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December 16, 2011 PROJECT DESCRIPTION BURNCO Aggregate Project Howe Sound, BC REPORT Report Number: 11-1422-0046 Distribution: 2 copies - BURNCO 1 copy - BC EAO 1 copy - CEAA 1 copy - DFO 1 copy - MPMO 1 copy – MEMPR 2 copies - Golder Associates Ltd. Submitted to: BC Environmental Assessment Office 1st Floor 836 Yates Street P.O. Box 9426 Stn Prov Govt Victoria, BC V8W 9V1

REP 1216 11 BURNCO Aggregate Project Description FINAL · improve the direct road access into the property. ... must be obtained to approve the Mine Plan and Reclamation Program,

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December 16, 2011

PROJECT DESCRIPTION

BURNCO Aggregate Project Howe Sound, BC

REP

OR

T

Report Number: 11-1422-0046

Distribution:

2 copies - BURNCO

1 copy - BC EAO

1 copy - CEAA

1 copy - DFO

1 copy - MPMO

1 copy – MEMPR

2 copies - Golder Associates Ltd.

Submitted to:BC Environmental Assessment Office 1st Floor 836 Yates Street P.O. Box 9426 Stn Prov Govt Victoria, BC V8W 9V1

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 i

Executive Summary

The BURNCO Aggregate Project (49 28’ N 123 23’ W) (“Project”) is situated in McNab Valley on the northwest shore of Howe Sound, British Columbia (BC), approximately 22 kilometres (km) west-southwest of Squamish and 35 km northwest of Vancouver. The valley’s glaciofluvial fan-delta comprises a substantial deposit of sand and gravel, and investigations indicate that it constitutes a significant commercially extractable aggregate resource.

The purpose of the BURNCO Aggregate Project Description is to provide a summary description of size and characteristics of the project; location and summary of areas, physical and biological environments; and resources potentially affected by the Project, along with contact information for the Project proponent.

Since 2008, the property has been owned by 0819042 BC Ltd., with common ownership to BURNCO Rock Products Ltd. (“BURNCO”). It is BURNCO’s intent to develop a sand and gravel aggregate pit on the property to initially supply material to their ready-mix concrete plants in south Burnaby and Port Kells, BC. The project will rely on transport of products off-site by barge, and will include development of a marine barge loading facility.

BURNCO’s concrete plants in the Lower Mainland are currently supplied with aggregate from the Orca Sand and Gravel mine at Port McNeil on northern Vancouver Island. The development of the BURNCO Aggregate pit would result in a greater than 280 km reduction in barge tow distance between the current aggregate source and the concrete plants, thereby improving both the environmental impacts and economic viability of BURNCO’s operations.

Although the geological characterization of the property and resources within the Project area is underway, the overall concept for the project is to initially surface-mine material from the sand and gravel deposit within the property; thereafter, excavation of the deposit would be achieved via high-speed clamshell dredge in a defined wetted pit. It is anticipated that excavation of the deposit will proceed to a depth of greater than 15 metres (m) initially and will proceed east from an existing road across the deposit to avoid all existing natural watercourses. Current estimates suggest that initial extraction of the aggregate resource will be on the order of 400,000 tonnes per year, increasing to 1 to 1.6 million tonnes per annum (MTPA) within a few years for the duration of the resource, with possible production ‘spikes’ to a maximum annual anticipated maximum of 4 MTPA, due to potential special project demands, such as large infrastructure works.

Currently, the property is readily accessible only by boat, float plane or helicopter. A road passes along the west side of the valley, with other roads and paths branching off to access other areas. BURNCO has no plans to improve the direct road access into the property. Small boats and float planes can land at an existing dock on the western end of the beach area.

The BURNCO property has been subject to heavy industrial use since the 1940s and forestry activities over the last century. The property has existing facilities in need of maintenance or repair including a marine dock, barge ramp, marine log storage dump, decommissioned fuel storage tanks, maintenance shed – warehouse and biocells in soil protected sites. The BURNCO property has been logged several times since the 1900s, while re-establishment of forest cover on the property in the area of the aggregate deposit has to-date been poor. The site vegetation comprises mainly immature planted conifers and opportunistic deciduous trees. The marine shoreline of the site comprises a sand, gravel and cobble beach, with a log dump, dock and warehouse on a cleared area of the shoreline at the site’s southwest corner.

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 ii

Minimal data are available regarding wildlife species present on the site, although Roosevelt elk (Cervus

elaphus), black bear (Ursus americanus), blacktail deer (Odocoileus hemionus), coyote (Canis latrans) and

various bird species have been observed in the valley.

An artificial groundwater-fed channel was constructed on the property by previous owners in the 1980s, and this

channel was extended upstream in 2003. The entire groundwater channel is approximately 1,225 m long by 4 to

12 m wide, but only a small portion in the upper channel is now available as spawning habitat by chum

(Oncorhynchus keta) and coho salmon (O. kisutch). Adjacent to the project site, the McNab Creek mainstem

supports populations of chum, coho, pink (O. gorbuscha) and chinook salmon (O. tshawytscha), cutthroat trout

(O. clarki), rainbow trout and steelhead (O. mykiss).

BURNCO recognizes that an assessment of the project’s environmental effects will be required in order to

understand and address the concerns of government regulators, the public, local government agencies and First

Nations, so as to obtain the necessary permits for the project to proceed. In particular, a BC Mines Act permit

must be obtained to approve the Mine Plan and Reclamation Program, and based on previous discussions with

federal and provincial regulators, it is anticipated that the project will trigger environmental assessments under

the British Columbia Environmental Assessment Act (BCEAA) and the Canadian Environmental Assessment Act

(CEAA).

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 iii

List of Abbreviations

AB Alberta

AOA Archaeological Overview Assessment

BC British Columbia

BCEAA British Columbia Environmental Assessment Act

BCEAO British Columbia Environmental Assessment Office

BCTS British Columbia Timber Supply

CDN Canadian

CEAA Canadian Environmental Assessment Act

CMT Culturally Modified Tree

CWS Canadian Wildlife Service

DFO Department of Fisheries and Oceans Canada

EAC Environmental Assessment Certificate

EMP Environmental Management Plan

EMPR Energy Mines Petroleum Resources

GSB Geological Survey Branch

GHG Greenhouse gas

HADD Harmful Alteration, Disruption or Destruction of Fish Habitat

HCA Heritage Conservation Act

lb Pound

MEMPR Ministry of Energy Mines

MPMO Major Projects Management Office

MTPA Million tonnes per annum (year)

NOW Notice of Work

NRC Natural Resources Canada

NWPA Navigable Waters Protection Act

ppm Parts per Million

ROW Right-of Way

SARA Species at Risk Act

TPY Tonnes per Year

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 iv

Table of Contents

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

1.1  LOCATION .......................................................................................................................................................... 1 

2.0  PROPONENT INFORMATION ......................................................................................................................................... 2 

2.1  Proponent Identification ....................................................................................................................................... 2 

2.2  Key Proponent Contacts ...................................................................................................................................... 2 

3.0  PROJECT JUSTIFICATION ............................................................................................................................................. 4 

3.1  Need for the Project ............................................................................................................................................. 4 

3.2  Estimated Resource ............................................................................................................................................ 5 

4.0  PROJECT OVERVIEW ..................................................................................................................................................... 6 

4.1  Project Components ............................................................................................................................................ 6 

4.1.1  Pit Development ............................................................................................................................................. 6 

4.1.2  Processing ..................................................................................................................................................... 7 

4.1.3  Marine Loading Facility and Barging .............................................................................................................. 7 

4.1.4  Other Facilities, Infrastructure and Alternatives ............................................................................................. 8 

4.2  Project Emissions, Discharges and Waste .......................................................................................................... 9 

4.3  Reclamation, Closure and Monitoring ................................................................................................................ 10 

4.4  Labour ............................................................................................................................................................... 10 

4.5  Cost ................................................................................................................................................................... 11 

5.0  PROJECT SETTING (AGGREGATE SITE AND BARGE ROUTE) ............................................................................... 12 

5.1  Physical Setting ................................................................................................................................................. 12 

5.1.1  Geology ........................................................................................................................................................ 12 

5.1.2  Climate and Physiography ........................................................................................................................... 12 

5.1.3  Hydrogeology ............................................................................................................................................... 13 

5.1.4  Hydrology ..................................................................................................................................................... 13 

5.2  Biological Setting ............................................................................................................................................... 13 

5.2.1  Freshwater Environment .............................................................................................................................. 13 

5.2.1.1  Natural Waters .......................................................................................................................................... 13 

5.2.1.2  Constructed Groundwater Channel .......................................................................................................... 15 

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 v

5.2.1.3  Wildlife ...................................................................................................................................................... 15 

5.2.2  Marine Environment ..................................................................................................................................... 15 

5.2.3  Terrestrial Environment ................................................................................................................................ 16 

5.2.3.1  Ecological Setting ..................................................................................................................................... 16 

5.2.3.2  Wildlife ...................................................................................................................................................... 17 

5.2.3.2.1  Mammals ............................................................................................................................................... 17 

5.2.3.2.2  Birds ...................................................................................................................................................... 17 

5.2.3.2.3  Reptiles and Amphibians ....................................................................................................................... 17 

5.2.3.3  Species at Risk ......................................................................................................................................... 18 

5.2.3.3.1  Southern Resident Killer Whales ........................................................................................................... 21 

5.3  Human Setting ................................................................................................................................................... 21 

5.3.1  Socio-community ......................................................................................................................................... 21 

5.3.1.1  First Nation Setting ................................................................................................................................... 21 

5.3.2  Regional and Local Community ................................................................................................................... 22 

5.3.3  Industrial Setting .......................................................................................................................................... 22 

5.3.4  Land, Water and Resource Use ................................................................................................................... 23 

6.0  POTENTIAL ENVIRONMENTAL EFFECTS OF THE PROJECT .................................................................................. 24 

7.0  SUSTAINABILITY FACTORS ........................................................................................................................................ 28 

8.0  FIRST NATIONS AND PUBLIC CONSULTATION ........................................................................................................ 30 

8.1  First Nations Consultation and Engagement ..................................................................................................... 30 

8.1.1  Project Mine Footprint .................................................................................................................................. 30 

8.1.2  Mine Product Shipping Barge Route ............................................................................................................ 31 

8.2  Public, Stakeholder and Agency Consultation ................................................................................................... 32 

8.3  Consultation Planning and Activities .................................................................................................................. 33 

8.4  Long-term Property and Resource Stewardship ................................................................................................ 33 

9.0  ENVIRONMENTAL ASSESSMENT REVIEW PROCESSES ......................................................................................... 34 

9.1  Provincial ........................................................................................................................................................... 34 

9.2  Federal .............................................................................................................................................................. 34 

9.2.1  Common Federal Triggers and Issues ......................................................................................................... 35 

9.2.1.1  Canadian Environmental Protection Act ................................................................................................... 35 

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 vi

9.2.1.2  Fisheries Act ............................................................................................................................................. 35 

9.2.1.3  Explosives Act .......................................................................................................................................... 36 

9.2.1.4  Navigable Waters Protection Act .............................................................................................................. 36 

10.0  OTHER REQUIRED PERMITS AND APPROVALS ....................................................................................................... 37 

11.0  SCHEDULE .................................................................................................................................................................... 39 

12.0  CONCLUDING REMARKS ............................................................................................................................................. 40 

TABLES

Table 1: Species at Risk that Potentially Occur on the BURNCO Aggregate Property

Table 2: Preliminary Assessment of Potential Project Related Effects and Possible Mitigation

Table 3: Public, Stakeholder and Agency Consultation

Table 4: BURNCO Aggregate Project Technical Studies Completed October 2010 and Submitted to DFO as Part of the

Supplementary Review

Table 5: Permits and Approvals Potentially Required for the Project

Table 6: Project Schedule

FIGURES

Figure 1: Key Map, Parks, Environmental Sensitive Area, Resource Use Areas

Figure 2: Proposed Conceptual Site Layout

Figure 3: Proposed and Existing Barge Shipping Routes

Figure 4: Area Watercourse Classification

Figure 5: Resource and fisheries areas

APPENDICES

APPENDIX A Photographs 

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 1

1.0 INTRODUCTION The BURNCO Aggregate Project (“the Project”) has proposed the development of a sand and gravel pit to

provide high quality construction aggregates for use in British Columbia’s (BC) Lower Mainland. The anticipated

production volumes of the project range from 1 to 1.6 million tonnes per annum (MTPA), with all products leaving

the site in coastal barges that will be loaded at a dedicated facility constructed at the location of a former log

dump and within an existing marine foreshore lease.

The purpose of the BURNCO Aggregate Project Description is to provide a: summary description of size and

characteristics of the project; location and summary of areas, physical and biological environments; and

resources potentially affected by the Project, and contact information for the Project proponent.

1.1 LOCATION The Project will be located on a flat, glaciofluvial fan-delta deposit comprising sand and gravel on the western

shore of Howe Sound’s Thornbrough Channel, north of Gambier Island and approximately 22 km west-

southwest of Squamish and 35 km northwest of Vancouver (Figure 1). The project site’s geographic coordinates

are 49 34’ 00”N 123 23’ 20”W.

The Project will be located on a 320 hectare (ha) private property (“the Property”) that has been owned since

2008 by 0819042 BC Ltd and BURNCO Rock Products Ltd. The individual properties that together comprise the

site are:

DL 677 LD 37 New Westminster Group 1;

DL 677A LD 37 New Westminster Group 1;

DL 6778 LD 37 New Westminster Group 1;

PCL A DL 677B LD 37 New Westminster Group 1; and,

Foreshore Tenure #240515.

The Property was formerly four-wheel-drive accessible along a network of logging roads. However, many of

these roads were decommissioned in 2008 and 2009 under existing obligations by Canfor Ltd. (a previous site

owner), and consequently vehicular access is via all-terrain-vehicle only. Outside the BURNCO property, a road

passes along the western side of the valley, with other roads and paths branching off to access other areas

(Figure 2, Appendix A). BURNCO has no plans to improve the direct road access to the site. Currently, the site

is readily accessible only by boat, float plane or helicopter. Small boats and float planes can land at the west

portion of the site beach area at an existing dock and shoreline loading area (Appendix A, Photograph 3).

McNab Creek (BC Watershed Code 900-106300) flows along the east side of the Property outside the proposed

project area. The creek is a 12.7 km long, fourth-order watercourse that drains directly into the marine

environment of Howe Sound (Figures 1, 2, Appendix A).

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 2

2.0 PROPONENT INFORMATION

2.1 Proponent Identification BURNCO Rock Products Ltd. (“BURNCO”) is a private business that was founded in 1912. BURNCO is based

in Calgary, with operations in Saskatchewan, throughout Alberta and now BC, and is Canada’s largest

independent ready-mix concrete company. Operations were established in BC within the Metro Vancouver,

Shuswap and Okanagan regions in 2004. BURNCO employs over 800 people and has developed four main

divisions within its operations as follows:

Aggregate operations to supply sand, gravel and crushed stone used in construction; a permitted aggregate

project in West Kelowna has recently been developed to supply the central Okanagan;

Landscape centres to distribute landscape materials to contractors and homeowners in Alberta and BC;

Ready-mix operations to provide concrete to construction projects throughout BC and Alberta; and,

Asphalt operations to produce a range of hot and cold mixes for paving projects in Alberta.

2.2 Key Proponent Contacts Proponent: BURNCO Rock Products Ltd.

www.BURNCO.com

Mr. Derek Holmes, Regional Manager

B.C. Aggregate Division

BURNCO Rock Products Ltd

1A, 2760 Emerson Street.

Abbotsford, BC V2T 3J6

Phone: 604-345-4382

Fax: 604-859-3319

E-mail: [email protected]

Mr. J. Kim Titus, Vice President

Aggregate Division

BURNCO Rock Products Ltd

200, 155 Glendeer Circle S.E.

Box 1480, Station T

Calgary, AB T2H 2P9

Phone: 403-255-2600

Fax: 403-255-0323

E-mail: [email protected]

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 3

BURNCO’s Environmental Assessment Representative: Golder Associates Ltd.

Mark Johannes

Associate, Senior Environmental Specialist

Golder Associates Ltd.

500-4260 Still Creek Drive

Burnaby, BC V5C 6C6

Phone: 604-296-4261

Fax: 604-298-5253

E-mail: [email protected]

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 4

3.0 PROJECT JUSTIFICATION

3.1 Need for the Project Investigations indicate that a commercial aggregate resource is present on the Property. Construction

aggregates are produced from sand, gravel and crushed rock, which are naturally-occurring, environmentally

benign materials. The production of aggregate relies solely on physical processes (e.g., sizing, crushing and

washing), and no chemical processing is involved.

Aggregates are used in a wide range of construction and development applications:

Transportation infrastructure, ports, road construction, airports – preload, road base, asphalt pavement,

curb/gutter, concrete;

Housing – fill, concrete foundations, walls, slabs, concrete block, brick, stucco, roofing, drainage;

Municipal works – sewers, roads, parks, sidewalks, paths;

Schools, hospitals, arenas, theatres, civic works – fills, concrete, parking lots;

Commercial – malls/shopping centres, roadways, parking; and,

Industrial – buildings, parking, roads.

Each of these applications consumes significant volumes of specialized aggregate products produced by sand

and gravel pits and/or quarries. Cumulatively, 10 to 15 tonnes of aggregate per year are consumed for every

BC resident.

With the steady growth of the population of BC’s South Coast, along with continued depletion of existing local

aggregate supplies, there is a need to locate and develop new sources of aggregate in proximity to the Lower

Mainland. The relative cost of aggregate is often low, but transportation costs are high, often eclipsing the cost

of the product. Shipping by water is the most cost-effective way of transporting aggregate products, and

shipping short distances by water further reduces environmental and societal costs.

BURNCO’s concrete plants in the Lower Mainland are currently supplied with aggregate purchased mainly from

the Orca Sand and Gravel Quarry at Port McNeil on northern Vancouver Island. BURNCO proposes to develop

its own aggregate source much closer to its existing ready-mix concrete plants in the Lower Mainland, to reduce

transport costs, provide more sustainable environmental options and facilitate future viable business growth.

BURNCO’s three other divisions (asphalt, aggregate and landscape) also require access to an aggregate

resource to meet projected demands in the BC marketplace. The development of the Project will result in a

significant 280 km one-way reduction in barge tow distance between the current primary aggregate supply

(i.e., Port McNeil) to BURNCO’s Lower Mainland operations.

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 5

3.2 Estimated Resource Based on preliminary volume estimates, the aggregate resource is projected to conservatively exceed

30 million tonnes of sand and gravel, giving the Project an expected economic lifespan of 20 years.

Investigations to confirm the size of the resource, some of which are ongoing at this time, are required to more

accurately determine the size and characteristics of the deposit. The extraction model used for the site will

dictate the actual tonnage of aggregate production. Variables used to estimate the actual extracted volumes

include:

Geometry of pit;

Side slope angles;

Stratigraphy of deposit (textures, quality, thickness of various formations);

Setbacks used in pit development;

Depth of extraction; and,

Pit surface area.

The actual commercially extractable aggregate resource volume will be revised depending upon the information

and design of the mine plan and the aggregate resource evaluation.

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 6

4.0 PROJECT OVERVIEW 4.1 Project Components The sand and gravel pit development is proposed to take place within a 70 ha clear-cut (2002 to 2004) area of

the Property (Figure 2). The processing plant will be located in the cleared areas near the existing warehouse

and land-based log sorting area south of BC Hydro’s right-of way (ROW). All components of the project will be

outside existing natural watercourses and riparian areas (Figure 2). Sorted aggregate products will be conveyed

from the plant to sand and gravel barges via a barge-loading facility adjacent to the marine foreshore to the

south of the pit, located within an existing foreshore lease and log dump area at the southwest corner of the

Property (Figure 2). The specific location and configuration of the processing plant and conveyor/loading facility

will be determined based on detailed site planning to avoid and limit impacts on the foreshore, along with

forested areas. Barged aggregate products will be delivered to existing BURNCO facilities in either Burnaby or

Langley (Figure 3).

BURNCO will manage the remainder of the Property as private forest lands and will accommodate other

industrial or transportation use, or needs of neighbouring property owners. At the end of the Project’s life span,

BURNCO will maintain ownership and manage long term stewardship for forest, fisheries, wildlife and water

resources on the property.

4.1.1 Pit Development

Sand and gravel will be extracted from the pit using an electrically powered floating clamshell dredge equipped

with a primary crusher and a floating conveyor system. This equipment will be initially placed on the western

area of the deposit and will dig downward to form a pit (which will fill with water from natural groundwater input).

The dredge will float on the surface of the pit pond formed. From this location, the floating clamshell will work to

extract material based on the aggregate deposit and mine plan, gradually enlarging the pond (Figure 2).

Because portions of the gravel deposit extend to approximately >15m below the surface in some locations and

because most of the resource is below the water table, a floating clamshell dredge will be used to extract sand

and gravel. No pit dewatering will be required, and no explosives will be used.

A portion of the constructed artificial groundwater channel currently in the centre of the Property serves as a

“French drain” that lowers the overall level of the water table within the lower Property area. As the pit pond is

developed through the Project life-cycle, the level of the pond overflow will be maintained so to raise the water

table across the property to re-establish a more natural groundwater level.

The existing logging road network running parallel to the creek at the north end of the proposed pit will be used

as a hydraulic training berm, which will limit potential flood events and limit potential surface water avulsion into

the project site and pit. Hydraulic and avulsion studies (2010) indicate the road can and has been used as a

berm in the area adjacent to the right-handed south turning bend on McNab Creek (Figure 2). Fisheries and

Oceans Canada (DFO) work in the area in 2001 and 2002 developed the road into the berm by addition of

material to gain elevation. Detailed hydrologic and hydraulic characterization of the site is underway and results

will be used to guide the pit and mine plan. Preliminary studies in 2010 and a DFO independent review in 2010

indicate a viable aggregate mine plan is possible for the site.

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 7

As proposed sand and gravel extraction proceeds through the Project’s life span (Figure 2), the overburden will

be removed and stockpiled around the project area. This material can be used for future site reclamation when

combined with the inorganic fines extracted from the sand and gravel during processing (Figure 2). No material

from the pit will be disposed-of at sea. The final site reclamation will include a ground- and surface water-fed

pond, with the surrounding areas to be reclaimed by contouring the landscape, revegetation and planted forest.

4.1.2 Processing

The processing plant will be located in a preloaded area above the pit elevation to enhance water recycling

process and drainage. The plant will be situated in the southwestern corner of the Property outside of buffer

areas around watercourses and the marine foreshore. The existing 300 m wide treed buffer will be largely

maintained between the proposed project site and the marine shoreline to avoid and limit potential visual, noise,

dust and emission impacts on the environment. Nonetheless, dust and noise suppression and mitigation

measures will be fully applied and maintained throughout project construction, operation and closure stages of

the project. Dust and noise suppression and mitigation measures have been successfully implemented by

BURNCO in multiple urban operations to avoid and limit impacts.

Processing of the dredged material will involve screening the fines from the gravel and further screening to

separate the different aggregate sizes. Oversize gravels will be crushed. The sand will be sized and dewatered

to remove silt-sized fractions, and the wash water will be sent to sedimentation ponds for removal of silt and

reuse of water by means of a 95% efficient recycling process. Water will be recycled from settling ponds, which

will have an initial estimated capacity of some 15,100 litres per hour (L/hour) (4,000 gallons per hour). The

process site will be secured and processing water will not be discharged.

The processed sand and gravel products will be conveyed to a stockpile area prior to loading onto barges.

Initially the processing plant may be active 12 hours per day, 260 days per year.

There will be at least seven stockpiles of different aggregate product types. A conveyor will feed material from

below the storage piles to the barge conveyor using an automated materials-handling system. This handing

system in turn limits fuel-powered equipment and non-renewable energy use and emissions, avoids and limits

dust and noise, and increases plant efficiency. All processing facilities will be fully enclosed above ground.

The nature of extraction and processing at the Project, coupled with the availability of electricity from the nearby

BC Hydro transmission line, will allow the use of electric motor-driven systems for processing to limit greenhouse

gas emissions from the project.

4.1.3 Marine Loading Facility and Barging

The marine loading facility will be designed to accommodate up to 5,000 to 6,000 deadweight tonnage (DWT)

barges (80 m LOA, draught 4.5 m). The location of the barge loading facility has been proposed within the

existing foreshore lease and log dump area (Figure 2).

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 8

The loading facility will consist of a limited series of pilings that support a fixed, above-ground electric conveyor

with a capacity of 1,000 tonnes per hour. Construction of the facility will involve installation of steel pilings in the

foreshore and subtidal area where needed, and construction of sleeper foundations on the ground surface away

from the foreshore. The land conveyor, between the process plant and the barge loader, will be supported on

ties and sleeper foundations on the ground surface.

The bathymetry of the nearshore marine environment in the area of the proposed marine loading will not require

dredging. Marine dredging or marine disposal of dredgeate, liquid or solid waste will not be a part of this project.

No explosive use is planned.

During operation, tug boats will deliver empty barges and pick up aggregate filled barges. The barge loading

facility is expected to be operational less than 300 days per year. A mooring buoy will be located in deeper

water for barge storage within the lease and the log dump area.

Filled barges will be towed through existing barging routes and navigational channels from the site through the

Ramillies Channel, Howe Sound to the Fraser River through established shipping traffic lanes (Figure 3). Filled

barges will use North Arm of the Fraser River to deliver barges to existing BURNCO facilities in Burnaby

(59 km), and will use the South Arm of the Fraser River to deliver BURNCO facilities in Langley (102 km).

BURNCO presently uses Seaspan tugs and barges to deliver aggregate to existing BURNCO facilities from Port

McNeil (360 km). Seaspan and other tug barge, and log booming operators use the Ramillies Channel in Howe

Sound, along with the existing shipping routes in the Fraser River to move bulk materials.

4.1.4 Other Facilities, Infrastructure and Alternatives

Additional facilities associated with the proposed project will include:

Site office and communications building, with offices and boardroom;

Workers lunch/dry room;

Washroom facilities;

First aid facility with attendant and helipad;

Caretaker’s cabin;

Upgrades to a small craft dock (48 linear metres) with tie-up area for a float plane, serviced with 30 amp (A)

125 volt (V) shore power;

Upgrades to a boat launch adjacent to the dock for various small craft;

Upgrades to an existing marine barge grid and abutment for heavy equipment loading/offloading on site. In

addition, supplies on trucks for the project will be brought over by barge and delivered to the site by way of

the marine barge grid;

Upgrades to the existing fuelling facility for the storage of diesel and gasoline for on-site equipment;

Upgrades to the existing heavy equipment maintenance shop and warehouse;

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 9

Electrical substation located adjacent to existing BC Hydro transmission line;

Outdoor switchyard, electric building, and 100 m electric transmission line ;

Pump room for well/stream intake water distribution and fire-fighting, based on existing water licence;

Sewage and stormwater treatment facility;

Site lighting where required;

Trench drains, catch-basins and manholes directed to a retention pond or water treatment and recycling

plant; and,

Short term portable concrete batch plant for project facilities during the construction phases.

Alternatives to the main project components including: pit development and extraction, processing plant and

marine loading facilities will be sited and oriented in the project area based on the final mine plan and resource

evaluation. Figure 2 illustrates the projected aggregate mine components and general siting within the project

area. Detailed designs, plans and specific locations for siting and life cycle development of the aggregate pit,

siting of the processing plant and marine loading facility will be finalized through mine resource evaluation and

mine plan designs. The general characteristics of the project components are consistent with existing aggregate

mine development. The project components will be designed to use methods and updated technology for

aggregate extraction, processing and marine loading and transportation to limit potential effects on the

environment. The project components are proposed to be constructed over a six month period using weekly

barges as supply for construction materials.

4.2 Project Emissions, Discharges and Waste Sand and gravel projects can potentially produce a variety of emissions, discharges and wastes, such as:

Emissions of atmospheric contaminants, such as dust and exhaust gases produced by fossil fuel-burning

equipment (e.g., during extraction and sorting of the sand and gravel resource, barge loading and shipping

of the products to market);

Liquid discharges (e.g., process water and sewage) into the freshwater and marine environment; and,

Solid wastes, such as household and industrial wastes (e.g., lubricant containers, worn-out equipment

parts) associated with facility operation.

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December 16, 2011 Report No. 11-1422-0046 10

The Project will be constructed and operated to avoid, limit and mitigate emissions, discharges and wastes as

follows:

Atmospheric contamination (dust) will be minimized during project operation through extraction of the

aggregate resource under wet conditions using a clamshell dredge, which will limit dust emissions.

Processing facilities will be fully enclosed and operated under wet conditions to limit dust;

The use of electrically powered equipment to extract, process and load the aggregate resource will

minimize the amount of exhaust emissions related to burning fossil fuel during aggregate extraction;

The proximity of the project site to BURNCO’s markets in the Lower Mainland is also intended to reduce

barging distance relative to present aggregate barging and; therefore, minimize exhaust emissions related

to transportation of the aggregate products to market;

Discharge of water used in gravel/sand washing will be minimized by retaining the wash water in

sedimentation ponds for silt removal and reuse of water by means of a 95% efficient recycling process;

and,

Household and industrial solid wastes associated with facility operation will be barged off-site and disposed

of in an approved landfill facility.

4.3 Reclamation, Closure and Monitoring The Project will use progressive reclamation of the site that includes ongoing reclamation activities taking place

alongside ongoing extraction throughout the proposed operations area. A preliminary Reclamation and Closure

Plan will be prepared as part of the Environmental Assessment Certificate (EAC) Application, and will describe

the proposed measures and commitments to remove surface facilities and reclaim areas and develop a

functional ecosystem in the freshwater pit.

Site planning will include landscaping, further design and development of the existing training berm along the

north edge logging road of the pit area, along with the creation of surface water features, fisheries habitats and

revegetation throughout the site consistent with the operational extraction schedule. Ongoing monitoring will be

conducted for relevant noise and dust, water quality parameters, along with fish and wildlife resources.

BURNCO proposes to provide interim monitoring reports summarizing the progress of ongoing reclamation

activities.

4.4 Labour The Project is expected to provide approximately 80 person-years of employment during the construction phase,

and at least 360 person-years of employment during the operation phase. The Project is expected to results in

eight full-time (40 hr work-week) employees, five part time (20 hr work-week) for mine pit operations on-site

(40 hours full time and 20 hours part time) and four full-time direct employees for transportation and distribution

of aggregate resources to BURNCO’s operating facilities.

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December 16, 2011 Report No. 11-1422-0046 11

It is expected that employees traveling to and from the work site, and delivery of essential equipment and

materials such as fuel and parts will be by boat, barge, or water taxi from Gibsons and/or Horseshoe Bay. The

nearby communities (e.g., Squamish, Gibsons, West Vancouver) have available temporary accommodation to

meet all requirements during construction. Therefore, there is not anticipated to provide a construction camp on

the site or any other residential facilities at any time with the exception of a caretaker’s cabin for security and

facility care.

4.5 Cost The estimated capital cost of the project is less than CDN $60 million including the following preliminary cost

breakdown:

Pit Area and Clam Shell - $7.9 million;

Process Plant Area - $15.1 million;

Reclaim Transfer Area - $3.5 million;

Barge Loader Area - $7.4 million;

Electrical and Substation - $7.8 million;

Site (drainage and water treatment, fire protection, site grading, services);

Other costs including environmental assessment, resource valuation, additional engineering studies; and,

Contingency - $12.5 million.

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December 16, 2011 Report No. 11-1422-0046 12

5.0 PROJECT SETTING (AGGREGATE SITE AND BARGE ROUTE)

5.1 Physical Setting 5.1.1 Geology

The Project site is located within the Coast Mountains adjoining Howe Sound and geologically within the

“Coast Plutonic Complex”, which is generally characterized as granitic plutonic bedrock. Within the site,

metasedimentary rock (e.g., phyllite, slate) crops out locally on the west side of the property, although

granodiorite bedrock dominates the area. In addition, some possible volcanic units are reported within the

valley. The surrounding mountain peaks are dominantly formed of granodiorite plutonic rock.

Unconsolidated glaciofluvial and glacial sediments dominate the surficial geology of the Property, although

post-glacial fluvial deposits occur in the valley. The sand-and-gravel fan-delta extends from the valley into Howe

Sound, with a steep drop-off located a distance of a few hundred metres offshore. It is likely that the valley fan

was created as glacial ice receded and decayed some ten thousand years ago, well after the present

Howe Sound fjord was formed. Glacial decay would have produced significant sediment deposition due to

higher water volumes.

The bedrock surface on which the fan has accumulated is likely to be undulating and irregular, with the deposit

thickness ranging between 50 to 100 m (approximately). The stratigraphy of the fan is variable, with textural and

compositional range consistent with the variable prevailing sedimentological and hydraulic conditions at the time

and locale of deposition. In addition, sediment provenance reflects local bedrock geology and is dominated by

granitic rock, with some volcanic and metamorphic components.

Due to the nature of the deposit (i.e., unconsolidated sediments) and the underlying geology, acid rock drainage

is not expected to be an issue on the BURNCO property.

5.1.2 Climate and Physiography

The setting of the Property is on a glacially-derived sand and gravel fan-delta near sea level (10 to 50 m above

sea level (asl)) at the mouth of a glaciated coastal mountain valley (Figures 1 and 2), on the shore of a fjord.

The mountain peaks that surround the valley reach a height of more than 1,500 m asl, although the topography

of the Property is relatively flat.

The Property and Barge route are located in the Coastal Western Hemlock very wet maritime biogeoclimatic

zone, submontane (CWHvm1) variant. The CWHvm1 has a wet climate, with cool summers and mild winters

with relatively little snow (Pojar et al. 1991) and a prolonged moderate temperature growing period.

The summer climate on the Property and Barge route is typically warm and dry; from June until late September

the average temperature is from 20 to 28 degrees centigrade (C). Winters between November until February

are typically mild and wet, with an average temperature range between 0 to 10C. Although snowfall occurs

occasionally, most of the precipitation is in the form of rain.

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December 16, 2011 Report No. 11-1422-0046 13

5.1.3 Hydrogeology

Preliminary data from groundwater characterization indicates that the groundwater contours slope down the

valley into the constructed groundwater channel that was built on the site by DFO and others. Due to the coarse

sediment texture, the sands and gravels of the valley fill are typically highly permeable. The presence of the

groundwater channel appears to depress the groundwater surface within approximately 150 m of the channel.

Groundwater maintains a positive pressure across the site flowing into the ocean during all levels of tide.

5.1.4 Hydrology

The Project site comprises a portion of the McNab valley and watershed. McNab Creek (BC Watershed Code

900-106300) flows north-easterly for approximately 12.7 km from its headwaters on Thirtynine Mountain to its

mouth on the western shore of Thornbrough Channel. The watershed has a surface area of 6,330 ha and, with

the exception of the BURNCO Property and neighbouring strata development, is entirely situated on Crown land.

Where it flows across or adjacent to the Property, McNab creek has a low-gradient channel with gravel and

cobble bars. There are no glaciers and few alpine areas of late-persisting snow within the watershed. Lakes

comprise less than 1% of the watershed area and there is no significant water storage except in snowpacks, and

groundwater.

Typical of coastal watersheds the highest stream flow in McNab Creek occur during the autumn/winter months

(October through January), when rainfall is greatest (~3,200 millimetres (mm) average). From February onward,

average monthly flow declines until late summer (August), when the lowest flows occur. Flows increase abruptly

with the onset of the autumn rains in September and October.

The Project barging route comprises portions of the lower Fraser River in the both the North and South Arms.

The Fraser River has a watershed basin size of approximately 235,000 square kilometres (km2) and an overall

river length of approximately 1,375 km. The lower 100 km of river length is considered the lower Fraser River

and floodplain. The average discharge below Hope within the barging route is approximately 3,500 cubic metres

per second (m3/s). Fraser River discharge is seasonal with summer melt flows more than ten times greater than

the winter discharge. The lower portion of the Fraser River from the river mouth to Mission is influenced by tidal

cycles from the Strait of Georgia.

5.2 Biological Setting 5.2.1 Freshwater Environment

5.2.1.1 Natural Waters

McNab Creek - The lower 1 km of the McNab Creek channel and estuary is heavily aggraded with sand, cobble

and boulders due to recent and historic forest harvesting in the upper portions of the watershed (Appendix A,

Photograph 6) (Figure 4). Lower McNab Creek presently experiences lateral movement across a channel that

has a maximum width of 200 m fan within its channel. The site where the sand and gravel pit is proposed does

not include the creek, and contains no natural surface waters (Figure 2).

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December 16, 2011 Report No. 11-1422-0046 14

Where it flows on or adjacent to the Property, McNab Creek supports salmon runs of chum (Oncorhynchus

keta), pink (O. gorbuscha), coho (O. kisutch) and chinook (O. tshawytscha) salmon, as well as resident and

sea-run cutthroat (O. clarki clarki) and rainbow trout/steelhead (O. mykiss). Other species, such as sculpins

(Cottus spp.) are also present. Records of salmon escapement show an average adult salmon return (DFO –

Salmon Escapement Data System) to McNab Creek range from 200 to 1,500 spawners and average less than

500 salmon. Chum salmon comprise greater than 50% of the adult salmon previously observed in the creek.

Salmon escapement surveys and enumeration have been completed annually since 2009 and indicate salmon

habitat use within the lower 2 km of the creek.

Harlequin Creek - A non-gazetted watercourse known locally as Harlequin Creek (or “SS Creek”) flows

eastward down the hillside to the west of the project, before turning southward to flow toward Howe sound along

the west side of a logging road (Figure 4). The creek flows under the logging road bridge a short distance

upstream from its mouth on Howe Sound. Harlequin Creek is fish-bearing and supports cutthroat trout, sculpins,

and in the lower 200 m below a beaver dam, juvenile coho salmon. Harlequin Creek is situated outside the

proposed Project footprint and is not expected to be affected by the project.

Another small, ephemeral unnamed watercourse is situated in the cutblock immediately north of Harlequin

Creek. This creek flows into the marine foreshore of the site (Figure 4). This watercourse may support cutthroat

trout during the winter months and a limited population of coho salmon. The creek experiences limited flows

during summer months. Like Harlequin Creek, this channel is situated outside the proposed project footprint,

and is not expected to be affected by the project.

Natural Shoreline Channels (Foreshore Inlets) - Three short inlets and channels are located within the marine

foreshore (400, 600, and 820 m west of the mouth of McNab Creek) of the Project site (Figure 4). The channels

are tidally influenced and have a substrate composed mostly of mud. Their flow is partially freshwater when they

are exposed at low tide, but become inundated by saltwater marine tidal waters when the channels are flooded

at high tide. Relatively little freshwater flow is present in the western two channels, but there is comparatively

more flow in the easternmost channel determined by seasonal connection with the artificial constructed

groundwater channel to the east and north in this foreshore inlet and channel. The low tide fish fauna of the

three channels comprises prickly sculpin (Cottus asper), tidepool sculpin (Oligocottus maculosus) and

saddleback gunnel (Pholis ornata), all of which tolerate a wide range of salinities. Coho and other salmonids

species have been infrequently captured in these channels and are considered to have spring and wetted

summer season use as habitats prior to drying during periods of low flow.

Lower Fraser River to Langley – The proposed Project barging route comprises portions of the tidally

influenced lower Fraser River in both the North and South Arms. The lower Fraser River in both the North and

South Arms provides habitat for over 25 species of fish, along with providing a corridor and habitat for migratory

and resident waterfowl. Most of the salmonid, sturgeon, surf smelt and eulachon fish species use the lower

Fraser River as an important migration corridor from the Strait of Georgia to upper reaches of the Fraser River.

All Pacific salmon species use the lower Fraser River as habitat for adult holding and migration to spawning

grounds, and smolt migration to the Strait of Georgia. Juvenile coho and Chinook salmon use the Fraser and

estuary for rearing habitats. Other non-migratory fish species (e.g., prickly sculpin, peamouth chub, carp,

redside shiner, northern pikeminnow) inhabitat the South and Main arm of the Fraser River as resident species

and rely on local habitats in sloughs, backwater areas, and tributaries.

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December 16, 2011 Report No. 11-1422-0046 15

5.2.1.2 Constructed Groundwater Channel

An artificially constructed groundwater channel was built in three phases during 1985, 1998, and 2001 to 2003 in

the centre of the Property, with an objective to provide spawning and rearing habitat for chum and coho salmon

(Figure 4). In total, the channel is currently approximately 1,225 m long, with an average wetted width of

approximately 4 to 12 m (Figure 4).

In order to reach the water table, Phase 3 section of the groundwater channel was constructed within a deep (>6 to 9 m) excavated ditch. The banks of this ditch are long (>15m) and steep, with a grade of approximately 1.2 Horizontal: 1 Vertical (>40° slope), and composed of sand, gravel, and cobbles. The fine material in the ditch banks is eroding into the channel, and consequently the spawning substrates in the Phase 3 constructed channel have become covered by and embedded within fine sediment material. Only short segments of the latest (Phase 3) portion of the channel currently appear to be functioning as spawning habitat for chum salmon. In comparison, the earlier Phases 1 and 2 currently function only as juvenile salmonid rearing habitat. Seasonal salmon density and habitat use surveys have been completed in the channel during 2009 to 2011.

5.2.1.3 Wildlife

Wildlife species found in the freshwater habitats on the Property include beaver (Castor canadensis), common

merganser (Mergus merganser), American dipper (Cinclus mexicanus) and spotted sandpiper (Actitis

macularia). Likely to occur are river otter (Lutra canadensis) and mink (Mustela vison). Pacific tailed frog

(Ascaphus truei) occurs in Harlequin Creek and Pacific great blue heron (Ardea herodias fannini) forages in

McNab Creek, Harlequin Creek, and the artificial groundwater channel.

Wildlife species that occur in the marine habitat and observed within McNab Creek, on or near the Property

include harbour seal (Phoca vitulina), various waterfowl species, gulls (Larus glaucescens and L. canus),

common loon (Gavia immer), horned grebe (Podiceps auritus) and Pacific great blue heron. The lower Fraser

River is habitat to diverse wildlife species across the tidal portions of the river to Mission including waterfowl,

raptors, small and large mammals, and harbour seals.

5.2.2 Marine Environment

The marine foreshore of the Property comprises an intertidal sand, gravel and cobble beach that extends an

average of 150 to 300 m outward from the high tide line (Figure 2). At its seaward edge (approximately 200 m

from the high tide line), the beach drops off sharply, eventually reaching a depth of more than 200 m. The

western 500 m of the foreshore area is an existing foreshore lease and has been historically used as a log

booming and log dump area.

The intertidal fauna on the Property consists mainly of barnacles (Balanus glandula) and blue mussels (Mytilus

edulis), which have encrusted the larger gravel and cobble particles, as well as invertebrates such as isopods,

amphipods and shore crabs (Hemigrapsus oregonensis) beneath the rocks. Marine worms, clams and ghost

shrimp burrow within the fine beach substrate.

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December 16, 2011 Report No. 11-1422-0046 16

Subtidal benthic invertebrates along the property shore likely include Dungeness crab (Cancer magister), tanner

crab (Chionoecetes bairdi) and snow crab (C. opilio). At other locations in Howe Sound (CORI and AMR 2001),

squat lobster (Munida quadraspina), and shrimp (Pandalus sp.) inhabit the seafloor of deeper offshore waters.

Sea whips (Balticina septentrionalis) occur in dense assemblages at approximately 20 to 30 m depths on muddy

and sandy substrates and anemones (Metridium sp. and Urticina sp.) are abundant and widespread. The

subtidal benthic macroinvertebrate fauna also includes polychaete worms, snails and bivalves, crustaceans,

phoronid worms and nemertene worms. Porifera, Cnidaria, Platyhelminthes, Echiura, Sipuncula, Entoprocta,

Bryozoa and Echinodermata are also probably present at low abundance. A 2005 subtidal investigation showed

low abundance of marine epifauna in the log dump area related to an existing mat of woody debris covering the

substrate.

In the intertidal marine habitat, gulls, waterfowl, common loon, horned grebe, cormorants and harbour seals are

present during high tides, whereas gulls and northwestern crow (Corvus caurinus) forage along the shore during

low tide. SAR observed in the intertidal zone of the Project area include marbled murrelet, double-crested

cormorant, and Pacific great blue heron.

In the nearshore marine of the Project site and in the lower Fraser River habitats, bird such as gulls, waterfowl

(e.g., surf scoters (Melanitta perspicillata)), marbled murrelet (Brachyramphus marmoratus), southern pelagic

cormorant (Phalacrocorax pelagicus resplendens), and double-crested cormorant (Phalacrocorax auritus) occur.

Harbour seals are common, while Harbour porpoise (Phocoena phocoena) and Steller sea lion (Eumetopias

jubatus) occasionally transit the waters of Thornbrough and Ramillies Channels. There are also recent records

of grey whale (Eschrichtius robustus) occurrence in Howe Sound. Southern resident killer whales (Orcinus orca)

have not been observed in this portion of Howe Sound, but have been observed in the Strait of Georgia and

estuary area of the lower Fraser River.

5.2.3 Terrestrial Environment

5.2.3.1 Ecological Setting

The natural forest on the Property is dominated by western hemlock (Tsuga heterophylla), Amabilis fir (Abies

amabilis), and lesser amounts of western redcedar (Thuja plicata). The natural understorey comprises a

well-developed shrub layer dominated by red huckleberry (Vaccinium parvifolium) and Alaskan blueberry

(Vaccinium alaskensis), along with a well-developed moss layer dominated by Hylocomium splendens and

Rhytidiadelphus loreus. Herbs are sparse and include minor amounts of deer fern (Blechnum spicant), five

leaved bramble (Rubus pedatus), bunchberry (Cornus canadensis) and queen's cup (Clintonia uniflora).

A large proportion of the Property has recently been logged (Appendix A, Photographs 1 and 2), except for

riparian buffer strips along McNab Creek and the marine foreshore. Much of the logged area has been

colonized by red alder (Alnus rubra) and various shrub species, including salmonberry (Rubus spectabilis), red

huckleberry, false azalea (Menziesia ferruginea), salal (Gaultheria shallon) and sword fern (Polystichum

munitum). In some areas of the Property, dense stands of immature conifers (e.g., western hemlock and

western redcedar have become established (e.g., to the east of the groundwater channel). Riparian shrubs have

become established on the ditch banks adjacent to Phases 1 and 2 of the groundwater channel, but relatively

little vegetation has become established along the most recently constructed Phase 3 portion of the channel or in

the areas along where sand, gravel, and cobbles have been side-cast.

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December 16, 2011 Report No. 11-1422-0046 17

5.2.3.2 Wildlife

5.2.3.2.1 Mammals

The Property is frequented by a variety of mammal species, including black bear (Ursus americanus), blacktail

deer (Odocoileus columbianus) and various small mammal species including shrews, rodents, and mustellids.

Coyote (Canis latrans) and cougar (Puma concolor) occasionally forage on the property, while grizzly bear

(Ursus arctos) have been observed in the upper valley.

Furthermore, in 2001 a group of 25 Roosevelt elk (Cervus elaphus) was trapped by the BC Ministry of

Environment near Pender Harbour and released in the McNab Creek watershed. The herd currently numbers

approximately 40 animals, with elk frequently observed on the property during the fall, winter and spring.

5.2.3.2.2 Birds

The upland habitats on the Property consist of cutblocks and adjacent forests. Many bird species occur on the

property, including breeding songbirds such as rufous hummingbird (Selasphorus rufus), red-breasted sapsucker

(Sphyrapicus ruber), northern flicker (Colaptes auratus), Hammond's flycatcher (Empidonax hammondii),

warbling vireo (Vireo gilvus), Steller's jay (Cyanocitta stelleri), northwestern crow, common raven (Corvus corax),

barn swallow (Hirundo rustica), black-capped chickadee (Poecile atricapillus), winter wren (Troglodytes

troglodytes), golden-crowned kinglet (Regulus satrapa), Swainson's thrush (Catharus ustulatus), hermit thrush

(Catharus guttatus), American robin (Turdus migratorius), varied thrush (Ixoreus naevius), cedar waxwing

(Bombycilla cedrorum), orange-crowned warbler (Vermivora celata), yellow warbler (Dendroica petechia),

yellow-rumped warbler (Dendroica coronata), black-throated gray warbler (Dendroica nigrescens), Townsend's

warbler (Dendroica townsendi), Macgillivray's warbler (Oporornis tolmiei), Wilson's warbler (Wilsonia pusilla),

western tanager (Piranga ludoviciana), spotted towhee (Pipilo maculatus), song sparrow (Melospiza melodia),

white-crowned sparrow (Zonotrichia leucophrys), and dark-eyed junco (Junco hyemalis).

Other bird species that occur on the Property include ruffed grouse (Bonasa umbellus), sooty grouse

(Dendragapus fuliginosus), bald eagle (Haliaeetus leucocephalus), sharp-shinned hawk (Accipiter striatus),

red-tailed hawk (Buteo jamaicensis), turkey vulture (Cathartes aura), belted kingfisher (Ceryle alcyon), and band-

tailed pigeon (Patagioenas fasciata). Common nighthawk (Chordeiles minor) forages over the cutblock, as does

barn swallow (Hirundo rustica). Northern goshawk (Accipiter gentilis) and coastal western screech-owl

(Megascops kennicottii kennicottii) occur regionally, and may also occur on the Property. Several pairs of barn

swallows nest in the abandoned warehouse at the south end of the Property.

5.2.3.2.3 Reptiles and Amphibians

Garter snakes (Thamnophis spp.) are abundant on the Property, and northern alligator lizard (Elgaria coerulea)

occurs in areas of exposed gravel, such as along the groundwater channel. Northern red-legged frog (Rana

aurora) and Pacific chorus frog (Pseudacris regilla) breed in ephemeral wetlands at the south end of the

Property. Other amphibians which could occur on the Property include northwestern salamander (Ambystoma

gracile), long-toed salamander (Ambystoma macrodactylum) and western toad (Bufo boreas), but none of these

species have been observed there.

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December 16, 2011 Report No. 11-1422-0046 18

5.2.3.3 Species at Risk

“Species at risk” (“SAR”) is a term applied to wildlife and fish species that are included in the BC Ministry of

Environment’s (MOE’s) Conservation Data Centre’s “red or blue lists”1, or considered “Endangered”,

“Threatened”, or “Special Concern” by the federal government’s Committee on the Status of Endangered

Species in Canada (COSEWIC) and are listed as such in Schedule 1 of federal Species at Risk Act. Although a

wide variety of marine, freshwater and terrestrial wildlife species potentially occur on or around the Property, only

20 are considered SAR (Table 1). The presence of the endangered Queen Charlotte goshawk on the Property

has not been confirmed, but it is possible that this, or the more abundant atricapillus subspecies, may forage on

the site.

Roosevelt elk is the SAR most likely to be affected by the Project. The valley resident herd of approximately

40 animals, which has grown from 25 animals introduced into the watershed in 2001, frequent the large cutblock

on and around the Property during the winter months. The herd utilise the Property as the vegetation there is at

an early seral stage and because higher-elevation cutblocks with similar seral characteristics become snowed in

during the winter months. This population currently supports a recreational harvest of three animals per year.

Fish species with potential to occur in the lower Fraser River that are considered SAR include: white sturgeon,

eulachon and migratory Interior Fraser River coho and Chinook salmon.

1 The MOE’s Conservation Data Centre’s (CDC’s) “blue list” includes ecological communities, and indigenous species and subspecies (i.e., “elements”) that are considered to be of “special concern” in BC. Elements are considered to be of special concern if their characteristics make them particularly sensitive to human activities or natural events. Blue-listed elements are considered to be “at risk”, but are not “extirpated”, “endangered” or “threatened”. The CDC’s “red list” includes any element that is extirpated, endangered, or threatened in British Columbia. Extirpated elements no longer exist in the wild in British Columbia, but occur elsewhere. Endangered elements are facing imminent extirpation or extinction throughout their entire geographic range. Threatened elements are likely to become endangered if limiting factors are not addressed. Under the federal Species at Risk Act (SARA), the Committee on the Status of Endangered Wildlife in Canada (COSEWIC) also has the responsibility to evaluate the status of wildlife in Canada, and to assign species to one of following categories: “special concern”, “threatened”, “endangered”, “extirpated”, or “extinct”. “Special concern” species are those that may become “threatened” or “endangered” because of a combination of biological characteristics and identified threats if no action is taken to prevent this. “Threatened” species are those likely to become “endangered” if nothing is done to reverse the factors leading to their extirpation or extinction. “Endangered” species face imminent extirpation or extinction. The federal government formally recognizes the status of COSEWIC-recommended species under SARA by placing these species on one of Schedules 1 through 3 of SARA.

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December 16, 2011 Report No. 11-1422-0046

Table 1: Species at Risk that Potentially Occur on the BURNCO Aggregate Property

English Name Latin Name BC CDC

List COSEWIC

Ranking (Date) SARA

Schedule Comment

Coastal Cutthroat Trout. Oncorhynchus clarkii clarkii

Blue - - Confirmed present in McNab Creek, Harlequin Creek, and constructed groundwater channel.

Coastal Tailed Frog Ascaphus truei Blue SC (May 2000) 1 Confirmed present in Harlequin Creek.

Western Toad Anaxyrus boreas - SC (Nov 2002) 1 May occur in forested portions of Property, but unconfirmed.

Northern Red-legged Frog Rana aurora Blue SC (Nov 2004) 1 Confirmed present; breeds in temporary wetlands on southern portion of Property.

Surf Scoter Melanitta perspicillata Blue - - Migrant and winter resident observed infrequently along marine foreshore of Property.

Sooty Grouse Dendragapus fuliginosus

Blue - - Confirmed present on Property, probably breeds.

Double-crested Cormorant Phalacrocorax auritus Blue NAR (May 1978) - Observed infrequently along marine foreshore of Property. Does not breed there.

Pacific Great Blue Heron Ardea herodias fannini Blue SC (Mar 2008) 1

Observed commonly along marine foreshore of Property, in the McNab Creek estuary, and in the constructed groundwater channel. Does not breed on the Property.

"Queen Charlotte" Goshawk Accipiter gentilis laingi Red T (Nov 2000) 1

Goshawks occur regionally, and probably occur on the Property. However, it is unknown whether they are the "listed" laingi subspecies, or the more common (non-SAR) atricapillus subspecies. Breeding on the property is not known. Does not breed in or near the proposed Project footprint.

Marbled Murrelet Brachyramphus marmoratus

Blue T (Nov 2000) 1 Observed infrequently along marine foreshore of the Property. Does not breed on the Property.

Band-tailed Pigeon Patagioenas fasciata Blue SC (Nov 2008) - Observed infrequently in upland areas of the Property. Not known to breed on the Property.

Coastal Western Screech-Owl Megascops kennicottii kennicottii

Blue SC (May 2002) 1

Has been observed in McNab Creek valley upstream from Property; may forage in riparian forests of Property. Does not breed on the Property.

Common Nighthawk Chordeiles minor - T (Apr 2007) 1 Observed foraging over Property. Does not breed on the Property.

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December 16, 2011 Report No. 11-1422-0046 20

English Name Latin Name BC CDC

List COSEWIC

Ranking (Date) SARA

Schedule Comment

Barn Swallow Hirundo rustica Blue - - Breeds on in abandoned warehouse on Property, and forages over Property and marine foreshore

Wolverine, luscus ssp. Gulo gulo luscus, western population

Blue SC (May 2003) - Rare, wide-ranging species which occurs regionally, but which is not known to occur on Property.

Steller Sea Lion Eumetopias jubatus Blue SC (Nov 2003) 1 Occasionally observed transiting marine waters of Thornbrough Channel.

Harbour porpoise Phocoena phocoena Blue SC (Nov 2003) 1 Occasionally observed transiting marine waters of Thornbrough Channel.

Grey whale Eschrichtius robustus Blue SC (May 2004) 1 Recent observations of this species in Howe Sound.

Grizzly Bear Ursus arctos Blue SC (May 2002) - Single individual infrequently observed in upper portion of McNab Creek valley.

Roosevelt Elk Cervus canadensis roosevelti

Blue - - Observed commonly on Property, particularly during winter months.

Southern Resident Killer Whale Orcinus orca Red E (June 2003) 1

Distribution does not commonly extend northward of Point Grey, BC. Observed commonly in areas of salmon concentration particularly during fall salmon migrations in the estuary of the Fraser River.

Notes: BC Status SARA COSEWIC STATUS (date status assigned in parentheses) Red = endangered 1 = Schedule 1 SC = Special Concern Blue = threatened 3 = Schedule 3 T = Threatened E = Endangered NAR = Not at Risk

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December 16, 2011 Report No. 11-1422-0046 21

5.2.3.3.1 Southern Resident Killer Whales

The northeast Pacific southern resident population of the killer whale (Orcinus orca, Population 5) is red-listed by

the CDC and in 2008 was listed as endangered under SARA, Schedule 1, based on a status report prepared by

COSEWIC (COSEWIC 2008). In 2008, Fisheries and Oceans Canada (DFO) prepared a recovery strategy for

this population (DFO 2008). Under SARA, it is illegal to destroy the “critical habitat” of O. orca, Population 5.

Critical habitat is considered “habitat that is vital to the survival or recovery of wildlife species” and may be an

identified breeding site, nursery area or feeding ground.

Both the COSEWIC (2008) and DFO (2008) documents delineate the location of critical habitat of O. orca,

Population 5, and indicate that its distribution does not extend northward of Point Grey (BC) approximately 31km

to the south of the Property. Similarly, the United States National Marine Fisheries Service (2008), in their

recovery strategy for southern resident killer whales, summarized 15,540 unique killer whale sightings from

Puget Sound, the Strait of Juan de Fuca, and the southern Strait of Georgia; but recorded no observations from

Howe Sound, and very few observations north of Point Grey.

5.3 Human Setting 5.3.1 Socio-community

5.3.1.1 First Nation Setting

The BURNCO Property lies within the traditional territories of the Squamish Nation, as per Statement of Intent

maps publicly available through the BC Treaty Commission and information derived from the public version of

the Consultative Areas Database. However, there are no aboriginal settlements on or near the Property. The

closest Indian Reserves to the property are under the administration of the Squamish Nation. They are Defence

Island IR 28 and Kwum Kwum IR 28A, two islands in Thornbrough Channel, approximately 8 km east of the

property, and Kaikalahun IR 25, located on the western shore of Howe Sound, near Port Mellon (Figure 1).

The foreshore areas of the Property in Howe Sound and the proposed Strait of Georgia and lower Fraser

shipping routes are located within the traditional territory of the Tsleil-Waututh Nation and potentially other First

Nations with interests in the lower Fraser River (Section 8.1.2). BURNCO has distributed the draft project

description to the Tsleil-Waututh Nation and has been in contact with Tsleil-Waututh staff regarding the project.

BURNCO will distribute the draft project description to other identified First Nations.

BURNCO has distributed the draft project description to the Squamish Nation and has had preliminary

discussions with Squamish Chiefs (October 2010) and staff regarding the project, Squamish interest and

participation, and stewardship of fisheries and wildlife resources.

Consultation with the Squamish Nation, Tsleil-Waututh Nation and First Nations within the area of the lower

Fraser River (Section 8.1.2) will attempt to identify whether and to what extent their respective aboriginal

interests may be adversely affected by the project, as well as, where necessary, measures to avoid, minimize, or

otherwise accommodate any adverse effects to those interests.

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5.3.2 Regional and Local Community

The Project site is located in the Sunshine Coast Regional District, within Howe Sound in the area of interest for

Island Trust and within the area of interest in the lower Fraser for Metro Vancouver. The Sunshine Coast

Regional District presently has the Project’s private land area zoned as rural land use, and has no zoning for

foreshore area.

The closest economic and commercial centres to the Project property area include Gibsons, Squamish and West

Vancouver. The barge route includes the larger area and municipalities of Vancouver, Richmond, Burnaby,

Surrey and Langley.

The immediate local seasonal community near the Property comprises 16 strata lots and 12 seasonal homes on

the east side of the McNab Creek mouth (on the opposite side of McNab creek from the Property). The

community is primarily accessed by water, although ATV access to Sechelt is possible over a network of

deactivated logging roads. The community is strata title, and also owns approximately 22 ha of adjacent

forested land on the hill side to the east of the creek.

The next nearest communities to the Property are Port Mellon, 7.5 km to the south, and Woodfibre, 20 km to the

northeast, although individual dwellings are present on Gambier Island 3 km away across Thornbrough Channel.

5.3.3 Industrial Setting

Logging activity in the valley dates back to 1900, and has continued uninterrupted until 2005. Haul roads and

trails are constructed from locally-available materials, including the gravels located in the fan and similar gravel

deposits available further up the valley.

Canfor began large-scale logging operations in the valley in the 1970s and established a logging camp near the

beach. Canfor was granted the land as private property from Crown Land in 1970. Canfor also established a

water licence on Harlequin Creek (now held by BURNCO), and ran a log dump and storage area near the camp

until the late 1990s. The property was given to Howe Sound Limited Partnership (HSLP) in 2001. HSLP owned

the property from 2001 to 2004.

The first rock quarrying in the valley was begun in 1941 by M. Randall, who established small rock quarry near

the river mouth to supply material for the construction of logging roads.

In 1997, Westcoast Gas Services proposed an above-ground liquid natural gas (LNG) storage facility in the

valley, and in 1999 received an Environmental Assessment Certificate (EAC) (#E99-01) to build the facility. The

LNG project has not been developed.

AJB Investments Ltd. (AJB), a division of the Surespan Group of Companies, owned the Property between 2004

and 2006, and proposed development of a sand and gravel pit there. However, AJB did not obtain a Mine

Permit for this development, and subsequently opted to conduct forest harvesting across >90% the property. In

2006 Canadian National Investments (CNI) purchased the Property and undertook preliminary planning for a rail

depot, deep-sea container port, and sand and gravel quarry at the site. These projects did not proceed beyond

the planning stage.

On April 4, 2008, 0819042 BC Ltd. (a Tricycle Lane Company and BURNCO sister company) purchased the

Property from CNI. BURNCO holds all mineral tenures and mining claims on the property.

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Barge and bulk vessel traffic are common throughout the area of Strait of Georgia, Howe Sound and lower Fraser River and use existing shipping routes and navigation channels. Annual ship traffic in Howe Sound and the lower Fraser River are greater than 6,000 ship movements annually greater than 15,000 throughout the lower Strait of Georgia.

5.3.4 Land, Water and Resource Use

The Project will be located on a 320 ha area of private land and a foreshore tenure owned and permitted by BURNCO. Greater than 90% of the property has been previously logged during the last century and most recently during 2001 to 2006. The Property and valley area has been used over the past 100 years for industrial forest harvesting and log sorting. A series of logging roads in the watershed have been deactivated and only a single mainline road remains open in the lower portion of the valley. This mainline road runs the extent of the property (Figure 2) and BC Timber Sales has an agreement with BURNCO to maintain and potentially upgrade this road.

BURNCO has an existing water licence for potable water use from Harlequin Creek. No other ground or surface water licencing exists on the Property. Additional water licencing and potable water use may be attributable to the McNab strata seasonal residents adjacent to the Property.

Sound Energy is presently pursuing permitting for a run-of river power project in a tributary to McNab Creek called Box Canyon Creek. The confluence of the creek is approximately 300 m north of the Project area. The Box Canyon Project site is located outside the BURNCO Property approximately 3 km northeast of the Project. No water licencing has been permitted the Box Canyon Project at this time.

BURNCO’s property is presently zoned as Rural Land use by the Sunshine Coast Regional District (SCRD) and will require rezoning to Industrial Land use for the Project. The foreshore area presently has no zoning classification. BURNCO has initiated the rezoning process with the SCRD and approval is pending.

No commercial or aboriginal fisheries are known to occur on the Project site, in the area of foreshore lease and DFO’s Fisheries Management Area 28-3 adjacent to the Project site, or Area 28-2 along the proposed barge shipping route within Howe Sound (Figure 5). Recreational fisheries for marine species including crab and prawns may occur in marine areas adjacent to the Property within DFO’s Management Area 28-3 (Figure 5). Specific resource management areas are found within the larger Management Area 28 (28-A) under specific harvest and management regulations for salmon, shrimp, intertidal clams, crabs, euphausiids, groundfish and smelt. Freshwater fishing has been observed in McNab Creek in areas adjacent to the Property.

Commercial, recreational and First Nation fisheries for salmon, eulachon and surf smelt, plus recreational fisheries for white sturgeon are undertaken in the tidal portion of the lower Fraser River (DFO Fisheries Management Area 29). No directed commercial fisheries for coho and Chinook salmon exist in the lower Fraser River; however, coho and chinook are captured in recreational fisheries between October through to December. IN addition, commercial and First Nation fisheries are captured in the lower Fraser River for sockeye, chum and pink salmon, dependent and annual management directions, during July through November.

Recreational hunters have been observed on the Property. These observations are based on docked boats and wildlife camera photos of hunters. Illegal activities have been forwarded to the RCMP.

Recreational fisheries and hunting are presently regulated in the under Ministry of Environment Region 2 lower Mainland and in tidal waters in Management Area 28 by DFO.

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6.0 POTENTIAL ENVIRONMENTAL EFFECTS OF THE PROJECT The potential receptors of the environmental effects of the proposed sand and gravel aggregate pit can be

categorized as follows:

Air Quality;

Noise;

Surface Water and Aquatic Habitat;

Groundwater;

Contaminated Site;

Terrestrial Ecosystem;

Marine Ecosystem;

Socio-community;

Public Health and Safety;

Economic and Land Use;

Heritage Resources (Archaeology and Traditional Use); and,

Visual Aesthetics.

A brief summary of the anticipated effects of the project on these types of receptors is provided in Table 2.

Table 2: Preliminary Assessment of Potential Project Related Effects and Possible Mitigation

Environmental Component

Issue/Potential Effect Examples of Potential Mitigation Measures

Air Quality and Emissions Fugitive dust;

Toxic compounds as dust; and;

Effect of dust on vegetation and habitat.

Watering or use of surfactants to reduce dust; and,

Enclose operations to avoid and limit dust.

Greenhouse gas emissions; and,

Emissions of sulphur and nitrogen compounds.

Use electrical equipment;

Limit use of fuel-burning vehicles;

Use low-sulphur fuels; and,

Idle time restrictions.

Noise Noise from extraction and processing equipment, and vehicles; and,

Noise from barge loading and conveyors.

Use source noise minimization equipment;

Use noise enclosed crushers and screening equipment;

Strobe lights rather than backup alarms on vehicles;

Siting of pit and processing plant behind vegetation buffer around the project area;

Berms built of overburden to surround active pit; and,

Lowering conveyor drop heights into barges.

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December 16, 2011 Report No. 11-1422-0046 25

Environmental Component

Issue/Potential Effect Examples of Potential Mitigation Measures

Surface Water and Aquatic Habitat

Loss of fish habitat in Phase 3 upper portions of the constructed groundwater channel in alluvial fan;

Adverse effects to water quality and habitat due to erosion and sedimentation; and,

Increased nutrients in receiving waters may cause a range of effects including increased algal growth, change in invertebrate community, and secondary effects such as decrease in dissolved oxygen.

Project will avoid overlap and will not affect fish habitat or fish passage in McNab Creek or Harlequin Creek, or foreshore inlet channels and creeks;

Re-establish groundwater channel and riparian areas on the western portion of property;

Implement Best Management Practices (e.g., sedimentation and erosion control plan) and develop of Environmental Management Plans;

Recycle process water to the extent practical;

Based on detailed hydraulic, hydrologic, groundwater engineering studies, training berms designed and built using existing roadways to reduce risk of flooding and avulsion from McNab Creek into the project area;

Maintain all effluent consistent with the Mines Regulation guidelines; and,

Institute mining practices to limit the generation of nitrogen and phosphorus; recycle mine water to the extent practical.

Groundwater Drawdown and/or altered flow rates;

Water quality degradation due to impoundment in aggregate pit; and,

Elevated salt water levels and potential salt water intrusion.

Recycle groundwater within the pit process (e.g., through the process pond);

Detailed groundwater characterization to determine potential impacts and approaches mitigate project-related effects; and,

Create 300 m groundwater buffer zone between freshwater pit and marine environment to prevent salt water intrusion.

Contaminated Site Disturbance of Canfor’s existing

constructed biocells and capped soils. Minimize impact to potentially contaminated

sites based on certificate of compliance as appropriate.

Terrestrial Ecosystem Loss of habitat and direct mortality of

wildlife due to clearing, grubbing, and overburden removal storage; and,

Disturbance of wildlife due to pit operations.

Minimize the mine footprint and interaction of equipment with wildlife;

Reclaim and restore site on closure; and,

Best Management Practices to avoid or limit impacts on SAR.

Marine Ecosystem Loss of habitat due to construction and

operation of marine loading facilities;

Disturbance of marine aquatic resources due to operation of loading facility; and,

No dredging activities or disposal at sea will be undertaken.

Minimize the loading facility footprint and interaction of equipment, vessel traffic with marine mammals and aquatic resources;

Habitat compensation for unavoidable loss of aquatic marine habitats;

Loading facility pile driving mitigation practices in marine area;

Implementation of Best Management Practices and development of Environmental Management Plans; and,

Vessel traffic and noise management plans.

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Environmental Component

Issue/Potential Effect Examples of Potential Mitigation Measures

Socio-community In-migration and effects on sustainable community population;

Employment effects;

Demand on local community services

Construction and transient workforce;

Demands on local community services (Gibsons) (education, recreation, health, emergency, police); and,

Transportation and navigation effects.

Modifications to project design;

Community management planning with local communities, First Nations and stakeholders to address population effects, availability and access to local housing, provision of services and infrastructure, and potential impacts to community well being as appropriate;

Training and skill development strategies and support;

Traffic and navigation;

Public consultation;

First Nations consultation and engagement; and,

Potential for Memoranda of Understanding (MOUs), Participation Agreements with First Nations.

Public Health Public and workforce health and safety. Traffic and navigation safety planning; and,

Employee health, safety plans.

Economic and Land Use Employment generation;

Income generation;

Local business opportunities;

Fiscal benefits to governments (GDP, tax revenue);

Recreational and industrial land use; and,

Existing tenures and agreements on land.

Model indirect and induced employment, income, revenue generation and GDP effects, as a basis for understanding mechanisms to maximize employment and income benefits;

Project construction, operations and closure managed integrally with local and regional economic priorities and activities;

Public and First Nations consultation findings as they pertain to economic issues will be reviewed and considered in the economic effects assessment results;

Local hiring and procurement policies;

Sustainable employment and procurement strategies;

Public and First Nations Consultation;

Sustainable economic development planning;

Potential for MOUs, Participation Agreements with First Nations;

Seek input on recreational access and other end land use objectives; and,

Implement reclamation and closure plans consistent with end land use objectives.

Heritage Resources First Nations traditional land use; and,

Impacts of archaeological and heritage resources due to clearance of land and aggregate pit operations.

Traditional knowledge and traditional use studies as appropriate;

First Nations consultation and engagement;

MOUs, Participation Agreements with First Nations; and,

Archaeological and heritage assessments and management plans.

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Environmental Component

Issue/Potential Effect Examples of Potential Mitigation Measures

Visual impact Stockpiles; and,

Lighting.

Siting of processing plant behind treed foreshore frontage;

Vegetated berms built of overburden to surround active pit area; and,

Orientation of stockpiles to minimize visual impact.

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7.0 SUSTAINABILITY FACTORS The Canadian Environmental Assessment Act (CEAA) defines sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. This definition is adapted from the World Commission on Environment and Development (Brundtland 1987).

Project-related environmental, social, economic and cultural sustainability issues will be identified by considering aspects linked to Project site infrastructure, layout, planning, design and production schedule. BURNCO will support sustainability by designing, constructing, operating, and reclaiming the aggregate Project site by incorporating practices including:

Environmental Sustainability:

A contained footprint and aggregate pit closure plan that limits residual effects on soils, vegetations and plants, wildlife, aquatic resources, fish communities and fish habitats;

A reduced environmental footprint through use of a shortened aggregate barging route from source to processing facilities;

Collecting, treating and recycling process for more than 90% of the water before discharge into the receiving environment;

Progressive reclamation of the aggregate pit site at project closure, including removal of infrastructure that is not essential for post-closure management and monitoring and returning disturbed land to its previous use where possible;

Management of lands not involved in aggregate pit site as private forest lands, and accommodation of other industrial or transportation uses or needs of neighbouring property owners; and,

Management and long term stewardship for forest, fisheries, wildlife and water resources on the property.

Economic Sustainability:

Maximizing employment and business opportunities, and associated income benefits to local communities though hiring of appropriately skilled personnel;

Adding economic diversity to the local and regional economy and increase government revenues (taxes, fees), especially when the aggregate pit is in full operation to supply demands for sand and gravel to BURNCO’s plants in Metro Vancouver; and,

While aggregate pit closure will conclude direct and indirect economic benefits, the Reclamation and Closure Plan will have been developed by BURNCO in conjunction with communities and First Nations to minimize adverse effects by providing opportunities to upgrade skills, working with other regional employers to find replacement jobs and identifying new opportunities for economic development.

Social Sustainability:

Supporting individual capacity and skill development (including transferable skills) through training, potentially prioritized for local residents and First Nations;

Supporting local business capacity such that their skill base is strengthened and can be applied elsewhere in the economy (i.e., supporting longer term economic diversification and stability); and,

Supporting First Nations’ sustainable development goals through consultation processes.

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Cultural Sustainability:

Preserving cultural heritage and any structure or site that is of archaeological significance; and,

Maintenance of access to traditional territories and accommodation of traditional culture and customs in

the Project area.

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8.0 FIRST NATIONS AND PUBLIC CONSULTATION

8.1 First Nations Consultation and Engagement 8.1.1 Project Mine Footprint

CEAA has previously distributed the Notice of Commencement of the Environmental Assessment (May 5, 2010)

for BURNCO Aggregate Project to the following First Nation Chiefs and Councils including:

Chief James Thomas and Council, Halalt Nation, 8017 Chemainus Rd., Chemainus, BC, V0R 1K5;

Chief Richard Thomas and Council, Lyackson Nation, 9137 Chemainus Rd., Chemainus, BC, V0R 1K5;

Chief Earl Jack Sr. and Council, Penelakut Nation, PO Box 360, Chemainus, BC, V0R 1K0;

Chief Justin George and Council, Tsleil-Waututh Nation, 3075 Takaya Drive, North Vancouver, BC,

V7H 3A8;

Chief Ernest Campbell and Council, Musqueam Nation, 6735 Salish Drive, Vancouver, BC, V6N 4C4;

Chief Cyril Livingstone and Council, Lake Cowichan Nation, 313 Deer Rd., PO Box 1376, Lake

Cowichan, BC, V0R 2G0;

Chief Lydia Hwistum and Council, Cowichan Nation, 5760 Allenby Rd., Duncan, BC, V9L 5J1;

Chief John Elliott and Council, Chemainus First Nation, 12611-A Trans Canada Highway,

Ladysmith, BC, V9G 1M5; and,

Chief Gibby Jacob and Council, Squamish Nation, PO Box 86131, North Vancouver, BC, V7L 4J5.

BURNCO is aware of potential interest in the Project by the Squamish Nation (letter July 8, 2010) and

Tsleil-Waututh Nation and has initiated communication with Chief and Council for both nations. Consultation

with the Squamish Nation and Tsleil-Waututh First Nation will attempt to identify whether and to what extent their

respective aboriginal interests may be adversely affected by the project footprint, as well as, where necessary,

measures to avoid, limit, or otherwise accommodate any adverse project-related effects to those interests.

BURNCO will continue to consult with the Squamish Nation and Tsleil-Waututh Nation council and leaders to

engage the First Nations at the band level through introductory meetings and communications. BURNCO has

sent out project introduction letters (March 25, and April 6, 2010), the Project Description and a copy of the

current Notice of Work (NOW) to representatives from the Squamish Nation and Tsleil-Waututh Nation.

BURNCO has met with Chiefs of the Squamish Nation on October 5, 2010 and has delivered information in

person to band offices. The Squamish Nation and Tsleil-Waututh Nations have identified individual project-

related contacts for future communication with BURNCO. Squamish Nation and Tsleil-Waututh Nation contacts

for the BURNCO Aggregate Project include:

Chief Gibby Jacob, Chief Ian Campbell. Squamish Nation, PO Box 86131, North Vancouver, BC, V7L 4J5;

Lisa Wilcox Intergovernmental Relations , Squamish Nation, PO Box 86131, North Vancouver,

BC, V7L 4J5, 604-982-0510, [email protected];

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Chief Justin George, Tsleil-Waututh Nation, 3075 Takaya Drive, North Vancouver, BC, V7H 3A8,

604-924-2338, [email protected]; and,

Evan Stewart, Natural Resources Management Coordinator, Tsleil-Waututh Nation. 3075 Takaya Drive,

North Vancouver, BC, V7H 3A8, 604-924-4162, [email protected].

8.1.2 Mine Product Shipping Barge Route

First Nations will also be contacted regarding the proposed project barge route from Howe Sound along the North Arm of the Fraser River to Burnaby and the South Arm of the Fraser River to Langley processing facilities. The list of potentially affected First Nations along the barge route is preliminary and may change based on further information. The notice of commencement of the environmental assessment for BURNCO Aggregate Project may be distributed at this time to the following First Nation Chiefs and Councils with potential interest along the barge route (Figure 3) including:

Squamish First Nation;

Tsleil-Wathuth First Nation;

Stz’uminus First Nation;

Cowichan Tribes;

Lake Cowichan First Nation;

Lyackson First Nation;

Penelakut First Nation;

Kwikwetlem First Nation;

Musqueum Nation;

Halalt First Nation;

Semiahmoo First Nation;

Tsawassen First Nation;

Seabird Island Band;

Shxw’ow’hamel First Nation;

Skwahlook First Nation;

Soowahlie Indian Band;

Sto:Lo Tribal Council;

Sto:Lo Nation;

Kwantlen First Nation;

Katzie First Nation; and

Qayqayt First Nation.

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December 16, 2011 Report No. 11-1422-0046 32

8.2 Public, Stakeholder and Agency Consultation BURNCO has conducted the public, stakeholder and agency meetings during 2009 to 2011. Table 3 identifies

the consultation meetings and potential interests and issues, while technical studies completed October 2010

and submitted to DFO as part of the supplementary review are listed in Table 4.

Table 3: Public, Stakeholder and Agency Consultation

Date Group Interest/Issues

Dec. 1, 2008 Apr 13, 2010 (Vancouver Meetings) May 29, 2010 (On-site Meeting)

McNab Strata Seasonal Residents

Development, noise and visual issues on BURNCO Property adjacent to seasonal properties. Reduced properties values. Impacts to local fish, wildlife and water resources.

May 13, 2010 (Meeting/ Presentation)

SCRD – Planning Development Committee

SCRD voted to inform ILMB that BURNCO will have to apply to rezone the upland portion of the property to build a sorting facility and create new zoning for the waterfront area, which is currently not zoned.

Ongoing 2009-2011

Industry: Howe Sound Pulp and Paper (HSPP), Canfor, AJB, BC Hydro, BC Timber Sales

Working agreements have been developed with BC Hydro, BCTS and BC MOFR for access and development on the property. BURNCO do not have investigative sand and gravel permits on Crown Land Tenure on lands adjacent to the proposed Project. Those investigative permits have since been abandoned to focus on development within private BURNCO lands.

Ongoing 2008-2011

Sound Energy – Box Canyon IPP

BURNCO has been working with Sound Energy – Box Canyon IPP during 2010 and 2011 on data sharing and for access and development through the BURNCO’s property. Discussions are intended to continue during 2012 and project planning phases.

Ongoing 2009-2011

Agencies and Regulators

BC MOFR and DFO as part of EAO/CEAA site tours and Working Group meetings in 2009, 2010 and ongoing in 2011 and 2012. BURNCO has met in 2009 and 2010 on a number of occasions with the EAO convened working group comprising representation from local government (Sunshine Coast Regional District, Island Trust), provincial agencies (MOE, MFLNRO) and federal agencies (TC, EC and DFO).

Ongoing 2009-2011 DFO

BURNCO and DFO have met for discussion and consultation during a series of conference calls, in person and site meetings in 2010 and 2011 for the basis of a supplementary agency review of the Project Description and additional information and to assist with the re-design of project. DFO has reviewed additional information provided by BURNCO (Table 4) for the Project to address a series of project-related questions. DFO provided a supplementary project review in January 2011 and confirmed their decision on June 27, 2011 to continue to review the Project through the Canadian Environmental Assessment process. As part of this supplementary review, BURNCO is aware of additional concerns raised by DFO and will address measures in the Project to avoid and limit potential project-related effects on fish and fish habitats.

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December 16, 2011 Report No. 11-1422-0046 33

Table 4: BURNCO Aggregate Project Technical Studies Completed October 2010 and Submitted to DFO as Part of the Supplementary Review

Report Title/Topic

1. Fish Habitat and Productivity Assessment – Groundwater Channel

2. Geotechnical Stability Assessment of Constructed Groundwater Channel

3. McNab Valley Marine Foreshore Inlet Groundwater Channel Surveys 2010

4. Review of Species at Risk – McNab Valley

5. Assessment of Avulsion Risk on McNab Creek

6. Hydrologic and Hydraulic Characterization – McNab Valley

7. Preliminary Hydrogeologic Characterization – McNab Valley

8. Fisheries Habitat Compensation Options

9. McNab Valley – Geologic Setting and Characterization

10. Revised Project Description

8.3 Consultation Planning and Activities First Nations and Public Consultation plans will continue for the Project. BURNCO will continue to meet with public, stakeholder, industry, First Nations and agencies to support ongoing consultation for the Project. Meetings and open houses are planned in 2011 and 2012 as part of the Draft Application Information Requirement review and as part of the ongoing environmental and social assessment review. The consultation programs will be designed with the intent of meeting all EA consultation requirements. The fundamental objective of the consultation programs will be for First Nations, regulatory agencies, key stakeholders and members of the public to have the opportunity to provide input to: project design; issue identification; baseline characterization programs; and review of key EA documents, including draft the Application Information Requirements (dAIR), the EAC Application and Environmental Management Plans (EMP’s).

BURNCO and project staff have met with Squamish and Tsleil-Waututh Nation council and staff, District of Sunshine Coast, Island Trust, McNab Strata seasonal residents and local municipal, provincial and federal agency staff and local industry on a number of occasions during the initial stages of project planning during 2009 to 2011. These discussions and meetings are being tracked through a specific consultation log. To date the First Nation, public, and local government discussions have included:

Distribution of Project background and the draft Project description to First Nations;

Communication and meeting with Squamish Nation chiefs and council members;

Communication, meeting and site tour with local residents and government staff;

Presentation to local residents and local governments as an information session on the Project; and,

Participation during site tours, working group meetings and provincial and federal agency discussions.

8.4 Long-term Property and Resource Stewardship BURNCO will manage and provide long term stewardship for forest, fisheries, wildlife and water resources on

the property. BURNCO has met with the Squamish Nation and the neighbouring seasonal residents and will

continue discussion related to local fisheries and wildlife resource enhancement.

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9.0 ENVIRONMENTAL ASSESSMENT REVIEW PROCESSES The Project will require an environmental assessment pursuant to the British Columbia Environmental

Assessment Act (BCEAA) because the Project’s sand and gravel production is expected to exceed the

thresholds defined in the Reviewable Projects Regulation (RPR BC Reg. 370/2002), and it is anticipated to

trigger a federal review under the Canadian Environmental Assessment Act (CEAA) due to its requirement for

Federal permits, approvals, and authorizations.

9.1 Provincial The Reviewable Projects Regulation (Part 3) under BCEAA states that a proposed sand or gravel pit is a

reviewable project if the new facility:

a) Will have a production capacity of >500,000 tonnes/year of excavated sand or gravel or both sand and

gravel during at least one year of its operation;

b) Over a period of <4 years of operation, >1,000,000 tonnes of excavated sand or gravel or both sand and

gravel; or,

c) Results in disturbance of 750 hectares of land not previously permitted, or 50% increase in disturbed area

over that previously permitted.

BURNCO is expecting to mine more than 500,000 tonnes/year of sand or gravel once achieving full operation,

so review under BCEAA is expected to apply.

9.2 Federal It is likely that CEAA will apply to the development and operation of the Project, because federal departments or

agencies are required to make a decision on the proposed project as follows:

There is existing fish habitat (i.e., constructed groundwater channel) in the area where the proposed pit

may be located, therefore the destruction of the upper portion of the groundwater channel habitat may

require an authorization under the Section 35(2) of the federal Fisheries Act. This will trigger an

assessment of the project under CEAA under Schedule 1, Part 1, Section 6 of CEAA’s Law List

Regulations; and,

If the production capacity of the project meets or exceeds 1,000,000 tonnes per year, the project will require a

Comprehensive Study under CEAA (as opposed to a Screening Study), under Schedule, Part 5, Section 18(i) of

the CEAA’s Comprehensive Study List Regulation.

If a Federal review under CEAA is triggered for the Project, the federal review will be administered and

coordinated through the federal government’s Major Projects Management Office (MPMO). The MPMO, working

collaboratively with federal departments and agencies, would serve as a single window into the federal

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 35

regulatory process, and complements the technical discussions between proponents and regulators. The

MPMO would provide guidance to project proponents and other stakeholders, coordinates project agreements

and timelines between federal departments and agencies, and tracks and monitors the progression of major

resource projects through the federal regulatory review process.

Each major resource project progressing through the federal regulatory system administered by the MPMO is

accompanied by a Project Agreement. The Project Agreement is entered into solely by federal agencies to

facilitate the effective, coordinated, and concurrent discharge of their statutory duties, functions and obligations.

Project Agreements provide the roles and responsibilities, along with details of the federal agencies related to

the project management of a specific major resource project within the regulatory system, including timelines for

regulatory reviews, approvals and permitting. Project Agreements are designed to facilitate the evolution of a

proponent's major resource project through the regulatory system.

If the Project triggers reviews under both BCEAA and CEAA, it is expected that the provincial Environmental

Assessment Office (EAO) would lead a harmonized review of the Project under the Canada – BC Agreement on

Environmental Assessment Cooperation (2004).

BURNCO has met with DFO and MPMO towards discussion and consultation on the Project, its layout and

approach intending to avoid and limit potential impacts of sensitive salmon habitats in the valley. A federal

coordination response was distributed for the Project on March 17, 2010 and a federal notice of Project

commencement was first issued by CEAA on April 27, 2010.

9.2.1 Common Federal Triggers and Issues

9.2.1.1 Canadian Environmental Protection Act

The Project will not trigger the Canadian Environmental Protection Act because it will not involve dredge or fill

operations that will result in the disposal of dredged material at sea, seafloor disturbance, disposal of any

substance at sea, or disposal of any other substance into marine waters.

9.2.1.2 Fisheries Act

Fish and fish habitat are present in McNab Creek, Harlequin Creek, upstream, adjacent to, and downstream

from the proposed Project site. Fish habitat is also present downstream from the project site in several

groundwater-fed channels that drain the gravel deposit into the Howe Sound (Figure 2). No fish habitat is

present in the upland portion of the project site except for the upstream portions of the artificial constructed

groundwater channel.

The proposed project is not expected to prevent fish passage, result in fish mortality, or result in the deposition of deleterious substances into fish-frequented waters. However, it is expected to result in a “harmful alteration, disruption or destruction” (HADD) of fish habitat through the loss of the Phase 3 portion (440 m) of the constructed groundwater channel, and it is therefore expected that the removal of the groundwater channel will require an authorization under the Fisheries Act. Proposed mitigation for this HADD will include habitat creation on Property including construction of a new engineered ground and water surface fed channel on the western portion of the property.

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 36

The proposed gravel extraction project will be designed to avoid and limit impacts to flow or water levels in fish habitats in McNab and Harlequin Creeks. Groundwater evaluation, baseline studies and modelling are underway. Similarly, because the project will not involve dewatering of the pit, it is not expected to affect the flow of the downstream (Phase 1 and 2 – 460 m) sections of the constructed groundwater channel, or other foreshore watercourses downstream from the project site. Detailed hydrogeology, hydraulic and hydrologic models are being completed to support the mine plan design for the Project. Preliminary reporting on these technical studies are available as reports identified in Table 3. Fisheries and Oceans Canada has completed an independent review of the Project (January 2011), which has resulted in a revised and updated Mine Plan for the Project.

Intertidal and subtidal marine fish habitat is present in the area where the barge loading facility will be constructed using piles and surface foundations in dry areas. It is expected that a letter of advice or authorization under the Fisheries Act will be required for the construction of the loading facility. The structure will be partially self-compensating because it is not expected to cause shading of intertidal habitat, but will create hard, vertical structures through piles which can be colonized by sessile marine organisms, and provide cover for fish.

The proposed project will not result in deposition into fish-frequented waters of effluent or waste rock as provided for under the Metal Mining Effluent Regulations.

9.2.1.3 Explosives Act

The proposed project will not be subject to the Explosives Act because it will not involve the manufacture and storage of explosives.

9.2.1.4 Navigable Waters Protection Act

The project will not result in the construction of any new structures or facilities in navigable freshwater habitats as determined by Transport Canada’s input (BURNCO supplementary information April 19, 2010, Transport Canada response to CEAA Federal EA Notification April 27, 2010). However, the barge loading facility will be constructed in the marine environment in existing log dump and foreshore lease areas. The loading structure is expected to extend approximately 250 m from the shoreline into deeper water into Howe Sound, and will have a maximum width for vessel movement of approximately 200 m. It is expected that construction of the facility will involve pile driving and will not involve dredging or disposal at sea. Aggregate product from the proposed site will use established barging traffic navigation and shipping channels in Howe Sound and the lower Fraser River for delivery to existing BURNCO processing facilities in Burnaby and Langley.

The marine loading facility and barge route will be situated in the navigable waters of Howe Sound. The barge route will be situated in the navigable waters of the Strait of Georgia and lower Fraser River. Transport Canada has indicated that a permit for the marine loading facility may be required under the Navigable Waters Protection Act, Section 5(3).

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 37

10.0 OTHER REQUIRED PERMITS AND APPROVALS In addition to the EAC under BCEAA, the Project will require other provincial permits, approvals, and licenses to

construct and operate the aggregate pit. As indicated above, federal permits, approvals and authorizations may

also be required.

The Concurrent Approval Regulation under BCEAA allows for the concurrent review of provincial permits and

approvals at the time of filing the EAC Application. The regulation applies to almost all provincial permits,

authorizations and approvals to undertake works that are within the scope of the assessment under the Act.

Under the Concurrent Approval Regulation, provincial ministries must issue a decision on any applications for

permits, approvals or authorizations applied for concurrently with an EAC Application within 60 days of the date

the EAC was issued for the project, as long as the proponent follows the required procedures for soliciting

concurrent permitting.

Although proponents can apply for both federal and provincial permits, approvals, and authorizations at the time

of filing an EAC Application under a harmonized BCEAA/CEAA process, the Concurrent Approval Regulation

does not apply to federal permits and approvals.

Although there is no legislative or regulatory timeframe during which federal agencies must issue approvals

under their respective legislation and mandates. It is anticipated that timelines for receipt of federal approvals

and authorizations may be possible through the Project Agreement to be established by the MPMO. Permits

and approvals that could potentially be applicable to the Project are shown in Table 3.

Table 5: Permits and Approvals Potentially Required for the Project

Statute Responsible Agency Action

Sunshine Coast Regional District

Rezoning Bylaw SCRD Rezoning from rural land use to industrial.

Provincial

BC Mines Act Ministry of Energy and Mines Application for Mines Act Permit. Permitting Approved work system and reclamation program; Approvals to construct and operate.

BC Mineral Tenure Act Ministry of Energy and Mines Not Applicable. Mining Lease – Notice of Intention Application.

Land Act Ministry of Agriculture and Lands, Integrated Land Management Bureau

BURNCO to hold one lease for log handling, second lease for gravel storage and loading.

Surface lease (to 30 years with set boundaries); and,

License of occupation (to ten years, imprecise boundaries).

Includes an Environmental, social and First Nations evaluation. Surface land use on Crown lands for facilities or transportation rights of way associated with approved Mines Act Notice of Work.

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 38

Statute Responsible Agency Action

Heritage Conservation Act (HCA)

Ministry of Tourism, Culture and the Arts, Archaeology Branch

HCA Permit to conduct an Archaeological Impact Assessment. Facilitates the protection and conservation of heritage property in BC, and includes aboriginal traditional use sites. Does not apply to reserve lands which are under federal jurisdiction, but does apply to off-reserve traditional territories.

Forest Act, Forest and Range Practices Act, Forest Practices Code

Ministry of Forests and Range, South Central District Manager

Special Use Permit, Occupant License to Cut, Road Use Permit for industrial use. Use of Crown land in Provincial Forest or wilderness areas; site clearing; access clearance and development.

Water Act Ministry of Environment, Water Stewardship Division

Water License, Approval Application for Changes in and about a Stream. Diversions, storage and use of water. Existing water licence on Harlequin Creek.

Environmental Management Act

Ministry of Environment, Environmental Protection Division

Waste Discharge Authorization. Generation of liquid, gaseous or solid waste.

Health Act, Drinking Water Protection Act, various

Interior Health Food premises permit, water supply system construction permit, and various occupancy approvals. Camp.

Fire Services Act Ministry of Public Safety Firefighting facilities. Fuel Storage Approval.

Federal

Metal Mining Effluent Regulations

Fisheries and Oceans Canada Not applicable.

Canadian Environmental Protection Act of 1999

Environment Canada Not applicable. No dredging or disposal at sea.

Migratory Birds Convention Act

Canadian Wildlife Service Best practices to avoid disturbing active nest sites.

Species at Risk Act Environment Canada Best practices to avoid disturbing species at risk.

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 39

11.0 SCHEDULE The key milestones throughout the pre-feasibility, assessment, aggregate pit development, operation,

reclamation and closure phases of the project are summarized in Table 4.

Table 6: Project Schedule

Task Start Date Completion Date

Pre-feasibility investigations and engineering February 2009 April 2012

Geotechnical and geological investigations February 2009 April 2012

Coastal engineering studies October 2010 April 2012

Detailed design December 2011 August 2012

Tendering, award, procurement and installation of mechanical equipment

January 2013 March 2013

Initial meeting with EAO and CEA Agency November 2009 Ongoing

Initiate First Nations engagement and public consultation February 2009 Ongoing

Prepare and submit Project Description to EAO and CEA Agency

December 2011

Mines Act Permit July 2011 December 2012

Submit Draft Application Information Requirements to EAO

January 2012

Regulatory, First Nations and Public Review of Draft Application Information Requirements

December 2011 February 2012

Conduct Discipline-Specific Environmental Assessment Technical Studies

September 2009 June 2012

Prepare EAC application TBD TBD

EAC application review

30-Day Screening Period TBD TBD

180-Day Regulatory Review TBD TBD

45-Day Referral to the Ministers of Environment, and Energy, Mines and Petroleum Resources

TBD TBD

Environmental Assessment Certificate Decision

Permits and approval

Construction TBD TBD

Aggregate mining December 2013 September 2033

Reclamation December 2013 September 2033

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046 40

12.0 CONCLUDING REMARKS BURNCO Rock Products Ltd. is committed to conducting a thorough environmental assessment of the Project to

avoid, limit and mitigate potential project-related environmental, social or cultural effects. BURNCO will work

with public stakeholders, government agencies, First Nations, local residents to bring forward a successful

project plan and operation that will provide multiple benefits to local communities, First Nations, local resources,

the environment and the Province of British Columbia.

GOLDER ASSOCIATES LTD.

Mark Johannes, Ph.D. Fred Shrimer, P.Geo., LG/LEG (WA), FGAC Associate, Environmental Assessment Specialist Associate, Senior Geoscientist MJ/FS/asd \\Bur1-s-filesrv2\final\2011\1422\11-1422-0046\REP 1216_11 BURNCO Aggregate Project Description_FINAL\REP 1216_11 BURNCO Aggregate Project Description_FINAL.docx

ADioquino
Original Signed
ADioquino
Original Signed

Tetrahedron Park

Boundary Bay Wildlife Management Area

Cypress ParkMount Seymour Park

Garibaldi Park

Sturgeon Bank Wildlife Management Area

Garibaldi Park

Tantalus Park

Pinecone Burke Park

Indian Arm Park

Indian Arm Park

Sturgeon Bank Wildlife Management Area

Pinecone Burke Park

Stawamus Chief Park

Indian Arm Park

Halkett Bay Park

Brackendale Eagles Park

South Arm Marshes Wildlife Management Area

Bowen Island Ecological Reserve

Skwelwil’em Squamish Estuary Wildlife Management Area

Brackendale Eagles Park

Wakes Cove Park

Shannon Falls Park

Alice Lake Park

Drumbeg Park

Mount Elphinstone Park

Porteau Cove Park

Plumper Cove Marine Park

Mount Elphinstone Park

Roberts Creek Park

Murrin Park

Baynes Island Ecological Reserve

Dionisio Point Park

Apodaca Park

Mount Elphinstone Park

Whaleboat Island Marine Park

Sechelt Inlets Marine Park

Porteau Cove Recreation Area

Canoe Islets Ecological Reserve

Rose Islets Ecological Reserve

Richmond

Burnaby

Gibsons

Vancouver

Port Mood

Anvil Island

KeatsIsland

Bowen Island

Valdes Island

Baynes Island

BowyerIsland

Croker Island

Pasley Island

Gambier Island

PassageIsland

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Parks, and protected areas provided by B.C. LRDW. Aboriginal Areas provided by Geobase. Base features from geogratis.ca Canvec6 dataset. For map symbology not included in legend, see http://cartes.rncan-nrcan.gc.ca/cartospecs/mainindex50_e.php. Projection: UTM Zone 10 Datum: NAD 83

REFERENCEREV. 0

Greater Vancouver Office, B.C.

DESIGN

KEYPLAN, PARKS, SENSITIVEENVIRONMENTAL AREAS, RESOURCE USE AREAS

FIGURE 1

PROJECT NO. 11-1422-0046SCALE AS SHOWN

PROJECT

TITLE

GIS

REVIEW

MJ 08SEP11

CHECK

BURNCO ROCK PRODUCTS LTD.MCNAB VALLEY AGGREGATE PROJECT

HOWE SOUND, B.C.

JP 07NOV11

5,000 0 5,000

METRES1:250,000SCALE

PHASE No. 1001

LEGENDProject Area (Approximate)

Park/Protected Area

Sensitive Environmental Area

Aboriginal Title Area

Vegetation

Residential area

Highway

Road

Trail

Ferry connection segment

Railway

Power transmission line

Contour

Watercourse

Waterbody

MJ 09NOV11FS 09NOV11

Overburden Stockpiled onNorth Side of BC Hydro Right of Way

Culvert

Training Berm

Overburden andOversize Stockpile

on South Side of Berm

Extent of Existing Flood Protection

To Match ExistingRoad Grade

Culvert Equipped withOverflow Valve Control

Culvert

Surface Collection Ditch andCompensation Fish Channel

Culvert

Temporary FinesStockpile

McNab Creek

GroundwaterChannel

Existing Shop

Processing Plant andProduct Stockpiles

Conveyor to Load-out

Existing Dock

Surface Collection Ditch andCompensation Fish ChannelTie-in to Existing Channel

Proposed BargeLoad-out (Typ.)

Proposed Channel Plug

Year 10

Year 20

Year 7

Year 15Year 17

Year 12Year 3

Year 2

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Year 4

Year 1

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Base features from TRIM Positional data. Additional detailed site features provided by McElhanney. Imageryobtained from Google Earth Pro (c 2010). Projection: UTM Zone 10 Datum: NAD 83

REFERENCE

Proposed Aggregate Pit AreaYear 1Year 2Year 3

Year 4Year 5Year 7Year 10Year 12

Year 15Year 17Year 20

BURNCO Property Boundary

Proposed Mine FeaturesExisting Barge Loading & Dock

Existing Warehouse & Maintenance Building

ConveyorBardge Load-OutDikeTraining Berm

75 m Creek Top of Bank OffsetSurface Collection and Compensation Fish ChannelTransmission LineContour - 100 m

Contour - 20 m

Watercourse (Surveyed and TRIM)

Culvert

REV. 0

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DESIGN

PROPOSED CONCEPTUAL SITE LAYOUT

FIGURE 2

PROJECT NO. 11-1422-0046SCALE AS SHOWN

PROJECT

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CHECK

BURNCO ROCK PRODUCTSAGGREGATE PROJECT

HOWE SOUND, B.C.

JP 04NOV11

200 0 200

METRES1:6,000SCALE

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LEGEND

MJ 09NOV11FS 09NOV11

Boundary Bay Wildlife Management Area

Cypress ParkMount Seymour Park

Garibaldi Park

Sturgeon Bank Wildlife Management Area

Garibaldi Park

Tantalus Park

Pinecone Burke Park

Indian Arm Park

Indian Arm Park

Sturgeon Bank Wildlife Management Area

Pinecone Burke Park

Stawamus Chief Park

Indian Arm Park

Halkett Bay Park

Brackendale Eagles Park

South Arm Marshes Wildlife Management Area

Bowen Island Ecological Reserve

Skwelwil’em Squamish Estuary Wildlife Management Area

Brackendale Eagles Park

Shannon Falls Park

Alice Lake Park

Porteau Cove Park

mper Cove Marine Park

Murrin Park

Baynes Island Ecological Reserve

Apodaca Park

Porteau Cove Recreation Area

Richmond

Surrey

Langely

CoquitlamBurnabyVancouver

Port Moody

Anvil Island

KeatsIsland

Bowen Island

Baynes Island

BowyerIsland

Croker Island

sland

Gambier Island

PassageIsland

New Westminster

North Vancouver

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brough Channel

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Parks, and protected areas provided by B.C. LRDW. Aboriginal Areas provided by Geobase. Base features from geogratis.ca Canvec6 dataset. For map symbology not included in legend, see http://cartes.rncan-nrcan.gc.ca/cartospecs/mainindex50_e.php. Projection: UTM Zone 10 Datum: NAD 83

REFERENCEREV. 0

Greater Vancouver Office, B.C.

DESIGN

PROPOSED AND EXISTINGBARGE SHIPPING ROUTES

FIGURE 3

PROJECT NO. 11-1422-0046SCALE AS SHOWN

PROJECT

TITLE

GIS

REVIEW

MJ 07NOV11

CHECK

BURNCO ROCK PRODUCTS LTD.MCNAB VALLEY AGGREGATE PROJECT

HOWE SOUND, B.C.

JP 09NOV11

5,000 0 5,000

METRES1:250,000SCALE

PHASE No. 1001

LEGENDProject Area (Approximate)

Proposed Barging Route

Existing Barging Route

Existing Shipping Navigational Channels

Park/Protected Area

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Aboriginal Title Area

Vegetation

Residential area

Highway

Road

Trail

Ferry connection segment

Railway

Power transmission line

Contour

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Waterbody

Comox

Tahsis

Sidney

Sayward

Gibsons

Whistler

Ucluelet

Pemberton

View Royal

Gold River

Old Ahousat

Port McNeill

Lake Cowichan

MJ 09NOV11FS 09NOV11

ww = 5.5, d = 1.1

ww = 4.2, d = 0.4

ww = 3.7, d = 0.5

CO(ww = 1.2, d = 0.1)

CO, CT(ww = 3.6, d = 0.3)

ww = 4.1, d = 0.1

ww = 32.0, d = 0.4

Overburden Stockpiled onNorth Side of BC Hydro Right of Way

Culvert

Training Berm

Overburden andOversize Stockpile

on South Side of Berm

Extent of Existing Flood Protection

To Match ExistingRoad Grade

Culvert Equipped withOverflow Valve Control

Culvert

Surface Collection Ditch andCompensation Fish Channel

Culvert

Temporary FinesStockpile

McNab Creek

GroundwaterChannel

Existing Shop

Processing Plant andProduct Stockpiles

Conveyor to Load-out

Existing Dock

Surface Collection Ditch andCompensation Fish ChannelTie-in to Existing Channel

Proposed BargeLoad-out (Typ.)

Proposed Channel Plug

CO(ww = 2.7, d = 0.2)

CO(ww = 1.9, d = 0.2)

CM, CO, CT(ww = 4.3, d = 0.2)

CO, CM, CH, PK, ST(ww = 28.0, d = 0.7)

CO(ww = 2.1, d = 0.1)

CT(ww = 1.0, d = 0.1)

CT(ww = 2.7, d = 0.1)

CT(ww = 1.5, d = 0.1)

PK

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Base features from TRIM Positional data. Additional detailed site features provided by McElhanney. Imageryobtained from Google Earth Pro (c 2010). Projection: UTM Zone 10 Datum: NAD 83

REFERENCE

BURNCO Property Boundary

Proposed Mine Features

Existing Barge Loading & Dock

Existing Warehouse & Maintenance BuildingConveyor

Bardge Load-Out

DikeTraining Berm

75 m Creek Top of Bank Offset

Surface Collection and Compensation Fish ChannelTransmission Line

Contour - 100 m

Contour - 20 mPermanent Watercourse

Seasonal/Ephemeral Watercourse

Tidal Influenced WatercourseExtent of Anadromy

Upper Boundary of SpeciesCulvert

REV. 0

Greater Vancouver Office, B.C.

DESIGN

AREA WATERCOURSE CLASSIFICATION

FIGURE 4

PROJECT NO. 11-1422-0046SCALE AS SHOWN

PROJECT

TITLE

GIS

REVIEW

RH 04NOV11

CHECK

BURNCO ROCK PRODUCTSAGGREGATE PROJECT

HOWE SOUND, B.C.

JP 07NOV11

200 0 200

METRES1:6,000SCALE

PHASE No. 1001

LEGEND

MJ 09NOV11 FS 09NOV11

ww Wetted Width (low flow)

d Channel Depth (low flow)

Tetrahedron Park

Boundary Bay Wildlife Management Area

Cypress ParkMount Seymour Park

Garibaldi Park

Sturgeon Bank Wildlife Management Area

Garibaldi Park

Tantalus Park

Pinecone Burke Park

Indian Arm Park

Indian Arm Park

Sturgeon Bank Wildlife Management Area

Pinecone Burke Park

Stawamus Chief Park

Indian Arm Park

Halkett Bay Park

Brackendale Eagles Park

South Arm Marshes Wildlife Management Area

Bowen Island Ecological Reserve

Skwelwil’em Squamish Estuary Wildlife Management Area

Brackendale Eagles Park

Wakes Cove Park

Shannon Falls Park

Alice Lake Park

Drumbeg Park

Mount Elphinstone Park

Porteau Cove Park

Plumper Cove Marine Park

Mount Elphinstone Park

Roberts Creek Park

Murrin Park

Baynes Island Ecological Reserve

Dionisio Point Park

Apodaca Park

Mount Elphinstone Park

Whaleboat Island Marine Park

Sechelt Inlets Marine Park

Porteau Cove Recreation Area

Canoe Islets Ecological Reserve

Rose Islets Ecological Reserve

Richmond

Tidal Water Resource Management Areas (28-A) - Harvest: -Salmon fisheries (gillnet, seine, troll) -Shrimp -Intertidal clams -Crab -Euphausiids -Groundfish -Smelt.

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Gibsons

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Anvil Island

KeatsIsland

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WoolridgeIsland

Kaikalahun IndianReserve 25

Shingle PointIndian Reserve 4

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Portier PassIndian Reserve 5

LyacksunIndian Reserve 3

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N:\B

ur-G

raph

ics\

Pro

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s\20

11\1

422\

11-1

422-

0046

\GIS

\Map

ping

\MXD

\Gen

eral

\100

1\fig

ure-

05_r

esou

rce_

fishe

ries.

mxd

Parks, and protected areas provided by B.C. LRDW. Aboriginal Areas provided by Geobase. Base features from geogratis.ca Canvec6 dataset. For map symbology not included in legend, see http://cartes.rncan-nrcan.gc.ca/cartospecs/mainindex50_e.php. Projection: UTM Zone 10 Datum: NAD 83

REFERENCEREV. 0

Greater Vancouver Office, B.C.

DESIGN

RESOURCE AND FISHERIES AREA

FIGURE 5

PROJECT NO. 11-1422-0046SCALE AS SHOWN

PROJECT

TITLE

GIS

REVIEW

MJ 08SEP11

CHECK

BURNCO ROCK PRODUCTS LTD.MCNAB VALLEY AGGREGATE PROJECT

HOWE SOUND, B.C.

JP 07NOV11

5,000 0 5,000

METRES1:250,000SCALE

PHASE No. 1001

LEGENDProject Area (Approximate)

DFO Management Area

Park/Protected Area

Sensitive Environmental Area

Aboriginal Title Area

Vegetation

Residential area

Highway

Road

Trail

Ferry connection segment

Railway

Power transmission line

Contour

Watercourse

Waterbody

MJ 09NOV11FS 09NOV11

BURNCO AGGREGATE PROPERTY

December 16, 2011 Report No. 11-1422-0046

APPENDIX A Photographs

APPENDIX A Photographs

December 16, 2011 Project No. 11-1422-0046 1/3

Photograph 1: McNab valley, view north, April 6, 2009.

Photograph 2: McNab valley access road and maintenance facility, view north, April 6, 2009.

APPENDIX A Photographs

December 16, 2011 Project No. 11-1422-0046 2/3

Photograph 3: Boat access dock at McNab, September 9, 2009.

Photograph 4: McNab valley foreshore, May 28, 2009.

APPENDIX A Photographs

December 16, 2011 Project No. 11-1422-0046 3/3

Photograph 5: McNab property constructed ground-water channel, view south-southeast, April 6, 2009.

Photograph 6: McNab Creek mainstem, south view – downstream, October 19, 2009.

\\bur1-s-filesrv2\final\2011\1422\11-1422-0046\rep 1216_11 burnco aggregate project description_final\app a_photographs_ mcnab site.docx

Golder Associates Ltd.

500 - 4260 Still Creek Drive

Burnaby, British Columbia, V5C 6C6

Canada

T: +1 (604) 296 4200