Attachment 3

Current Approvals

Alberta Energy Regulator

Approval 8573 (Mildred Lake) Approval 10781 (Aurora)

COMMERCIAL SCHEME Approval No. 8573M

MADE at the City of Fort McMurray, in the

Province of Alberta, on the

7th day of June 2013. ENERGY RESOURCES CONSERVATION BOARD

IN THE MATTER of a scheme of Syncrude Canada Ltd., comprised of Canadian Oil Sands Partnership #1; Sinopec Oil Sands Partnership; Imperial Oil Resources; Mocal Energy Limited; Murphy Oil Company Ltd.; Nexen Oil Sands Partnership; and Suncor Energy Ventures Partnership, for the recovery of oil sands or production of oil sands products from the Athabasca Wabiskaw-McMurray Oil Sands Deposit in the Mildred Lake Area.

WHEREAS Syncrude Canada Ltd. has applied to the Energy Resources Conservation Board (ERCB) to amend Approval No. 8573; and

The Energy Resources Conservation Board (hereinafter called “the Board”), pursuant to the Oil Sands Conservation Act, chapter O-7 of the Revised Statutes of Alberta, 2000, orders as follows:

1) Board Approval No. 8573 is amended.

2) (1) The scheme of Syncrude Canada Ltd., comprised of Canadian Oil Sands Partnership #1; Sinopec Oil Sands Partnership; Imperial Oil Resources; Mocal Energy Limited; Murphy Oil Company Ltd.; Nexen Oil Sands Partnership; and Suncor Energy Ventures Partnership (hereinafter called “Syncrude”) for the recovery of oil sands and production of oil sands products, from the area shown on the attached hereto marked Appendix A to this approval, is approved, subject to the Oil Sands Conservation Regulation and the terms of the conditions herein contained, as such scheme is described in related applications including

a) Application No. 957, p) Application No. 920863, b) Application No. 6888, q) Application No. 921321, c) Application No. 6889, r) Application No. 921322, d) Application No. 9160, s) Application No. 931494, e) Application No. 9775, t) Application No. 940001, f) Application No. 790543, u) Application No. 940146, g) Application No. 820394, v) Application No. 941167, h) Application No. 821217, w) Application No. 950107, i) Application No. 840142, x) Application No. 960196, j) Application No. 840232, y) Application No. 980381 k) Application No. 841228, z) Application No. 1244645 l) Application No. 841319, aa) Application No. 1284738, m) Application No. 851024, bb) Application No. 1296639, n) Application No. 870593, cc) Application No. 1317860, o) Application No. 920398, dd) Application No. 1309396,

Approval No. 8573M Page 1 of 5

ee) Application No. 1453988, jj) Application No. 1662881, ff) Application No. 1497852, kk) Application No. 1732572, gg) Application No. 1507992, ll) Application No. 1754933. hh) Application No. 1595820, ii) Application No. 1625971,

is approved, subject to the terms and conditions herein contained.

(2) Subclause (1) does not preclude alterations in design or equipment provided the Board is satisfied the alterations are compatible with the outline of the scheme, meet the operating criteria in the approval, are made for the better operation of the scheme, and do not result in unacceptable adverse impacts.

3) This approval applies to the production in each calendar year of 27.5 million cubic metres of marketable hydrocarbons.

(a) Syncrude shall design and construct any new facilities so as not to make more difficult the possible future installation of facilities for the removal of contaminants from stack gases.

(b) Once the Syncrude Emissions Reduction Project, as described in Application No. 1309396, is commissioned, clause 4(a) will be of no force or effect.

5) Approval for those facilities described in Application No. 980381 for which construction has not commenced on or before 31 December 2010 shall lapse unless a later date is approved by the Board.

6) Syncrude shall carry out its operations in a manner that, under normal operating conditions, on an annual basis, meet the following operating criteria:

(a) Naphtha losses of not greater than 4.3 volumes of naphtha lost per 1000 volumes of bitumen produced to a maximum annual average of 300 cubic metres (1 900 barrels) per calendar day.

(b) Following the installation of the new coker as described in Application No. 980381, the recovery of the sulphur contained in the acid gas produced during each three month period beginning 1 January, 1 April, 1 July, and 1 October will not be less than 99.5 per cent.

7) Syncrude shall remove all materials from the discard site marked as "NT1" on Appendix A and shall proceed to recover the crude bitumen within this area prior to 31 December 2025, or such other date as the Board may require.

8) Syncrude shall file with the Board on or before 28 February of every year, or such other date or frequency as the Board may stipulate, a report summarizing for the preceding year, efforts to minimize the withdrawal of fresh water from the Athabasca River, efforts to maximize

Approval No. 8573M Page 2 of 5

reuse of process affected water, and efforts to minimize the on site storage of process affected water.

9) Following installation of the new coker as described in Application No. 980381, Syncrude shall file with the Board on or before 28 February of every year, or such other date or frequency as the Board may stipulate, a report summarizing for the preceding year, efforts to achieve an annual recovery of the sulphur contained in the acid gas produced of not less than 99.8 per cent.

10) Syncrude shall file with the Board on or before 28 February 2002 and every second year thereafter, or such other date or frequency as the Board may stipulate, a report summarizing:

(a) Efforts to reduce naphtha losses to the target of 3.6 volumes of naphtha lost per 1000 volumes of bitumen produced.

(b) The performance of the Mildred Lake facility, which shall include as a minimum:

i) a discussion of the energy efficiency for the previous two calendar years,

ii) the results of any studies undertaken to identify opportunities for improved energy efficiency,

iii) a description of any modifications made to improve energy efficiency, and

iv) a comparison of the energy efficiency with those of similar industrial operations.

11) The Operator must meet 50 per cent annual fines capture as defined in Directive 074 by no later than December 31, 2015 and every year after.

12) Syncrude shall submit an annual update by September 30 of 2013, 2014 and 2015 on the MFT Centrifugation Commercial Demonstration that include:

(a) a performance report of the Demonstration Plant with technical interpretation of the results,

(b) geotechnical characteristics of the deposits,

(d) any other information formally requested by the Board.

13) Syncrude shall formally notify the ERCB of pilot plants, field pilot tests and/or demonstration plants for all tailings technology development at least 6 months prior to construction and update the test reports annually by February 28 or as specified by the ERCB.

14) Syncrude shall design, construct and operate the Southwest Sand Storage facility as described in Application No. 1595820. Syncrude:

Approval No. 8573M Page 3 of 5

(a) Shall not deposit fluid fine tailings after December 31, 2015 unless otherwise approved by the Board.

(b) Shall commence the transfer of fluid fine tailings no later than December 31, 2015 unless otherwise approved by the Board.

15) Upon identification of any erosion gullies Syncrude shall notify the ERCB by the quickest effective means and remediate, to the satisfaction of the Board, all gullies in a timely manner.

16) The Operator must meet Directive 074 fines capture on a cumulative basis no later than December 31, 2023, to make up for the shortfall in fines capture beginning July 1, 2010.

17) The Board may,

(a) Upon its own motion, or

(b) Upon the application of an interested person

Rescind or amend this approval at any time if, in the opinion of the Board, circumstances so warrant.

18) This approval will expire on 31 December 2035.

19) Board Approval No. 8573L is rescinded.

END OF DOCUMENT

Approval No. 8573M Page 4 of 5

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SWSS ERCB Approved Project Area Pit Limits Overburden Dump Tailings Centrifuge Cake Sand Beach

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SYNCRUDE MILDRED LAKE PROJECT

APPENDIX A TO APPROVAL NO. 8573M

2013 Syncrude Approval 8573M 0 2 4 8 ERCB - Oil Sands and Coal Branch Kilometres Proj- NAD83 Z12N

Approval No. 8573M Page 5 of 5

COMMERCIAL SCHEME Approval No. 10781H

MADE at the City of Fort McMurray, in the Province of Alberta, on th 8 day of October 2013. ALBERTA ENERGY REGULATOR

IN THE MATTER of a Scheme of Syncrude Canada Ltd., comprised of Canadian Oil Sands Partnership #1; Sinopec Oil Sands Partnership; Imperial Oil Resources; Mocal Energy Limited; Murphy Oil Company Ltd.; Nexen Oil Sands Partnership; and Suncor Energy Ventures Partnership (hereinafter called “the Operator”), for the recovery of oil sands and production of oil sands products from the Wabiskaw-McMurray Oil Sands Deposit in the Fort Hills and Kearl Lake Sectors.

WHEREAS the Alberta Energy Regulatory (AER), is prepared to amend Approval No. 10781G held by Syncrude Canada Ltd.

WHEREAS the AER deems it desirable to rescind and repeal all previous approvals granted in connection with the Scheme and to consolidate all previous approvals into a new approval.

Therefore, pursuant to Section 13 of the Oil Sands Conservation Act, chapter O-7 of the Revised Statutes of Alberta, the AER hereby approves Amendment H to Approval No. 10781 and issues Approval No. 10781H as follows:

1) (1) The Scheme of Syncrude Canada Ltd., comprised of Canadian Oil Sands Partnership #1; Sinopec Oil Sands Partnership; Imperial Oil Resources; Mocal Energy Limited; Murphy Oil Company Ltd.; Nexen Oil Sands Partnership; and Suncor Energy Ventures Partnership (hereinafter called “Syncrude”) for the recovery of oil sands and production of oil sands products, from the area shown on the attached hereto marked Appendix A to this approval, is approved, subject to the Oil Sands Conservation Regulation and the terms of the conditions herein contained, as such Scheme is described in related applications including a) Application No. 960552, h) Application No. 1497852, b) Application No. 1244645, i) Application No. 1625971, c) Application No. 1284738, j) Application No. 1662888, d) Application No. 1296639, k) Application No. 1709844, e) Application No. 1317860, l) Application No. 1732595, f) Application No. 1357024, m) Application No. 1754948, g) Application No. 1453986 n) Application No. 1773379

Approval No. 10781H Page 1 of 4

is approved, subject to the Oil Sands Conservation Regulation and the terms and conditions herein contained.

(2) Subclause (1) does not preclude alterations in design or equipment provided the AER is satisfied the alterations are compatible with the outline of the Scheme, meet the operating criteria in the approval, are made for the better operation of the Scheme, and do not result in unacceptable adverse impacts.

2) Syncrude shall not store any material nor construct any facilities to the northeast of the Aurora North tailings area, until the resource in the area has been further drilled and evaluated and the results are reviewed by the AER.

3) Syncrude shall not commence development on Lease 31, the Aurora South mine, until it has assessed the following, including environmental implications, to the AER’s satisfaction:

a) evaluation of the resource potential under all alternatives for siting surface facilities (including the plant site, disposal sites and tailings area) once additional drilling information is available;

b) comparison of the economic and environmental impacts of the proposed and alternative plant sites, utility corridors, tailings areas and disposal sites including off lease alternatives;

c) an up to date evaluation of relevant technology that justifies the final selection of the technology to be used in developing the Aurora South Mine;

d) an up to date economic evaluation of the project three years prior to mine start-up, including implications of the selected technology, pit limits, and ore cut-off grade; and

e) an up to date evaluation of potential environmental impacts from other oil sands developments and the Aurora South Mine, including the possibility of those developments interacting and compromising the mitigation strategies to be employed.

4) Syncrude shall submit to the AER for approval:

a) a detailed assessment of resource potential and the geotechnical design for the out- of-pit disposal sites, one year prior to field preparation;

b) in each instance where the mineable resource extends across the lease boundary, a description of how the resource at the lease boundary will be mined, including impacts on the mining plan and tailings plan, five years prior to commencement of mining at the lease boundary;

c) in each instance where the mineable resource extends across the lease boundary, a detailed design including mining plan and tailings management plan showing how the proposed plan maximizes recovery of the resource at the lease boundary, two years prior to commencement of mining at the lease boundary;

Approval No. 10781H Page 2 of 4

d) an assessment of the resource potential in the areas affected by permanent relocations of utility corridors and main access roads on its leases and the method proposed to recover the ore, five years prior to commencement of mining in the affected areas;

e) a strategy for evaluation of the resource potential within 1,000 metres of the Athabasca River prior to opening of the Aurora North Mine west pit, and a detailed plan including the resource potential, the proposed method to recover the resource, and the impacts of mining, five years prior to mining the area, and

f) a detailed evaluation of the resource potential adjacent to Kearl Lake, including the proposed method to recover the resource and the impacts, five years prior to mining the area.

5) For the purpose of ensuring the continued relevance and necessity of this approval, if Syncrude has not complied with Clause 3 herein at least 3 years prior to the start of construction at the Aurora South site or by December 31, 2014, whichever occurs sooner, the approval of Aurora South shall expire on that date. Syncrude may apply to the AER for a review and amendment of this expiry date.

6) Syncrude is authorized to construct and operate an out-of-pit disposal site, known as the Fort Hills Dump Extension, as shown on the attached Figure (Appendix A) and as described in Application No. 1357024 and related supplemental information.

7) The Operator must meet 50 per cent annual fines capture as defined in Directive 074: Tailings Performance Criteria and Requirements for Oil Sands Mining Schemes by no later than December 31, 2014 and every year after.

8) Syncrude shall formally notify the AER of pilot plants, field pilot tests and/or demonstration plants for all tailings technology development at least 6 months prior to construction and update the test reports annually by February 28 or as specified by the AER.

9) The operator must meet Directive 074 fines capture on a cumulative basis no later than December 31, 2023, to make up for the shortfall in fines capture beginning July 1, 2010.

10) The AER may,

a) upon its own motion, or

b) upon the application of an interested person,

rescind or amend this approval at any time.

11) AER Approval No. 10781G is hereby repealed, rescinded, and replaced with Approval No. 10781H.

END OF DOCUMENT

Approval No. 10781H Page 3 of 4

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SYNCRUDE AURORA MINE PROJECTS

APPENDIX A TO APPROVAL NO. 10781H 2013 AER Syncrude Aurora Appoval No. 10781H Proj- NAD83 Z12N

Approval No. 10781H Page 4 of 4

Environmental Protection and Enhancement Act

Approval 26-02 APPROVAL

PROVINCE OF ALBERTA

ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT R.S.A. 2000, c.E-12, as amended.

26-02-00 APPROVAL NO.

023-026 APPLICATION NO.

June 24, 2007 EFFECTIVE DATE:

June 23, 2017 EXPIRY DATE:

Syncrude Canada Limited APPROVAL HOLDER: Bag 4009, MD 4160

Fort McMurray, Alberta

T9H 3L1

ACTIVITY: CONSTRUCTION, OPERATION AND RECLAMATION OF THE ……………………………………………………………………………………………… Mildred Lake Oil Sands Processing Plant and Mine, Aurora North Oil Sands Processing Plant and Mine and Aurora South Oil Sands Processing Plant and Mine ………………………………………………………………………………………………

IS SUBJECT TO THE ATTACHED TERMS AND CONDITIONS.

Kem Singh Designated Director under the Act

June 21, 2007 Date Signed APPROVAL NO. 26-02-00 Page 1 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

PART 1: DEFINITIONS

SECTION 1.1: DEFINITIONS

1.1.1 All definitions from the Act and the regulations apply except where expressly defined in this approval.

1.1.2 In all PARTS of this approval:

(a) "24-hour rolling average" means the arithmetic average of hourly sulphur dioxide emissions from the specified sources (in tonnes) for a consecutive 24-hour period, which is calculated for any hour by adding the sulphur dioxide emissions during that hour to the sulphur dioxide emissions during the previous 23 hours, and dividing the sum by 24;

(b) "365-day sulphur dioxide rolling average" means the arithmetic average of daily sulphur dioxide emissions from the specified sources (in tonnes) for a consecutive 365-day period, which is calculated for any day by adding the sulphur dioxide emissions during that day to the sulphur dioxide emissions during the previous 364 days, and dividing the sum by 365;

(c) "365-day rolling total" means the sum of daily use of the carbon monoxide boiler diverter stacks (in hours) for a consecutive 365-day period, which is calculated for any day by adding the number of hours that any diverter stack was used during that day to the hours that any diverter stack was used during the previous 364 days;

(d) "Act" means the Environmental Protection and Enhancement Act, R.S.A. 2000, c.E-12, as amended;

(e) "air contaminant" means any solid, liquid or gas or combination of any of them in the atmosphere resulting directly or indirectly from the activities of man;

(f) "application" means the written submissions of the approval holder to the Director in respect of application number 023-026 and any subsequent applications for amendments of approval number 26-02-00;

(g) “ASB” means Aurora Settling Basin;

(h) “Calendar day” means the period of 24 hours from midnight to midnight;

(i) "CEM" means continuous emissions monitor;

(j) “CEMA” means the Cumulative Environmental Management Association; APPROVAL NO. 26-02-00 Page 2 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(k) "CEMS Code" means the Continuous Emission Monitoring System Code, Alberta Environment, 1998, as amended;

(l) "chemical" means any substance that is added or used as part of the treatment process;

(m) “Clearwater overburden” means saline or sodic overburden typically rated as unsuitable as described in Table 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation (1987), as amended;

(n) “commercial forest" means land characterized by all of the following:

(i) forest stands stocked with trees to meet the standards of a commercial forest as defined in the ALPAC Timber Harvest Planning and Operating Groundrules, 2000 as amended;

(ii) forest stands stocked with native tree species as defined by the Timber Management Regulations AR 60-73 (144.2), 2000 as amended that may include White Spruce, Black Spruce, Jack Pine, Aspen, Balsam Poplar, Balsam Fir, White Birch and Larch;

(iii) forest stands not limited by operating restrictions such as slopes steeper than 45 percent, with the exception of tailing sand structures with slopes over 20 percent; stream buffers; potential recreational lakes; stand size; arrangement or accessibility as identified in the ALPAC Timber Harvest Planning and Operating Groundrules, 2000 as amended; and

(iv) other characteristics specified in writing by the Director;

(o) "composite" means a composite of samples of the stream over one day at least every 15 minutes in a quantity proportional to the volume of the stream and which is representative of the stream sampled;

(p) “composite tailings” means a non-segregating mixture of plant tailings which consolidates in tailings deposits;

(q) “CONRAD” means Canadian Oil Sands Network for Research and Development;

(r) "container" means any portable device in which a substance is kept, including but not limited to drums, barrels and pails which have a capacity greater than 18 litres but less than 210 litres; APPROVAL NO. 26-02-00 Page 3 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(s) "contact time" means the T10 value established for that portion of the process by the most recent tracer studies undertaken by the approval holder where T10 is the time it takes for 10% of the tracer to pass through the contact section;

(t) "coversoil" means any:

(i) peat-mineral mix;

(ii) organic horizon; or

(iii) upland surface soil;

(u) "daily determination of concentration" means the determination of the concentration of a water substance or parameter in any sample by procedures authorized in this approval, and if more than one sample is collected and analyzed per day, the arithmetic average of their analytical results shall be considered as the daily determination of concentration;

(v) "daily determination of mass" means and is obtained from the following calculation for any day:

daily determination of mass (kilograms/day) = (Q x C) / 1000

where: C is the daily determination of concentration in mg/L, and

Q is the total flow of the stream sampled, in cubic metres, for the day over which the sample used to determine C was collected;

(w) "day" means any sampling period of 24 consecutive hours unless otherwise specified;

(x) "decommissioning" means the dismantling and decontamination of a plant or any part of a plant undertaken subsequent to the termination or abandonment of any activity or any part of any activity regulated under the Act;

(y) ”decontamination" means the treatment or removal of substances from the plant and disturbed lands;

(z) “direct placement” means a combined salvage and placement operation wherein coversoil is moved directly from the area of salvage to the area of placement;

(aa) "Director" means an employee of the Government of Alberta designated as a Director under the Act; APPROVAL NO. 26-02-00 Page 4 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(bb) "dismantling" means the removal of buildings, structures, process and pollution abatement equipment, vessels, storage facilities, material handling facilities, railways, roadways, pipelines and any other installations that are being or have been used or held for or in connection with the plant;

(cc) “disturbed land” means any land disturbed by the approval holder in any manner in association with the activity which is the subject of this approval;

(dd) "downtime" means the period of time when equipment is not effectively functioning due to breakdown, repair, calibration, servicing, maintenance or replacement of any of its components;

(ee) "forest ecosystem" means the sum of the plants, animals, environmental influences, and their interactions within a plant community predominantly of trees and other woody vegetation, growing more or less closely together;

(ff) "fugitive emissions" means emissions of substances to the atmosphere other than ozone depleting substances, originating from a plant source other than a flue, vent, or stack but does not include sources which may occur due to breaks or ruptures in process equipment;

(gg) "GCDWQ" means the Guidelines for Canadian Drinking Water Quality, Health Canada 1996, as amended;

(hh) "grab sample" means an individual sample collected in less than 30 minutes and which is representative of the substance sampled;

(ii) "greenhouse gases" means gases that trap heat near the earth’s surface, primarily carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride;

(jj) "hour" means clock hour;

(kk) “ISO 17025” means the international standard, developed and published by International Organization for Standardization (ISO), specifying management and technical requirements for laboratories;

(ll) "incompatible wastes" means substances which when mixed can produce effects which are harmful to human health or the environment such as heat, pressure, fire, explosion, violent reaction, toxic dusts, mists, fumes or gases, or flammable fumes or gases, and include those substances listed in Appendix 5 of the Guidelines for Industrial Landfills, Alberta Environment, June 1987, as amended; APPROVAL NO. 26-02-00 Page 5 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(mm) "industrial runoff" means precipitation that falls on or traverses the plant developed area;

(nn) "industrial runoff control system" means the parts of the plant that collect, store or treat industrial runoff from the plant;

(oo) "industrial wastewater" means the composite of liquid wastes and water-carried wastes, any portion of which results from any industrial process carried on at the plant;

(pp) "industrial wastewater control system" means the parts of the plant that collect, store or treat industrial wastewater;

(qq) "in-stack opacity" means the degree to which visible emissions obstruct the passage of light within a stack, flue, duct or stack breaching;

(rr) "land capability class" means a land capability class assigned to an area according to the criteria outlined in Land Capability Classification System for Forest Ecosystems in the Oil Sands, 3rd Edition, as amended;

(ss) "land reclamation" means the stabilization, contouring, maintenance, conditioning, reconstruction, and revegetation of the surface of the land to a state that permanently returns the plant to a land capability equivalent to its pre-disturbed state;

(tt) “lean oilsand” means ore that does not meet the cutoff grade of 7 weight per cent bitumen and is defined as the minimum bitumen content of the oil sands that would be classified as ore by the Alberta Energy and Utilities Board;

(uu) "LFH" means the forest floor that accumulates on the mineral soil surface under forest vegetation, and which includes dead vegetation and organic matter, including litter and unincorporated humus;

(vv) "local environmental authority" means the Department of Environment, in the Province of Alberta, or the agency that has the equivalent responsibilities for any jurisdiction outside the Province;

(ww) "manual stack survey" means a survey conducted in accordance with the Alberta Stack Sampling Code, Alberta Environment, 1995, as amended;

(xx) "maximum daily average" means the value which is not to be exceeded as determined by the arithmetic average of all daily determinations of mass, concentration or as specified during any month; APPROVAL NO. 26-02-00 Page 6 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(yy) “mine” means the disturbed lands but does not include the plant developed area;

(zz) “mineral soil” means the A, B, and C horizons and underlying parent material;

(aaa) “MLSB” means the Mildred Lake Settling Basin;

(bbb) “MLUEP” means Mildred Lake Upgrader Expansion Project;

(ccc) "monitoring system" means all equipment used for sampling, conditioning, analyzing or recording data in respect of any parameter listed or referred to in this approval including equipment used for continuous monitoring;

(ddd) "month" means calendar month;

(eee) “NRU” means naphtha recovery unit;

(fff) "net or lower heating value" means the quantity of heat evolved on complete combustion where the combustion products remain as vapour at 15°C;

(ggg) "non-commercial forest" means any area of forested land that does not meet the criteria of commercial forest;

(hhh) “organic horizon” means the surface soil horizon in Organic soils containing more than 17% organic carbon by weight;

(iii) "overburden" means material below the soil profile and above the bituminous sand;

(jjj) “peat-mineral mix” means a mixture of an organic horizon and the underlying mineral soil, or an organic horizon and mineral soil from another source, where the mineral soil in both cases is rated good, fair or poor according to Table 8, Page 27 of the Soil Quality Criteria Relative to Disturbance and Reclamation,1987, as amended;

(kkk) "plant" means all buildings, structures, process and pollution abatement equipment, vessels, storage facilities, material handling facilities, roadways, pipelines, and other installations, associated with the activity that is the subject of this approval and includes the land on or in which these are located on the following:

(i) leases 17 and 22 on portions of Township 93, Range 10 and 11, West of the 4th Meridian, that is being or has been used or held for or in connection with the Mildred Lake Oil Sands Mine and Plant Developed Area; and APPROVAL NO. 26-02-00 Page 7 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(ii) leases 10, 12, 34 and part of 52 on portions of Township 94, Range 9, 10 and 11, West of the 4th Meridian, that is being or has been used or held for or in connection with the Aurora North Oil Sands Mine and Plant Developed Area; and

(iii) leases 30, 31and part of 13 on portions of Township 93, 94 and 95, Range 8, West of the 4th Meridian, that is being or has been used or held for or in connection with the Aurora South Oil Sands Mine and Plant Developed Area;

(lll) "plant developed area" means the areas of the plant used for the storage, treatment, processing, transport, or handling of raw material, intermediate product, by-product, finished product, process chemicals, or waste material;

(mmm) “RAMP” means Regional Aquatics Monitoring Program;

(nnn) "raw water" means untreated source water from water wells, surface water intakes or infiltration galleries that constitute the water supply;

(ooo) "quarter year" means a time period of three consecutive months designated as January, February, and March; or April, May, and June; or July, August, and September; or October, November, and December;

(ppp) “sedimentation pond” means a water treatment pond that accepts water from muskeg dewatering, waterworks, basal groundwater and clean surface water or any areas not yet disturbed by mining and discharges to the environment;

(qqq) “sediments” means all fine sands, silts and clays or any other fines resulting from the settlement of impounded water or wastewater;

(rrr) "self-sustaining" means able to support various land uses after conservation and reclamation is complete without requiring the use of fertilizers or any other special treatment;

(sss) "soil" means the naturally occurring, unconsolidated mineral or organic material at least 10 cm thick that occurs at the earth’s surface and is capable of supporting plant growth;

(ttt) "sour water" means any liquid stream containing more than 0.025 mole percent of hydrogen sulphide;

(uuu) “SRU” means sulphur recovery unit; APPROVAL NO. 26-02-00 Page 8 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(vvv) “subsoil” means a soil stratum that includes one or more of the following:

(i) that portion of the B horizon left after salvage of upland surface soil;

(ii) the C horizon of an upland soil;

(iii) underlying parent material at an upland location that is rated good, fair or poor as described in Table 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation,1987, as amended; and

(iv) mineral material below an organic layer at a location other than upland, that is rated good, fair or poor as described in Table 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation,1987, as amended;

(www) "tailings" means the waste residue separated in the process of extracting bitumen from oil sands;

(xxx) "tank" means a stationary device, designed to contain an accumulation of a substance, which is constructed primarily of non-earthen materials that provide structural support including wood, concrete, steel, and plastic;

(yyy) “TEEM” means Terrestrial Environmental Effects Monitoring;

(zzz) “timber productivity rating (TPR)” means the potential timber productivity of a stand based on height and age of dominant and co-dominant trees of the leading species, as defined by the Alberta Vegetation Inventory Standards Manual, Version 2.1, as amended;

(aaaa) "TRS" means Total Reduced Sulphur as defined in the Alberta Stack Sampling Code, Alberta Environment, 1995, as amended;

(bbbb) “upland soil” means mineral soils developed on mineral parent material under forest in locations with imperfect drainage or drier, typically including LFH and A, B, and C horizons;

(cccc) “upland surface soil” means a stratum salvaged from an upland soil that includes the LFH, A horizon and in some cases part or all of the B horizon;

(dddd) “Volatile Organic Compounds (VOC)” means any organic compound that participates in atmospheric photochemical reactions, that is, any organic compounds other than the following which have been excluded because of their negligible photochemical reactivity: methane, ethane, 1,1,1-trichlorethane, methylene chloride, chlorofluorocarbons (CFCs), fluorocarbons (FCs), hydrochlorofluorocarbons (HCFCs); APPROVAL NO. 26-02-00 Page 9 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(eeee) "waste storage area" means the area designated for waste container storage and/or waste tank storage as described in the application;

(ffff) "water distribution system" means a system of pipes, valves, fittings and appurtenances, including associated pressure reducing stations, that is used to convey potable water in a waterworks system to the service connection for a property;

(gggg) "WBEA" means the Wood Buffalo Environmental Association;

(hhhh) "weeds" means plants that are defined as controlled weeds, nuisance weeds or noxious weeds by the Weed Control Act, as amended;

(iiii) "week" means any consecutive 7-day period unless otherwise specified; and

(jjjj) "wetland ecosystem" means land characterized by:

(i) open water; or

(ii) a rooting zone that is wet for long enough periods that native aquatic or semi-aquatic vegetation is present (e.g., riparian, marsh, fen and bog).

PART 2: GENERAL

SECTION 2.1: GENERAL

2.1.1 The approval holder shall immediately report to the Director by telephone any contravention of the terms and conditions of this approval at 1-780-422-4505 or 1-800-222-6514.

2.1.2 The approval holder shall submit a written report to the Director within 7 days of the reporting pursuant to 2.1.1.

2.1.3 The terms and conditions of this approval are severable. If any term or condition of this approval or the application of any term or condition is held invalid, the application of such term or condition to other circumstances and the remainder of this approval shall not be affected thereby.

2.1.4 The approval holder shall immediately notify the Director in writing if any of the following events occurs:

(a) the approval holder is served with a petition into bankruptcy;

(b) the approval holder files an assignment in bankruptcy or Notice of Intent to make a proposal; APPROVAL NO. 26-02-00 Page 10 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) an application for protection from creditors is filed for the benefit of the approval holder under any creditor protection legislation; or

(e) any of the assets, which are the subject matter of this approval, are seized for any reason.

2.1.5 If the approval holder monitors for any substances or parameters which are the subject of operational limits as set out in this approval more frequently than is required and using procedures authorized in this approval, then the approval holder shall provide the results of such monitoring as an addendum to the reports required by this approval.

2.1.6 All abbreviations used in this approval follow those given in Standard Methods for the Examination of Water and Wastewater published jointly by the American Public Health Association, the American Water Works Association, and the Water Environment Federation, 1998, as amended, unless otherwise specified in this approval.

2.1.7 Environmental Protection and Enhancement Act Approval 18942-00-00, as amended is hereby cancelled.

SECTION 2.2: RECORD KEEPING

2.2.1 The approval holder shall record and retain all the following information in respect of any sampling conducted or analyses performed in accordance with this approval for a minimum of ten years, unless otherwise authorized in writing by the Director:

(a) the place, date and time of sampling;

(b) the dates the analyses were performed;

(d) the names of the persons who collected and analyzed each sample; and

(e) the results of the analyses.

SECTION 2.3: ANALYTICAL REQUIREMENTS

2.3.1 With respect to any sample required to be taken pursuant to this approval, the approval holder shall ensure that:

(a) collection; APPROVAL NO. 26-02-00 Page 11 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(b) preservation;

(d) handling; and

(e) analysis; shall be conducted in accordance with the following unless otherwise authorized in writing by the Director:

(i) for air monitoring;

(A) the Alberta Stack Sampling Code, Alberta Environment, 1995, as amended;

(B) the Methods Manual for Chemical Analysis of Atmospheric Pollutants, Alberta Environment, 1993, as amended;

(D) the CEMS Code;

(ii) for industrial wastewater, industrial runoff, groundwater and domestic wastewater parameters:

(A) the Standard Methods for the Examination of Water and Wastewater, published jointly by the American Public Health Association, American Water Works Association, and the Water Environment Federation, 1998, as amended;

(iii) for waterworks parameters:

(A) the Standard Methods for the Examination of Water and Wastewater, American Public Health Association, American Water Works Association and the Water Environment Federation, 1998, as amended; and

(B) the Methods Manual for Chemical Analysis of Water and Wastes, Alberta Environmental Centre, Vegreville, Alberta, 1996, AECV96-M1, as amended; APPROVAL NO. 26-02-00 Page 12 of 95 ………….………….

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(iv) for whole effluent toxicity tests:

(A) the Biological Test Method: Reference Method for Determining Acute Lethality of Effluents to Rainbow Trout, Environment Canada, Environmental Protection Series 1/RM/13, July 1990, as amended;

(B) the Biological Test Method: Reference Method for Determining Acute Lethality of Effluents to Daphnia Magna, Environment Canada, Environmental Protection Series 1/RM/14, July 1990, as amended;

(C) the Biological Test Method: Growth Inhibition Test Using the Freshwater Alga Selenastrum capricornutum, Environment Canada, Environmental Protection Series, November 1992, as amended;

(D) the Biological Test Method: Test of Reproduction and Survival Using the Cladoceran Ceriodaphnia dubia, Environment Canada, Environmental Protection Series 1/RM/21, February 1992, as amended;

(E) the Biological Test Method: Test of Larval Growth and Survival Using Fathead Minnows, Environment Canada, Environmental Protection Series 1/RM/22, February 1992, as amended; and

(F) the Biological Test Method: Toxicity Test Using Luminescent Bacteria (Photobacterium phosphoreum), Environment Canada, Environmental Protection Series, 1/RM/24, November 1992, as amended;

(v) for soil samples:

(A) Soil Sampling and Methods of Analysis, Lewis Publishers, 1993, as amended;

(B) the Test Methods for Evaluating Solid Waste, Physical/Chemical Methods, USEPA, SW-846; September 1986, as amended;

(C) the Soil Quality Criteria Relative to Disturbance and Reclamation, Alberta Agriculture, March 1987, as amended; APPROVAL NO. 26-02-00 Page 13 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(D) the Guidance Manual on Sampling, Analysis and Data Management for Contaminated Sites – Volume I: Main Report, CCME EPC-NCS62E, 1993, as amended;

(E) the Guidance Manual on Sampling, Analysis and Data Management for Contaminated Sites – Volume II: Analytical Method Summaries, CCME EPC-NCS66E, 1993, as amended; or

(F) the LDQAP (Alberta Environment Laboratory Data Quality Assurance Policy) procedures and guidelines, October 2001, as amended;

(vi) for waste analysis:

(A) the Test Methods for Evaluating Solid Waste, Physical/Chemical Methods, USEPA, SW-846, September 1986, as amended;

(B) the Methods Manual for Chemical Analysis of Water and Wastes, Alberta Environmental Centre, Vegreville, Alberta, 1996, AECV96-M1 as amended;

(C) the Toxicity Characteristic Leaching Procedure (TCLP) USEPA Regulation 40 CFR261, Appendix II, Method No. 1311, as amended; or

(D) the Standard Methods for the Examination of Water and Wastewater, American Public Health Association, American Water Works Association, and the Water Environment Federation, as amended.

2.3.2 Effective February 1, 2008, with the exception of field measurements, the approval holder shall analyze all samples that are required to be obtained by this approval in a laboratory accredited pursuant to ISO 17025, as amended, for the specific parameter(s) to be analyzed, unless otherwise authorized in writing by the Director.

2.3.3 The term sample as used in clause 2.3.2 does not include samples directed to continuous monitoring equipment, until specifically required in writing by the Director.

2.3.4 The approval holder shall comply with the terms and conditions of any written authorization issued by the Director under 2.3.2. APPROVAL NO. 26-02-00 Page 14 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

PART 3: CONSTRUCTION

SECTION 3.1: GENERAL

HEATERS AND BOILERS

3.1.1 All new boilers and heaters, which have a capacity equal to or greater than 10.5 GJ/hr of energy input, shall meet the requirements prescribed in National Emission Guideline for Commercial/Industrial Boilers and Heaters, CCME, March, 1998, or emission limits as established and adopted by Alberta Environment, and authorization for the construction of such units must be in writing from the Director, or by an amendment to this approval.

3.1.2 Prior to construction of all new boilers and heaters, which have a capacity equal to or greater than 10.5 GJ/hour of energy output, the approval holder shall submit details about each of the following matters to the Director:

(a) stack dimensions;

(b) predicted emissions; and

(c) demonstrate conformance with the requirements prescribed in National Emission Guidelines for Commercial/Industrial Boilers and Heaters, CCME, March, 1998 or emission limits as established and adopted by Alberta Environment.

3.1.3 The approval holder shall obtain written authorization from the Director for the construction of the boilers and heater referred to in subsection 3.1.2, or shall obtain an amendment to this approval.

STORAGE TANKS

3.1.4 All new tanks shall conform to the Guideline for Secondary Containment for Above Ground Storage Tanks, Alberta Environment, 1997, as amended, unless otherwise authorized in writing by the Director.

3.1.5 All new aboveground storage tanks containing liquid hydrocarbons or organic compounds shall conform to the Environmental Guidelines for Controlling Emissions of Volatile Organic Compounds from Aboveground Storage Tanks, CCME-EPC-87-E, as amended.

3.1.6 The approval holder shall not install an underground storage tank without the prior written authorization of the Director. APPROVAL NO. 26-02-00 Page 15 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

MONITORING EQUIPMENT

3.1.7 All new boilers and heaters which have a capacity equal to or greater than 10.5 GJ/hr of energy input shall be equipped with the capability required to allow for the measurement and monitoring of emissions of oxides of nitrogen (for emission verification) as prescribed in National Emission Guideline for Commercial/Industrial Boilers and Heaters, CCME, March, 1998, unless otherwise authorized in writing by the Director.

3.1.8 All air monitoring systems shall be constructed and equipped with sampling facilities as prescribed in the following documents:

(a) the Alberta Stack Sampling Code, Alberta Environment as amended;

(b) the CEMS Code, as amended; and

SECTION 3.2: LAND CONSERVATION

GENERAL

3.2.1 The approval holder shall establish and maintain an undisturbed upland buffer of 100 metres between the MacKay River valley break and any disturbance associated with the plant.

DRAINAGE AND EROSION CONTROL

3.2.2 The approval holder shall stabilize ditches and trenches that discharge directly to natural watercourses, wetlands and waterbodies, in order to minimize erosion and sediment input.

3.2.3 The approval holder shall conduct all operations in a manner that minimizes erosion and sedimentation on all disturbed lands, reclaimed lands and on all lands adjacent to the project lease boundary.

3.2.4 In the event of any unauthorized surface disturbance, in addition to reporting pursuant to 2.1.1, the approval holder shall report the disturbance to the Inspector, and implement any corrective action, as directed in writing by the Inspector.

3.2.5 The approval holder shall immediately report any major geotechnical failure within the plant area excluding mine faces to the Director.

3.2.6 The approval holder shall submit a stabilization and reclamation plan for any incident referred to in 3.2.5 to the Director within the timeframe prescribed by the Director in writing. APPROVAL NO. 26-02-00 Page 16 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

3.2.7 The approval holder shall implement the plan referred to in 3.2.6 as authorized in writing by the Director.

CLEARING AND TIMBER SALVAGE

3.2.8 The approval holder shall salvage timber as directed by the Inspector.

3.2.9 The approval holder shall manage woody debris as directed by the Inspector.

3.2.10 The approval holder shall conduct all operations in a manner that minimizes each of the following:

(a) soil loss;

(b) soil degradation;

(d) loss of timber; and

(e) loss of plant propagules in the LFH.

CONSERVATION OF SOIL MATERIAL FOR RECLAMATION

3.2.11 The approval holder shall immediately suspend coversoil salvage when:

(a) wet conditions will result in the mixing of upland surface soil with upland subsoil, degradation of coversoil quality, or loss of coversoil, unless otherwise authorized in writing by an Inspector;

(b) wind erosion, and any other field conditions or operations will result in degradation of coversoil quality or loss of coversoil, unless otherwise authorized in writing by an Inspector; or

3.2.12 The approval holder shall only recommence coversoil salvage when suspended under subsection 3.2.11 if:

(a) weather conditions referred to in subsection 3.2.11 no longer exist;

(b) field conditions referred to in subsection 3.2.11 no longer exist; or

TERMS AND CONDITIONS ATTACHED TO APPROVAL

3.2.13 The approval holder shall conduct direct placement of coversoil on contoured portions of the disturbed land wherever practicable.

3.2.14 The approval holder shall salvage upland surface soil:

(a) to a maximum average depth of 0.15 m (15 cm) from all land to be disturbed where ecosite classification as defined in Field Guide to Ecosites of Northern Alberta, Beckingham and Archibald, 1996, as amended, is A or B; and

(b) to a maximum average depth of 0.30 m (30 cm) from all land to be disturbed where the ecosite classification as defined in Field Guide to Ecosites of Northern Alberta, Beckingham and Archibald, 1996, as amended is other than A or B;

unless otherwise authorized in writing by the Director.

3.2.15 Where there is insufficient upland surface soil to meet the reclamation objectives in TABLE 6.2-A through TABLE 6.2-F of this approval the approval holder shall salvage other coversoil.

3.2.16 When salvaging peat-mineral mix the approval holder shall place priority on the salvage of finer textured underlying mineral soils rather than coarse textured soils, unless otherwise authorized in writing by the Director.

3.2.17 The approval holder shall salvage upland subsoil from land to be disturbed as specified in subsections 3.2.18, and 3.2.19.

3.2.18 When salvaging upland subsoil the approval holder shall salvage all soil that is rated good and fair as described in Table 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation, 1987, as amended, unless otherwise authorized in writing by the Director.

3.2.19 Where there is insufficient upland subsoil rated good or fair to meet the reclamation objectives in TABLE 6.2-A through TABLE 6.2-F of this approval the approval holder may salvage

(a) upland subsoil rated poor as described in TABLE 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation, 1987, as amended; or

(b) subsoil rated good, fair or poor as described in TABLE 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation, 1987, as amended from locations other than upland. APPROVAL NO. 26-02-00 Page 18 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

3.2.20 For soils salvaged according to this approval, the approval holder shall minimize mixing of the

(a) upland surface soil and subsoil;

(b) upland surface soil of the two types referred to in subsection 3.2.14; or

(c) subsoil of different qualities, as described in TABLE 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation, 1987, as amended, unless otherwise authorized in writing by the Director;

during and following salvage.

3.2.21 The approval holder shall prepare a Soil Salvage Plan for the upcoming year and submit it to the Director no later than October 15 each year.

3.2.22 The approval holder shall meet with the Director no later than November 30 each year and review the Soil Salvage Plan referred to in subsection 3.2.21.

3.2.23 The approval holder shall revise the Soil Salvage Plan as directed in writing by the Director following the meeting referred to in subsection 3.2.22.

3.2.24 The Soil Salvage Plan referred to in subsection 3.2.21 shall address at minimum, the following:

(a) the volumes and depths of upland surface soil to be salvaged;

(b) the area and locations from which upland surface soil is salvaged to a maximum depth of 0.15 m (15 cm);

(d) the volumes and depths of peat-mineral mix to be salvaged;

(e) the area and locations from which peat-mineral mix is to be salvaged;

(f) the methods of salvage and equipment to be used for (a);

(g) the volumes and depths of coversoil to be directly placed;

(h) the area and locations of where coversoil is to be directly placed;

(i) the volumes and depths of subsoil to be salvaged in each of the good, fair and poor classes as described in TABLE 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation, 1987, as amended; APPROVAL NO. 26-02-00 Page 19 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(j) the area and locations of where subsoil is to be salvaged according to (i);

(k) volumes and depths of subsoil to be directly placed;

(l) the area and locations of where subsoil is to be directly placed;

(m) the area (ha), locations, dimensions, volumes and contents of any stockpiles to be developed or modified;

(n) the methods used to segregate upland surface soil from subsoil, upland surface soil from A and B ecosites from upland surface soil from other ecosites, and subsoil of different salvage quality in stockpiles;

(o) the impact of soil heterogeneity within map units on the objective of salvaging upland surface soil at two different depths, as described in 3.2.14;

(p) any rationale and supporting data indicating that segregation of subsoil of different salvage quality is not warranted;

(q) the methods used to minimize the loss of plant propagules in the LFH;

(r) the methods used to prevent and/or mitigate the presence of weeds on stockpiles and disturbed lands;

(s) the methods used to stabilize and control wind and water erosion on stockpiles;

(t) the timing of salvage, direct placement and stockpiling operations identified in this section; and

(u) any other information requested in writing by the Director;

or, as otherwise directed in writing by the Director

3.2.25 The approval holder shall consider the following in developing the Soil Salvage Plan in subsection 3.2.21:

(a) the reclamation objectives of PART 6;

(b) the long-term reclamation materials balance;

(c) the volumes and qualities of soil required to meet the land capability classes specified in TABLE 6.2-A, TABLE 6.2-B and TABLE 6.2-C;

(d) the volumes and qualities of soil required to meet the timber productivity ratings specified in TABLE 6.2-D, TABLE 6.2-E and TABLE 6.2-F; APPROVAL NO. 26-02-00 Page 20 of 95 ………….………….

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(e) the potential for further segregation of upland surface soil by TABLE 8, Page 27 of the Soil Quality Criteria Relative to Disturbance and Reclamation, 1987, as amended, to further enhance reclamation planning; and

(f) any guidelines prepared or provided by the Director related to soil salvage and placement strategies.

3.2.26 The approval holder shall implement the Soil Salvage Plan referred to in subsection 3.2.21, as authorized in writing by the Director.

3.2.27 The Director may indicate in writing whether continued annual written authorization of the Soil Salvage Plan, or any part of the plan, is required.

SECTION 3.3: MILDRED LAKE PLANT CONSTRUCTION PROJECTS

MILDRED LAKE PLANT UPGRADER EXPANSION PROJECT

3.3.1 The approval holder may modify the plant by constructing the modifications that are collectively described as the Mildred Lake Upgrader Expansion Project. The modifications shall be done in the manner described in the documents and correspondence that the approval holder submitted to Alberta Environment in support of Application No. 010-26, and shall include the following additional equipment, unless written authorization or an approval amendment is obtained from the Director:

(a) froth treatment plant (6-5);

(b) diluent recovery unit (7-4);

(d) naphtha hydrotreater unit (13-3);

(e) heavy gas oil hydrotreater unit (15-3);

(f) sulphur recovery unit (12-5);

(g) hydrogen production unit (9-5);

(h) hydrogen recovery unit (27-2);

(i) untreated naphtha storage tanks (20-D64);

(j) DEA regeneration unit (11-4);

(k) H2S flare (19F-6); and APPROVAL NO. 26-02-00 Page 21 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(l) related auxiliary equipment associated with the Mildred Lake Upgrader Expansion Project, as described in the application, or as authorized in writing by the Director.

MILDRED LAKE PLANT EMISSIONS REDUCTION (SER) PROJECT

3.3.2 The approval holder may modify the plant by constructing the modifications that are collectively described as the Syncrude Emissions Reduction (SER) Project. The modifications shall be done in the manner described in the documents and correspondence that the approval holder submitted to Alberta Environment in support of Application No. 020-26, and shall include the following additional equipment, unless written authorization or an approval amendment is obtained from the Director:

(a) lime storage silos (29-1D-501A/B);

(b) vertical ballmill slakers (29-1Y-550A/B);

(d) spray dryer absorbers (29-1D-001A/B/C);

(e) Fabric Filter Baghouses (29-1Y-100 A/B/C);

(f) ID booster fans (29-1K-106 A/B/C);

(g) recycle ash premix tanks (29-1D-400 A/B);

(h) SDA feed tanks (29-1D-402 A/B);

(i) FGD solids storage silo (29-1D-321); and

(j) related auxiliary equipment associated with the Syncrude Emissions Reduction Project, as described in the application, or as authorized in writing by the Director.

3.3.3 The approval holder shall submit details about each of the following matters to the Director, and shall obtain written authorization to proceed from the Director:

(a) prior to construction of the new flue gas desulphurization unit (spray dryer absorber (SDA) and Fabric Filter Baghouse system), submit a report which shall include the following:

(i) detailed description of the flue gas desulphurization unit; APPROVAL NO. 26-02-00 Page 22 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(ii) description of how the plant and flue gas desulphurization unit will be operated under all operating scenarios, including abnormal conditions, such as when one of the units is not on line;

(iii) details on decommissioning and removal of electrostatic precipitators 8-1 and 8-2 once operational confidence is obtained in the SDA/Baghouse System; and

(iv) details on how minimizing the use of the SER emergency bypass duct will be achieved; and

(b) plans for

(i) storage of the waste products including FGD by-product solids;

(ii) control of dusting; and

(iii) disposal of the waste products.

SECTION 3.4: AURORA SOUTH PLANT CONSTRUCTION PROJECT

AURORA SOUTH PLANT

3.4.1 The approval holder shall submit an amendment application with design details about the Aurora South Project at least 12 months prior to the planned start of construction, and shall receive an amending approval prior to commencing construction.

3.4.2 The amendment application referred to in 3.4.1 shall include the following information:

(a) a description of proposed emissions to air, and associated pollution abatement equipment;

(b) a description of water management plans for the project, proposed discharges of water, and associated control facilities;

(d) any other information requested in writing by the Director. APPROVAL NO. 26-02-00 Page 23 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

PART 4: OPERATIONS, LIMITS, MONITORING AND REPORTING

SECTION 4.1: AIR

OPERATIONS

4.1.1 The approval holder shall not release any effluent streams to the atmosphere except as provided in this approval.

4.1.2 The approval holder shall only release effluent streams to the atmosphere at:

(a) the Mildred Lake Plant from the following sources:

(i) the main stack (8F-4);

(ii) the seven bitumen column feed heater stacks (7-1F-1 A & B, 7-2F-1 A & B, 7-3F-1 and 7-4F-1 A & B);

(iii) the gas combustion turbine exhaust stacks (31-GTG 201 and 202, 31-F-201 and 31-F-202);

(iv) the six steam super heater stacks (8-1F-6 A & B, 8-2F-6 A & B and 8-3F-2 A & B);

(v) the five reformer furnace stacks (9-1F-1, 9-2F-1, 9-3F-1, 9-4F-1 and 9-5F-1);

(vi) the hydrogen vent muffler exhausts (9-1/2/3/4/5);

(vii) the diluent preparation column reboiler stack (14F-1);

(viii) the four hydrogen heater stacks (15-1F-1, 15-2F-1, 15-3F-1, and 22-1F-2);

(ix) the four reactor charge heater stacks (18-1F-1, 18-1F-2, 18-2F-1 and 18-2F-2);

(x) the four fractionator reboiler stacks (15-1F-2, 15-2F-2, 15-3F-2, and 22 1F-3);

(xi) the seven bitumen heater stacks (21F-7, 8, 10, 50, 51, 52, and 53);

(xii) the bitumen feed heater stack (22F-1);

(xiii) any other gas-fired heater stacks; APPROVAL NO. 26-02-00 Page 24 of 95 ………….………….

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(xiv) the six deaerator stacks of the extraction units;

(xv) the eight extraction tumbler stacks;

(xvi) the three hydrocarbon flare stacks (19F-1, 19F-4 and 19F-5);

(xvii) the two hydrogen sulphide flare stacks (19F-2 and 19F-6);

(xviii) the three CO boiler diverter stacks (8-1, 8-2 and 8-3) during periods of operational problems, as specified in Section 4.1.4;

(xix) furnace stacks for the vacuum distillation units (37-1F-1, 37-1F-2, 37-2F-1 and 37-2F-2);

(xx) the Aurora froth deaerator/heater vents;

(xxi) the hydrogen recovery unit hydrogen vent mufflers exhaust;

(xxii) the slurry preparation units (hydrotransport cyclofeeders, or similar purpose equipment);

(xxiii) the coker 8-3 flue gas desulphurization stack (26-1C-1);

(xxiv) the sulphreen regeneration furnace stack (12-0F-101);

(xxv) the oil recovery facility vent stacks;

(xxvi) mine mobile equipment (trucks and shovels, conveyors and transfer points etc.);

(xxvii) exposed mine faces, active mining areas, the tailings settling basin, stockpiles, subject to the requirements of subsection 4.1.10; and

(xxviii) any other source authorized in writing by the Director or by an amendment to this approval; and

(b) the Aurora North Plant from the following sources:

(i) stacks associated with combustion turbines, boilers and heaters;

(ii) slurry preparation units (hydrotransport cyclofeeders, or similar purpose equipment);

(iii) froth flotation vessels;

(iv) primary separation vessels; APPROVAL NO. 26-02-00 Page 25 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(v) froth de-aerator vents;

(vi) froth storage tank vents;

(vii) mine mobile equipment (trucks and shovels, conveyors and transfer points etc.);

(viii) exposed mine faces, active mining areas, tailings settling basins, and ponds, subject to the requirements of subsection 4.1.10; and

(ix) any other source authorized in writing by the Director or by an amendment to this approval.

4.1.3 The Mildred Lake Plant shall be operated such that:

(a) all sour water streams produced in any process unit are processed through a sour water treating unit or any combination of units to remove reduced sulphur compounds and ammonia gases;

(b) all sour gas effluent streams produced in:

(i) the amine treating units; and

(ii) the sour water treating units;

are processed through the sulphur recovery units;

(c) all tail gas produced in the SRU is processed through the Sulphreen Plant or the MLUEP flue gas desulphurization unit or when 12-0 is off-line, after maximizing SRU tail gas to the FDG, the remainder may be routed to the 8-1/8-2 CO Boilers;

(d) the following effluent streams are incinerated in a CO Boiler, except during time periods of diverter stack use authorized by subsection 4.1.4:

(i) the three coker burner off gases;

(ii) the sour water pre-concentrator accumulator off gases; and

(iii) the effluent stream from the sulphur degassers; APPROVAL NO. 26-02-00 Page 26 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(e) all effluent streams from CO Boilers 8-1, 8-2 and 8-3 are directed to electrostatic precipitators for the removal of particulate matter, prior to either further treatment or release to a stack, until operational confidence is gained with the SER Project SDA/Baghouse System and then directed to the SER Project SDA/Baghouse System, leaving only effluent streams from CO Boiler 8-3 being directed to an electrostatic precipitator;

(f) the waste material collected in the electrostatic precipitator hoppers and coke silos is handled and disposed of in such a manner as to minimize entrainment of the particulates in the ambient air;

(g) coke silo overhead streams are treated in either an electrostatic precipitator, or an alternative equivalent particulates control device before being emitted to the atmosphere through a stack;

(h) the waste material collected in the electrostatic precipitator hoppers and coke silos is handled and disposed of in such a manner as to minimize entrainment of the particulates into the ambient air;

(i) the waste materials collected in the SDA/Baghouse hoppers and waste containers including slaker lime grit and recycle vibrating screen material is handled and disposed of in such a manner as to minimize entrainment of particulates in the ambient air;

(j) all pressure safety valves in sour service are connected to the flare system, unless otherwise authorized in writing by the Director;

(k) emissions from storage tanks are controlled in the manner specified in subsection 4.1.6;

(l) the following effluent streams are processed in the MLUEP flue gas desulphurization unit, except during time periods that the MLUEP FGD is not operational (including start-up and shutdown):

(i) the off gas from the new Fluid Coker (Unit 8-3); and

(ii) all tail gas from the Sulphreen Unit may be routed to the 8-1/8-2 CO Boilers under the following situations:

(A) when there are problems with the new CO Boiler (25-1), FGD (26-1) or their related downstream units;

(B) to prevent upset to the Sulphreen Plant (12-0); APPROVAL NO. 26-02-00 Page 27 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(m) the following effluent streams are processed in the SER Project flue gas desulphurization unit, except during time periods that the SER Project FGD is not operational (including FGD start-up and shutdown) or in emergency situations that require use of the SER emergency bypass duct:

(i) the effluent streams from CO Boilers 8-1 and 8-2; and

(ii) all tail gas from the Sulphreen Unit when the MLUEP flue gas desulphurization unit is unavailable;

(n) all wastewater streams from the froth treatment units (inclined plate separators and centrifuges), excluding the emergency dump tank, are processed through an NRU to minimize naphtha discharge to the tailings settling basin, when the NRU is operating.

4.1.4 The approval holder is authorized to use the Mildred Lake Plant CO Boiler diverter stacks in the following manner, provided that the limits stipulated in the Air Limits Section of this approval are not exceeded:

(a) during each CO boiler (8-1 CO Boiler, 8-2 CO Boiler, Plant 25-1 CO Boiler #3 and Plant 25-1 CO Boiler #4) trip for no more than 3 hours;

(b) during each double Plant 25-1 CO Boiler trip ( CO Boiler #3 and CO Boiler #4) for no more than 12 hours;

(d) during MLUEP or SER Project flue gas desulphurization unit upset; or

(e) during each planned diverting event as authorized in writing by the Director.

4.1.5 The Mildred Lake Plant flare system shall include:

(a) two hydrogen sulphide flare stacks which shall be equipped with continuously burning pilot lights and electric igniters to ensure combustion of any gases released to the flare stack;

(b) two primary (low pressure) hydrocarbon flare stacks which shall be equipped with:

(i) continuously burning pilot lights and electric igniters to ensure combustion of any gases released to the flare stack;

(ii) a smokeless flare tip; and

(iii) steam-assist or air-assist equipment; APPROVAL NO. 26-02-00 Page 28 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(c) a secondary high pressure hydrocarbon flare stack which shall be equipped with continuously burning pilot lights and electric igniters to ensure combustion of any gases released to the flare stack; and

(d) a closed circuit television monitoring system in a central control room to ensure proper operation of the primary hydrocarbon low pressure flare stacks.

4.1.6 The approval holder shall maintain and operate at the Mildred Lake Plant the following:

(a) a nitrogen vent gas system for the following materials unless otherwise authorized in writing by the Director:

(i) the diluted bitumen storage tanks;

(ii) the diluent naphtha storage tanks;

(iii) the light slops tank;

(iv) the froth treatment and NRUs; and

(v) the diluent recovery vents and pressure safety valves;

with all vapours collected being directed to the primary low-pressure flares;

(b) a natural gas blanket/recovery system for the following material unless otherwise authorized in writing by the Director:

(i) the bitumen storage tanks;

(ii) the untreated naptha storage tank ;

(iii) the treated naphtha storage tanks; and

(iv) the untreated gas-oil storage tanks;

with all vapours collected being directed back to the plant process units;

(i) the untreated naphtha storage tanks;

(ii) the swing tank;

(iii) the treated light gas-oil storage tanks; APPROVAL NO. 26-02-00 Page 29 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(iv) the sour water storage tanks;

(v) the untreated light gas-oil storage tanks; and

(vi) the Plant 67 feed tank;

(d) Notwithstanding subsection 4.1.6 (a), (b), and (c), materials that are exempt from the Environmental Guidelines for Controlling Emissions of Volatile Organic Compounds from Above Ground Storage Tanks, CCME Publication CCME-EPC-87E may be stored in tanks that are not equipped with vapour control systems or floating roof systems, provided that prior written authorization is issued by the Director.

4.1.7 The approval holder shall ensure the combustion of all combustible gases released to the flare stack.

4.1.8 The approval holder shall obtain a written authorization from the Director for each planned flaring event for its duration and sulphur dioxide emission rate.

4.1.9 Except as provided for by the Director in writing, the approval holder shall control fugitive emissions and any source not specified in 4.1.2 in accordance with 4.1.10 of this approval.

4.1.10 With respect to fugitive emissions and any source not specified in 4.1.2, the approval holder shall not release a substance or cause to be released a substance that causes or may cause any of the following:

(a) impairment, degradation or alteration of the quality of natural resources; or

(b) material discomfort, harm or adverse affect to the well being or health of a person; or

4.1.11 The approval holder shall use commercial grade ammonia, for operation of the following units at the Mildred Lake Plant:

(a) the Flue Gas Desulphurization unit (26-1); and

(b) the CO Boiler Precipitators (25-1);

unless otherwise authorized by the Director. APPROVAL NO. 26-02-00 Page 30 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

4.1.12 The approval holder shall submit a proposal for the modifications of the ammonia purification unit, to the Director, prior to any modifications to the ammonia purification unit.

4.1.13 The approval holder shall implement the proposal referred to in subsection 4.1.12, as authorized in writing by the Director.

4.1.14 With regards to existing gas turbines at the Mildred Lake site (G-3 and G-5), the approval holder shall meet the Clean Air Strategic Alliance document. “An Emissions Management Framework for the Alberta Electricity Sector Report to Stakeholders,” November 2003, as amended.

AIR LIMITS

4.1.15 The Director, may, on his own initiative and where he considers it appropriate to do so, amend, add to, or delete terms or conditions specifying concentrations, emission rates, temperatures and time periods in this section if a significant environmental effect occurs or may occur that was not anticipated by the Director at the time the approval was issued.

4.1.16 Releases of the following substances to the atmosphere shall not exceed the limits specified in TABLE 4.1-A and TABLE 4.1-B.

TABLE 4.1-A: LIMITS FOR MILDRED LAKE PLANT

EMMISSION AIR MAXIMUM RATE OF EMISSION SOURCE CONTAMINANT OR CONCENTRATION

16.4 tonnes per hour Sulphur dioxide 292 tonnes per calendar day 245 tonnes per day based on a 90-day rolling average Oxides of nitrogen expressed as Main Stack 1.5 tonnes per hour equivalent nitrogen dioxide

0.60 tonnes per hour Particulates 0.20 kg/1,000 kg of effluent adjusted to 50% excess air

MLUEP FGD Particulates 0.20 kg/1,000 kg of effluent Stack APPROVAL NO. 26-02-00 Page 31 of 95 ………….………….

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TABLE 4.1-B: LIMITS FOR AURORA NORTH PLANT

EMMISSION AIR MAXIMUM RATE OF EMISSION SOURCE CONTAMINANT OR CONCENTRATION Oxides of nitrogen Train 1 (expressed as 83.7 kg per hour GTG/HRHWG equivalent nitrogen dioxide) Oxides of nitrogen Train 2 (expressed as 83.7 kg per hour GTG/HRHWG equivalent nitrogen dioxide)

4.1.17 The approval holder shall ensure, at the Mildred Lake Plant that the combined emission rate of total sulphur compounds, expressed as tonnes of sulphur dioxide equivalent, to the atmosphere from the following:

(a) the main stack;

(b) the MLUEP flue gas desulphurization unit stack;

(d) the three CO Boiler diverter stacks at the plant

shall not exceed 250 tonnes per day based on a 90-day rolling average.

4.1.18 The approval holder shall ensure, effective one year after commencement of operations of the SER Project SDA/Baghouse System at the Mildred Lake Plant that the combined emission rate of total sulphur compounds, expressed as tonnes of sulphur dioxide equivalent, to the atmosphere from the following:

(a) main stack;

(b) the MLUEP flue gas desulphurization unit stack;

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) the three CO Boiler diverting stacks at the plant

shall not exceed 150 tonnes per day based on a 365-day sulphur dioxide rolling average.

4.1.19 The approval holder shall ensure, effective three years after commencement of operations of the SER Project SDA/Baghouse System at the Mildred Lake Plant, that the combined emission rate of total sulphur compounds expressed as tonnes of sulphur dioxide equivalent, to the atmosphere from the following

(a) main stack;

(b) the MLUEP flue gas desulphurization unit stack;

(d) the three CO Boiler diverting stacks at the plant

shall not exceed 100 tonnes per day based on a 365-day sulphur dioxide rolling average.

4.1.20 The approval holder shall ensure at the Mildred Lake Plant that the combined emission rate of total sulphur compounds, expressed as tonnes of sulphur dioxide equivalent, to the atmosphere from the plant shall not exceed 360 tonnes per consecutive 24-hour period.

4.1.21 The total combined use of the three Mildred Lake Plant CO boiler diverter stacks shall not exceed 292 hours per year based on a 365-day rolling total.

4.1.22 The net or lower heating value of the combined gas stream released to a flare stack 3 shall be maintained, at a minimum, at 12 MJ/m when adjusted for 101.325 kPa and 15°C by adding natural gas to the sour gas.

4.1.23 The approval holder shall immediately upon discovery of an emission in excess of an approval limit take steps to reduce the excessive emission. APPROVAL NO. 26-02-00 Page 33 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

MONITORING AND REPORTING

4.1.24 The sampling required by subsection 4.1.25 shall, at a minimum, comply with:

(a) the Alberta Stack Sampling Code, Alberta Environment, 1995 as amended;

(b) the CEMS Code; and

4.1.25 The approval holder shall report to the Director the results of the emission source monitoring as required in TABLE 4.1-C and TABLE 4.1-D.

TABLE 4.1-C: MILDRED LAKE PLANT AIR EMISSION SOURCE MONITORING AND REPORTING

EMISSION METHOD OF REPORTING FREQUENCY REPORT PARAMETER FREQUENCY SOURCE MONITORING TO MONTHLY ANNUALLY • Sulphur dioxide • Total effluent stream flow rate Continuous (volume) Continuous Emission • Temperature Monitor • In-stack opacity. • Sulphur dioxide Main Stack • Particulates Annual Air Six times per Manual Stack Summary • Total effluent stream flow rate Monthly Air year Survey and (volume) Report • Temperature Evaluation Report • Oxides of nitrogen expressed as Four times per Manual Stack (On or before the end of equivalent nitrogen dioxide year Survey (On or before the month March 31 of • Sulphur dioxide following the Continuous the year • Total effluent stream flow rate month in Continuous Emission following the (volume) which the Director Monitor year in which • information Temperature the was information • Sulphur Dioxide collected) MLUEP was • Particulates FGD Stack collected) • Oxides of Nitrogen expressed as Number of Four times per Manual Stack equivalent nitrogen dioxide Copies year Survey Number of • Required: Total effluent stream flow, rate Copies 2 (volume) Required: • Temperature 2 In-duct Continuous (Upstream Continuous Opacity Emission of MLUEP Monitoring FGD Unit) Volumetric flow rate of stream that is Continuous Flow Meter or Flare Stack being flared during flaring Calculation APPROVAL NO. 26-02-00 Page 34 of 95 ………….………….

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TABLE 4.1-D: AURORA NORTH PLANT AIR EMISSION SOURCE MONITORING AND REPORTING REPORTING METHOD OF FREQUENCY REPORT PARAMETER FREQUENCY MONITORING TO MONTHLY ANNUAL

• Carbon Monoxide (Concentration) • Oxides of Nitrogen Expressed Initial Month after Stacks For All as Equivalent Nitrogen Verification Manual Stack the survey Combustion Dioxide Test and Then Survey is Turbines • Total Effluent Stream Flow Once per Year completed. Annual Air Rate (Volume) Summary • Temperature and Evaluation • Oxides of Nitrogen Expressed Stacks For Any Report as Equivalent Nitrogen Continuous Combustion Dioxide Continuous Emission Turbines Larger (On or • Monitor Than 25 MW Total Effluent Stream Flow before Rate (Volume) March 31 of the year Stacks For All • Oxides of Nitrogen Expressed Month after Director Boilers and Heaters as Equivalent Nitrogen Initial following Manual Stack the survey With Capacities Dioxide Verification the year in Survey is Equal to or Greater • Test which the Total Effluent Stream Flow completed Than 10.5 GJ/hr Rate (Volume) information was Stacks For All • Oxides of Nitrogen Expressed collected) Month after Boilers and Heaters as Equivalent Nitrogen Manual Stack the survey With Capacities Dioxide Once per Year Number of Survey is Greater Than 105 • Copies Total Effluent Stream Flow completed GJ/hr Rate (Volume) Required: 2 Stacks For All • Oxides of Nitrogen Expressed Boilers and Heaters as Equivalent Nitrogen Continuous With Capacities Dioxide Continuous Emission Greater Than • Total Effluent Stream Flow Monitor 264GJ/hr Rate (Volume

4.1.26 The approval holder shall allow a period of at least 25 days to elapse between the completion of a satisfactory manual stack survey, which demonstrates compliance with the approval limits, and the commencement of the next manual stack survey for that source, unless otherwise authorized in writing by the Director.

4.1.27 The approval holder shall notify the Director in writing a minimum of two weeks prior to any manual stack survey that is required to be conducted by this approval. APPROVAL NO. 26-02-00 Page 35 of 95 ………….………….

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AMBIENT AIR MONITORING AND REPORTING

4.1.28 The approval holder shall conduct, operate and maintain, and report on ambient air monitoring by the following:

(a) participate in the WBEA ambient air monitoring network; and

(b) submit annual reports containing the monitoring information collected, through participation in WBEA.

FUGITIVE VOC EMISSION MONITORING

4.1.29 The approval holder shall monitor annually for Fugitive VOC Emissions at the Mildred Lake Plant and Aurora North Plant in accordance with the following:

(a) the approved Mildred Lake Fugitive VOC Emission plan;

(b) the approved Aurora North Fugitive VOC Emission plan; and

(c) the Environmental Code of Practice for the Measurement and Control of Fugitive VOC Emissions from Equipment Leaks published by the CCME, Publication CCME-EPC-73E, October 1993, as amended,

unless otherwise authorized in writing by the Director.

BIOMONITORING

4.1.30 The approval holder shall:

(a) conduct ambient air quality environmental effects monitoring (biomonitoring) through participation and support of WBEA and TEEM; and

(b) ensure the status and results of the monitoring are submitted annually by WBEA in a manner satisfactory to the Director.

4.1.31 The approval holder shall:

(a) participate in an acid deposition monitoring program for aquatic and terrestrial ecosystems; and APPROVAL NO. 26-02-00 Page 36 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(b) ensure the program results are reported by TEEM and RAMP in a manner satisfactory to the Director.

4.1.32 The approval holder shall ensure that monitoring conducted by RAMP will be on a frequency required to detect impacts in the receiving water body as determined by a technical review by RAMP.

AIR QUALITY AND HUMAN EXPOSURE MONITORING STUDIES

4.1.33 The approval holder shall participate, at a level acceptable to the Director, in multi- stakeholder forums that include the collection of long-term air quality and human exposure monitoring data to improve future health impact assessments and further the understanding of the links between air quality and human health. Participation may be in the form of, though not be limited to, providing financial and in-kind support, scientific guidance, and consultation with regional stakeholders.

OXIDES OF NITROGEN EMISSIONS

4.1.34 The approval holder shall participate in regional initiatives undertaken to assess the potential effects of NOx emissions.

4.1.35 In the event that the combined emission rate of oxides of nitrogen from all sources (including stationary sources and mine mobile equipment) at the Aurora North Plant is higher than an average of 25.0 tonnes per day during any calendar year, the approval holder shall submit a report which shall include:

(a) an inventory of oxides of nitrogen from all sources at the plant, including a description of the calculation or measurement methods that were used to quantify the emissions;

(b) a description of the events and circumstances that led to the combined emission rate being higher than an annual average of 25.0 tonnes per day;

(c) an outline of the steps and measures which have been taken to minimize emissions of oxides of nitrogen at the plant; and APPROVAL NO. 26-02-00 Page 37 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) a description of the most technically feasible and cost-effective reduction steps or measures that could either be undertaken at the plant to reduce the emission rate of oxides of nitrogen to below an annual average of 25.0 tonnes per day , or could be undertaken at another plant in the region to offset the amount of emissions from the Aurora North Plant that exceeded 25.0 tonnes per day, and an estimate of the time that would be required to implement the reduction steps or measures if they were to be required.

4.1.36 The approval holder shall submit the report about oxides of nitrogen emissions referred to in 4.1.35 to the Director on or before March 31 of the year following the year in which the information was collected.

VOC AND TRS EMISSIONS

4.1.37 The approval holder shall implement the approved Mildred Lake and Aurora North VOC and TRS monitoring plans as previously authorized by the Director.

MINE MOBILE EMISSION SOURCES

4.1.38 The approval holder shall submit a plan to the Director for a program to minimize all NOx emissions from all mine mobile equipment where practicable.

4.1.39 The plan, referred to in subsection 4.1.38,shall be submitted by March 31, 2008 unless otherwise authorized in writing by the Director.

4.1.40 The plan, referred to in subsection 4.1.38, shall include, at a minimum, all of the following:

(a) the methods that will be used to quantify the emissions from the mobile sources;

(b) the methods that will be used to quantify the NOX and all other emissions from the mobile sources;

(c) the procedures that will be undertaken to minimize emissions of particulate matter from road dust; APPROVAL NO. 26-02-00 Page 38 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) the procedures that will be implemented to ensure that all new and replacement mining vehicles and engines are equipped with effective emission control technology that meets, at a minimum, the latest United States Environmental Protection Agency emission standards for off-road heavy-duty diesel vehicles as amended from time to time or the latest Canadian Environmental Protection Act Off-Road Compression-Ignition Engine Emission Regulations and/or Guidelines as amended from time to time; and

(e) any other procedures that the approval holder proposes to implement to study and minimize emissions from mobile sources

unless otherwise authorized in writing by the Director.

4.1.41 The approval holder shall implement the plan referred to in subsection 4.1.38, as authorized in writing by the Director.

SPECIAL CONDITIONS

4.1.42 In the event that the combined emission rate of total sulphur compounds, expressed as tonnes of sulphur dioxide equivalent, to the atmosphere from the five flare stacks at the Mildred Lake Plant are higher than an average of 5.0 tonnes per day during any calendar year, the approval holder shall submit a written report on the flaring to the Director, on or before January 31 of the following year. The report shall include:

(a) a listing of all of the flaring and diverting events that resulted in sulphur dioxide being emitted to the atmosphere, including the start time, duration, source (origin plant), the stack that was used, and the tonnes of sulphur dioxide equivalent emitted;

(b) a description of the events and circumstances that lead to the combined emissions being higher than an annual average of 5.0 tonnes per day;

(d) a description of any long-term measures or actions that are required to prevent or minimize such occurrences in the future and a schedule of implementation for these measures or actions. APPROVAL NO. 26-02-00 Page 39 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

4.1.43 In the event that the combined emission rate of sulphur dioxide to the atmosphere from the main stack, the FGD stack, the flare stacks and the CO boiler diverter stacks at the Mildred Lake Plant is higher than an average of 230 tonnes per day during any year, the approval holder shall submit a detailed written report on sulphur dioxide emissions to the Director on or before March 31 following the year in which the information was collected. The report shall be in a level of detail acceptable to the Director and shall include:

(a) a description of the events and circumstances that lead to the combined emissions being higher than an average of 230 tonnes per day;

(b) an outline of the steps or procedures which were taken to minimize emissions during the events and circumstances described above; and

(c) a description of any long-term measures or actions that are required to prevent or minimize such occurrences in the future and a schedule of implementation for these measures or actions.

4.1.44 Effective one year after the start-up of the Mildred Lake Plant MLUEP flue gas desulphurization unit, in the event that the combined emission rate of sulphur dioxide to the atmosphere from the main stack, the five flare stacks and the three CO Boiler diverter stacks is higher than an average of 210 tonnes per day in the calendar year after start-up of the flue gas desulphurization unit, the approval holder shall submit a detailed written report on sulphur dioxide emissions to the Director on or before March 31 following the year in which the information was collected. The report shall be in a level of detail acceptable to the Director and shall include:

(a) a description of the events and circumstances that lead to the combined emissions being higher than an average of 210 tonnes per day;

(b) an outline of the steps or procedures which were taken to minimize emissions during the events and circumstances described above; and

(c) a description of any long-term measures or actions that are required to prevent or minimize such occurrences in the future and a schedule of implementation for these measures or actions. APPROVAL NO. 26-02-00 Page 40 of 95 ………….………….

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4.1.45 Effective the year of commencement of operations of the Mildred Lake Plant SER Project SDA/Baghouse System, in the event that the combined emission rate of sulphur dioxide to the atmosphere from the main stack, the MLUEP flue gas desulphurization stack, the five flare stacks and the three CO Boiler diverter stacks is higher than an annual average of 100 tonnes per day, the approval holder shall submit a detailed written report on sulphur dioxide emissions to the Director on or before March 31 following the year in which the information was collected. The report shall be in a level of detail acceptable to the Director and shall include:

(a) a description of the events and circumstances that lead to the combined emissions being higher than an annual average of 100 tonnes per day;

(b) an outline of the steps or procedures which were taken to minimize emissions during the events and circumstances described above; and

(c) a description of any long-term measures or actions that are required to prevent or minimize such occurrences in the future and a schedule of implementation for these measures or actions.

4.1.46 The approval holder shall operate online measurement of ammonia on the Flue Gas Desulphurization stack, in a manner satisfactory to the Director.

FGD ENVIRONMENTAL IMPROVEMENT PLAN

4.1.47 The approval holder shall develop and submit a FGD Environmental Improvement Plan to the Director.

4.1.48 The FGD Environmental Improvement Plan referred to subsection 4.1.47 shall include at a minimum the following information:

(a) a review of the ammonia monitoring emissions from the coker 8-3 FGD stack (26-1C-1);

(b) the proposed stewardship targets for ammonia that Syncrude would work within, in order to reduce the potential for odours to occur due to emissions from the FGD stack;

(c) the results and analysis of dispersion modelling to understand the dispersion of emissions from the FGD stack; APPROVAL NO. 26-02-00 Page 41 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) a schedule for equipment and operational modifications to reduce the potential for odours to arise due to emissions from the FGD stack; and

(e) any other information requested in writing by the Director.

4.1.49 The approval holder shall submit the FGD Environmental Improvement Plan referred to in subsection 4.1.47 by April 1, 2008.

4.1.50 The approval holder shall implement the plan referred to subsection 4.1.47 as authorized in writing by the Director.

MONTHLY AIR REPORT

4.1.51 In addition to the reporting requirements under subsection 4.1.25, the approval holder shall compile a monthly air emission summary report on or before the end of the month following the month in which the information was collected. The report shall include, at a minimum, all contain the following information:

(a) a summary of the quality assurance/quality control checks carried out on each continuous emission monitoring system as well as explanation for any downtime of these systems;

(b) the percent operational time for each continuous emission monitor;

(d) the amount of total sulphur compounds, expressed as tonnes of sulphur dioxides equivalent, emitted to the atmosphere from the following:

(i) the main stack;

(ii) the MLUEP flue gas desulphurization unit stack

(iii) the five flare stacks; and

(iv) the three CO Boiler diverter stacks

individually during the month; APPROVAL NO. 26-02-00 Page 42 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(e) an assessment of the emissions of air contaminants relative to the limits specified in the Air Limits Section of this approval;

(f) the frequency distribution of all in-stack opacity readings between 0 to 20, 21 to 40, and above 40 percent levels in the Mildred Lake Plant main stack;

(g) with respect to the flare stacks, for each flaring event:

(i) the start time, duration, source (origin plant), and the stack that was used;

(ii) the amount of sulphur dioxide released to the atmosphere in tonnes; and

(iii) the amount of gas flared in cubic metres;

(h) with respect to the Mildred Lake Plant CO boiler diverter stacks, for each diverting event:

(i) the start time, duration, and the stack that was used;

(ii) the reason why diverting was necessary;

(iii) the estimated amount of hydrogen sulphide released to the atmosphere in tonnes; and

(iv) the amount of total sulphur compounds released to the atmosphere, expressed as tonnes of sulphur dioxide equivalent;

(i) with respect to the Mildred Lake sulphur recovery plant, the daily amounts of:

(i) sour water acid gas and sour gas processed;

(ii) liquid sulphur recovered; and

(iii) sulphur remaining in the sulphur recovery plant tail gas; APPROVAL NO. 26-02-00 Page 43 of 95 ………….………….

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(j) with respect to the MLUEP FGD unit:

(i) a summary of the performance of the FGD unit describing the percentage of sulphur dioxide removal that was achieved;

(ii) operability of the unit (expressed in terms of hours that the FGD unit was online divided by hours that the new Fluid Coker was operating); and

(iii) the time, duration and reason for each period that the FGD unit was bypassed;

(k) with respect to the Mildred Lake SER Project SDA/Baghouse System:

(i) a summary of the performance of the System describing the percentage of sulphur dioxide removal that was achieved;

(ii) the operability of the system (expressed in terms of hours that the System was online divided by hours that CO Boilers 8-1 and 8-2 were operating);

(iii) the time, duration, estimated mass and concentration of material released;

(iv) the CEMS data summary for the period; and

(v) the reason for each period that any part of the System was bypassed;

(l) remarks on the performance of the air emissions control and monitoring equipment, and an interpretation of significant variations in equipment performance; and

(m) any other information requested in writing by the Director. APPROVAL NO. 26-02-00 Page 44 of 95 ………….………….

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ANNUAL AIR REPORT

4.1.52 The approval holder shall compile an annual air emissions summary and evaluation report which shall contain the following information:

(a) a summary of the number of continuous ambient air monitoring readings, for sulphur dioxide and hydrogen sulphide, which were greater than the Alberta Ambient Air Quality Guidelines and were attributed to the approval holder per month for each continuous ambient monitoring station;

(b) a discussion of the likely reasons, and any mitigative measures taken, for ambient air quality readings of sulphur dioxide and hydrogen sulphide which were greater than the Alberta Ambient Air Quality Guidelines and that were attributed to the approval holder at all continuous ambient air monitoring stations operated by WBEA and the approval holder, and a comparison with the previous five years on a year-to-year basis;

(c) an overview of the operation and performance of air emissions control equipment, and a summary of plant modifications and operational changes that may affect atmospheric emissions;

(d) a summary of source monitoring conducted in accordance with TABLE 4.1-C and TABLE 4.1-D;

(e) a summary of the results of manual stack surveys;

(f) a summary of any readings from source emission monitoring (manual stack surveys and continuous emission monitoring) that exceeded approval limits and a discussion of the causes and remedial actions taken;

(g) a summary and discussion of the amount of total sulphur compounds emitted into the atmosphere from the flare stacks and the CO boiler diverter stacks during the year;

(h) an inventory of sulphur dioxide emissions from all significant release points;

(i) an inventory of nitrogen dioxide emissions from all significant release points;

(j) an inventory of THC/VOC emissions including the results of fugitive VOC emissions monitoring; APPROVAL NO. 26-02-00 Page 45 of 95 ………….………….

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(k) a summary of the performance of the NRUs in reducing naphtha losses to, and therefore VOC emissions from, the Mildred Lake Settling Basin;

(l) a summary of the approval holder’s effort and performance in managing green house gases on both an intensity and an absolute basis;

(m) a summary of the approval holder's efforts to minimize and reduce all atmospheric emissions, and in addition for sulphur compounds (expressed as tonnes of sulphur dioxide equivalent), if the total sulphur compound emissions during the year were higher than the average of emissions for the previous three years:

(i) a summary of the events and circumstances that lead to the combined sulphur emissions being higher than the average of the preceding three years; and

(ii) an outline of steps or procedures which have been taken or will be taken to minimize future emissions;

(n) the status and results of the environmental effects monitoring (biomonitoring) required by Section 4.1.30, including:

(i) a summary of the data and the results of monitoring conducted during the previous year;

(ii) a description of the monitoring program planned for the present year; and

(iii) a description of the approval holder's plans for consultation with other stakeholders during the present year regarding the design and results of the biomonitoring program;

(o) a summary of the status and the results of any special ambient air quality studies, environmental effects studies (e.g., biomonitoring), and related health studies that the approval holder either participated in or conducted independently;

(p) a summary of the status and the results of any non-confidential atmospheric emissions reduction reports and studies that the approval holder either participated in or conducted independently; APPROVAL NO. 26-02-00 Page 46 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(q) a summary of the approval holder’s notifications to the community of Fort McKay as per the Syncrude Stakeholder Notification Protocol;

(r) a digital file containing concentrations of all monitored parameters unless otherwise authorized in writing by the Director;

(s) the status of any sulphur block activity; and

(t) any other information requested in writing by the Director.

4.1.53 The approval holder shall submit the annual air emissions summary and evaluation report is referred to in subsection 4.1.52 by March 31 of the year following the year in which the information was collected, unless otherwise authorized in writing by the Director.

CONTINUOUS IMPROVEMENT REPORT

4.1.54 The approval holder shall submit a report to the Director, that summarizes the approval holder’s performance in minimizing atmospheric emissions between the years of 1996 and 2014 (inclusive), and that identifies and evaluates all options for further reduction of the following air contaminant emissions:

(a) sulphur dioxide;

(b) hydrogen sulphide and other reduced sulphur compounds;

(d) oxides of nitrogen;

(e) volatile organic compounds; and

(f) any other information requested in writing by the Director.

4.1.55 The report referred to in 4.1.54 shall identify the most technically feasible and cost- effective reduction options, provide a detailed explanation of how cost-effectiveness was determined and provide an estimate of the time that would be required to implement each reduction option if it were required. APPROVAL NO. 26-02-00 Page 47 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

4.1.56 The report referred to in 4.1.54 shall be submitted to the Director by March 31, 2015.

SECTION 4.2: INDUSTRIAL WASTEWATER

OPERATIONS

4.2.1 The approval holder shall not release any substances from the plants to the surrounding watershed, except as authorized by this approval.

4.2.2 All industrial wastewater from the plant operations shall be directed to the Industrial Wastewater Control System.

INDUSTRIAL RUNOFF

4.2.3 Industrial runoff shall be managed as described in the application, unless otherwise authorized in writing by the Director.

4.2.4 The discharge of runoff from undisturbed, capped and vegetated reclaimed areas of the plant to the surrounding watershed is authorized.

4.2.5 The discharge of runoff from overburden storage areas is authorized, but shall be controlled in such a manner as to preclude excessive erosion of the storage area and siltation into natural water bodies.

INDUSTRIAL WASTEWATER

4.2.6 The approval holder shall ensure all liquids collected in the seepage collection systems shall be retained in the recycle water systems unless otherwise authorized in writing by the Director.

MILDRED LAKE PLANT T-PIT GRAVEL PIT

4.2.7 The approval holder may discharge groundwater from the T-Pit gravel pit as described in amendment application 015-26, in accordance with the following conditions:

(a) a transfer pipe shall be used to discharge the groundwater to the bottom of the escarpment to prevent erosion;

(b) the approval holder shall monitor the impact sodium has on vegetation at the transfer pipe discharge location by visual inspection or as otherwise directed by the Director;

(c) if the discharge causes an adverse effect on vegetation due to accumulation of sodium in the wetlands, the approval holder shall take mitigative measures to the satisfaction of the Director; and APPROVAL NO. 26-02-00 Page 48 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) at least once every three months the approval holder shall obtain a grab sample of the discharge and analyze for chlorides, and shall report the results to the Director on or before the end of the month following the month in which the result is obtained, unless otherwise authorized in writing by the Director.

AURORA NORTH PLANT OPERATIONS

4.2.8 Basal groundwater and clean surface water resulting from dewatering and other water resulting from the plant clearing, except that in subsection 4.2.9, shall be directed to sedimentation ponds prior to release.

4.2.9 Muskeg dewatering and other water resulting from clearing of the west side of the plant may be directed towards Mills Creek and into the Athabasca River.

4.2.10 Sedimentation ponds shall not receive industrial wastewater, industrial runoff or domestic wastewater.

AURORA NORTH PLANT LIMITS

4.2.11 Releases from the sedimentation ponds shall not exceed the limits specified in TABLE 4.2-A, with the exception of subsection 4.2.12.

4.2.12 When upstream Stanley Creek conditions create dissolved oxygen concentrations less than those specified in TABLE 4.2-A, the minimum acceptable concentration in the discharge is 90% of the natural, upstream dissolved oxygen concentrations.

TABLE 4.2-A: LIMITS – AURORA NORTH PLANT SEDIMENTATION POND

LIMITS PARAMETER Monthly or Weekly Maximum Daily Average (except D.O.) Average Total Suspended Solids 50 mg/L ---

5-Day Biochemical Oxygen Demand 7mg/L --- Dissolved Oxygen (D.O.) - These are Minimum Weekly Average 5.0 mg/L Levels For October 1 to March 31 6.5 mg/L Monthly Average Ammonia-Nitrogen 2.5 mg/L 1.0 mg/L Acute Lethality Test Using Rainbow Trout 100% Survival in 100% Discharge --- (Oncorhynchus mykiss) Sample pH 6.0 – 9.5 pH units --- Not Present Except in Trace Amounts Floating Solids --- Not Present Except in Trace Amounts Visible Foam --- Not Present in Amounts Sufficient to Oil or Other Substances --- Create a Visible Film or Iridescent Sheen APPROVAL NO. 26-02-00 Page 49 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

MONITORING AND REPORTING

4.2.13 The approval holder shall participate in an ongoing regional aquatics monitoring program or an alternative program that is acceptable to the Director.

4.2.14 The approval holder shall monitor the Mildred Lake Plant Industrial Wastewater as required in TABLE 4.2-B.

4.2.15 The approval holder shall monitor the Aurora North Plant Sedimentation Pond and Muskeg River as required in TABLE 4.2-C.

4.2.16 The approval holder shall report to the Director the results of the monitoring as required in TABLE 4.2-B and TABLE 4.2-C.

MILDRED LAKE PLANT MONITORING AND REPORTING

4.2.17 For the purpose of Table 4.2-B:

(a) sampling location A is defined as the seepage control pond located on the Northeast side of the MLSB;

(b) sampling location B is defined as liquid in the surface zone, deep zone, and sludge zone of the MLSB;

(d) sampling location D is defined as SWSS decant system. APPROVAL NO. 26-02-00 Page 50 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

TABLE 4.2-B: MILDRED LAKE PLANT PONDS AND WATER BODIES MONITORING AND REPORTING

MONITORING REPORTING Parameter, Test, Event, Study Proposal or Sampling Report To Frequency Sample Type Annually Reporting Requirement Location pH Electrical Conductivity Total Dissolved Solids Total Suspended Solids Dissolved Organic Carbon Dissolved Inorganic Carbon Total Carbon Phenols Chemical Oxygen Demand Chloride Carbonate Bicarbonate Sulphate Calcium Magnesium Sodium Annual Industrial Potassium Wastewater and Nitrate Industrial Runoff Report

Nitrite (Provide annual summary of data by Hardness Grab or March 31) Director Ammonia Once Per Year Composite A, B C & D Aluminum

Arsenic Number of Copies Boron Required: 4 Cadmium Copper Zinc Chromium (hexavalent +6) Iron Mercury Nickel Lead Tin Titanium Vanadium Luminescent Bacteriological BTEX

Sampling location A, B, C & D defined in clause 4.2.17. APPROVAL NO. 26-02-00 Page 51 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

4.2.18 The approval holder shall compare the water quality in the MLSB with the quality of the water collected at site A and C from Table 4.2-B of this approval, with respect to the following ratios (in terms of equivalents per litre):

(a) Na/Cl;

(b) Na/(Ca + Mg);

(d) Major cations (Na, Ca, Mg, K)/Major anions (Cl, SO4, HCO3).

AURORA NORTH PLANT MONITORING AND REPORTING

4.2.19 Any muskeg dewatering or surficial water from the west side of the development area that is directed to the Athabasca River shall be monitored once in every quarter year for all the parameters listed in TABLE 4.2-C. Samples shall be taken in the discharge stream, prior to mixing with Mills Creek.

4.2.20 For the purpose of Table 4.2-C:

(a) sampling location A is defined as the discharge point of sedimentation pond, prior to mixing with the Muskeg River;

(b) sampling location B is defined as the Muskeg River Upstream sampling location, upstream of the plant seepages and discharges;

(c) sampling location C is defined as the Muskeg River Downstream sampling location, downstream of the plant seepages and discharges; and

(d) sampling location D is defined as upstream location on Stanley Creek. APPROVAL NO. 26-02-00 Page 52 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

TABLE 4.2-C: AURORA NORTH PLANT SEDIMENTATION PONDS AND MUSKEG RIVER MONITORING AND REPORTING

MONITORING REPORTING Report Parameter, Test, Event, Study Sample Sampling To Frequency Monthly Annually Proposal or Reporting Requirement Type Location Calculated 3 Daily, during Flow (m /d) or A release estimated Daily, Monday to Friday during Grab A release pH Monthly Grab C & D

Every two months Grab B Monthly Daily, Monday to Annual Industrial Friday during Grab A Industrial Total Suspended Solids Wastewater release Wastewater (in mg/L) and Monthly Grab C & D and Industrial Industrial Every two months Grab B Runoff Runoff Weekly Grab A Report Nutrients, major cations and anions, Report DOC, DIC Monthly Grab C & D (On or before (Provide Every two months Grab B the end of annual the month Weekly, during summary of Director 5 Day Biochemical Oxygen Demand Grab A following the release data by month in Total recoverable and dissolved metals, March 31) Monthly Grab A which the and ultra-trace mercury information CCME F1, F2, F3 hydrocarbons was (Characterize Naphthenic Acids and Monthly Grab A collected) PAHs if detected in F1-F3) Report Uncorrected Number of Copies Ammonia-Nitrogen Weekly, during Number of Grab A Required: 4 (in mg/L) release Copies Weekly, during Required: 1 Grab A Dissolved Oxygen release (in mg/L) Three times, Grab D Weekly Chronic toxicity test using Ceriodaphnia and fathead minnows (including Microtox Every two months Grab A, B & C IC metric)

96-hour Multiple Concentration Acute Monthly Grab A Lethality Test Using Rainbow Trout

Sampling location A, B, C & D defined in clause 4.2.20. APPROVAL NO. 26-02-00 Page 53 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

MONTHLY WASTEWATER REPORT

4.2.21 The approval holder shall submit a Monthly Wastewater Report to the Director on, or before, the end of the month following the month in which the information was collected. The monthly report shall contain the following information:

(a) a summary of all monitoring data collected for TABLE 4.2-C;

(b) in addition to reporting pursuant to 2.1.1, a summary of any approval wastewater contraventions; and

ANNUAL WASTEWATER REPORT

4.2.22 In addition to the annual reporting in TABLE 4.2-B and TABLE 4.2-C, the annual Industrial Wastewater and Industrial Runoff Report shall include, at a minimum, all of the following information:

(a) a general statement on the performance of the wastewater and surface runoff management program during the previous year and a comment on any planned alterations or extensions in the coming year;

(b) all data collected in accordance with TABLE 4.2-B and TABLE 4.2-C and a trend analysis, using appropriate charts/graphs to demonstrate historical performance of each parameter, and an interpretation of the results of the monitoring;

(c) a record of the quantity of substances which have been added to or consumed in the plant's industrial process and which may have an effect on the quality of the industrial wastewater generated. The National Pollutant Release Inventory regulation shall be used as a guide on which substances to record and report;

(d) the volume of liquid (including solids fraction) discharged to the Aurora North Plant tailings settling basin and the MLSB during each calendar month;

(e) the volume of liquid discharged from the effluent pond to the MLSB during each calendar month;

(f) the volume of liquid recycled to the Aurora North and Mildred Lake Plants from the tailings settling basin during each calendar month;

(g) the free water level in the Aurora North Plant and Mildred Lake Plant tailings settling basins at the end of each calendar month; APPROVAL NO. 26-02-00 Page 54 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(h) the submission of all water monitoring data in electronic format unless otherwise authorized in writing by the Director;

(i) results and status of any industrial wastewater characterization and review conducted over the previous year; and

(j) a cumulative effects analysis for the Muskeg and Athabasca Rivers, by comparing changes in loadings to the rivers over the previous five years using data placed in the public domain.

4.2.23 The approval holder shall submit four copies of the Annual Wastewater Report to the Director on, or before, March 31 of the year following the year in which the information on which the report is based was collected, unless otherwise authorized in writing by the Director.

WASTE MINIMIZATION

4.2.24 The approval holder shall submit a proposal for a Pollution Minimization Study to the Director by March 31st, 2009.

4.2.25 The Pollution Minimization Study shall include, at a minimum, all of the following information:

(a) a full characterization survey and water balance for industrial wastewater and industrial runoff from each of the plants;

(b) methods by which industrial wastewater pollution may be reduced or eliminated through reduction, reuse, recycling, treatment, or introduction of new technology to reduce the release of pollutants to the environment; and

4.2.26 The approval holder shall implement the Pollution Minimization Study submitted in accordance with 4.2.24 as authorized in writing by the Director.

4.2.27 The approval holder shall submit a Pollution Minimization Study Report on the implementation of the findings, including recommended implementation plans and time lines.

4.2.28 The approval holder shall implement the Pollution Minimization Study Report recommendations as authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 55 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

SECTION 4.3: WASTE MANAGEMENT

OPERATIONS

4.3.1 The approval holder shall not receive or dispose of on site the following wastes:

(a) explosives (Class 1 Transportation of Dangerous Goods Regulation (TDGR) wastes);

(b) radioactive wastes regulated under the Canadian Nuclear Safety Act (Canada);

(d) biological wastes and pathological wastes.

4.3.2 Hazardous waste or hazardous recyclables stored in containers or tanks shall be stored in accordance with the Hazardous Waste Storage Guidelines, June 1988, Alberta Environment, as amended.

4.3.3 Wastes shall be transferred only at designated transfer areas designed to contain spills and leaks.

4.3.4 The approval holder shall provide and maintain an adequate aisle space between containers in the waste storage area to allow inspection, unobstructed movement of personnel, fire protection equipment, spill control equipment and decontamination equipment to any area of the waste storage area. Inspection aisles shall be arranged such that each container is exposed to view from at least one side.

4.3.5 The approval holder shall dispose of waste generated at the plant to only those facilities holding a current approval or registration under the Act to dispose of that type of waste, or to facilities approved by a local environmental authority outside of Alberta.

4.3.6 Incompatible wastes shall be prevented from mixing by a dyke, berm, wall or other appropriate barrier.

4.3.7 The approval holder shall use the following when transferring substances to, from, or between tanks, or between trucks:

(a) couplings equipped with seals that are compatible with the substance transferred;

(b) the necessary precautions to prevent spills when the couplings are disconnected; APPROVAL NO. 26-02-00 Page 56 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) established transfer areas and associated curbing, paving and catchment areas.

LANDFILLS

4.3.8 The acceptance of waste generated by any other person other than the following:

(a) the approval holder;

(b) the Syncrude research center in Edmonton; or

is prohibited at the plant.

4.3.9 The approval holder shall ensure that the working face in the landfills shall be restricted to the smallest practicable area.

LANDFILL OPERATION

4.3.10 The approval holder shall ensure access to the landfill sites is restricted to authorized personnel only.

4.3.11 Soil or other suitable material shall be spread and compacted over any exposed waste in the sanitary landfill at least three times per week.

4.3.12 Surface runoff from the landfill area shall be collected and stored in the industrial runoff control system.

4.3.13 The approval holder shall operate and maintain a surface water diversion system around the landfill to prevent surface run-on resulting from a 24 hour, 1:25 year storm from entering the landfill area from adjacent land.

4.3.14 Surface runoff water shall be diverted from entering and accumulating in the landfill area by providing appropriate diversion structures.

MONITORING

4.3.15 The approval holder shall identify, characterize and classify all waste streams generated at the plant, not including industrial wastewater streams or air effluent streams.

4.3.16 The approval holder shall measure or, when not feasible to measure, estimate the quantity of each waste generated each year. APPROVAL NO. 26-02-00 Page 57 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

REPORTING

4.3.17 The approval holder shall compile all the information required by 4.3.15 and 4.3.16 in an Annual Waste Management Summary Report as indicated in TABLE 4.3-A and in accordance with Industrial Waste Identification and Management Options, Alberta Environment, May 1996 as amended, and the Alberta User Guide for Waste Managers, Alberta Environment, August 1996, as amended.

TABLE 4.3-A ANNUAL WASTE MANAGEMENT SUMMARY

Uniform Waste Code Quantity (kg or L) Stored Recycled Disposed Waste Name Non- On- Off- On- Off- WC PIN Class Mgmt Hazardous On-site hazardous site site site site

TOTAL

4.3.18 The Annual Waste Management Summary Report shall be submitted to the Director by March 31 of each year following the year in which the information was collected.

SECTION 4.4: DOMESTIC WASTEWATER

GENERAL OPERATIONS

4.4.1 All domestic wastewater shall be directed to the domestic wastewater system.

4.4.2 The approval holder shall not release any substances from the domestic wastewater system to the surrounding watershed except as authorized by this approval.

MILDRED LAKE PLANT OPERATIONS

4.4.3 The approval holder shall operate a domestic wastewater system at the Mildred Lake Plant which shall include, at a minimum, all of the following:

(a) a domestic wastewater collection system;

(b) an aerated lagoon facility, which includes the following:

(i) two anaerobic cells;

(ii) two mechanically aerated cells; and APPROVAL NO. 26-02-00 Page 58 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(iii) one polishing cell.

4.4.4 All treated and disinfected domestic wastewater form the domestic wastewater treatment plant shall be discharged from the polishing cell to the Athabasca River or Horseshoe Lake.

AURORA NORTH PLANT OPERATIONS

4.4.5 The approval holder shall operate and maintain a domestic wastewater system at the Aurora North Plant which shall include at a minimum, all of the following:

(a) a domestic wastewater collection system;

(b) a domestic wastewater treatment plant, which includes the following:

(i) a domestic wastewater lift station;

(ii) the flow equalization/settling tanks;

(iii) a Rotating Biological Contactor (RBC);

(iv) a secondary clarifier; and

(v) a treated effluent disinfection by Sodium Hypochlorite.

4.4.6 The approval holder shall use Sodium Hypochlorite to disinfect the treated domestic wastewater, unless otherwise authorized in writing by the Director.

CERTIFIED OPERATOR REQUIREMENTS

4.4.7 The day-to-day operation of the Mildred Lake Plant and Aurora North Plant domestic wastewater systems shall be directly supervised by a certified operator who holds a valid Level I Wastewater Treatment Operators Certificate.

SLUDGE DISPOSAL

4.4.8 The approval holder shall only dispose of sludge from the domestic wastewater systems as authorized in writing by the Director.

CHEMICALS USED

4.4.9 The approval holder shall not use any chemicals in the wastewater treatment process except as provided in this approval or unless authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 59 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

IRRIGATION

4.4.10 The approval holder shall only dispose of treated wastewater by irrigation in accordance with the Guidelines for Municipal Wastewater Irrigation, Alberta Environment, 2000, as amended, or as otherwise authorized in writing by the Director.

MILDRED LAKE PLANT LIMITS

4.4.11 Treated domestic wastewater from the Mildred Lake Plant domestic wastewater system shall be discharged continuously to the following:

(a) to the Athabasca River; or

(b) to Horseshoe Lake;

unless otherwise authorized in writing by the Director.

4.4.12 Release of treated domestic wastewater from the Mildred Lake Plant domestic wastewater system shall not exceed the limits specified in TABLE 4.4-A.

4.4.13 The approval holder shall develop a proposal to complete upgrades to the domestic wastewater system which shall include, at a minimum, an analysis of all of the following parameters:

(a) Total Phosphorus;

(b) Ammonia-Nitrogen; and

that are discharged to the Athabasca River, unless otherwise authorized in writing by the Director.

4.4.14 The proposal that is referred to in subsection 4.4.13 shall be submitted to the Director by January 1st, 2011, unless otherwise authorized in writing by the Director.

TABLE 4.4-A: LIMITS FOR TREATED DOMESTIC WASTEWATER AT THE MILDRED LAKE PLANT

Parameter Limit

BOD5 < 25 mg/L monthly arithmetic mean of weekly samples

TSS < 25 mg/L monthly arithmetic mean of weekly samples APPROVAL NO. 26-02-00 Page 60 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

AURORA NORTH PLANT LIMITS

4.4.15 Treated domestic wastewater from the Aurora North Plant wastewater stabilization pond storage cells shall be continuously discharged, from the Aurora North Plant industrial recycle pond outfall, unless as otherwise authorized in writing by the Director.

4.4.16 Release of treated domestic wastewater from the Aurora North Plant domestic wastewater system shall not exceed the limits specified in TABLE 4.4-B.

TABLE 4.4-B: LIMITS FOR TREATED DOMESTIC WASTEWATER AT THE AURORA NORTH PLANT

Parameter Limit

BOD5 < 25 mg/L monthly arithmetic mean of weekly samples

TSS < 25 mg/L monthly arithmetic mean of weekly samples

Fecal Coliform Less than 200 organisms per 100 ml

MONITORING AND REPORTING

4.4.17 The approval holder shall monitor the domestic wastewater system as specified in TABLE 4.4-C and TABLE 4.4-D.

TABLE 4.4-C: MILDRED LAKE PLANT MONITORING – DOMESTIC WASTEWATER SYSTEM

Reporting Frequency Sampling Parameter Sample Type Frequency Report (Minimum) Location To Annually Once a Raw domestic wastewater prior to BOD Composite 5 week treatment Annual Domestic Wastewater Once a Raw domestic wastewater prior to TSS Composite Report week treatment BOD – 5 Once a Treated domestic wastewater prior to (On or before Nitrification Grab week discharge. March 31 of the inhibited year following the Director Volume of Continuous Wastewater flow into the treatment year in which the Daily Total flow Measurement plant. information was collected)

SLUDGE DISPOSAL Number of Copies Required: Sludge Total Estimated Amount of sludge being trucked. 2 Volume Volume APPROVAL NO. 26-02-00 Page 61 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

TABLE 4.4-D: AURORA NORTH PLANT MONITORING – DOMESTIC WASTEWATER SYSTEM

Reporting Frequency Sample Sampling Parameter Frequency Report (Minimum) Type Location To Annually Raw domestic wastewater prior to BOD Once a week Composite 5 treatment Annual Domestic Raw domestic wastewater prior to TSS Once a week Composite Wastewater treatment Report Treated domestic wastewater prior to CBOD Once a week Composite discharge to industrial recycle pond. (On or Treated domestic wastewater prior to before TSS Once a week Composite discharge to industrial recycle pond. March 31 of Treated domestic wastewater prior to the year Fecal Coliforms Once a week Grab following the discharge to industrial recycle pond. Director year in Continuous which the Free Chlorine when practicing Treated domestic wastewater prior to Continuous information Residual wastewater discharge to industrial recycle pond. was chlorination collected) Daily Total Prior to discharge to the industrial Volume of flow Calculated Discharge recycle pond Number of Volume of Copies Sodium Daily Total --- Required: Hypochlorite 2 Used

4.4.18 The approval holder shall compile an Annual Domestic Wastewater Report which shall include, at a minimum, all of the following information:

(a) the monthly arithmetic mean, including maximum and minimum values, of each parameter monitored, excluding fecal coliform counts, as outlined in TABLE 4.4-C and 4.4-D.

(b) the monthly geometric mean of fecal coliform counts;

(d) a summary of any incidents which required reporting in accordance with subsection 2.1.1;

(e) a calculation of the uncommitted hydraulic reserve capacity for the domestic wastewater treatment plants;

(f) a summary of any operational problems; and APPROVAL NO. 26-02-00 Page 62 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(g) the monitoring requirements as outlined in subsection 4.4.17.

4.4.19 The approval holder shall submit two copies of the Annual Domestic Wastewater Report to the Director on or before March 31of the year following the year in which the information on which the report is based was collected.

SECTION 4.5: WATERWORKS

OPERATION

4.5.1 The approval holder shall meet Alberta Environment’s Standards and Guidelines for Municipal Waterworks, Wastewater and Storm Drainage Systems (2006) on or before December 31, 2010, unless otherwise authorized in writing by the Director.

4.5.2 The approval holder shall not add any chemicals to the waterworks system unless otherwise authorized by the Director.

4.5.3 If the free or combined chlorine residuals in the water after 20 minutes of contact are less than 0.5mg/L (free) or less than 1.8mg/L (combined), the approval holder shall immediately take the following corrective action in addition to reporting pursuant to clause 2.1.1:

(a) stop water production until the residual is increased to either 0.5mg/L (free) or 1.8 mg/L (combined); and

(b) report to the Director.

4.5.4 The approval holder shall immediately take the corrective action outlined in the latest version of the Communication and Action Protocol for Failed Bacteriological Results in Drinking Water for Waterworks Systems Authorized Under the Environmental Protection and Enhancement Act, as amended, if any sample of treated water taken for bacteriological analysis contains:

(a) any Total Coliform bacteria;

(b) any E. coli;

(d) a heterotrophic plate count (HPC) of more than 500 cfu per millilitre.

4.5.5 The approval holder shall report to the Director pursuant to clause 2.1.1 if any conditions in subsection 4.5.4 exist. APPROVAL NO. 26-02-00 Page 63 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

MILDRED LAKE PLANT OPERATIONS

4.5.6 The approval holder shall operate and maintain a waterworks system at the Mildred Lake Plant which shall include, at a minimum, all of the following:

(a) a surface water supply from the Mildred Lake reservoir;

(b) a water treatment plant with treatment capabilities for:

(i) pre-treatment chlorination;

(ii) flocculation;

(iii) clarification;

(iv) filtration; and

(v) disinfection;

(d) a water distribution system.

4.5.7 Clarifier blowdown and filter backwash water from the Mildred Lake water treatment plant shall be discharged to the wastewater system.

4.5.8 The day to day operation of the Mildred Lake water treatment plant shall be directly supervised by a minimum of one certified operator who holds a valid Level II Water Treatment Operator Certificate and two certified operators who hold a valid Level I Water Treatment Operator Certificate.

AURORA NORTH PLANT OPERATIONS

4.5.9 The approval holder shall operate and maintain a waterworks system at the Aurora North Plant which shall include, at a minimum, all of the following:

(a) a water supply from the fresh water pond located southeast of the Aurora North extraction facility;

(b) a water treatment plant with treatment capabilities for:

(i) preoxidation;

(ii) flocculation;

(iii) filtration; APPROVAL NO. 26-02-00 Page 64 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(iv) cation softening;

(v) activated carbon filtration;

(vi) reverse osmosis; and

(vii) disinfection;

(d) a water distribution system.

4.5.10 All backwash water from filters, brine regeneration, settling units and reject water from reverse osmosis units at the Aurora North Plant shall be discharged to the Aurora North Plant recycle pond.

4.5.11 The day to day operation of the Aurora North water treatment plant shall be directly supervised by a certified operator who holds a valid Level II Water Treatment Operator Certificate.

4.5.12 If the conductivity monitor hourly average reading is equal to or greater than one hundred percent greater than the previous hourly average reading, the approval holder shall take the following action in addition to reporting pursuant to subsection 2.1.1:

(a) stop water production;

(b) quality control/calibration check of the conductivity monitoring system;

(d) report to the Director.

4.5.13 Discharge of treated water into the potable water unit shall be resumed only after treated water conductivity reading has reached the values prior to the shut down.

LIMITS

4.5.14 Water in the designated sampling locations shall comply with the limits for the parameters specified in TABLE 4.5-A and TABLE 4.5-B. APPROVAL NO. 26-02-00 Page 65 of 95 ………….………….

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TABLE 4.5-A: MILDRED LAKE PLANT WATERWORKS LIMITS

DESIGNATED SAMPLING PARAMETERS LIMIT LOCATION

Volume of Raw water Entering the water treatment plant Not Applicable

Entering the treated water Volume of Treated Water Not Applicable reservoir

Entering the water distribution pH of Treated Water 6.5 – 8.5 system < 1 NTU for 95 % of filter operation time when raw water turbidity is > 2.5 NTU. Prior to entering the water < 0.8 NTU for 95 % if raw water turbidity Turbidity of Treated Water distribution system. is 1.6 to 2.5 NTU. < 50 % of raw water turbidity if raw water turbidity < 1.6 NTU. Random location in the water Turbidity of Treated Water < 5 NTU distribution system Free Chlorine Residual or Combined Chlorine Residual After 20 minutes contact time > 0.5 mg/L of Treated Water

TABLE 4.5-B: AURORA NORTH PLANT WATERWORKS LIMITS

DESIGNATED SAMPLING PARAMETERS LIMIT LOCATION Volume of Raw water Entering the water treatment plant Not Applicable Entering the treated water Volume of Treated Water Not Applicable reservoir Entering the water distribution pH of Treated Water 6.5 – 8.5 system Turbidity of Treated Water Prior to entering the treated < 1 NTU for 95% of samples per month after Reverse Osmosis Units potable water reservoir Prior to entering the water Turbidity of Treated Water < 5 NTU distribution system. Free Chlorine Residual or Combined Chlorine Residual After 20 minutes contact time > 0.5 mg/L of Treated Water Free Chlorine Residual or Within the water distribution Combined Chlorine Residual > 0.1 mg/L system of Treated Water APPROVAL NO. 26-02-00 Page 66 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

4.5.15 In addition to the limits specified in TABLE 4.5-A and TABLE 4.5-B the approval holder shall maintain and operate the waterworks system so that the produced water and distributed water shall comply with the maximum acceptable concentrations specified in the GCDWQ.

MILDRED LAKE PLANT MONITORING AND REPORTING

4.5.16 The approval holder shall monitor the Mildred Lake Plant waterworks system as specified in TABLE 4.5-C.

4.5.17 The approval holder shall report to the Director the results of the Mildred Lake Plant waterworks system monitoring as required in TABLE 4.5-C.

TABLE 4.5-C: MONITORING AND REPORTING – MILDRED LAKE PLANT WATERWORKS SYSTEM

NON- EMERGENCY SAMPLE Report PARAMETERS FREQUENCY SAMPLING LOCATION REPORTING TYPE FREQUENCY To ANNUAL

WATERWORKS SYSTEM Raw water Once per day Grab sample Prior to chemical addition Turbidity Raw water pH Once per day Grab sample Prior to chemical addition Treated Water Continuous Entering the water distribution Continuous Volume monitoring system Annual Waterworks Treated Water In line Entering the treated water Report Continuous Turbidity turbidity meter reservoir from each filter train (On or before Turbidity of Water March 31 of the Within the Random location in the water Once per week Grab sample year following Distribution distribution system the year in Director System which the pH of Treated Grab sample/ Prior to entering treated water Once per day information was Water reservoirs collected) Free Chlorine Residual or Number of Random location in the water Combined Once per day Grab sample/ Copies distribution system Chlorine Residual Required: of Treated Water 2 Bacteria in 4 samples per Treated Water month (or as Random location in the water Grab sample (Bacteriological required by the distribution system examination) GCDWQ) APPROVAL NO. 26-02-00 Page 67 of 95 ………….………….

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4.5.18 Notwithstanding subsections 4.5.16 and 4.5.17, if the Mildred Lake waterworks treatment plant is not operated on any calendar day, then:

(a) monitoring is not required on that calendar day; and

(b) the monitoring report shall indicate that the waterworks treatment plant did not produce water on that day.

4.5.19 The approval holder shall draw a minimum of one grab sample during the winter and one grab sample during the summer, with a minimum of four months between samples, from the treated water entering the Mildred Lake Plant distribution system and conduct chemical analysis on those samples for:

(a) Turbidity, TDS, Calcium, Magnesium, Hardness, Sodium, NO2 - NO3, TKN, NH3-N, T-Alkalinity, Fluoride, Nitrite-N, Dissolved Inorganic Carbon and Dissolved Organic Carbon, Aluminum, Copper, Lead, THMs; and

(b) any other parameters required in writing by the Director.

AURORA NORTH PLANT MONITORING AND REPORTING

4.5.20 The approval holder shall monitor the Aurora North Plant waterworks system as specified in TABLE 4.5-D.

4.5.21 The approval holder shall report to the Director the results of the Aurora North Plant waterworks system monitoring as required in TABLE 4.5-D.

TABLE 4.5-D: MONITORING AND REPORTING - WATERWORKS SYSTEM

NON- EMERGENCY REPORT PARAMETERS FREQUENCY SAMPLE TYPE SAMPLING LOCATION REPORTING TO FREQUENCY ANNUAL

WATERWORKS SYSTEM Treated Water Once per day Grab sample Prior to entering reverse osmosis unit Annual Waterworks Turbidity Report pH of Treated Water Once per day Grab sample Prior to entering the distribution system (On or before Grab sample or March 31 of the Treated Water Once per day Continuous Prior to entering the distribution system year following the Turbidity monitoring year in which the Director Free Chlorine information was Residual or collected) Grab sample Combined Chlorine Once per day After 20 minutes of contact time Number of Copies Residual of Treated Required: Water 2 APPROVAL NO. 26-02-00 Page 68 of 95 ………….………….

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NON- EMERGENCY REPORT PARAMETERS FREQUENCY SAMPLE TYPE SAMPLING LOCATION REPORTING TO FREQUENCY ANNUAL

Free Chlorine Annual Waterworks Residual or Random location in the water Report Combined Chlorine Once per week Grab sample distribution system (On or before Residual of Treated March 31 of the Water year following the Bacteria in Treated 4 samples per year in which the Director Water month (or as Random location in the water Grab sample information was (Bacteriological required by the distribution system collected) examination) GCDWQ) Number of Copies Required: Conductivity of Once per day Continuous After reverse osmosis unit Treated Water 2

4.5.22 Notwithstanding subsections 4.5.20 and 4.5.21, If the Aurora North waterworks treatment plant is not operated on any calendar day, then:

(a) monitoring is not required on that calendar day; and

(b) the monitoring report shall indicate that the waterworks treatment plant did not produce water on that day.

4.5.23 The approval holder shall draw a minimum of one grab sample during the winter and one grab sample during the summer, with a minimum of four months between samples, from the treated water entering the Aurora North Plant distribution system and conduct chemical analyses on those samples for:

(a) Turbidity, TDS, Calcium, Magnesium, Hardness, Sodium, NO2, NO3, TKN, NH3-N, T-Alkalinity, Fluoride, Nitrite-N, Carbons, Aluminum, Copper, Lead, THMs; and

(b) any other parameter as may be required in writing by the Director.

REPORTING

4.5.24 The Annual Waterworks Report which shall include, at a minimum, all of the following information:

(a) the monthly average of each parameter monitored as required in TABLE 4.5-C and TABLE 4.5-D;

(b) maximum and minimum daily value of each parameter monitored as required in subsections 4.5.16 and 4.5.20 for each month;

(c) the result of the chemical analysis of water as required in subsections 4.5.19 and 4.5.23; APPROVAL NO. 26-02-00 Page 69 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(d) name of the supervising operators responsible for the operation of the following:

(i) Mildred Lake Plant waterworks system; and

(ii) Aurora North Plant waterworks system;

(e) a calculation of the uncommitted hydraulic reserve capacity for the water treatment plants;

(f) a description of any incident which required reporting as per subsection 2.1.1; and

(g) a summary of any operational problems.

4.5.25 The approval holder shall submit two copies of the Annual Waterworks Report to the Director on or before March 31 of the year following the year in which the information on which the report is based was collected.

SECTION 4.6: GROUNDWATER

4.6.1 The approval holder shall implement the Groundwater Monitoring Program for the Mildred Lake Plant and the Aurora North Plant respectively, as outlined in the most recent Groundwater Monitoring Report submissions, unless otherwise authorized in writing by the Director.

4.6.2 The samples extracted from the groundwater monitor wells shall be collected using scientifically acceptable purging, sampling and preservation procedures so that a representative groundwater sample is obtained.

4.6.3 All groundwater monitor wells shall be:

(a) protected from damage; and

(b) locked except when being sampled; unless otherwise authorized in writing by the Director.

4.6.4 If a representative groundwater sample cannot be collected because the groundwater monitor well is damaged or is no longer capable of producing a representative groundwater sample:

(a) the groundwater monitor well shall be cleaned, repaired or replaced; and

(b) a representative groundwater sample shall be collected and analyzed prior to the next scheduled sampling event; unless otherwise authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 70 of 95 ………….………….

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4.6.5 In addition to the sampling information recorded in SECTION 2.2:, the approval holder shall record the following sampling information for all groundwater samples collected:

(a) a description of purging and sampling procedures;

(b) the static elevations, above sea level, of fluid phases in the groundwater monitor well prior to purging;

(d) the pH of each sample at the time of sampling; and

(e) the specific conductance of each sample at the time of sampling.

4.6.6 The approval holder shall participate in regional groundwater initiatives for the Athabasca Oil Sands Region on an ongoing basis, that will include at a minimum all of the following:

(a) regional groundwater quality assessment studies;

(b) development and implementation of a regional groundwater monitoring network;

(d) assessments of potential groundwater quality impacts to groundwater resources in the region.

4.6.7 The approval holder shall compile an Annual Groundwater Monitoring Program Summary Report which shall include, at a minimum, all of the following information:

(a) a legal description of the plant and a map illustrating the plant boundaries;

(b) a topographic map of the plant;

(d) a map showing the location of all surface and groundwater users, and, a listing describing surface water and water well use details, within at least a three kilometre radius of the plant;

(e) a general hydrogeological characterization of the region within a five kilometre radius of the plant;

(f) a detailed hydrogeological characterization of the plant; APPROVAL NO. 26-02-00 Page 71 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

(g) a geological cross-section(s) of the plant;

(h) a map of surface drainage patterns located within the plant;

(i) a map of groundwater monitor well locations and a description of the existing groundwater monitoring program for the plant;

(j) a summary of any changes to the groundwater monitoring program made since the last groundwater monitoring report;

(k) analytical data recorded as required in subsections 4.6.1 and 4.6.5;

(l) a summary of fluid elevations recorded as required in 4.6.5 (b) and an interpretation of changes in fluid elevations;

(m) an interpretation of groundwater flow patterns;

(n) an interpretation of the analytical results including the following:

(i) diagrams indicating the location of any contamination identified,

(ii) probable sources of contamination, and

(iii) the extent of contamination identified;

(o) a summary and interpretation of the data collected since the groundwater monitoring program began including:

(i) control charts which indicate trends in contaminant concentrations, and

(ii) the migration of contaminants;

(p) a description of the following:

(i) contaminated groundwater remediation techniques employed,

(ii) source elimination measures employed,

(iii) risk assessment studies undertaken, and

(iv) risk management studies undertaken;

(q) a sampling schedule for the following year; APPROVAL NO. 26-02-00 Page 72 of 95 ………….………….

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(r) recommendations, as follows:

(i) for changes to the groundwater monitoring program to make it more effective; and

(ii) for remediation, risk assessment or risk management of contamination identified;

(s) a summary of participation undertaken in accordance with subsection 4.6.6.

4.6.8 The approval holder shall submit two copies of the Annual Groundwater Monitoring Summary Report to the Director on or before March 31 of the year following the year in which the information on which the report is based was collected, unless otherwise authorized in writing by the Director.

PART 5: FINANCIAL SECURITY REQUIREMENTS

5.1.1 The approval holder shall annually review and revise the security cost estimate for reclamation and decommissioning of the mine, including, but not limited to, all associated overburden and tailings disposal sites.

5.1.2 The security cost estimate for reclamation of the mine referred to in subsection 5.1.1, shall be submitted to the Director by November 1 of each year, unless otherwise authorized in writing by the Director.

5.1.3 The security cost estimate for reclamation of the mine referred to in subsection 5.1.1, shall reflect the full cost of a third party to reclaim all disturbance planned to the end of the upcoming year unless otherwise provided for in the Conservation and Reclamation Regulation.

5.1.4 Where, at any other time of the year, in the opinion of the Director, there has been a significant change in the factors that are used to estimate the amount of security, the approval holder shall recalculate the security cost estimate when directed to do so in writing by the Director.

5.1.5 The approval holder shall provide additional financial security based on the calculations referred to in subsection 5.1.4 as required in writing by the Director.

5.1.6 The approval holder shall renew the financial security for reclamation of the mine in the amount calculated in subsection 5.1.2, at least 30 days prior to the date it expires.

5.1.7 The approval holder shall maintain the financial security for reclamation of the mine in the amount calculated in subsection 5.1.2, until returned in accordance with the Act or the Regulations. APPROVAL NO. 26-02-00 Page 73 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

PART 6: LAND RECLAMATION

GENERAL

6.1.1 The approval holder shall apply for an amendment to this approval to decommission and reclaim the plant by submitting a Decommissioning and Land Reclamation Plan to the Director.

6.1.2 The Decommissioning and Land Reclamation Plan referred to in subsection 6.1.1 shall be submitted at least one year prior to the plant ceasing operation, except for repairs and maintenance, unless otherwise authorized in writing by the Director.

6.1.3 The approval holder shall implement the Decommissioning and Land Reclamation Plan as authorized by the Director.

6.1.4 Within 6 months of an industrial landfill ceasing operations, the approval holder shall apply for an amendment to this approval by submitting a Decommissioning and Land Reclamation Plan to the Director, unless otherwise authorized in writing by the Director.

6.1.5 The approval holder shall implement the plan referred to in subsection 6.1.4 for the industrial landfill, as authorized in writing by the Director.

6.1.6 The approval holder shall reclaim the land so that the reclaimed soils and landforms are capable of supporting a self-sustaining, locally common boreal forest, regardless of the end land use.

6.1.7 The approval holder shall revegetate disturbed land to target the establishment of a self-sustaining, locally common, boreal forest integrated with the surrounding area, unless otherwise authorized in writing by the Director.

6.1.8 The approval holder shall participate in any regional multi-stakeholder forum that includes the development of soil salvage and placement strategies, to the satisfaction of the Director.

6.1.9 The approval holder shall participate in any regional multi-stakeholder forum that may be developed for the coordination of reclamation material sharing, to the satisfaction of the Director.

LAND CLOSURE PLANNING

6.1.10 The approval holder shall submit an updated Mine Reclamation Plan to the Director by December 31, 2011, and every three years thereafter, unless otherwise authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 74 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

6.1.11 The Mine Reclamation Plan referred to in subsection 6.1.10 shall provide the detailed operational plan for development and reclamation for a specified period of operation. The plan shall:

(a) be consistent with the values and objectives in the Fort McMurray-Athabasca Oil Sands Subregional Integrated Resource Plan, Alberta Environment, 2002, as amended;

(b) be consistent with the Alberta Energy and Utilities Board (EUB) approved mine plans;

(d) illustrate integration with the Life of Mine Closure Plan referred to in subsection 6.1.14.

6.1.12 The Mine Reclamation Plan referred to in subsection 6.1.10 shall address, at a minimum, the following:

(a) integration of landforms, topography, vegetation, waterbodies, and watercourses with adjacent undisturbed areas within or adjacent to the plant, and mine areas adjacent to the plant;

(b) geotechnical stability;

(d) soils, including consideration and adaptive incorporation of any guidelines prepared or provided by the Director related to the development of soil salvage and placement strategies;

(e) reclamation materials balance relative to life of mine requirements, indicating soil quality;

(f) vegetation;

(g) groundwater hydrology and hydrogeology;

(h) wetlands, end pit lakes, and Base Mine Lake;

(i) land uses;

(j) recreation (intensive and extensive); APPROVAL NO. 26-02-00 Page 75 of 95 ………….………….

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(k) forest resource considering progressive establishment of upland vegetation communities, and timber productivity ratings consistent with pre-disturbance upland communities;

(l) traditional land use;

(m) fish and wildlife habitat as defined by Habitat Suitability Indices (or other habitat assessment tools recommended by the Director) for key species consistent with pre-disturbance capabilities;

(n) watercourse and riparian design and development, including specific design for fish habitat;

(o) micro and meso topographic diversity;

(p) miscellaneous uses;

(q) commercial/industrial uses; and

(r) any other information as required in writing by the Director.

6.1.13 The approval holder shall implement the Mine Reclamation Plan referred to in subsection 6.1.10, as authorized in writing by the Director.

6.1.14 The approval holder shall submit a Life of Mine Closure Plan for written authorization by the Director by December 31, 2011, unless otherwise authorized in writing by the Director.

6.1.15 The Life of Mine Closure Plan referred to in subsection 6.1.14 shall outline the most recent concepts for development and reclamation of the plant. The plan shall:

(a) be consistent with the values and objectives in the Fort McMurray-Athabasca Oil Sands Subregional Integrated Resource Plan, Alberta Environment, 2002, as amended;

(b) ensure that reclaimed features have natural appearances characteristic of the region;

(d) demonstrate the utility of the landscape and its ability to meet the various end land use goals and objectives; and

(e) provide designs for individual landforms and for the lease landscape that will target specific end land uses. APPROVAL NO. 26-02-00 Page 76 of 95 ………….………….

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6.1.16 The Life of Mine Closure Plan referred to in subsection 6.1.14 shall address, at a minimum, the following:

(a) integration of landforms, topography, vegetation, waterbodies, and watercourses with adjacent undisturbed areas within or adjacent to the plant, and mine areas adjacent to the plant;

(b) geotechnical stability;

(d) soils, including consideration and adaptive incorporation of any guidelines prepared or provided by the Director related to the development of soil salvage and placement strategies;

(e) reclamation materials balance relative to life of mine requirements, indicating soil quality;

(f) vegetation;

(g) groundwater hydrology and hydrogeology;

(h) wetlands, end pit lakes, and Base Mine Lake;

(i) land uses;

(j) recreation (intensive and extensive);

(k) forestry resource considering progressive establishment of upland vegetation communities, and timber productivity ratings consistent with pre-disturbance upland communities;

(l) traditional land use;

(m) fish and wildlife habitat as defined by Habitat Suitability Indices (or other habitat assessment tools recommended by the Director) for key species consistent with predisturbance capabilities;

(n) watercourse and riparian design and development, including specific design for fish habitat;

(o) miscellaneous uses;

(p) commercial/industrial uses;

(q) any other information as required in writing by the Director. APPROVAL NO. 26-02-00 Page 77 of 95 ………….………….

TERMS AND CONDITIONS ATTACHED TO APPROVAL

6.1.17 The approval holder shall implement the Life of Mine Closure Plan referred to in subsection 6.1.14, as authorized in writing by the Director.

6.1.18 The approval holder shall participate in any regional multi-stakeholder forum that may be developed for end land use planning, to the satisfaction of the Director.

MATERIALS BACKFILLING AND CONTOURING

6.1.19 The approval holder shall not bury snow, ice, or other material, which causes instability or unacceptable settlement in tailings sand and overburden disposal areas or mined out pits.

6.1.20 The approval holder shall recontour all final slopes no steeper than 3 horizontal to 1 vertical (18°), over the total height of any engineered structure, unless otherwise authorized in writing by the Director.

6.1.21 The approval holder shall construct all structures and slopes to be geotechnically stable with minimal erosion.

6.1.22 The approval holder shall design all landforms to have self-sustaining and integrated surface drainage systems to convey surface runoff to adjacent watercourses, waterbodies, or wetlands.

6.1.23 The approval holder shall establish surface drainage on disturbed land that is integrated with undisturbed land.

SOIL PLACEMENT

6.1.24 The approval holder shall return disturbed land to a minimum post-disturbance area of land capability class as directed in:

(a) TABLE 6.2-A – Mildred Lake Plant;

(b) TABLE 6.2-B – Aurora North Plant; and

or as otherwise authorized in writing by the Director.

6.1.25 Upon written authorization of the Director, the approval holder may decrease the area authorized in one of the classes noted in TABLE 6.2-A, TABLE 6.2-B, or TABLE 6.2- C, only if it results in an increase in area of the same amount in a higher class, or in the aggregate of more than one higher class. APPROVAL NO. 26-02-00 Page 78 of 95 ………….………….

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TABLE 6.2-A: LAND CAPABILITY CLASS FOR MILDRED LAKE PLANT

LAND CAPABILITY CLASS PRE-DISTURBANCE AREA (HECTARES)* 10 2 176 3 7762 4 5662 5 6683 Total Area 20283 *as amended from time to time

TABLE 6.2-B: LAND CAPABILITY CLASS FOR AURORA NORTH PLANT

LAND CAPABILITY CLASS PRE-DISTURBANCE AREA (HECTARES)*

10 20 3 941 4 2195 5 6413 Total Area 9549 *as amended from time to time

TABLE 6.2-C: LAND CAPABILITY CLASS FOR AURORA SOUTH PLANT

LAND CAPABILITY CLASS PRE-DISTURBANCE AREA (HECTARES)*

10 2 1537 3 545 4 1315 5 7280 Total Area 10677 *as amended from time to time

6.1.26 The approval holder shall place in reclamation all coversoil and subsoil salvaged according to Part 3 of this approval.

6.1.27 The approval holder shall place an average total depth of 0.5 m of coversoil and subsoil combined, on all reclamation areas of land capability Class 1 through 5, unless otherwise authorized in writing by the Director.

6.1.28 The coversoil and subsoil placed according to subsection 6.1.27 may be placed in any proportion, considering subsections 6.1.29 through 6.1.33. APPROVAL NO. 26-02-00 Page 79 of 95 ………….………….

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6.1.29 As per 6.1.27, where the overburden beneath the coversoil is rated good or fair, as described in Table 9, Page 28 of the Soil Quality Criteria Relative to Disturbance and Reclamation, 1987, it may be considered as part of the total depth requirement of 0.5 m.

6.1.30 When upland surface soil is used in reclamation, the approval holder shall place it at an average minimum depth of 0.05 m (5 cm).

6.1.31 The approval holder shall not cover upland surface soil with any other material.

6.1.32 When peat-mineral mix is used as coversoil immediately over subsoil or overburden of 20% clay or more, the approval holder shall place the peat-mineral mix to an average minimum depth of 0.3 m.

6.1.33 When peat-mineral mix is used as coversoil immediately over subsoil, overburden, or tailings sand comprised of less than 20% clay, the approval holder shall place the peat-mineral mix according to the following targeted land capability classes:

(a) Class 1 – average minimum 0.5 m;

(b) Class 2 – average minimum 0.5 m;

(d) Class 4 – average minimum 0.3 m; and

(e) Class 5 – average minimum 0.3 m.

6.1.34 The approval holder shall cap the following materials with an average minimum of 1.0 m of tailings sand or overburden prior to placement of reclamation material as per 6.1.27 through 6.1.33:

(a) impervious conditions such as lean oilsand or rock;

(b) reject from the oil sands conditioning and transport system;

(d) Clearwater overburden; and

(e) the plant developed area;

unless otherwise authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 80 of 95 ………….………….

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6.1.35 Notwithstanding subsections 6.1.27, 6.1.32, 6.1.33, and 6.1.34 the Director may authorize in writing a reduction of the average minimum coversoil and subsoil depths in consideration of the following:

(a) better expected environmental outcomes based on the characteristics of the peat-mineral mix or the underlying subsoil or overburden, including but not limited to texture, pH, or peat decomposition class, based on research or operational field trials;

(b) alternate approaches with the same or better expected environmental outcomes based on research or operational field trials; or

6.1.36 The approval holder shall prepare a Soil Placement Plan for the upcoming year and submit it to the Director no later than October 15 each year.

6.1.37 The approval holder shall meet with the Director no later than November 30 each year and review the Soil Placement Plan referred to in subsection 6.1.36.

6.1.38 The approval holder shall revise the Soil Placement Plan as directed in writing by the Director following the meeting referred to in subsection 6.1.37.

6.1.39 The Soil Placement Plan referred to in subsection 6.1.36 shall describe how salvaged materials will be used to achieve the reclamation objectives, and shall address at a minimum, the following:

(a) the target ecosystem, as identified in the mine reclamation plan;

(b) the volumes and depths of upland surface soil to be placed;

(d) the volumes and depths of peat-mineral mix to be placed;

(e) the area and locations of peat-mineral mix placement;

(f) the volumes and depths of subsoil to be placed;

(g) the area and locations of subsoil placement;

(h) the target land capability class; APPROVAL NO. 26-02-00 Page 81 of 95 ………….………….

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(i) a rationale for how available coversoil and subsoil will be used, given the priority of using the material of highest reclamation quality for land of highest capability;

(j) a rationale for how available upland surface soil will be used, recognizing that it is both a source of vegetative propagules and a substrate for plant growth;

(k) any other information requested in writing by the Director;

or as otherwise directed in writing by the Director.

6.1.40 The approval holder shall consider the following in developing the Soil Placement Plan referred to in subsection 6.1.36:

(a) reclamation materials salvaged according to PART 3;

(b) the reclamation objectives in PART 6;

(d) any guidelines prepared or provided by the Director related to soil salvage and placement strategies;

(e) providing a pH throughout the soil profile conducive to the vegetation of the target ecosystem;

(f) an evaluation of the suitability of material in the 0 to 2 m stratum as a rooting environment, at locations subject to rapid or excessive drainage;

(g) matching predisturbance upland ecosystem types of salvaged upland surface soil to targeted ecosystem types of reclaimed areas; and

(h) the Life of Mine Closure Plan.

6.1.41 The approval holder shall implement the Soil Placement Plan referred to in subsection 6.1.36, as authorized in writing by the Director.

6.1.42 The Director may indicate in writing whether continued annual written authorization of the Soil Placement Plan, or any part of the Plan, is required.

REVEGETATION AND LAND USE

6.1.43 The approval holder shall submit a Revegetation Plan to the Director by December 31, 2011, unless otherwise authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 82 of 95 ………….………….

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6.1.44 The Revegetation Plan referred to in subsection 6.1.43 shall comply with the Guidelines for Reclamation to Forest Vegetation in the Athabasca Oil Sands Region, 1998, as amended, and shall include, at a minimum, the following:

(a) forest ecosystems and wetland ecosystems on disturbed land:

(i) incorporation of vegetation and vegetation communities of traditional value that are characteristic of the locally common boreal forest;

(ii) re-establishment of the capability for long term biodiversity consistent with the Biodiversity Program referred to in 6.1.80;

(iii) re-establishment of the continuity of vegetation patterns, where practicable, between the reclaimed lands and adjacent undisturbed lands;

(iv) establishment of the continuity of vegetation patterns, where practicable, between the reclaimed lands and the lands of adjacent lease holders (whether reclaimed or in the planning stage);

(b) commercially-viable forest ecosystems:

(i) on areas equivalent to the pre-disturbance areas of commercially- viable White Spruce Mixedwood, Deciduous, White Spruce and total Coniferous ecosite phases; and

(ii) having productivity consistent with TABLE 6.2-D, TABLE 6.2-E, and TABLE 6.2-F; and

6.1.45 The approval holder shall update the Revegetation Plan referred to in subsection 6.1.43 within 12 months of commencement of operations of the Aurora South Plant, unless otherwise authorized in writing by the Director.

6.1.46 The approval holder shall reclaim disturbed land to achieve, at a minimum, the timber productivity rating values within TABLE 6.2-D, TABLE 6.2-E, and TABLE 6.2-F, unless otherwise authorized in writing by the Director.

6.1.47 The approval holder shall provide an update to TABLE 6.2-D, TABLE 6.2-E, and TABLE 6.2-F by December 31, 2008, in a format specified by the Director, unless otherwise authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 83 of 95 ………….………….

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TABLE 6.2-D: TIMBER PRODUCTIVITY RATING FOR MILDRED LAKE PLANT**

SITE INDEX PRODUCTIVITY POST-DISTURBANCE AREA (HECTARES) * Good TBA Medium TBA Fair TBA Non-commercial forest TBA Total TBA * as amended from time to time ** as confirmed by the Alberta Vegetation Inventory 2.1 audit (July 2001) and excluding areas not harvestable due to standard forestry operating restrictions.

TABLE 6.2-E: TIMBER PRODUCTIVITY RATING FOR AURORA NORTH PLANT** SITE INDEX PRODUCTIVITY POST-DISTURBANCE AREA (HECTARES) * Good TBA Medium TBA Fair TBA Non-commercial forest TBA Total TBA * as amended from time to time ** as confirmed by the Alberta Vegetation Inventory 2.1 audit (July 2001) and excluding areas not harvestable due to standard forestry operating restrictions.

TABLE 6.2-F: TIMBER PRODUCTIVITY RATING FOR AURORA SOUTH PLANT** SITE INDEX PRODUCTIVITY POST-DISTURBANCE AREA (HECTARES) * Good TBA Medium TBA Fair TBA Non-commercial forest TBA Total TBA * as amended from time to time ** as confirmed by the Alberta Vegetation Inventory 2.1 audit (July 2001) and excluding areas not harvestable due to standard forestry operating restrictions.

6.1.48 The approval holder shall submit a Forest Resource Plan to the Director by:

(a) December 31, 2008;

(b) December 31, 2011; and

unless otherwise authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 84 of 95 ………….………….

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6.1.49 The Forest Resource Plans referred to in subsection 6.1.48 shall include the following:

(a) strategies to minimize and mitigate the impacts to the Annual Allowable Cut in the area by the development;

(b) a description and discussion of land productivity, replacement of growing stock, replacement of regenerated harvest units, and availability of merchantable timber;

(c) a description of the process to assess, document, and report on reforestation areas of commercial forest land use that is consistent with Alberta forest industry standards;

(d) a proposal to submit completed regeneration surveys and reporting of silviculture activities on reforestation areas of commercial forest land use in a manner acceptable to the Director; and

(e) any other information as required in writing by the Director.

6.1.50 The harvest clearing and reforestation components referred to in subsection 6.1.49 shall be suitable for integration into the applicable Forest Management Plan and periodically updated by the Forest Management Agreement holder.

6.1.51 The approval holder shall implement the Forest Resource Plans referred to in subsection 6.1.48 as authorized in writing by the Director.

WETLANDS

6.1.52 The approval holder shall submit a plan and schedule to reclaim wetlands to the Director, by December 31, 2011, unless otherwise authorized in writing by the Director.

6.1.53 The plan referred to in subsection 6.1.52 shall comply with Guideline for Wetland Establishment on Reclaimed Oil Sands Leases, 2000, as amended, and shall include at a minimum, the following:

(a) identification of the type and amount of wetlands to be created on the reclaimed landscape;

(b) measures to ensure wetland sustainability, ecological function, traditional use, and biodiversity;

(c) establishment of wetland and wetland watershed hydrology to support wetlands; APPROVAL NO. 26-02-00 Page 85 of 95 ………….………….

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(d) for wetlands specifically designed for treatment, effective water treatment;

(e) availability of soil and planting materials;

(f) soil placement;

(g) monitoring of constructed wetlands; and

(h) performance measures.

6.1.54 The approval holder shall implement the plan and schedule referred to in subsection 6.1.52 as authorized in writing by the Director.

RESEARCH, MONITORING AND REPORTING

TAILINGS

6.1.55 The approval holder shall submit or cause to be submitted to the Director, a biannual (2 year) update on environmental aspects of tailings research and development, including, but not limited to, the following:

(a) projects and findings during the two-year period; and

(b) planned research and development activities for the next five year period.

6.1.56 The research update referred to in subsection 6.1.55 shall include, at a minimum, the following:

(a) forest ecosystem research:

(i) time required for tailings to consolidate to a trafficable surface;

(ii) suitable capping materials and depth of reclamation materials required to cover tailings deposits;

(iii) stability of reclaimed tailings surfaces over time;

(iv) characterization of tailings release water and any treatment required;

(v) movement of salts from tailings release water during deposition or seepage and its impact on plant development due to the uptake of organic compounds, heavy metals and salts from tailings release water; APPROVAL NO. 26-02-00 Page 86 of 95 ………….………….

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(vi) techniques required to isolate tailings waters from terrestrial lands, such that terrestrial and aquatic vegetation can develop into healthy, self sustaining ecosystems, consistent with TABLE 6.2-A through TABLE 6.2-F;

(vii) identification of local native vegetation species suitable for re- establishment on terrestrial lands affected by tailings waters;

(viii) seepage of tailings release water into groundwater, including expected volumes of water entering the groundwater regimes, flow regimes of the groundwater, impacts of affected groundwater and any proposed mitigation that may be implemented;

(b) wetland ecosystem research:

(i) chemical characterization (composition, concentration, toxicity) and rate of pore water release and surface runoff from tailings deposits;

(ii) environmental fate, including degradation rates of potentially toxic components in tailings release waters;

(iii) impact of tailings release waters on aquatic communities;

(iv) identification of local native wetland vegetation species suitable to inhabit the tailings wetlands;

(v) seepage of tailings (and placed coversoil, subsoil or overburden) release water into groundwater or surface water, including:

(A) expected volumes of water release into either groundwater or surface runoff;

(B) flow regimes of the groundwater and surface waters;

(D) any proposed mitigation that may be implemented;

(vi) validation of expected scenarios with field-collected data that describes hydrology and water quality of tailings seepage within the receiving environment; and any other information as required in writing by the Director. APPROVAL NO. 26-02-00 Page 87 of 95 ………….………….

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END PIT LAKES

6.1.57 The approval holder shall continue to participate in regional end pit lake research initiatives to the satisfaction of the Director.

6.1.58 The approval holder shall submit or cause to be submitted on or before April 15 of each year, a report on the most recent results of the initiatives in subsection 6.1.57.

6.1.59 The report referred to in subsection 6.1.58 shall include, at a minimum, the following:

(a) water budgets for end pit lakes (EPLs) including quantities, sources and quality of water to be used to fill the lakes;

(b) identification of uncertainty in the water budget and proposed research to address these uncertainties;

(c) an indication of treatment efficiency required for the EPLs to maintain suitable water quality given the quality of the source waters identified in (a) and the research;

(d) the role of wetlands and littoral zone macrophytes in treating water in EPLs with a discussion of likely wetland types/aquatic species to be used;

(e) identification of wetland/macrophyte research that will be required to ensure proposed EPLs adequately treat water, provide sustainable habitat and achieve other functions such as shoreline protection and flood buffering;

(f) lake design features which optimise:

(i) natural biodegradation and detoxification rates for toxic parameters;

(ii) fisheries potential; and

(iii) recreation potential;

(g) a review and assessment of other mitigative options for EPLs if water quality is a concern;

(h) timeline for the construction of a physical test case in the oil sands region;

(i) a review of options for final disposal of soft tailings other than under end pit lakes;

(j) biodegradation, detoxification and dilution of parameters identified as substances of concern by the CEMA Surface Water Working Group; and APPROVAL NO. 26-02-00 Page 88 of 95 ………….………….

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(k) any other information as required in writing by the Director.

WETLANDS

6.1.60 The approval holder shall continue to participate in the activities of various regional wetland research initiatives, including those of CEMA and CONRAD, to the satisfaction of the Director.

6.1.61 The approval holder shall undertake, or participate in, a study on reclamation techniques specific to all three plants that examines the viability of bog/fen creation for a portion of the final landscape.

6.1.62 The approval holder shall undertake construction of pilot wetlands and their watersheds by December 31, 2012 to provide opportunities for monitoring, model validation, and incorporation of findings into the update of the Guideline for Wetland Establishment on Reclaimed Oil Sands Leases, 2000, as amended.

6.1.63 The approval holder shall submit or cause to be submitted to the Director, by December 31, 2008, a 5 year plan and schedule to conduct wetlands research through CONRAD, CEMA, or any other initiatives, unless otherwise authorized in writing by the Director.

6.1.64 The plan referred to in subsection 6.1.63 shall include, at a minimum, the following:

(a) a plan and schedule to build pilot wetlands at all three plants, as referred to in subsection 6.1.62;

(b) monitoring of constructed wetlands and incorporation of findings into the update of the Guideline for Wetland Establishment on Reclaimed Oil Sands Leases, 2000, as amended;

(d) demonstration of a detailed understanding of predicted wetland watershed hydrology, as dictated by technical review;

(e) vegetation establishment measures;

(f) planting materials management to ensure availability of plants when ready to begin construction;

(g) assessment of ecological function of wetland types and potential to maintain and enhance biodiversity; APPROVAL NO. 26-02-00 Page 89 of 95 ………….………….

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(h) for wetlands specifically designed for treatment, demonstration of predicted wetland treatment efficacy, as dictated by technical review;

(i) a plan and schedule for research specific to Base Mine Lake and East-In-Pit; and

(j) a plan for scientific peer-review of any research undertaken.

6.1.65 The approval holder shall implement the plan referred to in subsection 6.1.63 as authorized in writing by the Director.

6.1.66 The approval holder shall submit, or cause to be submitted, a Wetland Monitoring Program to the Director by December 31, 2008, unless otherwise authorized in writing by the Director.

6.1.67 The Wetland Monitoring Program referred to in subsection 6.1.66 shall include:

(a) a plan to monitor natural wetlands for natural variability;

(b) a plan to determine and monitor the potential effect of dewatering and mine development on wetland communities; and

6.1.68 The approval holder shall implement the Wetland Monitoring Program referred to in 6.1.67 as authorized in writing by the Director.

LAND CAPABILITY CLASSIFICATION SYSTEM

6.1.69 The approval holder shall continue to participate in research programs through CEMA, CONRAD, or any other initiatives, to update the Land Capability Classification System for Forest Ecosystems in the Oil Sands (LCCS), 3rd Edition, Volume 1, 2006, as amended which shall include at a minimum the following:

(a) demonstration of whether a link between the LCCS rating and forest productivity exists;

(b) demonstration of whether the plant community structure of reclaimed sites is converging with that of native sites, for the range of natural ecosites a-f identified by Beckingham and Archibald, Field Guide to Ecosites of Northern Alberta, 1996; APPROVAL NO. 26-02-00 Page 90 of 95 ………….………….

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(c) confirmation of whether the nutrient and moisture regimes of reconstructed soils across a range of landscape positions will support the establishment of the range of natural ecosites a-f identified by Beckingham and Archibald, Field Guide to Ecosites of Northern Alberta, 1996;

(d) characterization of the temporal dynamics of C and N in peat-mineral mixes across a range of landscape positions, based on empirical studies and relevant simulation models;

(e) development and implementation of a monitoring program based on indicators of ecosystem function;

(f) development of a risk-based approach for defining acceptable concentrations of naturally occurring hydrocarbons in reconstructed soils; and

(g) a plan for peer-review of any research undertaken;

unless otherwise authorized in writing by the Director.

FISH, WILDLIFE AND BIODIVERSITY

6.1.70 The approval holder shall re-establish moose, fish and other wildlife habitat levels, at a minimum, similar to that which existed prior to disturbance, in proportions appropriate relative to the approved Life of Mine Closure Plan.

6.1.71 The approval holder shall demonstrate, through monitoring, progress in achieving the moose, fish, and other wildlife habitat levels as outlined in subsection 6.1.70.

6.1.72 The approval holder shall re-establish a diversity of wildlife and fish habitats similar to those that existed prior to disturbance, in proportions appropriate relative to the approved Life of Mine Closure Plan.

6.1.73 The approval holder shall demonstrate, through monitoring, progress in achieving a diversity of wildlife and fish habitats as outlined in subsection 6.1.72.

6.1.74 The approval holder shall document wildlife and fish habitat utilization on the reclaimed land by monitoring wildlife and fish species typically associated with and naturally occurring in the wildlife and fish habitat types present.

6.1.75 The approval holder shall participate in regional oil sand industry initiatives for maintaining connectivity of habitat and travel corridors for wildlife on a local and regional scale.

6.1.76 The approval holder shall submit a Waterfowl Protection Plan to the Director by December 31, 2007, unless otherwise authorized in writing by the Director. APPROVAL NO. 26-02-00 Page 91 of 95 ………….………….

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6.1.77 The Waterfowl Protection Plan referred to in 6.1.76 shall include:

(a) techniques and procedures for a comprehensive bird deterrent program for all tailings, composite tailings and waste ponds which minimizes avian mortality from the ponds;

(b) a comprehensive program for monitoring and documenting avian mortality, timing of incidents, and bird species affected; and

any other information as required in writing by the Director.

6.1.78 The approval holder shall implement the Waterfowl Protection Plan referred to in subsection 6.1.76 as authorized in writing by the Director.

6.1.79 The approval holder shall participate in regional programs such as CEMA or any other initiatives, that assess wildlife and fish resources to accomplish the following:

(a) analysis of regional data sets, supplemented by additional field data where necessary, to validate wildlife habitat suitability index (HSI) models; and

(b) long-term monitoring of selected special status species and species of concern to quantify cumulative impacts on wildlife and fish populations in the region;

unless otherwise authorized in writing by the Director.

6.1.80 The approval holder shall submit a Biodiversity Program to the Director by December 31, 2011, unless otherwise authorized in writing by the Director.

6.1.81 The Biodiversity Program referred to in subsection 6.1.80 shall include, at a minimum, the following:

(a) a determination of the technology required to establish best practices for development of biodiversity for a range of target ecosystems through reclamation (such as addressed by the Biodiversity and Wildlife subgroup of the Reclamation Working Group of CEMA);

(b) a determination of reclamation coversoil and subsoil composition and key species and their roles in supporting the return of biodiversity and native ecosystems in the reclaimed landscape;

(c) a plan and schedule to monitor and document the return of biodiversity in the reclaimed landscape and to evaluate and compare changes in biodiversity on reclaimed sites and in the region; and APPROVAL NO. 26-02-00 Page 92 of 95 ………….………….

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(d) a plan for participating in programs to monitor the cumulative effects on biodiversity in the region, modifying the Alberta Biodiversity Monitoring Institute (ABMI) protocols where feasible, including sampling in ecosystems that are to be re-established on oil sands leases;

unless otherwise authorized in writing by the Director.

6.1.82 The approval holder shall implement the Biodiversity Program referred to in subsection 6.1.80 as authorized in writing by the Director.

6.1.83 The approval holder shall participate in regional oil sand industry initiatives for establishing benchmark sites in ecosystems that are to be re-established on reclaimed sites on the oil sands leases to evaluate and monitor changes in biodiversity.

6.1.84 The approval holder shall participate in regional research and monitoring programs to monitor potential effects to terrestrial and aquatic ecosystems, and fish and wildlife health. The approval holder shall use information gathered by these studies to modify the planning, operations, and reclamation management systems.

6.1.85 The approval holder shall submit a Fish and Wildlife Habitat Enhancement Plan to the Director, by December 31, 2008 unless otherwise authorized in writing by the Director. The area covered by the Fish and Wildlife Habitat Enhancement Plan may include natural cover types that are contiguous with surrounding lands and may extend to off-lease lands in close proximity to the lease boundary.

6.1.86 The Fish and Wildlife Habitat Enhancement Plan referred to in subsection 6.1.85 shall include, at a minimum, the following:

(a) mitigation strategies for wildlife crossings which outline the design and placement of effective crossings and passageways for wildlife, considering the following criteria:

(i) location (or habitat features);

(ii) specifications (height and width);

(iii) type of passageway (above or beneath); and

(iv) frequency of crossing placement;

(b) methods for mitigating impacts to wildlife and wildlife habitat throughout the life of the project; APPROVAL NO. 26-02-00 Page 93 of 95 ………….………….

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(d) detailed techniques and procedures for re-establishing a diversity of wildlife habitats consistent with the pre-development landscape;

(e) detailed non-destructive wildlife habitat enhancement opportunities and options, as appropriate for wildlife species of concern identified in the General Status of Alberta Wild Species 2005; and

(f) a schedule to monitor the effectiveness of these wildlife habitat enhancements.

6.1.87 The approval holder shall implement the Fish and Wildlife Habitat Enhancement Plan referred to in 6.1.85 as authorized in writing by the Director.

RECLAMATION PROGRESS TRACKING

6.1.88 The approval holder shall submit an Annual Report to the Director on or before April 15 of each year and the report shall be based on the information collected in the preceding year.

6.1.89 The Annual Report referred to in subsection 6.1.88 shall include, at a minimum, the following:

(a) an as-built plan of reclamation of the previous year;

(b) any deviations from the soil salvage plan as per PART 3;

(d) on a year-to-year and cumulative basis, a summary of the amount of land disturbed, reclaimed, and certified, including the upcoming year target;

(e) on a year-to-year and cumulative basis, a summary of the capability classes on reclaimed lands, and comparison to the overall capability target listed in Table 6.2-A, Table 6.2-B, and Table 6.2-C, including the upcoming year target;

(f) a summary of reclamation salvage and placement practices;

(g) a summary of actual placement depth of overburden or tailings sand over composite tailings surfaces; APPROVAL NO. 26-02-00 Page 94 of 95 ………….………….

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(h) a summary of revegetation activities, including but not limited to, targeted ecosystems consistent with item (k) of the Life of Mine Closure Plan referred to in subsection 6.1.16 including species selection, seed and plant stock origin, provincial tree seed registration identification number, stocking standards, distribution of species, fertilization and planned revegetation research;

(i) a summary of wildlife mitigation strategies undertaken, issues encountered, successes, deviations from the original plan, and proposed future direction;

(j) a summary of results obtained from monitoring for fish and wildlife habitat establishment and wildlife utilization as referred to in subsections 6.1.71, 6.1.73, and 6.1.74;

(k) results of the avian mortality monitoring;

(l) progress and deviations in the development of landform and topography consistent with the Life of Mine Closure Plan referred to in subsection 6.1.14;

(m) a description of how landforms and topography at lease boundaries are or will be integrated with adjacent lease holders;

(n) a summary of any erosion control and sedimentation minimization or mitigation techniques used;

(o) a review of activities and discussions the approval holder has conducted with other operators regarding the feasibility of sharing reclamation materials between lease boundaries, amongst adjacent operators;

(p) a review of the landscape performance monitoring data (including natural invasion onto reclaimed areas as part of tracking biodiversity changes);

(q) an annual summary of the results of the approval holders’ instrumented watershed monitoring programs;

(r) a list of lessons learned and changes to reclamation practice based on reclamation monitoring and research through CEMA, CONRAD, and other initiatives; and

(s) a compilation of monthly inspections of the previous year, including a stewardship action item checklist for required follow-up activities. APPROVAL NO. 26-02-00 Page 95 of 95 ………….………….

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6.1.90 The information referred to in subsection 6.1.89 must be reported in a format acceptable to the Director.

DATED June 21, 2007 Kem Singh DESIGNATED DIRECTOR UNDER THE ACT