On the Environmental Impact Statement Cory Mine Expansion

TECHNICAL REVIEW COMMENTS on the Environmental Impact Statement

PotashCorp Cory Mine Expansion

Prepared by Saskatchewan Ministry of Environment Environmental Assessment Branch September 2009

TABLE OF CONTENTS

Preface...... 1

1. Environmental Assessment and Review Process ...... 2

Introduction ...... 2 Submission of the EIS ...... 2 Technical Review ...... 3 Public Review...... 3 Ministerial Decision ...... 4

2. Summary of Proposed Project...... 4

Alternatives Considered ...... 4 Social and Economic Impacts Considered ...... 5 Environmental Impacts Considered...... 5 Public Consultation Feedback and Response ...... 6

3. Technical Review Comments...... 6

Introduction ...... 6 Biophysical Considerations ...... 7 Water and Soil...... 7 Subsidence ...... 7 Communication ...... 8

4. Conclusion ...... 8

Invitation to Comment...... 9 Contact...... 9

TRCs– PotashCorp – Cory

Preface

This document is provided by the Environmental Assessment Branch of Saskatchewan Ministry of Environment as supporting information for the public review of PotashCorp’s Environmental Impact Statement for their proposed Cory mine expansion near Saskatoon, Saskatchewan.

This document has four major parts:

The first part provides an overview of the provincial environmental assessment and review process. It outlines the events and activities that led to the Environmental Impact Statement being released for public review and describes how the public can provide comments to the Minister of Saskatchewan’s Ministry of Environment on PotashCorp’s proposed mine expansion.

The second part provides a brief summary of the development being proposed. This summary is intended to provide information to assist the reader in deciding whether they are interested in finding out more about the proposed development. It is not intended to be a full representation of the development. Interested readers should visit a review centre (see section 2 of this document for locations) to read the Environmental Impact Statement.

The third section of the document provides the Ministry of Environment’s evaluation of the proponent’s conclusions regarding the predicted impacts of the proposed project, the effectiveness of any identified mitigative measures and any follow-up requirements that would be placed on the proponent by the Minister, should the project be approved.

Section 4 presents the conclusions reached by the Ministry of Environment and again invites the public to comment. The Minister when making the final decision regarding the environmental acceptability of the proposed project considers both the public’s comments and technical review comments.

August 2009 TRCs– PotashCorp – Cory

1. Environmental Assessment and Review Process

Introduction

The Environmental Assessment Act (the Act) in Saskatchewan requires the proponents of a “development” to conduct an Environmental Impact Assessment (EIA). The EIA provides the information needed by the Minister responsible for the Act (Minister of Environment) to determine whether, from an environmental perspective, a proposed development should be allowed to proceed and, if so, under what conditions. As part of the environmental assessment process, the proponent is required to prepare an Environmental Impact Statement (EIS) that documents the developer’s conclusions about the potential environmental effects of the proposed project. The EIS also describes the measures the proponent plans to take to reduce negative and enhance positive environmental impacts. Once completed, the EIS undergoes both a technical and public review prior to a decision being made by the Minister regarding the project.

The EA review The purpose of the environmental assessment and review process is to ensure process that adequate environmental safeguards are in place before a development is provides a broad allowed to proceed and that developments proceed in a manner understood and understanding of broadly accepted by the public. These safeguards may arise out of the actual the potential impacts and design and nature of the proposed development or, should the development ways to receive approval under the Act, terms and conditions of that approval, as well minimize the as ongoing regulatory involvement by government agencies. impacts of a project. For the current development, the primary environmental regulatory legislation for potash mines following The Environmental Assessment Act includes The Environmental Management and Protection Act, 2002 and regulations (The Mineral Industry Environmental Protection Regulations; The Water Regulations, 2002; Municipal Refuse Management Regulations; Hazardous Substances and Waste Dangerous Goods Regulations). Other federal and provincial agencies also have legislation and regulations that may be applicable.

Submission of the EIS

In June, 2009 Environmental Assessment Branch (EAB) received an environmental impact statement (EIS) from PotashCorp for the proposed Cory expansion. PotashCorp had previously submitted a project proposal but did not request project specific guidelines. Proponents are under no obligation to develop or use project specific guidelines prior to submitting an EIS. The EIS was sent for technical review to provincial agencies and the Government of Canada.

August 2009 TRCs– PotashCorp – Cory

Technical Review

Technical review The EIS was reviewed by provincial and federal agencies to ensure that any provides the potential environmental issues (including biophysical, social and economic) had government been identified and adequately dealt with. The Final Technical Review perspective on the proposed Comments that you are reading have been prepared to assist the public and development. government decision-makers in their review of the EIS. The comments, starting on page 6, represent a summary of the provincial and federal government’s evaluation of PotashCorp’s EIS.

In preparing technical review comments, the Ministry of Environment focuses on those factors that are considered to be of primary significance with respect to the proposed development and its environment.

Public Review

Public comment is The EIS, along with these Final Technical Review Comments, are being made invited on available to the public for review at public libraries in Saskatoon and Regina; PotashCorp’s EIS University libraries in Saskatoon and Regina; the Legislative Library in Regina; for a period ending the offices of the R.M.s of Corman Park No. 344 and Vanscoy No. 345; and the Thursday, Environmental Assessment Branch office in Regina; or it can be accessed on the October 15, 2009 internet at:

www.environment.gov.sk.ca/programs-services and then by following the links Environmental Assessment/Notices/Section 11

The public is invited to provide comments on the EIS by submitting them to Saskatchewan Environment no later than Thursday, October 15, 2009 to the following address:

Ann Riemer EA Development Project Administrator Environmental Assessment Branch Saskatchewan Ministry of Environment Room 486, 3211 Albert Street Regina SK S4S 5W6 Phone: 787-5793 Fax: 787-0930 Email: [email protected] Please ensure mailed comments are postmarked no later than Thursday, October 15, 2009.

August 2009 TRCs– PotashCorp – Cory

Ministerial Decision

The Minister Information generated during the public and technical reviews of the EIS will be considers both the submitted to the Minister of Saskatchewan Ministry of Environment for public and technical consideration. The Minister, under section 15 of The Environmental review comments Assessment Act, may give Ministerial Approval to proceed with the when making a decision. development, with any terms and conditions that the Minister considers necessary or advisable, or the Minister may refuse to approve the development as proposed and will provide reasons for the decision.

2. Summary of Proposed Project

Information in this section is taken from PotashCorp’s EIS and is neither comprehensive nor inclusive of the information contained in that document. Please refer to the Executive Summary and the body of the EIS for more complete information.

PotashCorp is the world’s largest fertilizer enterprise and potash producer. In Saskatchewan, the company owns and operates five potash mines including the Cory mine which began operations in 1968. The Cory mine is located approximately 7 km west of Saskatoon in the R.M.s of Corman Park and Vanscoy.

Cory is operated as a conventional underground mine that uses boring machines and room and pillar techniques to bring solid ore to the surface. The by- products consist of salt (NaCl), clays (fine tailings) and brine. Coarse salt and fine tailings are separated from the potash in the mill and deposited in the Tailings Management Area (TMA), where they are stored within containment dykes. Brine is circulated in the TMA for re-use in the mill and excess brine is disposed of by deep well injection.

Currently, the Cory mine is currently approved for 2 million tonnes/year of fertilizer (KCl) production and employs 233 people. The proposed development would see overall production increase to 3 million tonnes/year and eventually employ 380 people. The expansion is being proposed to provide additional red product to meet the world-wide demand for fertilizer. To accommodate this increase the proposed expansion includes expansion of the flotation and compaction plants; upgrades for additional hoisting, mining and storage capacity; a 1.5 ha raw water storage reservoir; and a new brine disposal well. The footprint of the TMA will not change.

Alternatives Considered

Few alternatives were discussed in the EIS except for the following. Proponents indicate that options for ensuring salt pile stability for the future, such as 4

August 2009 TRCs– PotashCorp – Cory dewatering and benching, are being examined. With respect to decommissioning and reclamation, all of the potential tailings disposal options were initially reviewed and evaluated for proven technical feasibility, economic sustainability, and environmental acceptability. The only option the proponent felt met these criterions was natural dissolution and injection. The existing decommissioning plan has been structured around this option.

Social and Economic Impacts Considered

The proposed expansion is not anticipated to have significant adverse social or economic impacts. Local communities and businesses should benefit economically from contractor and service opportunities. The expansion will provide for total permanent employment of 380 persons from a current number of 233. Peak construction employment will be approximately 450 persons.

Environmental Impacts Considered

Many potential environmental impacts were considered in the EIS; however only the more significant ones are highlighted below. For a more comprehensive summary of impacts and mitigation proposed see Tables 5.1, 5.2 and 6.2 and the Commitments Register in the Cory EIS.

Construction of the raw water reservoir and access road will result in approximately 1.5 ha of farmland owned by PotashCorp being taken out of production for the foreseeable future. Top soil will be salvaged where possible.

Annually, Cory will use %51 more fresh water than the amount approved in 2007. The proponent was advised by authorities that the increased usage could be supplied with an estimated 0.5% increase in the intake from the South Saskatchewan River Queen Elizabeth intake and by adding booster pumps and a reservoir on site. The expansion will also require a 50% increase in electricity and a 6% increase in natural gas.

Total tailings deposited in the TMA will increase, but tailings per tonne will decrease due to process changes. Overall the approved footprint of the TMA will not increase. A shallow surficial sand/silt unit underlying much of the tailings pile and brine pond has the most potential to allow lateral brine migration. According to the proponent “Monitor well data indicated that the quality of groundwater in some wells down gradient from the west drain system had deteriorated since the system was installed in 1986. The extension of the west drain in 1995 and the repairs to the original section in 1996 improved the performance of the drain in intercepting contaminated groundwater. This is supported by the decrease in chloride concentrations at monitoring wells directly south of the drain since the repairs.”

A Helicopter Electromagnetic (HEM) survey was performed in 2006. The HEM 5

August 2009 TRCs– PotashCorp – Cory data shows areas of higher terrain conductivity indicating more conductive pore-fluid or more conductive geologic materials. The area of highest terrain conductivity corresponds to the ancient outwash channel feature on site. As a result of the HEM survey an investigation was initiated into the effectiveness of the slurry wall at the south end of the TMA and to help differentiate natural salinity from that resulting from mine operations. The slurry wall investigations have identified that imperfections in the wall (e.g., sand lenses) exist along the west side of fine tailings cells. A complete assessment of the slurry wall is planned for 2009. Remedial plans will be developed based on the findings.

Subsidence (lowering of elevation) of the landscape overlaying underground potash mining can be detected 1 to 2 years after mining and at rates that tend to decrease over time. At Cory, surveys are conducted regularly using 240 surface monuments. Monitoring using Light Distance and Ranging (LiDAR) has been used once and its effectiveness is being evaluated. A maximum subsidence of 0.6 m has been measured. PotashCorp expects a maximum of approximately 1.07 m of subsidence over mined out areas over time. A model of predicted effects of subsidence on surface drainage patterns shows that over time minor modifications to drainage pathways and local catchment areas will occur. No affect on regional drainage is anticipated.

Additional detail regarding measures to address these and other anticipated impacts can be found in the EIS.

Public Consultation Feedback and Response

An open house was held on May 30, 2007 as part of the initial expansion project. Comments/concerns included the tailings pile, ground water quality, decommissioning plans and employment opportunities. Section 7 of the EIS provides an overview of the issues and questions raised at the public meeting.

3. Technical Review Comments

Introduction

The intent of the technical review step of the environmental assessment and review process is to give provincial and federal specialists/agencies an opportunity to examine the EIS to:

 Develop their opinions about how adequately the environmental issues related to the development have been dealt with; and  Determine whether the information provided is sufficiently complete and technically accurate enough to support the public review phase of the process. 6

August 2009 TRCs– PotashCorp – Cory

Release of the EIS for public review should not be interpreted as absolute agreement with all items within the EIS, but simply that the issues remaining can be handled through ongoing regulatory relationships or terms and conditions that might flow from a decision made pursuant to The Environmental Assessment Act that would modify the “development” to make it acceptable to the technical reviewers.

The comments of the technical reviewers are summarized in the following sections.

Biophysical Considerations

Water and Soil

Brine migration from the TMA, particularly via the shallow surficial sand/silt unit underlying much of the tailings pile and brine pond, is a significant potential environmental impact that could be influenced by the proposed expansion due to the additional tailings being deposited. PotashCorp should include in their EIS the commitments they have made to continue with an ongoing investigation to determine the extent of lateral brine migration to the south of the site. If necessary, the proponents must develop a remedial plan to address any issues arising from the investigation.

Reviewers request that PotashCorp conduct a review of options for dewatering the salt tailings pile and provide the results to Industrial Branch, Ministry of Environment for discussion. This action should also be referenced in the EIS and Commitments Register.

The proposed expansion at the Cory mine will result in an increase in fresh water use of 51% over the approved 2007 level. Although PotashCorp does use a substantial quantity of waste water from the ATCO/SaskPower cogeneration plant, PotashCorp has not identified any additional strategies for reducing water use, at least on a per tonne basis. Reviewers encourage PotashCorp to continue to explore technologies for reducing fresh water consumption.

Note: Appendix G: Saskatchewan Watershed Authority – Letter to Department of Fisheries and Oceans Canada should read Appendix G: SaskWater Corp. – Letter to Department of Fisheries and Oceans Canada

Subsidence

(Please see PotashCorp’s Addendum to the EIS with respect to the following points). Approximately 0.6 m of subsidence has been measured at some older areas of the Cory mine site. PotashCorp expects a maximum of approximately 1.07 m of subsidence over mined out areas over time. Reviewers concur with 7

August 2009 TRCs– PotashCorp – Cory the assessment that the effects of subsidence will be localized, modify a number of local watercourses and have the potential to increase the contributing watershed. While local in extent, the effect of subsidence on the hydrology of various areas along the edge of the mine lease is identifiable. This concern is alleviated somewhat by the expectation that there will be less than one millimetre per horizontal metre of subsidence at the edge and the inclusion of subsidence analysis and assessment in the EIS. However, the analysis and assessment should be incorporated into the mine's existing water management plan and include measures to mitigate local subsidence problems if and as they arise. Particular areas of interest to the north, east (near the City of Saskatoon) and southwest (Moon Lake) of the mine site's contributing watershed (see Appendix E) are currently excluded from the mine water management plan. The proponent should contact the Authority's regional office to discuss potential regulatory issues and needs relating to surface drainage and subsidence-related diversion.

Subsidence may also potentially increase the contributing drainage area of the freshwater bypass/diversion ditch around the mine site by about six percent, or more during major rainfall events. Reviewers suggest that this may result in an increase in frequency or volume of water reaching or overflowing the existing collection pond thereby potentially affecting the quality of irrigation water in Moon Lake. The proponent should describe how they will address this potential, perhaps by either enlarging the storage volume of the collection pond or increasing the pumping capacity of the drain system.

Reviewers note that in the EIS the comment that "the subsidence gradient will favour the flow through the manmade ditch" [page 10, Appendix E] appears doubtful. Moreover, subsidence favouring flow through the drainage ditch may have a corresponding negative effect on the supply canal; subsidence appears to have the potential to affect the full supply level and reservoir characteristics of the Moon Lake Irrigation Project.

Reviewers encourage PotashCorp to continue to discuss surface land use with the surrounding Rural Municipalities and the City of Saskatoon.

Communication

Aboriginal Consultation Branch is encouraged to see the Potash Corporation’s efforts to ensure inclusiveness of First Nations and Métis people through employment, training and business contracting opportunities. At the same time, Aboriginal Consultation Branch would encourage a more strategic notification process with First Nations communities and Métis locals directly rather than through a public notification process.

4. Conclusion

August 2009 TRCs– PotashCorp – Cory

The Saskatchewan Environmental Assessment Review Panel (technical reviewers) and Saskatchewan Ministry of Environment conclude that PotashCorp has undertaken sufficient studies and provided adequate information about the proposed Cory potash mine expansion such that the EIS can be made available for public review.

The main concerns/issues identified during the technical review related to:  Waste brine management and potential effects on water and soil;  Potential impacts of subsidence, particularly on water flow patterns; and  Communications.

Invitation to Comment

The public is invited to review PotashCorp’s EIS and the Technical Review Comments and to provide their comments, no later than Thursday, October 15, 2009 regarding the EIS.

Again, the EIS along with these Final Technical Review Comments, are being made available to the public for review at public libraries in Saskatoon and Regina; the University libraries in Saskatoon and Regina; the Legislative Library in Regina; the offices of the R.M.s of Vanscoy and Corman Park and the Environmental Assessment Branch office in Regina. Technical Review Comments can be accessed on the internet at:

www.environment.gov.sk.ca/programs-services and then by following the links Environmental Assessment/Notices/Section 11

The comments received during the public review of the EIS along with the technical review comments will be considered by the Minister of Environment when making a decision (under section 15(1) of The Environmental Assessment Act) to either: (a) give ministerial approval to proceed with the development and impose any terms and conditions that he considers necessary or advisable; or (b) refuse to approve the development.

Contact

For more information, please contact: Ann Riemer, EA Development Project Administrator Environmental Assessment Branch Phone: 787-5793 Fax: 787-0930 Email: [email protected]

August 2009