experience on similar hydroelectric projects, with adjustments to suit the location of the proposed project. Estimates for the hydro-mechanical and electrical equipment and systems were derived from other similar projects for which quotations from suppliers and manufacturers have been solicited. The indirect costs were prepared on the basis of our past experience on similar types of projects of approximately the same size. A contingency allowance of 20%, which is considered to be appropriate for this level of study, has been added to the total direct and indirect costs. The contingency allowance will be adjusted as studies advance to the commitment level. 7.2 Annual Costs

7.2.1 Operating and Maintenance Costs

Operating and Maintenance (O&M) costs represent the average annual costs of maintaining the development at full operating efficiency throughout the life of the facility. This includes salaries of operating and maintenance personnel, supplies and materials for ordinary maintenance and repairs, and applicable supervisory and overhead costs. O&M costs are usually a function of installed capacity and type of operation. The operation of power projects is divided into two general categories: local and remote. Projects that are operated locally have operators on-site. Remote operation is performed by automated equipment, with operating instructions being transmitted from a centralized source. The complexity of the control equipment depends on plant size and location. For this level of study, it has been assumed that the Elizabeth Falls Hydroelectric Development would be remotely controlled. The estimate of operation and maintenance costs has been based on data presented by the US Army Corps of Engineers (USACE) for remotely

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controlled power plants. For Elizabeth Falls, the annual O&M costs are estimated to be in the order of $500,000 (Year 2002 dollars). 7.2.2 Replacement Costs

Certain major components of a powerhouse require replacement before the end of the facility life. Examples are generator windings, turbine runners, thrust bearings, pumps, air compressors, communications equipment, generator voltage regulation and excitation equipment, and certain types of transformers. For reconnaissance level studies, according to the above USACE reference, the annual replacement costs can be approximated as 0.2% of the powerhouse cost estimate.

7.2.3 Insurance

Annual insurance premiums for the plant can be approximated as 0.5% of the capital cost.

7.2.4 Transmission O&M

Annual O&M costs for transmission and substations can be approximated as 2% of the applicable capital cost for the associated transmission lines and substation.

7.2.5 Other Annual Costs

Other annual costs including, depreciation, administration, water rental, etc. will have to be assessed as the study progresses.

7.3 Levelized Cost of Energy

The approximate levelized cost of energy production has been determined to range between 4.5 and 5.0 cents per kilowatt hour. This estimate is based on the following preliminary assumptions:

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• Total capital of the development at $95,000,000, as noted above; • Annual cost of plant operation at $860,000 which includes operating and

maintenance costs, replacement costs, insurance, transmission, etc., as noted above;

• Average annual energy production of 208,000 MWhr; • Amortization period of 25 years; • Mortgage rate of 10%; and • Discount rate of 12%.

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8 Conclusions

The Strategic Planning Study indicates that: • The preliminary cost of developing a 25 MW hydroelectric development at

Elizabeth Falls on the Fond du Lac River has been estimated to be in the order of 95 million dollars (Year 2002 dollars). The project would be capable of producing approximately 208,000 MWhr annually. The levelized cost of energy production has been determined to range between 4.5 and 5.0 cents per kilowatt hour.

• Historical flow data from the Water Survey of Canada indicates an adequate

year round water supply at the Elizabeth Falls site on the Fond du Lac River downstream of Black Lake to meet the needs of the proposed 25 MW hydroelectric generating station.

• The hydroelectric development can be built and operated without the need for

any river control works such as a dam or weir, thereby retaining the river in its natural state without any major environmental impact to existing fisheries habitat. The aesthetics of the falls and river would be maintained and the water levels in both Black Lake and Middle Lake would continue to fluctuate close to their natural operating ranges.

• There are no other developments or settlements in the immediate project area

that would be affected by the construction of this project. • The location of the proposed hydroelectric development is close to existing

access roads and transmission line facilities, thereby minimizing infrastructure costs.

• The provision of a power tunnel rather than an above ground penstock or

canal would minimize the impact on the surrounding environment, including wildlife, from both an appearance and operations point of view, while minimizing the annual cost of maintenance and enhancing the overall safety of plant operation.

• Project construction is expected to only have a minimal short term effect on

wildlife, if any, and would be localized at the site.

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• Project development will provide a permanent access road to the east side of

the river permitting access to resource areas normally allowable only by winter road.

• The project would require 24 months to construct. The earliest

commissioning date is estimated to be the end of 2006. • After project commissioning, the construction camp could be converted to an

outfitter’s lodge.

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9 Recommendations

Based on the results of this study, it is recommended that a detailed feasibility level study be undertaken as soon as possible to confirm the economic viability of the proposed Elizabeth Falls Hydroelectric Development. Such an investigation would involve the following activities: • Topographic and hydrographic field surveys of the proposed project site areas

and water bodies; • Sample drilling at the proposed intake, power tunnel and powerhouse areas to

locate the underlying bedrock surface and to determine the rock quality characteristics;

• Identify, in the field, the most optimum location for the proposed access road and bridge crossing;

• Optimize the design of the intake; this would include the location, invert elevation, submergence requirements, water passageway dimensions, gate spans, crane requirements, etc;

• Optimize the design of the power tunnel; this would include the size, length, invert profile, number of construction adits, reinforcement/lining requirements, etc;

• Optimize the location of the powerhouse with regards to the foundation conditions, length of the tailrace channel, penstock length, etc;

• Optimize the number and type of turbine generating units including water passageway dimensions, type and size of relief values and butterfly valves, mechanical and electrical equipment requirements, space and access requirements, room layouts, etc;

• Optimize location of the switchyard with regards to the foundation conditions, proximity to existing waterfalls, etc;

• Confirm the location of the transmission line and point of interconnection; • Confirm the location of the construction camp facilities and contractor’s work

area; and • Refine the cost estimates for project construction including licenses,

environmental studies, construction camp, work area, owners costs, etc. The data presented above would be used in discussions between SaskPower and Black Lake First Nations regarding the economic viability of the Elizabeth Falls Hydroelectric Development.

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If suitable terms can be reached on the economic viability of the Elizabeth Falls Hydroelectric Development, then the most important activity to commence would be the refinement of the preliminary Master Planning and Construction Schedule to verify all activities and their interdependencies to permit proper monitoring, project budget development and control. Some key items which would be addressed and require early attention include: • Initiating the environmental impact assessment; • Establishing a limited partnership structure to ensure that the majority of the

construction costs and net income from the project are tax free; • Establishing a strategic plan for the construction camp and work area; • Constructing the permanent access road; and • Initiating the draft conditions of the Power Purchase Agreement.

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Draft Feasibility Elizabeth Falls

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