DESCRIPTION OF A DESIGNATED PROJECT UNDER THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT, 2012

ALBERTA MIDLAND RAILWAY TERMINAL LTD. PROPOSED LAMONT RAILCAR STORAGE PROJECT LOCATED NEAR ,

Submitted to: Canadian Environmental Assessment Agency

February 2016 Lamont Railcar Storage Project Description of a Designated Project February 2016

TABLE OF CONTENTS

1. General Information and Contacts ...... 1 1.1 Project Name, Nature and Proposed Location ...... 1 1.2 Proponent Contact Information ...... 1 1.3 List of Jurisdictions Consulted ...... 2 1.4 Additional Regulatory Requirements ...... 2 1.5 Regional Environmental Study ...... 4 2. Project Information ...... 6 2.1 General Description, Context and Objectives ...... 6 2.2 Regulations Designating Physical Activities ...... 9 2.3 Components and Activities ...... 10 2.3.1 Physical Works ...... 10 2.3.2 Proposed Site Utility Services Requirements ...... 11 2.3.3 Size ...... 12 2.3.4 Increase in Size ...... 12 2.3.5 Project Incidental Activities ...... 12 2.4 Emissions, Discharges, and Waste ...... 13 2.4.1 Atmospheric Emissions ...... 13 2.4.2 Liquid Discharges ...... 14 2.4.3 Waste and Intended Disposal ...... 15 2.5 Project Phases and Scheduling ...... 15 2.5.1 Planning, Construction, and Operation...... 15 2.5.2 Decommissioning and Abandonment ...... 18 3. Project Location ...... 19 3.1 Description of Project Location ...... 19 3.1.1 Coordinates ...... 19 3.1.2 Site Plan ...... 19 3.1.3 Maps ...... 19 3.1.4 Photographs ...... 19 3.1.5 Proximity of Project ...... 19 3.2 Land and Water Use ...... 20 3.2.1 Zoning Designations ...... 20 3.2.2 Legal Land Descriptions...... 20 3.2.3 Land Use Plans ...... 20 3.2.4 Traditional Lands ...... 20 4. Federal Involvement ...... 21 4.1 Federal Financial Support ...... 21 4.2 Use of Federal Lands for Project ...... 21 4.3 Federal Regulatory Requirements ...... 21 5. Environmental Effects ...... 22 5.1 Physical and Biological Setting ...... 22 5.1.1 Air Quality ...... 22

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5.1.2 Noise ...... 22 5.1.3 Soil ...... 23 5.1.4 Vegetation ...... 24 5.1.5 Wetlands ...... 25 5.1.6 Water ...... 26 5.1.7 Fish and Fish Habitat ...... 27 5.1.8 Wildlife ...... 28 5.2 Changes to Fish and Fish Habitat, Marine Plants and Migratory Birds ...... 29 5.2.1 Fish and Fish Habitat ...... 29 5.2.2 Marine Plants ...... 29 5.2.3 Migratory Birds ...... 30 5.3 Changes to Environment on Federal Lands ...... 30 5.4 Effects on Aboriginal Peoples ...... 30 6. Proponent Engagement and Consultation with Aboriginal Groups ...... 31 6.1 Aboriginal Groups That May Be Interested in, or Potentially Affected by, the Project ...... 31 6.2 Engagement or Consultation Activities ...... 31 6.3 Key Comments and Concerns ...... 32 6.4 Consultation Plan ...... 32 7. Consultation with The Public and Other Parties ...... 33 7.1 Key Comments and Concerns from Stakeholders...... 33 7.2 Ongoing or Proposed Stakeholder Consultation ...... 33 7.3 Consultation with Other Jurisdictions ...... 33 8. References ...... 35 APPENDIX A Site Plan ...... A-1 APPENDIX B Maps ...... B-1 APPENDIX C Site Photographs ...... C-1 APPENDIX D Land and Mineral Titles ...... D-1 APPENDIX E Contact Information for Aboriginal Group Notifications ...... E-1

List of Tables

Table 1: Principal Proponent Information ...... 1 Table 2: Secondary Proponent Information ...... 2 Table 3: Estimated Project Greenhouse Gas Emissions ...... 14 Table 4: Schedule of Key Project Phases during Planning, Construction, Operation, Decommissioning, and Abandonment ...... 15 Table 5: Main Activities of the Key Project Planning, Construction, and Operation Phases ...... 16 Table 6: Recipients and Dates of Aboriginal Notifications ...... 31

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List of Figures

Figure 1: Parks, Protected Areas, and Historical Resources Figure 2: First Nations, Local Communities, and the Industrial Heartland Figure 3: Wildlife and Sensitive Areas Figure 4: Regional Project Location

List of Photos

Photo 1: North facing view of a seasonal graminoid marsh wetland in LSD 14-25-55-20-W4M ...... C-2 Photo 2: East facing view of a temporary graminoid marsh wetland located in LSD 12-25-55-20-W4M. C-2 Photo 3: East facing view of ephemeral water body located in LSD 12-25-55-20-W4M...... C-3 Photo 4: West facing view of temporary marsh wetland located in LSD 6-25-55-20-W4M...... C-3 Photo 5: View of the 14-25-55-20 W4M wellsite, facing south...... C-4 Photo 6: View of the cut and capped Husky Oil Operations Ltd. wellhead at the 14-25 wellsite...... C-4

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ACRONYMS

ACIMS Alberta Conservation Information Management System ACO Aboriginal Consultation Office ACT Alberta Culture and Tourism AEP Alberta Environment and Parks AER Alberta Energy Regulator AIHA Alberta Industrial Heartland Association AMRT Alberta Midland Railway Terminal Ltd. ASP Area Structure Plan CEAA 2012 Canadian Environmental Assessment Act 2012 CN Canadian National CNPRS Canadian Northern Plains Rail Services Ltd. EIA Environmental Impact Assessment EPEA Environmental Protection and Enhancement Act ERP Emergency Response Plan ESA Environmental Site Assessment FAP Fort Air Partnership FWMIS Fisheries and Wildlife Management Information System GHG Greenhouse Gas HRA Historical Resources Act HRV Historical Resource Value LSD Legal subdivision MBCA Migratory Birds Convention Act NGL Natural Gas Liquids NMHC Non-methane hydrocarbon PAH Polycyclic aromatic hydrocarbon PD Project Description PDSA Pre-disturbance site assessment QAES Qualified Aquatic Environmental Specialist RNMP Regional Noise Management Plan SARA Species at Risk Act THC Total hydrocarbons WAIR Wetland Assessment and Impact Report

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UNITS bgs below ground surface ha hectare (s) km kilometre (s) kV kilovolt (s) m metre (s) mm millimetre (s)

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1. GENERAL INFORMATION AND CONTACTS

1.1 Project Name, Nature and Proposed Location

Alberta Midland Railway Terminal Ltd. (AMRT) is proposing to construct a railcar storage facility named the Lamont Railcar Storage Project (the Project). The Project will then be operated and maintained by Canadian Northern Plains Rail Services Ltd. (CNPRS) and decommissioned and abandoned at a future date by AMRT. The Project is located in the northwest and southwest quarter sections of 25-55-20 W4M, approximately 3 km northwest from the town of Lamont, Alberta. The Project is within Lamont County and Alberta’s Industrial Heartland and is adjacent to a Canadian National (CN) railway line. CN is a common carrier railway, which will solely deliver and receive railcars from the Project facility.

AMRT currently owns the LSDs 11, 12, 13, 14 within 25-55-20 W4M and a portion of LSD 6 (approximately 76 ha). Within these, the Project footprint is defined as:

• 16 storage tracks and 5 operating tracks – 21 tracks in total; • Repair area for placement of a mobile repair truck; • Site access, service road, and employee parking; • Office trailer; and • Stormwater management pond.

See Section 2.0 for a detailed description of the nature of the Project.

1.2 Proponent Contact Information

The Project will be constructed, decommissioned, and abandoned by AMRT (principal proponent and contact). Principal proponent contact information is provided in Table 1.

Table 1: Principal Proponent Information

Category Details Name of Corporation: Alberta Midland Railway Terminal Ltd. Address: P.O. Box 830 (564 North 200 East) Raymond, Alberta, , T0K 2S0 Chief Executive Officer: Darcy Heggie Principal Contact for the Lamont Railcar Storage Project Name and Title: Darcy Heggie, President Contact: [email protected] (403) 308-6924 Company Website: http://albertamidlandrail.ca/home.html

The Northern Plains Railroad group of companies includes CNPRS, a key shareholder of AMRT. CNPRS will be responsible for the operating phase of the Project (Table 2).

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Table 2: Secondary Proponent Information

Category Details Name of Corporation: Canadian Northern Plains Rail Services Ltd. (CNPRS) Address: P.O. Box 1174 Camrose, Alberta, Canada, T4V 1X4 Chief Executive Officer: Gregg F. Haug Secondary Contact for the Lamont Railcar Storage Project - Operations Name and Title: Shawn I. Smith, President Contact: [email protected] (780) 679-4008 Company Website: http://www.nprail.com/canadian-nprail-services.php

1.3 List of Jurisdictions Consulted

Prior to and during the preparation of the Project Description (PD), AMRT has consulted with the following jurisdictions and other parties: CN Rail, affected and neighbouring landowners, Alberta Transportation, Lamont County, Alberta Environment and Parks, Alberta Culture and Tourism (ACT), and the Canadian Environmental Assessment Agency. Since the Project falls within the boundary of Alberta’s Industrial Heartland, the Alberta Industrial Heartland Association (AIHA) has been included in ongoing consultation since late 2012. A description of results of consultation with authorities and other parties is detailed in Section 7.

AMRT is in discussion with Husky Oil Operations Ltd (Husky) as the Project includes two wells and five inactive pipelines owned by Husky.

In addition, the following Aboriginal groups were provided notification containing information about the Project: Alexander First Nation Administration; Enoch Cree Nation; Ermenskin First Nation; Paul First Nation; Whitefish Lake First Nation; Chipewyan Prairie Dene First Nation; Fort McMurray First Nation; Foothills Ojibway First Nation; Blood Tribe; Piikani Nation; Siksika Nation; Stoney Tribal Association; Tsuu T'ina Nation; Metis Nation of Alberta, Region 4; Buffalo Lake Metis Settlement; Kikino Metis Settlement; Saddle Lake Cree Nation; Kehewin Cree Nation; Alexis Nakota Sioux Nation; Beaver Lake Cree Nation; Gunn Métis Local #55; Métis Nation of Alberta - Region 1; Métis Nation of Alberta - Region 2; Montana First Nation; Samson Cree Nation; and Louis Bull Tribe.

1.4 Additional Regulatory Requirements

As described in Section 2.2, the CEAA 2012 Regulations Designating Physical Activities apply to the Project. This requires submission of this PD to the Canadian Environmental Assessment Agency. In addition, the following regulatory requirements have been considered during the planning stages of the Project:

Federal

• Migratory Birds Convention Act (MBCA) o The MBCA strictly prohibits the harming of migratory birds and the disturbance or destruction of their nests and eggs.

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• Species at Risk Act (SARA) o SARA listed species must not be harmed by the construction, operation, or decommissioning of Project works. It is illegal to kill, harm, harass, capture, or take in any way any species listed under the SARA. • Railway Safety Act o See below under Provincial “Alberta Railway Act.” • Transportation of Dangerous Goods Act o See below under Provincial “Alberta Railway Act.” Provincial

The Project is not considered an energy resource activity (as defined in the Responsible Energy Development Act Section 1(1)(i/j); as such, Alberta Environment and Parks (AEP) has authority over any of the Project’s Environmental Protection and Enhancement Act (EPEA) and the Water Act requirements.

• EPEA o The Project is an activity as defined within the EPEA Schedule of Activities, Section 9 (1), due to the need for a Water Act approval for wetland disturbance. o The Project is not included as an activity identified in Schedule 1 (Divisions 1, 2, and 3) of the EPEA Activities Designation Regulation; no industrial approval is required. o The Project is not a mandatory or exempted activity, as defined within the EPEA Environmental Assessment (Mandatory and Exempted Activities) Regulation. No provincial Environmental Impact Assessment (EIA) is required (determination made on December 2, 2015). o The EPEA Division 1 on Releases of Substances Generally, Section 110(1) requires AMRT to report any release of substance to the environment. o The stormwater management pond associated with the Project will require an EPEA registration. • Public Lands / Water Act Joint Application to AEP for wetland disturbance o The Project is anticipated to impact wetlands; a Joint Application (Public Lands Act and Water Act to AEP) is required. o AEP’s decision will be required to determine if the impacted wetlands are Crown- claimable (triggering the Public Lands Act). • Directive 056 License to AER o The Project is not a petroleum industry energy development as defined in the Directive; no license is required. • Alberta Railway Act Industrial Operating Certificate o AMRT has approval to carry out construction from the Railway Administrator (Alberta Transportation) as per Part 1, Section 5. As part of this approval, AMRT will develop and implement a safety management system and operating rules. o The Alberta Railway Act includes federal requirements within Transport Canada’s Transportation of Dangerous Goods Act and the Railway Safety Act.

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• Historical Resources Act (HRA) Clearance from ACT o The Project land locations (Sec 25-55-20 W4M) have not been assigned a historical resource value (HRV) indicating limited potential for historical resource concerns (ACT, 2015). HRA Clearance was received on June 18, 2015 for the Project.

Municipal

• Lamont County o A Development Permit application was submitted to Lamont County in September 2015, and included a full disclosure of the Project plan (AMRT, 2015a). Lamont County approved this application on November 6, 2015 with a list of submission requirements. These will be submitted by AMRT prior to construction. o AMRT will work with the County to obtain road use agreements and establish emergency response planning.

1.5 Regional Environmental Study

The Project is not within an area that has been subject to a Regional Environmental Study under CEAA 2012.

The Project is within the Alberta Industrial Heartland and the Capital Region (a group of 24 municipalities including Lamont County). A cumulative effects management approach was officially adopted in 2007 (GoA, 2013). This management approach is built on a number of regional environmental frameworks which have been completed to support decision-making. These are:

• Water Management Framework for the Industrial Heartland and Capital Region; • Capital Region Air Quality Management Framework; and • Elemental Sulphur Management Framework.

Since 2007, regional environmental studies have been completed to investigate wetlands, groundwater, and water quality, amongst others.

The Water Management Framework for the Industrial Heartland and Capital Region includes the reach of the North Saskatchewan River from the town of Devon to the Pakan bridge water quality station, as these are directly impacted by municipal and industrial effluent discharge. This Framework provides a regional phased solution (until 2041) to address water quantity and quality issues in the defined area. Three water management conditions defining threshold were defined and are applied to water quantity and quality parameters to determine level of management required.

The contaminants of concern described in the Capital Region Air Quality Management Framework are nitrogen dioxide, sulphur dioxide, fine particulate matter, and ground level ozone. The Framework has defined four ambient air quality levels for each contaminant; each level has a set of management actions to avoid reaching upper level limits. AEP determines when these management actions are required (based on monitoring data), and will engage and collaborate with stakeholders including industry and the public to plan reductions to meet lower ambient air quality levels.

Sulphur is both consumed and produced in the Industrial Heartland. The Elemental Sulphur Management Framework describes current and proposed elemental sulphur use, storage, and capture in the Industrial

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Heartland and provides an approach to management. The Framework recommends expectations for sulphur handling and storage to reduce the potential for adverse effects.

The Capital Region Growth Plan (Capital Region Board, 2009) has six main themes, one of which is to protect the environment. Specifically, it provides a framework for the protection of agricultural lands and to minimize impact of development on regional watersheds and airsheds.

The Project also falls within the Alberta Industrial Heartland Regional Noise Management Plan (RNMP). This plan was developed (jointly by the Alberta Energy Regulator (AER) and the Northeast Capital Industrial Association) to minimize industrial noise impacts through regional management. It sets a standard for development to ensure compliance with the RNMP’s standards (which include AER Directive 038).

The Project is within jurisdiction of Lamont County’s Alberta’s Industrial Heartland Area Structure Plan (ASP) 676/07 (Lamont County, 2008). As defined in the ASP, the Project is within the Heavy/Medium Industrial Policy Area. The ASP includes compliance guidelines for heavy/medium industrial activities (see Section 3.2.3).

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2. PROJECT INFORMATION

2.1 General Description, Context and Objectives

As introduced in Section 1.1, AMRT is proposing to construct the Project to support private railcar fleet owners and rail shippers. These include Pembina Infrastructure and Logistics LP (Pembina), and others, who have existing and expanding operations in the area within Alberta’s Industrial Heartland. The Project will then be operated and maintained by CNPRS, and decommissioned and abandoned by AMRT. The Project will provide the capacity to store and switch up to 850 railcars at any one time. Existing shippers in Alberta’s Industrial Heartland currently utilize distant storage yards in Canada and the United States; the Project will prevent these unnecessary shipping distances.

All railcars will be either empty of any product, or be considered “residue – last contained” (empty railcars that last contained dangerous goods as defined in the Transportation of Dangerous Goods regulations). The majority of product that was last carried by the stored railcars will be residue of petroleum products (fuels, oil or natural gas liquids [NGL]). However, the stored railcars may have last carried cyclical products including residues of grain, potash, fertilizer, lumber, or intermodal containers.

CN is a common carrier railway, which will solely deliver and receive traffic from the Project facility. Railcars to be stored will arrive at the Project on the adjacent CN line, be placed into temporary storage in the rail yard, and then be switched out and returned to service on the CN line as required for re-loading. This is the only involvement of CN with the Project; CN will not use the Project facility. The proposed in- service date for the Project is Q2 2017, subject to permitting and construction schedules.

AMRT owns two portions of land in Lamont County, the first being in NW 36 55-20 W4M (located adjacent to the Canadian Pacific Railway), and the second in NW 25 55-20 W4M (located adjacent to the CN line). AMRT has a written Agreement and permanent easement from Canadian Heartland Real Estate Ltd. on the north “severance” portion of SW 25 55-20 W4M, adjacent to NW 25 55-20 W4M and the CN line. Both of these properties are located within Alberta’s Industrial Heartland heavy industrial zoning and are approximately 1.6 km to the west of the current Richardson Pioneer Lamont grain terminal, and 1.6 km to the east of the Cenovus Bruderheim Terminal.

The Project will be located on AMRT owned lands in NW 25 55-20 W4M, and the easement on SW 25 55- 20 W4M. Currently, AMRT is projecting a total project cost of C$34 million for construction of the Project.

The Project will consist of:

• Railcar Storage – 16 designated railcar storage tracks totalling approximately 48,000 feet (14.6 km) of standing capacity; • Operating Tracks – five designated operating tracks totalling approximately 12,000 feet (3.7 km), to be used for exchanging railcars with CN, switching, and storage of a more temporary nature; • Light mobile car repairs – a small onsite repair area is planned where cars can be switched to and placed for inspection and repair, using a mobile repair truck; • Site access (2), service roads and employee parking; • Office trailer for operations administration and employee comforts; and • Stormwater management pond.

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A conceptual site plan is attached as Appendix A. AMRT considers these design considerations represent the full extent of the Project activities known at present, and will not be significantly modified upon final design.

The Project is not a component of a larger project listed in the CEAA 2012 Regulations Designating Physical Activities.

Developer: Alberta Midland Railway Terminal Ltd.

AMRT is a private Alberta corporation, with its administrative office located in Raymond, Alberta. Key shareholders of AMRT include R.K. Heggie Grain Ltd., co-owners and operators of a rail transfer and storage facility south of , Alberta known as Transmark, Dominion Railway Services Ltd., Northern Plains Railroad, and a number of private shareholders.

Anchor Customer: Pembina Infrastructure and Logistics LP

Pembina Infrastructure and Logistics LP is a wholly-owned subsidiary of Pembina Pipeline Corporation (PPC). PPC is a leading pipeline transportation and midstream energy service provider that has been serving North America’s energy industry for over 60 years. PPC offers customers and partners fully integrated oil, gas, and NGL services. PPC is a publicly-traded Canadian corporation, headquartered in , Alberta, trading on both the Toronto (PPL) and New York (PBA) stock exchanges, with an enterprise value of approximately C$16 billion and an investment-grade corporate credit rating of BBB.

PPC has extensive rail operations with existing crude and NGL rail loading and unloading operations in Fort Saskatchewan, Alberta, Sarnia, Ontario and Lynchburg, Virginia. By 2019, PPC will operate a leased fleet of over 3,500 railcars.

Operator: Canadian Northern Plains Rail Services Ltd. (CNPRS)

The Project will be operated by CNPRS – part of the Northern Plains Railroad group of companies that includes a successful short line and regional railway operation in Minnesota and North Dakota, various industrial switching operations, and railcar and locomotive repair services. Canadian Northern Plains Rail Services is led by experienced railroaders who are focused on providing safe and responsive rail services, and working with communities and stakeholders.

Justification for Railcar Storage

Movement of freight by rail is of critical importance to Alberta’s economy. Grain, lumber, sand, energy products, plastics, and crude oil shipments are all dependent upon rail for safe movement to markets – and the demand from shippers for rail service continues to increase. Over the years, the rail business has evolved whereby more and more shipments move in privately-owned or shipper-owned railcars. This is in contrast to the more historical model when the majority of railcars were owned and supplied by individual railways. To deal with seasonal variances in transportation and repair demand or when business levels are down, privately owned or shipper owned railcars require locations for staging, storage, and repair. Generally, large railways do not supply medium and long term storage for private railcar fleets. As a result, shippers rely on short line railways and facilities, such as Transmark near Lethbridge and those proposed by AMRT, for storing their railcars in a safe and secure manner. As fleets have grown over the last five years, there has been a shortage in strategic railcar storage locations in the area which has led to AMRT’s decision to construct and operate the proposed Project in Lamont County. At present, AMRT

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has sufficient interest and commitments from its customers, including Pembina and Suncor Energy, to proceed with construction of the planned car storage and mobile repair facility.

Potential Impact on the Economy

The proposed Project is anticipated to have a positive effect on the economic growth of Lamont County by initially creating three full time positions and two part time positions. Over the longer term it will create at least two additional full time positions from the proposed mobile rail repair truck operation. The Project has the potential to create further employment as business expands and as additional development occurs on adjacent lands. AMRT anticipates a positive economic impact as contracted services and goods will be purchased in the region during both construction and operational phases. In addition, the Project will support local industries who rely on effective rail freight service and require a safe and secure location for the storage of their railcar fleets. This in turn will allow these industries to grow and prosper. It is anticipated that employees could live within Lamont County such as within the Towns of Lamont or Bruderheim. The Project will also result in an increase in property taxes to Lamont County.

An additional positive economic impact of the Project is that regional operators will be provided the opportunity to store their railcars fleets locally versus locations in neighbouring provinces, the US mid- west, and/or Gulf Coast. This will provide some local operators with the ability to access railcars from storage positions sooner and more cost effectively than is currently possible. This will provide AMRT’s customers located within Alberta’s Industrial Heartland an additional competitive economic advantage over other North American competition.

Proposed Operations

CNPRS will operate the Project to meet both applicable provincial and federal rail safety guidelines and standards. CNPRS operating personnel will be qualified in applicable operating rules and standards to ensure a safe and efficient operation. This includes qualification in industrial rail operating and safety rules, and the transportation and handling of dangerous goods.

CNPRS plans to maintain two locomotives required for switching at the Project facility and will offer a location for a mobile railcar repair truck to perform “mobile repairs” as may be required on railcars stored at the site. These repairs include minor repairs to safety appliances on cars, covered hopper tops, bottom hopper gates, couplers, wheels, brake shoes, tank car valves, brake valves, and stenciling. Any major repairs that cannot be handled onsite will be taken to the closest CN or CP heavy repair facility. No purging, venting, or other cleaning of tank cars containing dangerous commodities is planned onsite.

Within the Project facility, CNPRS anticipates Monday to Friday operation from 0800 to 1700 (for four to five hours per day and two to three days per week). Specific days of the week are to be determined, but would only including occasional weekend operations as required.

On days when CN trains are planned to serve the Project facility, the CN trains will stop, and the railcars to be set out for storage at the Project will be brought to the site by CN crews and locomotives. Any outbound cars to move out of the Project terminal will have been switched into place by the CNPRS crews for CN to handle out of the Project, and onto a CN train tracks accordingly. CNPRS crews will perform any switching from the planned CN inbound and outbound tracks into designated onsite storage tracks. These CN operations could occur outside of daylight and weekday hours (subject to CN service ability) but are anticipated to occur for one hour per week overall.

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Project Facility Maintenance

CNPRS, as operator of the Project facility, together with AMRT, are responsible for maintenance of the Project. Onsite maintenance includes inspection, repair, and replacement of railway track(s), switches, and other components; maintenance of roadways; maintenance of stormwater management facilities; snow removal; and weed control during the summer months.

Alternative Site Considerations

AMRT completed a review of alternative properties suitable for a purpose-built railway infrastructure project and concluded that there is no other suitable alternative site available.

The criteria for site selection included the following:

• Adjacency to a Class 1 Railway with an adequate level of service (in this case, CN’s Vegreville S/D). The selected Project site is also within reasonable proximity of CP’s Willingdon S/D; • Location within Alberta’s Industrial Heartland area to accommodate railcar fleet owners and shippers within a reasonable distance of the origin/termination location; • Adequate size and footprint to facilitate a functional rail operating terminal, meeting current Class 1 Railway and Industry requirements; • Avoiding, or limiting, relocation or disruption of residential dwellings; and • Disturbance, suspension, or decommissioning of oil well activities within the Project footprint due to set-back requirements (100 m).

The Project site within the NW 25 55-20-W4M, and portion of SW 25 55-20-W4M adequately meets the above criteria.

Furthermore the property is currently zoned for “Heavy Industrial” use within the Industrial Heartland, consistent with a railcar storage and repair facility.

2.2 Regulations Designating Physical Activities

The Canadian Environmental Assessment Agency may require a federal environmental assessment, pursuant to the CEAA 2012, as the Regulations Designating Physical Activities describe a designated activity, under paragraph 25 of the Physical Activities Schedule as follows:

25. The construction, operation, decommissioning and abandonment of a new

(b) railway yard with seven or more yard tracks or a total track length of 20 km or more.

The proposed Project facility includes twenty one (21) tracks with a clear track capacity (storage capacity of cars) of approximately 60,000 track feet (18.3 km).

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2.3 Components and Activities

2.3.1 Physical Works

The proposed components of the Project will be entirely within AMRT owned lands or covered by a permanent easement agreement as indicated in Section 2.1.

The physical works components associated with the construction of the Project facility include:

• Grading: approximately 70,000 feet (21.6 km) of track and associated access and service roads; 3 o Top Soil Stripping: approximately 67,500 m will be stockpiled on site and utilized for a perimeter berm where practical, 3 o Cut (suitable fill): 140,000 m , 3 o Granular: approximately 45,000 m (subballast), and o Culverts: approximately 200 LM (various diameters – 600 to 900 mm). • Track work; o Rail: approximately 70,000 (21.6 km) track feet (100 pounds/yard minimum rail weight), 1 o Track ties: approximately 35,000 steel ties (TBD ) and 300 wood ties, o Track Ballast: approximately 52,000 tonnes (1-3/4 inch crushed rock), and o Turnouts: 18 of type #8 (for Rail Yards and Industrial Tracks – typically 15 mph design speed), 6 of type #10 (for Industrial Yard or Branchlines – typically 15 to 20 mph design speed), and 2 of type #12 (for Maintrack use – typically 25 mph design speed). NOTE: all track materials are proposed as NEW materials • Buildings; o Office Trailer for administrative and employee comfort requirements. • Utilities; o Electrical supply for office trailer, yard lighting at key working areas, and locomotive “hot start.” 2 • Security Fence; o Approximately 3.2 km of security fence (chainlink) along the west and north sides of the property and one control entrance gate. • Equipment; and o As a railcar storage facility, with light “mobile repairs,” no permanent equipment will be installed or constructed on the site, and o To facilitate track maintenance repairs, the Operator will engage a qualified rail contractor to complete track inspection and maintenance activities as required and in accordance with Alberta Transportation railway guidelines.

1 TBD indicates that the final decision for steel vs. wooden ties will be made in the final design stages. 2 Hot start is a circulating device that keeps fluids in the locomotive engine circulating, which reduces greenhouse gases and ensures optimal engine function.

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• Material Storage. o Track Maintenance Materials: a small inventory of track materials will be maintained onsite in order to undertake necessary repairs such as joint bars, replacement rails, turnout components, track ties (steel and wood), and miscellaneous fasteners.

2.3.2 Proposed Site Utility Services Requirements

The following subsections list the various utility services considered necessary for the development, and ongoing operation, of the Project. Key elements of the proposed development include:

• An 850 car capacity rail terminal (tracks have been designed, and will be constructed, in accordance with CN and Alberta Transportation standards); • Office Trailer – to accommodate four employees; • Locomotive storage; and • Low level lighting in key working areas (site entrance, entry and exit tracks, and storage and service areas).

Electrical

Electrical services required to operate the Project are limited to: localized yard lighting for operations and maintenance purposes; locomotive “hot start”; and office trailer outlets and heating.

A power demand load has not been prepared at this stage; however, a typical commercial service of Single Phase, 37.5 kV, is considered appropriate. Existing electrical supply for this level of service is located adjacent to the proposed development (parallel to Range Road 201). ATCO Power has been engaged to provide the necessary power line from the existing service to the Project site.

Water Supply and Sewer

The Project facility will not require permanent potable water or sewer services. A portable onsite industrial office trailer will be in place to accommodate operational and employee comfort requirements. Three to four employees will be accommodated by the office trailer. Potable water for this trailer will be supplied by contract. Washroom facilities will be portable and maintained by an approved contractor. The portable washroom facilities are self-contained units and all wastes will remain contained within the portable toilet units. A third party provider is responsible for managing and maintaining the units, including extraction of the wastes for offsite disposal. No wastes from the portable toilet units will be released at the Project site.

The Project has no requirement for the use of water in the carrying out of activities associated with storing and repairing of railcars. Cooling water required for operations of diesel locomotives will be supplied by contractor in a small onsite heated tank, or delivered by truck when/as required.

Local fire protection is to be provided by the Town of Bruderheim, and Lamont County. Lamont and Bruderheim both have voluntary fire departments approximately 6-7 km of the Project.

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Storm Water

Stormwater drainage (both offsite and onsite) will be directed to an onsite storage pond in accordance with the Stormwater Management Plan (AECOM, 2015). This was filed with the Lamont County Development Permit Application for the Project on November 6, 2015 and will be updated to address further questions from the County.

Voice and Data Services

Telephone and internet access will be provided by wireless services.

Natural Gas

A source of natural gas will not be required. Heating requirements for the employee-occupied facilities will be sourced by electrical power.

Refuse Collection/Disposal

Solid wastes generated from the Project will be limited to typical office requirements and trucked by a licensed waste management contractor to an approved local landfill and recycling facilities.

Track and railcar repair materials will be salvaged and removed from site by the Operator (CNPRS).

2.3.3 Size

The property limits of the Project Facility total 74 ha (182.9 acres) including 63.2 ha (156.1 acres) within the NW 25-55-20 W4M, and 10.8 ha (26.8 acres) of property under easement agreement in SW 25-55-20 W4M.

The total amount of disturbed area, which includes grading for track, access and service roads, office trailer/parking, drainage ditches, stormwater management pond, and the proposed partial perimeter berm, is estimated at approximately 30.2 ha (74.6 acres). Approximately 0.5 ha of the total disturbed area will be of a temporary nature during construction for material laydown and equipment storage (as illustrated in Appendix A).

Specific data regarding the size and nature of the physical works is covered in Section 2.3.1.

2.3.4 Increase in Size

Not applicable. This is a new Project with no currently existing rail infrastructure.

2.3.5 Project Incidental Activities

As described in Section 2.3.1, a supply of electrical power to the site will be required. The Single Phase, 37.5 kV, electrical service and associate distribution panel, conduits, light poles, and outlets is the only utility installation required.

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2.4 Emissions, Discharges, and Waste

2.4.1 Atmospheric Emissions

Construction Activities

Dust and exhaust emissions from construction equipment are anticipated to occur during normal working hours throughout the construction of the Project, and will be temporary in nature. Construction is scheduled in phases over a one year period, beginning in Q1 2016 (see schedule in Section 2.5.1). If/when required, mitigation of onsite dust emissions associated with earth moving and construction of roads will be addressed through appropriate dust suppression measures to be outlined in Contract Specifications.

Construction materials and equipment delivered to site by truck will be completed under an agreement with Lamont County for the duration of the construction period.

Project Operations

During operations, typical emissions within the Project are expected from: diesel locomotive(s) during delivery and picking up of railcars to and from the designated Arrival and Departure tracks by CN, and any subsequent railcar re-positioning. Typical durations of locomotive operations would include:

• CN: 2 locomotives for a duration of < 2 hour, 1 to 2 times per week; and • CNPRS: 1 locomotive for a duration of 4-5 hours per day, approximately 3 to 4 days per week.

Based on this usage, GHG emissions from Project operations outlined above are anticipated to be infrequent in nature and negligible compared to industrial practices in the Project vicinity. The Project supports initiatives of the Railway Association of Canada to reduce Greenhouse Gas (GHG) emissions.

Project operations air emissions are anticipated to impact local air quality within an approximately 2 km radius of the Project. The U.S. Environmental Protection Agency’s “Guideline for Determination of Good Engineering Practice Stack Height (Technical Support Document for Stack Height Regulations)” suggests that typical local air quality impacts occur within 20 times the height of the stack (U.S. EPA, 1985). As diesel locomotive exhaust stacks are typically approximately 5 m in height, a 2 km radius of study area would conservatively estimate the potential area of influence.

Greenhouse Gas Emissions

An engine air emissions calculator spreadsheet was used to estimate the yearly GHG emissions for the construction and operations at AMRT. The spreadsheet calculated a GHG potential emissions estimate in

CO2 equivalents (CO2e) units based on the U.S. EPA’s GHG calculation methodology (U.S. EPA, 2015). The following timelines were used in the assessment:

• Construction: 10 hours/day, 5 days/week, 4 weeks/month for a total duration of 8 months • Operations: 5 hours/day, 3 days/week, 52 weeks/year

The equipment inventory used to estimate the GHG emissions for the AMRT construction and operations are summarized below in Table 3. A total emission of 15,909 CO2e tons/year (14,432 CO2e metric tons/year) and 1,505 CO2e tons/year (1365 CO2e metric tons/year) are predicted for construction and

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operations, respectively.3 Based on data from 2013, these total estimated emissions contribute approximately 6x10-3 % and 5.6x10-4 %, respectively, to the province of Alberta’s overall annual GHG emissions based on 2013 data from Environment Canada (Environment and Climate Change Canada, 2015). Equipment mechanical output was obtained from Caterpillar Inc. specifications made available online.

Table 3: Estimated Project Greenhouse Gas Emissions

Total Potential Mechanical Estimated GHG Equipment Quantity Fuel Type Output/piece of Emission (CO2e equipment (hp) tons/year) Construction (per year) Bulldozer 1 Diesel 240 1,203 Tractor 1 Diesel 350 1,756 Grader 1 Diesel 240 1,204 Packer/compactor 1 Diesel 320 1,605 Gravel Truck 2 Diesel 420 4,214 Pickup Truck 5 Gasoline 240 5,928 Construction Total 15,909 Operations (per year) Engine (used for 1 Diesel 300 1,505 switching/shunting) Operation Total 1,505

2.4.2 Liquid Discharges

Onsite Direct Truck to Locomotive fueling will only be completed by a licensed and experienced truck supplier. Fueling will be completed at a designated location that will be equipped with appropriate drip matting and emergency spill kit equipment. Drip pans will be in place as a requirement of the licenced fuel delivery operator.

Any liquid discharges from “residue – last contained” railcars (see Section 2.1) will be controlled in accordance with the Project Emergency Response Plan. Shipping documents for all potential railway product contents will be available onsite at all times, to advise first responders on appropriate procedures in the event of accidental discharge.

Site grading construction will be staged to ensure that positive site drainage is in place before general site grading is commenced. Such positive drainage will be maintained during the full construction period site grading. Erosion control will be provided by the application of silt fencing installed in accordance with

3 Tons are US short tons, metric conversion provided.

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stormwater best management practices. The stormwater management pond and outlet control will be incorporated into the site drainage plan and prepared in advance of general track and roadway grading.

The stormwater management pond and drainage systems have been designed to accommodate a 1:100 year storm event. The recommended live storage volume of the pond is 37,110 m3. The outlet from the stormwater management facility will control the release of water from the sedimentation pond at or below the peak discharge rate of 0.133 m3/s. Release from the stormwater management pond will be conveyed north through a roadside ditch along Range Road 201 and will then follow existing drainage pathways eventually discharging to Lamont Creek. Approximately 307 ha of offsite area will direct runoff onto the Project site, and will be conveyed around the east and west edges of the facility by ditches and culverts and discharged to the north. Discharge will follow current drainage patterns and ultimately reach Lamont Creek. Peak flow from offsite areas is assumed to be 0.67 m3/s. The cumulative release rate to Lamont Creek will not exceed 1.8 L/s/ha.

The stormwater management pond was designed to effect a minimum of 85% removal of sediments of particle size of 75 um or greater, in accordance with Alberta’s Municipal Policies and Procedures Manual. The potential for silts to enter the stormwater management pond are minimal as, upon completion of construction, ground surface at site will be covered with a prepared granular surface (tracks, roads, and parking), grass, or forage crop (50 m buffer from existing cropped areas).

2.4.3 Waste and Intended Disposal

There are no other sources of Project waste other than what has been described.

2.5 Project Phases and Scheduling

2.5.1 Planning, Construction, and Operation

Table 4 summarizes the forecasted timelines for the planning, construction, and operational phases of the Project.

Table 4: Schedule of Key Project Phases during Planning, Construction, Operation, Decommissioning, and Abandonment

Project Phase Anticipated Start/End Dates Conceptual design Q3 2013 to Q2 2014 (completed) Preliminary design Q3 2014 to Q3 2015 (completed) Regulatory approvals and permits Q1 2014 to ongoing Detailed design & RFP Q4 2015 to Q1 2016 Start up: access improvements in SW site Q1 through Q2 2016 entrance, office trailer/employee facilities, parking, etc. Temporary works: construction equipment Q2 2016 and material storage

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Project Phase Anticipated Start/End Dates Permanent works 1) Topsoil removal & site preparation Q2 2016 2) Site drainage and storm pond Q2 2016 3) Construct subgrade Q2 to Q3 2016 4) Electrical supply to site Q2 2016 5) CN main track turnout installation Q2 2016 6) Track & turnout construction Q3 to Q4 2016 & Q2 2017 7) Ballast & surface track Q4 2016 & Q2 2017 8) Lighting & fencing Q1 2017 Commissioning & operations start up Q1 & Q2 2017 Decommissioning and Abandonment Minimum 25 years after commissioning and start up (during or after 2042).

Main Activities

Table 5 provides a summary of typical activities associated with each of the key project planning, construction, and operation phases as outlined in Table 4 above.

Table 5: Main Activities of the Key Project Planning, Construction, and Operation Phases

Project Phase Main Activities/Tasks of the Phases Conceptual design Initial track layout based on anticipated railcar requirements, applicable railway industrial guidelines, operating plan, and property footprint. Preliminary design Site topography and survey control points established, further refinement of the conceptual plan, clearance diagrams, typical cross-sections, earthwork and track quantity estimates, and development of early stage construction cost estimate. Regulatory approvals and permits Appropriate regulatory authorities will be engaged and required applications and documentation will be provided in order to obtain applicable approvals/permits. See Section 1.4. Detailed design & RFP Further development of the preliminary design providing grading points files, culvert/ditch invert elevations, cross- sections, and reference to utilities that may be affected. Start up: access improvements in SW Initial earthworks will be coordinated with the grading site entrance, office trailer/employee contractor to ensure a functional and safe construction facilities, parking, etc. worksite. Disturbed areas will be incorporated into the permanent construction where practical, thereby reducing the amount of temporary disturbance.

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Project Phase Main Activities/Tasks of the Phases Temporary works: construction Initial earthworks will be coordinated with the grading and equipment and material storage track work contractor, for equipment, materials, and employee requirements, exclusively for their temporary use during the construction period. Permanent Works 1) Topsoil removal & site preparation 1) Strip top soil in area of grading, and stockpile “onsite.” To be completed following a non-intrusive nest survey. Due to timing within peak migratory bird nesting period. 2) Site drainage and storm pond 2) Installation and maintenance of silt fencing around the disturbed site, excavation of stormwater management pond, and preparation of positive worksite drainage system. 3) Construct subgrade 3) Heavy earthwork equipment will complete; excavation of cut areas; place/compact suitable fill material for track and roadway grades; place/compact granular base for track and roadway surface and; replacement of top soil and seeding on backslopes/sideslopes and disturbed areas. 4) Electrical supply to site 4) ATCO or designated contractor to install poles, transmission line, transformer, and distribution panel. Power to Site Office Trailer connection completed. 5) CN main track turnout installation 5) In coordination with CN, construct and install two main track turnouts (possibly CN supplied). 6) Track & turnout construction 6) Supply and assembly of track materials (ties, rail, fasteners, and turnouts) as skeleton track, as per the track design alignment and CN Industrial Track Standards. 7) Ballast & surface track 7) Crushed rock ballast applied to the “skeleton track” and track is mechanically lifted/lined/surfaced to finished design. 8) Lighting & fencing 8) Installation of wooden power poles (or below grade conduits) to track lead areas and installation of low level light poles, by electrical contractor. Perimeter security fencing and gates to be completed by local contractor. Commissioning and Operations Start Up 1) Employee training and certification, i.e. eRailSafe, CROR, and Track Inspection Guidelines. 2) Track Inspection by AMRT, Rail Contractor, and CN. 3) Operational Risk Assessment review by qualified stakeholders, and implementation of recommendations. 4) Implement Emergency Response Plan.

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2.5.2 Decommissioning and Abandonment

The Project facility is anticipated to have a minimum operational period of 25 years. At the facility’s end of life, it may be re-purposed to an alternate rail served facility. The proposed configuration is suitable for a loading terminal with adequate train length capacity for modern day rail operations.

When the Project is decommissioned, the Project will be reclaimed to “equivalent land capability.” Project decommissioning activities will include the removal of tracks and other infrastructure (such as access roads and buildings), remediation of any environmental impacts where necessary, and reclamation of the Project to suitable agricultural capable lands.

A large portion of the area within NW and SW 25 55-20 W4M will not be disturbed by the Project footprint, and will remain as vegetated areas where practical. The decommissioned track, access, and service roadways will have the soils replaced and revegetated with native grasses or agricultural vegetation.

Construction of the Project will also include creation of a new pond and changes to site drainage. At the time of decommissioning, the Project would be assessed to determine the best reclamation approach that would cause the least negative effects to the environment. Returning the landscape of the Project and drainage to previous condition has the potential to result in negative effects to habitat on the property which will have been in place for many years. AMRT would consider using the adjacent lands as a representative baseline to return the site to an appropriate level of predevelopment condition.

It is proposed during soil stripping activities that topsoil will be conserved in a “berm” along the perimeter of the Project, to the extent practical. Topsoil from the perimeter berm will be available at the time of decommissioning and used to reclaim infrastructure such as the access roads, office trailer/parking, and track grade to support vegetation growth on reclaimed areas.

Track materials will be salvaged for re-use through normal railway materials broker agencies. These include reusable track materials, such as rail, ties, fasteners, and ballasts. Scrap materials will similarly be sold for recycling or disposal as appropriate by a licenced contractor. The office trailer would be removed from site for re-use or disposal. Small track repair tools and railcar equipment parts will be removed for use by the Operator of the Project.

Upon a decision to abandon the Project facility, it is anticipated that Project decommissioning would take approximately one year.

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3. PROJECT LOCATION

3.1 Description of Project Location

3.1.1 Coordinates

The site is located at latitude 53.7839 and longitude -112.8450 and is approximately 3 km northwest of the town of Lamont, Alberta.

3.1.2 Site Plan

The site plan in Appendix A illustrates the Project’s components and activities.

3.1.3 Maps

The maps in Appendix B show the Project in relation to nearby environmentally sensitive areas, historical resource values, watercourses and waterbodies, linear and other transportation components, land use features, aboriginal communities, federal lands and provincial boundaries, nearby communities, residences and fisheries information.

3.1.4 Photographs

Photographs of the Project are presented in Appendix C.

3.1.5 Proximity of Project

The following section describes the Project proximity to residences, traditional territories, and federal lands.

Residences

There are two permanent residences located adjacent to the Project: one is on the west side of Range Road 201 and the other is located on the south boundary of CN railway tracks. Lamont County defines the referral area for consultation as 1,500 metres (1.5 km) from the Project. Consultation with residences within 1.6 km of the Project is an ongoing part of AMRT’s consultation plan.

Traditional Territories

The Project is located within Treaty 6. Aboriginal groups who may have asserted traditional territory in the Project area have been notified; a full list of these groups can be found in Section 6.2.

Federal Lands

The proposed Project is not located on any federal lands. The closest federal lands are , located 7.2 km to the south (Appendix B). The Project is not anticipated to cause changes to this National Park or any other federal lands.

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3.2 Land and Water Use

3.2.1 Zoning Designations

The Project is located within Alberta’s Industrial Heartland Heavy Industrial Policy Area and is currently zoned as heavy industrial. Lamont County also recognizes this zonation and provides recommendations based on this designation.

3.2.2 Legal Land Descriptions

The proposed Project is located in the NW and SW quarters (LSD’s 6, 11, 12, 13, and 14) of section 25-55- 20 W4M. AMRT owns surface rights for a portion of LSD 6 and all of LSD’s 11, 12, 13, and 14. Publically available land and mineral titles have been attached as Appendix D.

3.2.3 Land Use Plans

The Project is within jurisdiction of Lamont County’s Alberta’s Industrial Heartland Area Structure Plan (ASP) 676/07 (Lamont County, 2008). As defined in the ASP, the Project is within the Heavy/Medium Industrial Policy Area. The ASP includes compliance guidelines for heavy/medium industrial activities as follows:

• Activity must comply with all municipal, provincial, and federal approvals and requirements; • A buffer will be established and maintained between the industrial activity and adjacent neighbours; • Nature of the buffer will be determined in consultation with the proponent and county; and • Proponent will consider all current land uses in the area of interest (including industry and agriculture) to exploring sharing lands.

All guidelines for this Policy Area were considered during AMRT’s development application process to Lamont County.

The Project is also within the North Saskatchewan land use planning region defined by AEP. The North Saskatchewan Regional Plan is currently not complete. Phase 1 consultation (with “the Regional Advisory Council, First Nations and Métis groups, stakeholders, municipalities and the public”) has recently been completed (AEP, 2015a).

3.2.4 Traditional Lands

The location of Aboriginal communities in the vicinity of the Project has been identified in Section 3.1.5. The Project is located on privately owned land within the 582 km2 industrial zoned boundary of Alberta’s Industrial Heartland. Through communication with an immediate descendant of the original homesteader, it was determined that the land the Project would occupy, has been privately owned for agricultural and cultivation purposes since 1930 (K. Shultz, personal communication, February 3, 2016).

Considering this private ownership, the existing level of industrial development surrounding the Project area, and the distant location of First Nations reserves and Metis settlements, it is not anticipated the Project will impact land currently used for traditional purposes.

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4. FEDERAL INVOLVEMENT

4.1 Federal Financial Support

There is no proposed or anticipated financial support by federal authorities for the Project.

4.2 Use of Federal Lands for Project

No federal lands are required for carrying out the Project.

4.3 Federal Regulatory Requirements

No federal permits, licenses, or authorizations are required to carry out the Project.

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5. ENVIRONMENTAL EFFECTS

This section summarizes baseline environmental information collected for the Project. These include a Qualified Aquatic Environmental Specialist Assessment (Mainstream Aquatics, 2015), a desktop review of environmental features (Opus Stewart Weir, 2015), a Pre-disturbance Site Assessment (PDSA) (IEL, 2015a), a Wetland Assessment and Impact Report (WAIR; IEL, 2015b), a Geotechnical Site Investigation (Opus Stewart Weir 2014), and a Phase I Environmental Site Assessment (IEL, 2015c). Information collected was used in the determination of environmental effects due to the Project.

5.1 Physical and Biological Setting

5.1.1 Air Quality

Air quality within the Project area is managed by the Fort Air Partnership (FAP), which operates continuous air quality monitoring stations within Lamont, Bruderheim and Elk Island National Park, as well as many passive stations throughout the Lamont County. FAP’s Lamont, Bruderheim, and Elk Island continuous stations monitor for sulphur dioxide (SO2), nitrogen dioxide (NO2), ozone (O3), total hydrocarbons (THC),

methane (CH4), non-methane hydrocarbon (NMHC), and respirable particulate matter (PM2.5). Of these

compounds and stations, only PM2.5 measured exceedances during the 2014 reporting year, and all were due to either regional air quality events (forest fire smoke transport and large-scale temperature inversion conditions) or harvesting operations (FAP, 2015).

Construction of the Project is anticipated to contribute to local and temporary increases in dust and exhaust emissions. Project operations emissions are expected to include typical diesel locomotive operational emissions of a temporary nature; these are anticipated to impact local air quality and be limited to an approximately 2 km radius of the Project.

GHG emissions from both Project construction and operations are anticipated to be negligible compared to industrial practices in the Project vicinity and Provincial emissions (Section 2.4.1).

In consideration of the regional air quality data, industrial zoning of the Project, and similar operations in the Project vicinity, air emissions due to Project operations are not expected to impact regional air quality.

No adverse effects on air quality due to the Project are anticipated.

5.1.2 Noise

Regional noise impacts are directed by the Northeast Capital Industrial Association’s (NCIA) Regional Noise Management Plan (RNMP), which has established baseline noise levels for the area. In the vicinity of the Project, local noise levels are dominated by Highway 15 traffic, and include railway and nearby industrial sources. The region is zoned industrial; existing noise levels will fluctuate between the Alberta rural ambient level of 35 dBA and 50-60 dBA, depending upon nearby activities.

Local noise effects are anticipated due to the following Project activities: switching railcars, coupling, and idling and operating locomotives. These noise effects are not expected to be scheduled or constant, and frequency will depend on the length of railcar storage at the Project facility. Noise created within the

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Project facility is anticipated to occur during daylight hours from Monday to Friday (for four to five hours per day and two to three days per week).

Operations outside of daylight and weekday hours could occur for: CN switches into and out of the Project facility, CN locomotive operation and idling of inbound or outbound cars, and in emergency situations.

AMRT has produced a Sound Attenuation Report (AMRT, 2015b), which was submitted to Lamont County on November 26, 2015. Noise effects caused by the Project will be local and will not have a regional noise impact, including at nearby Elk Island National Park. AMRT is committed to noise mitigation program which includes: a locomotive shut down policy (reduced idling); daylight hour shifts except for situations described above; and a proposed earthen berm on the north and east sides of the Project facility to mitigate noise to adjacent receptors.

AMRT will comply with the requirements of the RNMP and will perform compliance noise monitoring as directed by the NCIA. No adverse effects on noise due to the Project are anticipated.

5.1.3 Soil

The Project is located in an area that has been used primarily over the past 60 years for agriculture cultivation and grazing land uses and more recently (last 15 years) for oil and gas processing. These soils have thus been subject to long-term seasonal plowing and cattle grazing. The Project footprint is located within Soil Correlation Area 10 with well drained to moderately well drained Black Solodized Solonetz of the Camrose and Kavanagh soil series and Eluviated Black Chernozems of the Angus Ridge soil series present. These soils developed over fine-textured (clay loam) glacial till parent materials. The Project footprint has been mapped as Class 4 soils from the Land Capability Rating System that consists of soils that have severe limitations to agriculture that restrict the range of crops or require special conservation practices (AAF, 1995).

A review of baseline soil characteristics indicated the presence of Black Solodized Solonetz (soils with naturally occurring salinity and sodicity) covering the majority of the Project area. Potential Project impacts to soil quantity and quality for reclamation purposes may result. Soils will be salvaged and conserved in perimeter berms for future reclamation and decommissioning purposes. With proper mitigation measures in place for the duration of the Project, no adverse effects to soil resources are expected. Soil stripping and handling during construction will be diligent to minimize soil admixing and compaction. Risks to soil quality for reclamation are considered high, particularly with improper soil stripping or handling and due to the presence of natural elevated salinity. A pre-disturbance soil assessment is recommended to identify and map sensitive soils in order to propose suitable construction and reclamation measures for the Project.

Mitigation measures will include limiting construction activities during excessively wet soil conditions. The use of two-lift or three-lift soil stripping is recommended to ensure that saline and/or sodic conditions in the subsoil are not admixed with the topsoil during construction. Soil stockpiles will be located away from water courses and bodies with no greater than a 3 to 1 slope. Stockpiles will be revegetated with approved seed mixes.

The Project area includes a zonally abandoned wellsite at 14-25 and a currently active battery site at 13- 25; both owned by Husky. A Phase I Environmental Site Assessment (ESA) completed for the Project

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identifies potential for soil contamination associated with drilling waste disposal practices, production pits and historical spills (IEL, 2015c). Based on the results of the Phase I ESA, a Phase II ESA is under consideration to assess any potential contamination within the Project area and provide a baseline of soil conditions.

Any contamination identified in the Phase II ESA that is associated with the Husky sites is regulated and would require remedial action at decommissioning to meet provincially regulated reclamation criteria. A reclamation certificate would be issued if the site meets all reclamation and remediation guidelines.

Under normal operations for the Project, potential contamination risk to soil resources is considered low. Polycyclic Aromatic Hydrocarbons may be released from the creosote-treated wooden ties into the rail ballast, but rapidly photo-and chemically oxidize, preventing lateral and vertical migration into the environment (Brooks, 2004). Fuel, fluid, and waste management practices for the Project are considered adequate to prevent releases of potentially toxic substances. Railcars stored at the Project site will be empty, or containing only residues, and therefore will not be carrying products in quantities that could be harmful if released. Cars will also not be washed or flushed at the Project site.

No adverse effects on soils due to the Project are anticipated.

5.1.4 Vegetation

A PDSA was conducted August 26-27, 2015. This included a rare plant assessment, weed survey, and vegetation community type classification. A desktop review of existing information sources was completed prior to the field assessment and included:

• Natural Regions of Alberta (Natural Regions Committee, 2006); • Alberta Conservation Information Management System (ACIMS) database and tracked elements list by Natural Subregion (AEP, 2015c); • Federal and provincial species and community ranks/statuses (GOC, 2015; COSEWIC, 2015; AEP, 2015d; Allen, 2014); • Fish and Wildlife Internet Mapping Tool (AEP, 2015b) • A Landscape Analysis Tool (LAT) report; • Topographic maps; and • LiDAR Bare Earth imagery to determine geology features of Project area.

These databases are not a complete record of all rare plant species that could potentially occur in a given area. No rare plants were observed on the Project site and potential is limited given current agricultural practices.

The Project is located in the Central Parkland subregion, within the Parkland Natural Region of Alberta. This subregion has high rainfall levels from June to August as well as a warm and long growing season, making it highly productive for annual crops. It is estimated that of the Central Parkland subregion, only 5% remains with native vegetation (due mainly to agriculture and livestock) (Natural Regions Committee, 2006).

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The majority of the Project site (63.2 ha) is cultivated (dominantly barley [Hordeum vulgare]), except for a small portion of pasture land (10.8 ha), located in SW-25-55-20 W4M that is grazed. No trees or non- vascular vegetation cover occur within the Project footprint. Shrubs are limited to a small area in one of the seasonal wetlands. No federally or provincially listed species occur within the Project footprint (IEL, 2015a; AEP, 2015d).

Canada thistle (Cirsium arvense) and perennial sow-thistle (Sonchus arvensis), both listed as provincially noxious weeds in Alberta, were found within the Project footprint (IEL, 2015a).

The centre area of the proposed track layout will not be disturbed by the Project footprint, and will remain vegetated where practical (Appendix A).

Since the majority of the Project footprint is cultivated and used for grazing, no adverse effects on vegetation species due to the Project are anticipated. Should a plant species of conservation concern be discovered during construction, mitigation measures will be implemented. Mitigation measures could include avoidance using buffer zones around rare plants or transplanting.

To prevent the spread of noxious weeds during construction, efforts will be made to clean equipment prior to, or when leaving, known weed locations to control spread of noxious weeds. During decommissioning, the Project footprint will be revegetated with native grasses or agronomic species.

No adverse effects on vegetation resources due to the Project are anticipated.

5.1.5 Wetlands

A wetland assessment was conducted August 26 – 27, 2015. A desktop review of existing information sources was completed prior to the field assessment and included:

• High resolution satellite imagery to determine presence/absence and extent of wetlands and low areas; • Publicly available wetland datasets (e.g. Alberta Merged Wetland Inventory [AMWI] (AEP, 2015e)); • Topographic maps; and • LiDAR Bare Earth imagery to determine geology features of Project area.

Five wetlands and one ephemeral water body (not a wetland according to the 2015 Alberta Wetland Classification System) occur within the Project site. These wetlands are disturbed due to cultivation and are encroached by agronomic species. They include one ephemeral water body, two temporary freshwater marshes, two seasonal freshwater marshes, and one temporary freshwater drainage (IEL, 2015b). The total wetland area within the Project site is 7.640 ha Approximately 4.9 ha (four of the five wetlands) will be directly affected by the Project, resulting in alteration or loss of the following functions:

• Ecological and health functions: loss of wetland area (infilling and grading), loss of wetland vegetation communities, loss of wetland soils and interruption of nutrient cycling, loss of habitat for amphibians and small mammals;

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• Hydrological functions: reduced water storage capabilities (surface water storage), reduced water sources (recharge vs. discharge); reduced water transport efficiency (water cooling, water warming); and • Water quality: reduced sedimentation retention, reduced retention of phosphorus and nitrate- nitrogen removal.

Portions of those wetlands not directly affected by the Project footprint might experience indirect effects as a result of construction. This could include increased runoff and increased sediment loading. Mitigation measures to avoid these indirect effects will include silt fencing, staking wetland boundaries, construction during dry-frozen condition and re-contouring to facilitate natural drainage. In addition, a replacement wetland proposal will be submitted to the Alberta Crown, which will include a plan to replace lost wetland area and value due to the Project.

A Public Lands Act/Water Act Joint Application will be submitted to AEP. This Joint Application will include a Wetland Assessment and Impact Report (WAIR) (IEL, 2015b). The WAIR will include a description of the direct and indirect impacts on each wetland, and wetland mitigation strategies to reduce adverse effects to wetlands due to the Project.

5.1.6 Water

As discussed in Section 5.1.3, there is one petroleum-product well within, and one adjacent to, the Project footprint, that are owned and operated by Husky. The potential impacts to water resources from these facilities is unknown but are under evaluation by Husky. Any impacts to soil or water from those two wells are the responsibility of Husky.

Hydrology and Surface Water Quality

The pre-disturbance topography of the Project footprint is generally flat, with a depression at the northeast corner. Topographic contours show that natural drainage is generally to the northeast toward Lamont Creek, which is approximately 480 m away from the northeast corner of the Project footprint. There are no watercourses in the Project footprint. Two agricultural dugouts are located within the southern portion of the Project footprint in LSDs 12 and 11.

Direct effects to the dugout in LSD 11 are expected from the Project, as the proposed locations of tracks overlay that waterbody. If not affected directly, the dugout in LSD 12 will be affected indirectly by changes to local runoff.

The Project is not expected to have an effect on the quantity of surface water in natural water bodies. Surface water is not being used for Project activities, so there are no direct effects to surface water quantity. Stormwater management for the Project is expected to control the release of runoff from the site, and discharge is overland rather than directly to Lamont Creek. Changes to the amount of water reaching Lamont Creek are therefore not expected.

Under normal project operations, impacts to surface water quality are expected to be negligible. The Project is intended for the storage of empty and residue railcars only; thus, release of substances from the railcars in harmful quantities is not expected. Proposed management of wastes, fuels, and fluids (discussed in Section 2.4.2) is expected to mitigate against releases of those substances to the environment.

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No testing of the stormwater pond is required. The stormwater management system (AECOM, 2015) is designed to reduce the load of suspended solids prior to controlled release of runoff overland to the environment.

Groundwater Resources

Regionally, groundwater resources within near-surface bedrock are in sandstones of the Belly River or Bearpaw Formations (Stein, 1976). Water well records within 1 km of the Project (GoA, 2015) show that sandstone has been the target for water wells in the area and it appears to be a confined aquifer. Bedrock at the Project consists of shale and fine- to medium-grained sandstone (Opus Stewart Weir 2014). The depth to bedrock varies at the Project but is generally shallow, from 1.8 m below ground surface (bgs) to greater than 4.5 m bgs (Opus Stewart Weir, 2014).

Surficial sediments at the Project consist primarily of sandy, silty, clay till (Opus Stewart Weir, 2014) and are not likely to have sufficient yield to be groundwater resources. Sand lenses and seams, typically 0.05 – 0.60 m thick, are common within the till however may not be thick or continuous enough to be considered an aquifer.

Impacts to local groundwater quantity are not expected. Groundwater will not be used for the Project and there are no deep, subgrade developments or trenching.

Under normal operations, the risk of potential adverse effects to groundwater quality are considered negligible to low. Polycyclic aromatic hydrocarbons may be released from, creosote-treated wooden ties into the rail ballast, but rapidly photo-and chemically oxidize, preventing lateral and vertical migration into the environment (Brooks, 2004). Fuel, fluid, and waste management practices for the Project are considered adequate to prevent releases of potentially toxic substances. Railcars stored at the Project site will be empty, or containing only residues, and therefore will not be carrying products in quantities that could be harmful if released. Cars will also not be washed or flushed at the Project site.

No adverse effects on surface or groundwater due to the Project are anticipated.

5.1.7 Fish and Fish Habitat

The Fish and Wildlife Management Information System (FWMIS) indicated no past occurrences of fish species of concern within 1 km of the Project (AEP, 2015b). This database is not a definitive record of all fish species that have occurred or have potential to occur in a given area.

A Qualified Aquatic Environmental Specialist (QAES) assessment identified no fish or fish habitat-bearing watercourses within the Project footprint (Mainstream Aquatics, 2015). In particular, the QAES assessed a drainage that lacked defined bed and banks and that had no surface water flow at the time of the assessment. Natural drainage is to the northwest towards Beaverhill Creek, which is approximately 4.3 km north of the Project. The QAES concluded that this drainage has no potential to be fish-bearing and has no potential to provide fish habitat (Mainstream Aquatics, 2015).

The onsite surface flow of the Project is to the northeast which will be collected in a constructed stormwater pond (AECOM, 2015). Discussions are underway with Lamont County to direct runoff north along a roadside ditch adjacent to Range Road 201, which will eventually discharge to Lamont Creek. Lamont Creek is a small intermittent stream that has severely limited fish habitat potential and no natural

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connectivity to the Project site. The stormwater management system is designed to reduce the load of suspended solids prior to controlled release of runoff overland to Lamont Creek.

5.1.8 Wildlife

A PDSA was conducted August 26-27, 2015. This included an assessment for wildlife and wildlife habitat. A desktop review of existing reported information sources was completed prior to the field assessment and included:

• Natural Regions of Alberta (Natural Regions Committee, 2006); • Federal and provincial species and community ranks/statuses (GOC, 2015; COSEWIC, 2015); • Fish and Wildlife Internet Mapping Tool (AEP, 2015b); • A Landscape Analysis Tool (LAT) report; • Topographic maps; and • LiDAR Bare Earth imagery to determine geology features of Project area.

The above data and databases are not a definitive record of all fish and wildlife species that have occurred or have potential to occur in a given area.

There are no past wildlife occurrences within 1 km of the Project (AEP, 2015b), and no species of management or conservation concern were noted during the pre-disturbance site assessment (IEL, 2015a). Livestock were observed in the southern portion of the Project within pasture lands (IEL, 2015a).

The Project is within migratory bird nesting zone B4 according Environment Canada’s General Nesting Periods of Migratory Birds in Canada. The peak migratory bird nesting period for wetlands and open habitats in B4 is May 15-July 16. There are 54 species known to nest in wetland habitats and 96 species known to nest in open habitats in nesting zone B4 (Environment Canada, 2014a).

Beaverhill Bird Observatory, a designated “Important Bird Area of Global Significance” with large numbers of shorebirds and waterfowl stopping over during migration, is approximately 50 km south of the Project. More than 270 bird species have been reported with 145 species breeding (AEP, 2015f). The Observatory completes migration monitoring annually (Beaverhill Bird Observatory, 2016). In the spring 2015 monitoring (DeMoor, 2015), the five most commonly captured species (accounting for 66% of the total number of captures) were: least flycatcher (Empidonax minimus), clay-coloured sparrow (Spizella pallida), Swainson’s thrush (Catharus ustulatus), yellow warbler (Dendroica petechial), and house wren (Troglodytes aedon). As well, during a standard census route survey, the most commonly detected species were: greater white-fronted goose (Anser albifrons), Canada goose (Branta canadensis), sandhill crane (Grus canadensis), tree swallow (Tachycineta bicolor), and least flycatcher (Empidonax minimus) (DeMoor, 2015). All of these species are listed as “secure” in the General Status of Alberta Wild Species, except for least flycatcher and sandhill crane which are listed as “sensitive.”

The Project is within a bald eagle Sensitive Raptor Range and sharp-tailed grouse range (Appendix B, Figure 3). Bald eagle (Haliaeetus leucocephalus) and sharp-tailed grouse (Pedioecetes phasianellus) are both listed as “sensitive” in the General Status of Alberta Wild Species, bald eagle are protected by the Alberta Wildlife Act, and both are not listed by SARA.

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Bald eagle usually nest near the tops of tall trees, near rivers or lakes to capture their main food source of fish (AEP, 2014). No bald eagle nests were noted within the Project footprint. This will be re-confirmed during the proposed pre-project activity nest sweeps.

Sharp-tailed grouse habitat includes edges of forest clearing near agricultural fields as well as brush and aspen groves in the Parkland Natural Region of Alberta (AEP, 2009). There is the potential for sharp-tailed grouse leks to be present in the Project footprint, but none were observed onsite. The presence of sharp- tailed grouse and lekking grounds will be re-evaluated during the proposed pre-project activity nest sweeps.

As the site is disturbed and cultivated, no SARA listed species or their habitat are anticipated to be affected by the Project. A review of the AEP Habitat Suitability Indices indicated that the Project site has “less suitable to least suitable” habitat for listed Species at Risk, including: long-billed curlew (Numenius americanus), prairie falcon (Falco mexicanus), sharp-tailed grouse (Tympanuchus phasianellus), ferruginous hawk (Buteo regalis), short-horned lizard (Phrynosoma hernandesi), burrowing owl (Athene cunicularia), sprague’s pipit (Anthus spragueii), loggerhead shrike (Lanius ludovicianus), prairie rattlesnake (Crotalus viridis), plains spadefoot (Spea bombifrons), great plains toad (Anaxyrus cognatus), American badger (Taxidea taxus), and Richardson’s ground squirrel (Urocitellus richardsonii) (Opus Stewart Weir 2015).

No adverse effects on wildlife due to the Project are anticipated.

5.2 Changes to Fish and Fish Habitat, Marine Plants and Migratory Birds

This section describes any predicted changes as a result of the Project to fish and fish habitat and marine plants, as defined in the Fisheries Act; and migratory birds, as defined in the Migratory Birds Convention Act.

5.2.1 Fish and Fish Habitat

A QAES assessment identified no fish or fish habitat-bearing watercourses within the Project footprint.

There are no past occurrences of fish species of concern within 1 km of the Project (AEP 2015b).

No water will be used during the construction, operation, or decommissioning of the Project. The stormwater management system is designed to reduce the load of suspended solids prior to controlled release of runoff overland to Lamont Creek.

No adverse effects on fish, or fish habitat due to the Project are anticipated.

5.2.2 Marine Plants

Not applicable.

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5.2.3 Migratory Birds

No migratory birds or their nests have been identified on the Project site (IEL, 2015a). According to Environment Canada’s (2014a), the Project is within nesting zone B4. Nesting zone B4 extends east from Calgary, Alberta to Winnipeg, Manitoba (with the exception of some southern Alberta). As the Project contains wetlands and open (non-forested) land, the peak migratory bird nesting period for wetlands and open habitats in B4 is May 15-July 16. Within Zone B4, there are 54 species known to nest in wetland habitats and 96 species known to nest in open habitats. Some 61-100% of these known migratory birds in zone B4 are predicted to be actively nesting in open and wetland habitats during the peak migratory bird nesting period (Environment Canada, 2014a).

The centre area of the proposed track layout will not be disturbed by the Project footprint, and will remain vegetated where practical (Appendix A). The Project is not expected to cause release of substances from the railcars in harmful quantities; proposed management of wastes, fuels, and fluids (discussed in Section 2.4.2) is expected to mitigate against releases of those substances to the environment. In addition, the proposed stormwater pond within the Project footprint is designed to reduce the load of suspended solids prior to controlled release of runoff overland to the environment. With consideration of these Project details, any migratory birds utilizing the Project footprint and surrounding area to land, rest, or feed are not expected to be adversely affected.

As clearing is scheduled to occur during the peak migratory bird nesting period, a non-intrusive nest survey will occur within seven days prior to clearing by a qualified biologist. The Project area is considered a “simple habitat,” or an area where Environment Canada guidelines suggest a successful nest survey can occur without causing unintended disturbance (Environment Canada, 2014b). Mitigation strategies will be recommended if any nest or species occurrences are found.

No adverse effects to migratory birds and their nests due to the Project are anticipated.

5.3 Changes to Environment on Federal Lands

There are no changes to federal lands anticipated during the construction, operations, or decommissioning phases of the Project. In particular, the Project will not produce local air and noise effects to Elk Island National Park (approximately 7.2 km south of the Project).

5.4 Effects on Aboriginal Peoples

Effects on Aboriginal peoples due to changes in the biophysical and socio-economic environment are not anticipated, considering that Project is zoned heavy industrial, is located on private agricultural land and surrounded by existing industrial development.

Additionally, the Project was granted clearance from Alberta Culture and Tourism under the Historical Resources Act (HRA) on June 18, 2015. The Project location (Sec 25-55-20 W4M) does not contain any HRV listings indicating potential historical resource concerns. It is not anticipated there would be any effects on any structure, site or thing that is of historical, archeological, paleontological or architectural significance.

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6. PROPONENT ENGAGEMENT AND CONSULTATION WITH ABORIGINAL GROUPS

6.1 Aboriginal Groups That May Be Interested in, or Potentially Affected by, the Project

The Project occurs on AMRT owned lands within the Alberta Industrial Heartland. Considering the level of long-term heavy industrial development immediately surrounding the Project, it is not anticipated the Project will impact any Aboriginal groups’ asserted traditional territory.

A Water Act/Public Lands Act joint application will be submitted to the AEP for impacted wetlands due to the Project. A request for a pre-consultation assessment will be initiated through the Aboriginal Consultation Office (ACO) to determine if First Nations Consultation for the Water Act/Public Lands Act approval will be required. The result of the Water Act/Public Lands Act Joint Application will determine if the wetlands are crown-claimable or not. It is anticipated that the ACO will require the outcome of this decision to determine the level of consultation required. AMRT is prepared to engage in consultation activities as required.

Additionally, should a federal regulatory requirement be identified, AMRT will adhere to federal consultation requirements.

6.2 Engagement or Consultation Activities

Table 6 includes Aboriginal groups who have been notified about the Project.

Table 6: Recipients and Dates of Aboriginal Notifications

Aboriginal Groups who were sent the notification Aboriginal Groups who were sent the notification on January 22nd , 2016 on January 29th , 2016 Alexander First Nation Administration Samson Cree Nation Enoch Cree Nation Louis Bull Tribe Ermenskin First Nation Gunn Metis Local 55 Paul First Nation Beaver Lake Cree Nation Whitefish Lake First Nation Alexis Nakota Sioux Nation Chipewyan Prairie Dene First Nation Montana First Nation Fort McMurray First Nation Metis Nation of Alberta Region 1 Foothills Ojibway First Nation Metis Nation of Alberta Region 2 Blood Tribe Piikani Nation Siksika Nation Stoney Tribal Association Tsuu T’ina Nation Metis Nation of Alberta Region 4 Buffalo Lake Metis Settlement Kehewin Cree Nation Saddle Lake Cree Nation Kikino Metis Settlement

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6.3 Key Comments and Concerns

Notification packages were sent to Aboriginal groups to provide information about the Project and the opportunity to comment on the Project. Contact information of the Aboriginal groups notified can be found in Appendix E. Two responses have been received. The Project’s status, location and any potential economic opportunities were discussed with the Saddle Lake Cree Nation. Additionally, Buffalo Lake Metis Settlement requested clarification on the exact location of the Project; AMRT fulfilled this request. Communication with these parties will be ongoing.

6.4 Consultation Plan

If it is determined that consultation with Aboriginal groups is required, by Federal or Provincial regulatory bodies, or if an Aboriginal group self-identifies and indicates interest in the Project, AMRT will develop a Consultation Plan to ensure that open and meaningful communication and engagement is established between all involved parties. The Aboriginal Consultation Plan will outline the processes and approaches used to share and collect information as well as provide feedback on the Project. Consultation would commence as soon as possible prior to Project construction. The consultation schedule will be developed with input from regulators and Aboriginal communities.

Where feasible, information, with the Aboriginal community and any other parties identified by the community who would have an interest in the Project, would be shared primarily by telephone, in-person meetings, and via email. Notifications would be sent out by registered mail and documents would include any policy information related to the Project of interest to the community. Additionally, email, telephone and the AMRT website would be used to ensure that information is accessible to all interested parties.

Through open dialogue, AMRT will collect feedback and assess the needs and requests of the Aboriginal community for information, engagement, consultation, and possible accommodation where applicable. AMRT would take all matters raised in discussions into consideration and identify appropriate approaches to address such matters. The appropriate approach will vary and may include (but not be limited to) providing additional information, undertaking necessary studies, and potential modification to the Project design.

AMRT would maintain a record of consultation and documentation issued as well as feedback received through all forms of contact. This record would also include the approaches identified to address comments or concerns raised during engagement and consultation with Aboriginal communities.

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7. CONSULTATION WITH THE PUBLIC AND OTHER PARTIES

7.1 Key Comments and Concerns from Stakeholders

Landowners within 1.6 km of the Project were consulted in face-to-face meetings with AMRT representatives. An open house was held by AMRT on November 6, 2015 in the Bruderheim Fire Hall with approximately 40 attendees. The recurring comments and concerns expressed by landowners generally related to traffic, noise, water management and drainage, and emergency response. AMRT assured these stakeholders that they will work closely with Lamont County, CN and the operator, CNPRS, to address these concerns and mitigate where practicable.

7.2 Ongoing or Proposed Stakeholder Consultation

Through the existing and ongoing open dialogue with neighboring residents, ARMT aims to develop mutually agreeable avoidance and mitigation measures. AMRT has documented comments and concerns expressed by neighbouring landowners in a record of consultation (RoC) and will retain and update this RoC as well as any commitments made and their associated follow-up.

AMRT also plans to complete community outreach and communications with Lamont County emergency response personnel, and other local first responders, to ensure a complete understanding of:

• Nature of the railcars stored at the Project facility; • Various emergency response plans in place on the residue cars (empty railcars that last contained dangerous goods) as well as the Project Facility Emergency Response Plan; and • Any other risk factors that may be identified to mitigate risk and danger to the public.

7.3 Consultation with Other Jurisdictions

AMRT has maintained an ongoing dialogue with Alberta Transportation’s Rail Safety Administrator since 2013. AMRT has submitted a Notice to Construct Railway Works application in writing to the Alberta Transportation Railway Administrator and has received approval to construct works.

Since 2011, ARMT has been in discussion with Lamont County through the Manager of Economic Development and the Manger of Planning and Development. A Development Permit application was submitted to Lamont County in September 2015, and included a full disclosure of the Project plan (AMRT, 2015a). Lamont County approved this application on November 6, 2015. AMRT will maintain dialogue with Lamont County and adhere to ongoing submission and consultation requirements with the County. The Project includes two wells owned by Husky; one in 14-25 is zonally abandoned (designated as “abandoned water disposal zone”) and one in 13-25 is currently operating as part of a battery with storage tanks. Husky owns five inactive pipelines within the Project. AMRT has been in discussion with Husky to determine adequate setback distances, proximity agreements, and any required pipeline easement relocation.

Regulatory approvals for this Project are required by several provincial and municipal regulators (see Section 1.4). These stakeholders will be consulted as part of the Project regulatory permitting phase.

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AMRT has, and will continue to engage and consult with, CN and Alberta Transportation regarding their regulatory requirements, particularly during the design phase.

Since the Project falls within the boundary of Alberta’s Industrial Heartland, the AIHA has been included in ongoing consultation since late 2012. AMRT will continue to engage with and consult the AIHA. AMRT owns the land the Project would be developed on, and proposed components of the facility will be entirely within that land, which is located within Alberta’s Industrial Heartland heavy industrial zoning. No re- zoning applications are required.

ACT was consulted in order to determine the Historical Resources Act (HRA) status of the Project. Historic resources managed under the HRA include archaeological and palaeontological sites, historic sites and Aboriginal traditional use sites. Based on a review of the Listing of Historic Resources (ACT, 2015), available data from previous studies, previously recorded sites near the Project, and aerial photos/satellite images, it was determined that the Project had limited potential of impacting significant historic resource sites. An application for HRA approval was prepared for the Project recommending no further work and submitted to ACT for review. HRA approval was granted for the Project on June 18, 2015.

In the unlikely event that during Project construction or operation a historic resource site is discovered (a chance find), it will be reported to ACT immediately as per Section 31 of the HRA ((2000) c. H-9, s.31). This will include photographs, GPS coordinates and any other details of the find.

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8. REFERENCES

Agriculture and Agri-Food Canada (AAF). 1995. Land Suitability Rating System for Agricultural Crops. 1. Spring-seeded small grains. Technical Bulletin 1996-6E. Available at < http://sis.agr.gc.ca/cansis/publications/manuals/1995- lsrs/lsrs.pdf> (Accessed November 19, 2015). AECOM. 2015. Rail Freight Logistics Centre – Lamont County, Stormwater Management Plan. Report prepared for Alberta Midland Railway Terminal Ltd. August 2015. Project No. 60312878. Alberta Culture and Tourism (ACT). 2015. Alberta Culture and Tourism 2015 Listing of Historic Resources, March 2015 Edition. Alberta Culture and Tourism, Edmonton, Alberta. Alberta Environment and Parks (AEP). 2015a. Land-Use Framework, Regional Plans, North Saskatchewan Region. Available at (Accessed January 18, 2016). AEP. 2015b. Fisheries & Wildlife Management Information System. Available at (Accessed November 9, 2015). AEP. 2015c. Alberta Conservation Information Management System (ACIMS) tracked elements list by Natural Subregion. Available at http://www.albertaparks.ca/albertaparksca/management-land-use/alberta-conservation- information-management-system-acims/tracking-watch-lists/ AEP. 2015d. Alberta Conservation Information Management System. Search ACIMS Data. Available at http://www.albertaparks.ca/acims-data> (Accessed August 21, 2015). AEP. 2015e. Alberta Merged Wetland Inventory. Available at AEP. 2015f. Beaverhill Lake Heritage Rangeland Natural Area. Available at: < http://www.albertaparks.ca/beaverhill-lake-heritage-rangeland.aspx >. Accessed January 25, 2016. AEP. 2014. Bald Eagle (Haliaeetus leucocephalus). Available at (Accessed January 20, 2016). AEP. 2009. Sharp-tailed Grouse (Pedioecetes phasianellus). Available at < http://esrd.alberta.ca/fish- wildlife/wild-species/birds/grouse-related-birds/sharp-tailed-grouse.aspx> (Accessed January 20, 2016). Alberta Midland Railway Terminal Ltd. (AMRT). 2015a. Railcar Storage Facility Development Permit Application to Lamont County. Submitted to Lamont County on September 18, 2015. Alberta Midland Railway Terminal Ltd. (AMRT). 2015b. Alberta Midland Railway Terminal. Proposed Railcar Storage Project. Sound Attenuation Report. Submitted to Lamont County on November 26, 2015. Allen, L. 2014. Alberta Conservation Information Management System Ecological Community Tracking List. Alberta Tourism, Parks and Recreation, Edmonton, Alberta.

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Beaverhill Bird Observatory. 2016. About Beaverhill Bird Observatory. Available at < http://beaverhillbirds.com/about.php> (Accessed January 22, 2016). Brooks, K.M. 2004. Polycyclic aromatic hydrocarbon release from creosote-treated railway ties into ballast and adjacent wetlands. Research paper FPL-RP-617. Madison, WI: U.S. Department of Agriculture, Forest Service, Forest Project Laboratory, 53 p. Capital Region Board. 2009. Growing Forward: The Capital Region Growth Plan. Available at < http://capitalregionboard.ab.ca/-/reports/crb_growthplan_e.pdf> Committee on the Status of Endangered Wildlife in Canada (COSEWIC). 2015. Wildlife Species Search. Available at . DeMoor, J. 2015. Beaverhill Bird Observatory Summer Report 2015. Environment and Climate Change Canada. 2015. Greenhouse Gas Emissions by Province and Territory. Available at (Accessed February 3, 2016). Environment Canada. 2014a. General Nesting Periods of Migratory Birds in Canada. Available at < https://www.ec.gc.ca/paom-itmb/default.asp?lang=En&n=4F39A78F-1#_fig03_1> (Accessed November 9, 2015). Environment Canada. 2014b. Technical Information. Specific Considerations - Related to determining the presence of nests. Available at (Accessed January 19, 2016). Fort Air Partnership (FAP). 2015. 2014 Ambient Air Quality Monitoring Annual Network Report and Data Summary. Available at (Accessed January 19, 2016). Government of Alberta (GoA). 2013. Cumulative Effects Management System within the Industrial Heartland and Capital Region. (Accessed December 9, 2015). Government of Alberta (GoA). 2015. Alberta Water Well Information Database. http://groundwater.alberta.ca/WaterWells/d/. Accessed 13 November 2015. Government of Canada (GOC). 2015. Species at Risk Public Registry: A to Z Species Index. Available at . Integrated Environments (2006) Ltd. (IEL). 2015a. Draft Pre-Disturbance Site Assessment: Alberta Midland Railway Terminal (South). Report prepared for Pembina Pipeline Corporation. IEL. 2015b. Alberta Midland Railway Terminal Wetland Assessment and Impact Report. Report prepared for Alberta Midland Railway Terminal Ltd. IEL. 2015c. Phase I Environmental Site Assessment Proposed Lamont Rail Terminal. Report prepared for Alberta Midland Railway Terminal Ltd.

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Lamont County. 2008. Alberta’s Industrial Heartland Area Structure Plan. Available at (Accessed November 12, 2015). Mainstream Aquatics. 2015. Pembina Alberta Midland Railway Terminal South – Qualified Aquatic Environmental Specialist Assessment. Report prepared for Integrated Environments (2006) Ltd. File No.: 15015. Natural Regions Committee. 2006. Natural Regions and Subregions of Alberta. Available at (Accessed January 19, 2016). Opus Stewart Weir. 2014. Geotechnical site investigation, Proposed Rail Track & Spur NW 25-55-20 W4M, Lamont County Alberta. Report prepared for Heggie Grain, 28 January 2014. File No. ED64 37019 “C”. Opus Stewart Weir. 2015. Environmental Overview Alberta Midland Railway Terminal Railcar Storage and Repair Facility Development W½ 25, 55-20-W4M, Lamont County, Alberta. Report prepared for Alberta Midland Terminal Ltd., June 22 2015. File No. ED67 38193. Stein, R. (1976) Hydrogeology of the Edmonton area (northeast segment), Alberta. Alberta Research Council, Report 76-1. United States Environmental Protection Agency (U.S. EPA). 1985. Guideline for Determination of Good Engineering Practice Stack Height (Technical Support Document for Stack Height Regulations)”. Available at (Accessed February 3, 2016). U.S. EPA. 2015. GHG Equivalencies Calculator – Calculations and References. Available at < http://www.epa.gov/energy/ghg-equivalencies-calculator-calculations-and-references> (Accessed February 3, 2016).

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APPENDIX A SITE PLAN

Alberta Midland Railway Terminal Ltd. A-1

AECOM FILE NAME: 60312878-00-CT0001.dwg PLOT: 1/13/2016 3:24:07 PM Login: leonhardt, kenn D SIZE 22" x 34" (558.8mm x 863.6mm)

Do not scale this document. All measurements must be obtained from stated dimensions. EDMONTON

CN VEGREVILLE S/D Mi.95.72

GAS PIPELINE R/W PIPELINE GAS

NE26 55-20-4 NE26 932 0911 932

MAIN SITE ACCESS LOT 1 LOT RANGE ROAD 201 PUBLIC XING EARTHEN BERM PS #12 LH Mi.95.70 PROPOSED

2+500.00

RANGE ROAD 201 2+250.00

16'6" SWPT DERAIL NW25 55-20-4 NW25 EXISTING 66' ROAD ROW

FUTURE 100' ROAD ROW (802 2712) (802 DRILL PAD - VEGREVILLE S/D CN MAIN TRACK CLEARANCE POINT

ARRIVAL / DEPARTURE 4 WEST LEAD ARRIVAL / DEPARTURE 3 (OPTIONAL FUTURE TRACK) 2+000.00 2+750.00

0+000.00 -

- CANADIAN NATIONAL RAILWAY NATIONAL CANADIAN SECONDARY SITE ACCESS OFFICE, TRAILER AND PARKING AREA 16'6" SWPT DERAIL CLEARANCE POINT CONSULTANTS LOGO DRN ES TEMPORARY LAYDOWN AREA AECOM PROJECT NO: STORAGE AREA LOCOMOTIVE RGW CHK -

PS #12 RH NW25 55-20-4 NW25 Mi.95.36

DES 1+750.00 (TO BE DECOMMISSIONED)

KL 0+250.00 SW36 55-20-4 SW36 INACTIVE PIPELINES ENG

KL VERMILION (PRELIMINARY) STORMWATER MANAGEMENT 200' TAIL 60312878 FACILITY TRACK B10 (STORAGE & REPAIR) IDR DECOMMISSIONED) 45FT DRAINAGE ALLOWANCE WELL (TO BE APP OPTIONAL FUTURE 352m (1155') TRACK SEGMENT

GAS PIPELINE R/W MAIN SERVICE ROAD (802 2712) PROFESSIONAL SEALS TRACK B9 TRACK B6 TRACK B7 TRACK B8

TRACK B3 TRACK B4 TRACK B5 TRACK B2 TRACK B1

PIPELINE R/W PIPELINE SW25 55-20-4 SW25 2336) (992

1+500.00

0+500.00 PIPELINE R/W PIPELINE -

-

0+750.00 1+000.00

1+250.00 ZONING BOUNDARY 45FT DRAINAGE ALLOWANCE

200' TAIL (812 0519) (812 TRACK A4 TRACK A3 TRACK A2 TRACK A1 TRACK A6 TRACK A5 DEPARTURE 2

ARRIVAL/

NE25 55-20-4 NE25

DEPARTURE 1 ARRIVAL/ R/W PIPELINE GAS EAST LEAD I/R A YY/MM/DD 16/01/13 ISSUED FOR COUNTY REVIEW

TRUE NORTH ISSUE/REVISION DESCRIPTION 0 BLOCKING ROADWAY IS 2550' (42 CARS). MAY BE USED AS STORAGE SUBJECT TO OPERATIONAL NEEDS. *TRACK B10 HAS BEEN DESIGNED TO ACCOMMODATE REPAIRS *THREE OF FOUR TRACKS TO BE KEPT CLEAR. FOURTH TRACK WITH A 30 FT OFFSET FROM TRACK B9. B10 CAPACITY WITHOUT WEST LEAD & CONNECTION CONNECTION A/D 1 & TAIL* EAST LEAD WEST CN EAST CN 25 TOTAL TOTAL A/D 4* A/D 2* TAIL* A/D 3 B10* B9 B8 B7 B6 B5 B4 B3 B2 A6 A5 A4 A3 A2 B1 A1 50 BY KL 100 75 m 16358 54980 3969 3000 3357 2919 3039 2848 2968 3654 3356 3505 3349 3675 3510 3718 3447 3833 2860 2903 2807 4079 3261 N/A 700 1:2500 581 BOREHOLE WITH / WITHOUT STANDPIPE NEW / EXISTING SWITCH AREA OF GRAVEL / SUBBALLAST NEW C TRACK PROPERTY LINE (APPROX) CONTOURS AT 0.50m INTERVAL EXISTING FENCE EXISTING TOPOGRAPHIC FEATURE EXISTING C TRACK NEW / EXISTING DERAIL CONTROL POINT LOCATION & NUMBER L 12220 48730 3285 2725 2655 3130 3160 3035 3000 3140 3040 3010 3070 3100 2700 2750 2700 2610 2640 2750 2680 2830 2940 N/A N/A N/A L N/A N/A N/A 806 202 54 52 52 50 50 52 50 50 45 45 45 43 44 45 45 44 44 47 49 51 51 INV. US U/G ROW RH HDPE EXIST. EVCS EVCE EVC EL. / ELEV. EC PVIS PVIE PVI PT PS PI PC MSE Mi. / MI. MIN. MID. MAX. MH LH DWG DS Dc BVCS BVCE BVC BM BC SWSP STM STA. O/H OG CULV CP CSP CL / CB ‘ TYP. T/R TAN 1. XING VAR. TO CONVERT METRIC STATIONING MILEAGE MULTIPLY BY 0.0006213 TO CONVERT METERS FEET, MULTIPLY BY 3.28083 ALL UNITS ARE METRIC (m) UNLESS OTHERWISE STATED. 2. ȭ POINTS THAT ARE DAMAGED OR DESTROYED BY HIS OPERATIONS. RESPONSIBLE FOR PROTECTING AND/OR REPLACING ANY CONTROL COORDINATE SYSTEM: UTM NAD83 CSRS ZONE 12 THE CONTRACTOR IS RESPONSIBLE FOR VERIFYING ACCURACY OF ALL CONTROL POINTS PRIOR TO THEIR USE. ALSO, THE CONTRACTOR IS INVERT (PIPE or DITCH) DIAMETER RAILWAY CROSSING UPSTREAM UNDERGROUND RIGHT OF WAY RIGHT HAND POINT OF VERTICAL INTERSECTION STATION POINT OF VERTICAL INTERSECTION ELEVATION POINT OF VERTICAL INTERSECTION POINT OF TANGENT POINT OF SWITCH POINT OF INTERSECTION POINT OF CURVE MECHANICALLY STABILIZED EARTH MILEAGE MINIMUM MIDDLE MAXIMUM MANHOLE LEFT HAND HIGH DENSITY POLYETHYLENE EXISTING END VERTICAL CURVE STATION END VERTICAL CURVE ELEVATION END VERTICAL CURVE ELEVATION END CURVE DRAWING DOWNSTREAM DEGREE OF CURVE BEGIN VERTICAL CURVE STATION BEGIN VERTICAL CURVE ELEVATION BEGIN VERTICAL CURVE BENCHMARK BEGIN CURVE OVERHEAD ORIGINAL / EXISTING GROUND CULVERT CONTROL POINT OR CLEARANCE CORRUGATED STEEL PIPE CENTERLINE CATCHBASIN SMOOTH WALL STEEL PIPE STORM STATION TYPICAL TOP OF RAIL TANGENT VARIES NW25 55-20-W4M OFF Mi.95.36 & 95.70 CN VEGREVILLE S/D AECOM PLAN NO: SCALE: 00- AS NOTED CT0001 ISS/REV A Lamont Railcar Storage Project Description of a Designated Project February 2016

APPENDIX B MAPS

Alberta Midland Railway Terminal Ltd. B-1

Document Path: U:\Projects\16424 Alberta Rail - Fort Saskatchewan Rail Facility\Geospatial\Products\Maps\20 - Environmental\20-533-Parks_Protected_Areas_Historical_Resources\00-20160120\20-533-Parks_Protected_Areas_Historical_Resources-00-20160120.mxd. W P e t a T h r s r h h o r e s i o s r u e j e e r

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7 M u n i c i p a l TWP 53 TWP 54 TWP 55 TWP 56 TWP 57 TWP 58 Document Path: \\GIS\proceed\Projects\16424 Alberta Rail - Fort Saskatchewan Rail Facility\Geospatial\Products\Maps\20 - Environmental\20-535-Aboriginal_Communities_and_Industrial_Heartland\00-20160120\20-535-Aboriginal_Communities_and_Industrial_Heartland-00-20160120.mxd. W P e t a T h r s r h h o r e s i o s r u e j e e r

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, TWP 47 TWP 48 TWP 49 TWP 50 TWP 51 TWP 52 TWP 53 TWP 54 TWP 55 TWP 56 TWP 57 TWP 58 TWP 59 TWP 60 TWP 61 TWP 62 TWP 63 Lamont Railcar Storage Project Description of a Designated Project February 2016

APPENDIX C Site Photographs

Alberta Midland Railway Terminal Ltd. C-1

Lamont Railcar Storage Project Description of a Designated Project February 2016

Photo 1: North facing view of a seasonal graminoid marsh wetland in LSD 14-25-55-20-W4M

Photo 2: East facing view of a temporary graminoid marsh wetland located in LSD 12-25-55-20- W4M.

Alberta Midland Railway Terminal Ltd. C-2

Lamont Railcar Storage Project Description of a Designated Project February 2016

Photo 3: East facing view of ephemeral water body located in LSD 12-25-55-20-W4M.

Photo 4: West facing view of temporary marsh wetland located in LSD 6-25-55-20-W4M.

Alberta Midland Railway Terminal Ltd. C-3

Lamont Railcar Storage Project Description of a Designated Project February 2016

Photo 5: View of the 14-25-55-20 W4M wellsite, facing south.

Photo 6: View of the cut and capped Husky Oil Operations Ltd. wellhead at the 14-25 wellsite.

Alberta Midland Railway Terminal Ltd. C-4

Lamont Railcar Storage Project Description of a Designated Project February 2016

APPENDIX D Land and Mineral Titles

Alberta Midland Railway Terminal Ltd. D-1

LAND TITLE CERTIFICATE

M LINC SHORT LEGAL TITLE NUMBER 0024 364 549 4;20;55;25;NW 142 317 686

LEGAL DESCRIPTION

*ALL MINES AND MINERALS EXCEPT COAL WITHIN, UPON OR UNDER:

MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 QUARTER NORTH WEST CONTAINING 64.7 HECTARES (160 ACRES) MORE OR LESS EXCEPTING THEREOUT: 0.696 HECTARES MORE OR LESS TAKEN FOR RAILWAY RIGHT-OF-WAY OF THE CANADIAN NORTHERN RAILWAY AS SHOWN ON RAILWAY PLAN 4217S

ESTATE: FEE SIMPLE

MUNICIPALITY: LAMONT COUNTY

REFERENCE NUMBER: 198P218

------REGISTERED OWNER(S) REGISTRATION DATE(DMY) DOCUMENT TYPE VALUE CONSIDERATION ------

142 317 686 24/09/2014 TRANSMISSION OF LAND

OWNERS

AUDREY ELIZABETH SCHULTZ OF BOX 696 LAMONT ALBERTA T0B 2R0 EXECUTOR FOR LYDIA SCHULTZ

------ENCUMBRANCES, LIENS & INTERESTS

REGISTRATION NUMBER DATE (D/M/Y) PARTICULARS ------

5631JJ 19/09/1953 CAVEAT CAVEATOR - COMPUTERSHARE TRUST COMPANY OF CANADA. 700,530 8 AVE SW ( CONTINUED ) ------ENCUMBRANCES, LIENS & INTERESTS PAGE 2 REGISTRATION # 142 317 686 NUMBER DATE (D/M/Y) PARTICULARS ------

CALGARY ALBERTA T2P3S8 "M & M AS DESC" (DATA UPDATED BY: CHANGE OF ADDRESS 972130014) (DATA UPDATED BY: TRANSFER OF CAVEAT 032167456)

902 093 405 03/04/1990 ORDER "ENDORSED BY 962100368 ON 19960429"

082 122 391 19/03/2008 CAVEAT RE : MINES AND MINERALS LEASE INTEREST CAVEATOR - HUSKY OIL OPERATIONS LTD. BOX 6525, STATION "D" 707 - 8 AVENUE S.W. CALGARY ALBERTA T2P3G7 (DATA UPDATED BY: TRANSFER OF CAVEAT 102063973)

TOTAL INSTRUMENTS: 003

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 6 DAY OF NOVEMBER, 2015 AT 02:24 P.M.

ORDER NUMBER: 29600363

CUSTOMER FILE NUMBER:

*END OF CERTIFICATE*

THIS ELECTRONICALLY TRANSMITTED LAND TITLES PRODUCT IS INTENDED FOR THE SOLE USE OF THE ORIGINAL PURCHASER, AND NONE OTHER, SUBJECT TO WHAT IS SET OUT IN THE PARAGRAPH BELOW.

THE ABOVE PROVISIONS DO NOT PROHIBIT THE ORIGINAL PURCHASER FROM INCLUDING THIS UNMODIFIED PRODUCT IN ANY REPORT, OPINION, APPRAISAL OR OTHER ADVICE PREPARED BY THE ORIGINAL PURCHASER AS PART OF THE ORIGINAL PURCHASER APPLYING PROFESSIONAL, CONSULTING OR TECHNICAL EXPERTISE FOR THE BENEFIT OF CLIENT(S). LAND TITLE CERTIFICATE

M LINC SHORT LEGAL TITLE NUMBER 0025 529 646 4;20;55;25;NW 142 317 687

LEGAL DESCRIPTION

ALL MINES AND MINERALS EXCEPT COAL WITHIN UPON OR UNDER:

MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 ALL THAT PORTION OF THE NORTH WEST QUARTER TAKEN FOR RIGHT OF WAY OF THE CANADIAN NATIONAL RAILWAY COMPANY AS SHOWN ON RAILWAY PLAN 4217S, CONTAINING 0.696 HECTARES MORE OR LESS.

ESTATE: FEE SIMPLE

MUNICIPALITY: LAMONT COUNTY

REFERENCE NUMBER: 962 143 406

------REGISTERED OWNER(S) REGISTRATION DATE(DMY) DOCUMENT TYPE VALUE CONSIDERATION ------

142 317 687 24/09/2014 TRANSMISSION OF LAND

OWNERS

AUDREY ELIZABETH SCHULTZ OF BOX 696 LAMONT ALBERTA T0B 2R0 EXECUTOR FOR LYDIA SCHULTZ

------ENCUMBRANCES, LIENS & INTERESTS

REGISTRATION NUMBER DATE (D/M/Y) PARTICULARS ------

5631JJ 19/09/1953 CAVEAT CAVEATOR - COMPUTERSHARE TRUST COMPANY OF CANADA. 700,530 8 AVE SW CALGARY ( CONTINUED ) ------ENCUMBRANCES, LIENS & INTERESTS PAGE 2 REGISTRATION # 142 317 687 NUMBER DATE (D/M/Y) PARTICULARS ------

ALBERTA T2P3S8 "M. & M. AS DESC." (DATA UPDATED BY: CHANGE OF ADDRESS 972130014) (DATA UPDATED BY: TRANSFER OF CAVEAT 032167456)

902 093 405 03/04/1990 ORDER "ENDORSED BY 962100368 ON 19960429"

082 122 391 19/03/2008 CAVEAT RE : MINES AND MINERALS LEASE INTEREST CAVEATOR - HUSKY OIL OPERATIONS LTD. BOX 6525, STATION "D" 707 - 8 AVENUE S.W. CALGARY ALBERTA T2P3G7 (DATA UPDATED BY: TRANSFER OF CAVEAT 102063973)

TOTAL INSTRUMENTS: 003

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 6 DAY OF NOVEMBER, 2015 AT 02:24 P.M.

ORDER NUMBER: 29600363

CUSTOMER FILE NUMBER:

*END OF CERTIFICATE*

THIS ELECTRONICALLY TRANSMITTED LAND TITLES PRODUCT IS INTENDED FOR THE SOLE USE OF THE ORIGINAL PURCHASER, AND NONE OTHER, SUBJECT TO WHAT IS SET OUT IN THE PARAGRAPH BELOW.

THE ABOVE PROVISIONS DO NOT PROHIBIT THE ORIGINAL PURCHASER FROM INCLUDING THIS UNMODIFIED PRODUCT IN ANY REPORT, OPINION, APPRAISAL OR OTHER ADVICE PREPARED BY THE ORIGINAL PURCHASER AS PART OF THE ORIGINAL PURCHASER APPLYING PROFESSIONAL, CONSULTING OR TECHNICAL EXPERTISE FOR THE BENEFIT OF CLIENT(S). LAND TITLE CERTIFICATE

M LINC SHORT LEGAL TITLE NUMBER 0024 364 689 4;20;55;25;NW 142 198 377 +22 0024 364 697 4;20;55;25;NE

LEGAL DESCRIPTION

FIRST

*ALL COAL WITHIN, UPON OR UNDER:

MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 QUARTER NORTH WEST CONTAINING 64.7 HECTARES (160 ACRES) MORE OR LESS EXCEPTING THEREOUT: 0.696 HECTARES MORE OR LESS FOR RAILWAY RIGHT OF WAY AS SHOWN ON PLAN 4217S

SECOND

*ALL COAL WITHIN, UPON OR UNDER: MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 QUARTER NORTH EAST AREA: 64.7 HECTARES (160 ACRES) MORE OR LESS

ESTATE: FEE SIMPLE

MUNICIPALITY: LAMONT COUNTY

REFERENCE NUMBER: 27W241

------REGISTERED OWNER(S) REGISTRATION DATE(DMY) DOCUMENT TYPE VALUE CONSIDERATION ------

142 198 377 26/06/2014 ORDER SEE INSTRUMENT

OWNERS

PRAIRIESKY ROYALTY LTD. OF PO BOX 780, STATION M CALGARY ALBERTA T2P 2J6

( CONTINUED ) ------ENCUMBRANCES, LIENS & INTERESTS PAGE 2 REGISTRATION # 142 198 377 +22 NUMBER DATE (D/M/Y) PARTICULARS ------

NO REGISTRATIONS

TOTAL INSTRUMENTS: 000

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 6 DAY OF NOVEMBER, 2015 AT 02:24 P.M.

ORDER NUMBER: 29600363

CUSTOMER FILE NUMBER:

*END OF CERTIFICATE*

THIS ELECTRONICALLY TRANSMITTED LAND TITLES PRODUCT IS INTENDED FOR THE SOLE USE OF THE ORIGINAL PURCHASER, AND NONE OTHER, SUBJECT TO WHAT IS SET OUT IN THE PARAGRAPH BELOW.

THE ABOVE PROVISIONS DO NOT PROHIBIT THE ORIGINAL PURCHASER FROM INCLUDING THIS UNMODIFIED PRODUCT IN ANY REPORT, OPINION, APPRAISAL OR OTHER ADVICE PREPARED BY THE ORIGINAL PURCHASER AS PART OF THE ORIGINAL PURCHASER APPLYING PROFESSIONAL, CONSULTING OR TECHNICAL EXPERTISE FOR THE BENEFIT OF CLIENT(S). LAND TITLE CERTIFICATE

M LINC SHORT LEGAL TITLE NUMBER 0026 274 969 4;20;55;25;SW 142 031 063

LEGAL DESCRIPTION

*ALL MINES AND MINERALS EXCEPT COAL WITHIN, UPON OR UNDER:

MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 QUARTER SOUTH WEST CONTAINING 64.7 HECTARES (160 ACRES) MORE OR LESS EXCEPTING THEREOUT: 2.19 HECTARES (5.14 ACRES) MORE OR LESS AS SHOWN ON RAILWAY PLAN 4217S.

ESTATE: FEE SIMPLE

MUNICIPALITY: LAMONT COUNTY

REFERENCE NUMBER: 942 386 202

------REGISTERED OWNER(S) REGISTRATION DATE(DMY) DOCUMENT TYPE VALUE CONSIDERATION ------

142 031 063 28/01/2014 TRANSFER OF LAND $233,000 NOMINAL

OWNERS

1789585 ALBERTA LTD. OF 200078A HWY 15 BRUDERHEIM ALBERTA T0B 0S0

------ENCUMBRANCES, LIENS & INTERESTS

REGISTRATION NUMBER DATE (D/M/Y) PARTICULARS ------

112 042 189 14/02/2011 CAVEAT RE : MINES AND MINERALS LEASE INTEREST CAVEATOR - HERITAGE FREEHOLD SPECIALISTS & CO. LTD. P.O. BOX 56040, AIRWAYS R.P.O. CALGARY

( CONTINUED ) ------ENCUMBRANCES, LIENS & INTERESTS PAGE 2 REGISTRATION # 142 031 063 NUMBER DATE (D/M/Y) PARTICULARS ------

ALBERTA T2E8K5 AGENT - YOULA PAIKOS

TOTAL INSTRUMENTS: 001

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 6 DAY OF NOVEMBER, 2015 AT 02:24 P.M.

ORDER NUMBER: 29600363

CUSTOMER FILE NUMBER:

*END OF CERTIFICATE*

THIS ELECTRONICALLY TRANSMITTED LAND TITLES PRODUCT IS INTENDED FOR THE SOLE USE OF THE ORIGINAL PURCHASER, AND NONE OTHER, SUBJECT TO WHAT IS SET OUT IN THE PARAGRAPH BELOW.

THE ABOVE PROVISIONS DO NOT PROHIBIT THE ORIGINAL PURCHASER FROM INCLUDING THIS UNMODIFIED PRODUCT IN ANY REPORT, OPINION, APPRAISAL OR OTHER ADVICE PREPARED BY THE ORIGINAL PURCHASER AS PART OF THE ORIGINAL PURCHASER APPLYING PROFESSIONAL, CONSULTING OR TECHNICAL EXPERTISE FOR THE BENEFIT OF CLIENT(S). LAND TITLE CERTIFICATE

M LINC SHORT LEGAL TITLE NUMBER 0026 274 647 4;20;55;25;SW 942 385 955

LEGAL DESCRIPTION

ALL MINES AND MINERALS EXCEPT COAL WITHIN, UPON OR UNDER:

MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 ALL THAT PORTION OF THE SOUTH WEST QUARTER CONTAINING 2.19 HECTARES MORE OR LESS, AS SHOWN ON RAILWAY PLAN 4217S.

ESTATE: FEE SIMPLE

MUNICIPALITY: LAMONT COUNTY

REFERENCE NUMBER: 124X164

------REGISTERED OWNER(S) REGISTRATION DATE(DMY) DOCUMENT TYPE VALUE CONSIDERATION ------

942 385 955 15/12/1994 AMENDMENT-LEGAL DESCRIPTION

OWNERS

WILLIAM ARNDT OF BRUDERHEIM ALBERTA

------ENCUMBRANCES, LIENS & INTERESTS

REGISTRATION NUMBER DATE (D/M/Y) PARTICULARS ------

NO REGISTRATIONS

TOTAL INSTRUMENTS: 000

( CONTINUED ) PAGE 2 # 942 385 955

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 6 DAY OF NOVEMBER, 2015 AT 02:24 P.M.

ORDER NUMBER: 29600363

CUSTOMER FILE NUMBER:

*END OF CERTIFICATE*

THIS ELECTRONICALLY TRANSMITTED LAND TITLES PRODUCT IS INTENDED FOR THE SOLE USE OF THE ORIGINAL PURCHASER, AND NONE OTHER, SUBJECT TO WHAT IS SET OUT IN THE PARAGRAPH BELOW.

THE ABOVE PROVISIONS DO NOT PROHIBIT THE ORIGINAL PURCHASER FROM INCLUDING THIS UNMODIFIED PRODUCT IN ANY REPORT, OPINION, APPRAISAL OR OTHER ADVICE PREPARED BY THE ORIGINAL PURCHASER AS PART OF THE ORIGINAL PURCHASER APPLYING PROFESSIONAL, CONSULTING OR TECHNICAL EXPERTISE FOR THE BENEFIT OF CLIENT(S). LAND TITLE CERTIFICATE

M LINC SHORT LEGAL TITLE NUMBER 0024 364 507 4;20;55;25;SW 142 212 720 +17

LEGAL DESCRIPTION

*ALL COAL WITHIN, UPON OR UNDER: MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 QUARTER SOUTH WEST AREA: 64.7 HECTARES (160 ACRES) MORE OR LESS

ESTATE: FEE SIMPLE

MUNICIPALITY: LAMONT COUNTY

REFERENCE NUMBER: 792 071 889

------REGISTERED OWNER(S) REGISTRATION DATE(DMY) DOCUMENT TYPE VALUE CONSIDERATION ------

142 212 720 08/07/2014 ORDER SEE INSTRUMENT

OWNERS

PRAIRIESKY ROYALTY LTD. OF PO BOX 780, STATION M CALGARY ALBERTA T2P 2J6

------ENCUMBRANCES, LIENS & INTERESTS

REGISTRATION NUMBER DATE (D/M/Y) PARTICULARS ------

NO REGISTRATIONS

TOTAL INSTRUMENTS: 000

( CONTINUED ) PAGE 2 # 142 212 720 +17

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 6 DAY OF NOVEMBER, 2015 AT 02:24 P.M.

ORDER NUMBER: 29600363

CUSTOMER FILE NUMBER:

*END OF CERTIFICATE*

THIS ELECTRONICALLY TRANSMITTED LAND TITLES PRODUCT IS INTENDED FOR THE SOLE USE OF THE ORIGINAL PURCHASER, AND NONE OTHER, SUBJECT TO WHAT IS SET OUT IN THE PARAGRAPH BELOW.

THE ABOVE PROVISIONS DO NOT PROHIBIT THE ORIGINAL PURCHASER FROM INCLUDING THIS UNMODIFIED PRODUCT IN ANY REPORT, OPINION, APPRAISAL OR OTHER ADVICE PREPARED BY THE ORIGINAL PURCHASER AS PART OF THE ORIGINAL PURCHASER APPLYING PROFESSIONAL, CONSULTING OR TECHNICAL EXPERTISE FOR THE BENEFIT OF CLIENT(S). LAND TITLE CERTIFICATE

M LINC SHORT LEGAL TITLE NUMBER 0024 364 531 4;20;55;25;SW 142 218 106 +27

LEGAL DESCRIPTION

ALL MINES AND MINERALS EXCEPT COAL WITHIN, UPON OR UNDER:

MERIDIAN 4 RANGE 20 TOWNSHIP 55 SECTION 25 QUARTER SOUTH WEST TAKEN FOR RIGHT OF WAY OF THE CANADIAN NORTHERN RAILWAY COMPANY AS SHOWN ON RAILWAY PLAN 4217S CONTAINING 2.19 HECTARES MORE OR LESS

ESTATE: FEE SIMPLE

MUNICIPALITY: LAMONT COUNTY

REFERENCE NUMBER: CPR2706

------REGISTERED OWNER(S) REGISTRATION DATE(DMY) DOCUMENT TYPE VALUE CONSIDERATION ------

142 218 106 11/07/2014 ORDER SEE INSTRUMENT

OWNERS

PRAIRIESKY ROYALTY LTD. OF PO BOX 780, STATION M CALGARY ALBERTA T2P 2J6

------ENCUMBRANCES, LIENS & INTERESTS

REGISTRATION NUMBER DATE (D/M/Y) PARTICULARS ------

102 194 232 07/06/2010 CAVEAT RE : MINES AND MINERALS LEASE INTEREST CAVEATOR - HUSKY OIL OPERATIONS LTD. BOX 6525 STN D CALGARY ALBERTA T2P3G7

( CONTINUED ) ------ENCUMBRANCES, LIENS & INTERESTS PAGE 2 REGISTRATION # 142 218 106 +27 NUMBER DATE (D/M/Y) PARTICULARS ------

AGENT - CAROL VEALS

TOTAL INSTRUMENTS: 001

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 6 DAY OF NOVEMBER, 2015 AT 02:24 P.M.

ORDER NUMBER: 29600363

CUSTOMER FILE NUMBER:

*END OF CERTIFICATE*

THIS ELECTRONICALLY TRANSMITTED LAND TITLES PRODUCT IS INTENDED FOR THE SOLE USE OF THE ORIGINAL PURCHASER, AND NONE OTHER, SUBJECT TO WHAT IS SET OUT IN THE PARAGRAPH BELOW.

THE ABOVE PROVISIONS DO NOT PROHIBIT THE ORIGINAL PURCHASER FROM INCLUDING THIS UNMODIFIED PRODUCT IN ANY REPORT, OPINION, APPRAISAL OR OTHER ADVICE PREPARED BY THE ORIGINAL PURCHASER AS PART OF THE ORIGINAL PURCHASER APPLYING PROFESSIONAL, CONSULTING OR TECHNICAL EXPERTISE FOR THE BENEFIT OF CLIENT(S). Lamont Railcar Storage Project Description of a Designated Project February 2016

APPENDIX E CONTACT INFORMATION FOR ABORIGINAL GROUP NOTIFICATIONS

Alberta Midland Railway Terminal Ltd. E-1

Lamont Railcar Storage Project Description of a Designated Project February 2016

Name Address/ Box City, Province Postal Code Alexander First Nation Box 3419 Morinville, AB T8R 1S3 Administration Enoch Cree Nation PO Box 29 Enoch, AB T7X 3Y3 Ermenskin First Nation PO Box 219 , AB T0C 1N0 Paul First Nation PO Box 89 Duffield, AB T0E 0N0 Whitefish Lake First Nation PO Box 271 Goodfish Lake, AB T0A 1R0 Chipewyan Prairie Dene First Nation GD Chard, AB T0P 1G0 Fort McMurray First Nation PO Box 6130 Fort McMurray, AB T9H 4W1 Foothills Ojibway First Nation 51111, Highway 40, Lots A,B,C Hinton, AB T7Y 1X5 Blood Tribe PO Box 60 Standoff, AB T0L 1Y0 Piikani Nation PO Box 70 Brocket, AB T0K 0H0 Siksika Nation PO Box 1100 Siksika, AB T0J 3W0 Stoney Tribe PO Box 40 Morley, AB T0L 1N0 Tsuu T'ina Nation 9911 Chiila Boulevard Tsuu T'ina, AB T2W 6H6 Metis Nation of Alberta, Region 4 11724, 95 Street Edmonton, AB T5G 1L9 Buffalo Lake Metis Settlement 17203, Buffalo Lake Drive , AB T0A 0R0 Kikino Metis Settlement GD Kikino, AB T0A 2B0 Saddle Lake Cree Nation PO Box 100 Saddle Lake, AB T0A 3T0 Kehewin Cree Nation PO Box 220 Kehewin, AB T0A 1C0 Samson Cree Nation PO Box 159 Maskwacis, AB T0C 1N0 Louis Bull Tribe PO Box 130 Maskwacis, AB T0C 1N0 Gunn Metis Local 55 PO Box 2057 Stoney Plain, AB T7Z 1X6 Beaver Lake Cree Nation PO Box 960 Lac La Biche, AB T0A 2C0 Alexis Nakota Sioux Nation PO Box 7 , AB T0E 0X0 Montana First Nation PO Box 70 Maskwacis, AB T0C 1N0 Metis Nation of Alberta, Region 1 10104 102 Ave Lac La Biche, AB T0A 2C0 Metis Nation of Alberta, Region 2 PO Box 6497 Bonnyville, AB T9H 2H1

Alberta Midland Railway Terminal Ltd. E-2