PHASE 1 ENVIRONMENTAL SITE ASSESSMENT 6362 TOWNSHIP ROAD 695A

LOT 2, BLOCK 1, PLAN 102 5482 WITHIN NW 1/4 33-69-6-W6M GROVEDALE,

PREPARED FOR RITCHIE BROS. CONSTRUCTION INC. C/O

331294 ALBERTA LTD.

GROVEDALE, ALBERTA

PREPARED BY PARKLAND GEOTECHNICAL LTD.

GRANDE PRAIRIE, ALBERTA

PROJECT No.: GP3655

DATE: NOVEMBER 14, 2017 Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Assessment Page i of 23 EXECUTIVE SUMMARY

Parkland Geotechnical Ltd. (ParklandGEO) was commissioned by Mr. Ron Ritchie, President of Ritchie Bros. Construction Inc. and 331294 Alberta Ltd., to conduct a Phase 1 Environmental Site Assessment (ESA) on Lot 2, Block 1, Plan 102 5482, located at 6362 Township Road 695A in Grovedale. The Phase 1 ESA was required prior to the sale of the Property.

Based on the available information gathered during the Phase 1 ESA, the following conclusions have been made:

• At the time of the assessment, a large two storey building was observed on the western side and a one-storey shed was observed near the northwest corner of the Property. The Property was primarily gravel surfaced and the yard was fenced with chain-link and barbed wire. The Property has been tenanted by Ritchie Bros. Construction Inc. since the building was constructed in 2013. Prior to 2013, the Property was agricultural land. The potential environmental risk to the Property from the historical owners and current tenant is considered to be low to moderate.

• The adjacent properties in all directions were primarily residential, grazing pasture, light commercial and light industrial businesses. Two small UN#1075 (Petroleum gases) aboveground storage tanks were observed near the northeast corner of the storage yard located south of the Subject Property. The potential environmental risk to the Property from the surrounding lands is considered to be low.

• Five aboveground storage tanks (ASTs) were observed on the Property and were registered with the PTMAA at the time of the assessment. The tanks contained diesel, gasoline and used oil and were equipped with secondary containment, leak detection and overfill prevention systems. Four of the ASTs were observed along the north side of the Property. Concrete barriers surrounded the tanks and the area was bermed to the north, east and west. Drip trays and canisters were equipped for the hoses and nozzles on each of the tanks. One of the ASTs contained used oil and was located near the northeast corner of the building. The used oil tank was connected to a hose and pump system that transported used oil from inside the main building. The potential environmental risk to the Property from the ASTs is considered to be low to moderate.

• Historical searches indicated that two reclamation certificates were issued on the quarter section and included the southeastern corner of the Subject Property. Records indicated that a well, which was located approximately 31 m south of the Subject Property, had been suspended and abandoned. Soil and groundwater sampling was conducted and impacted soils were removed. Reclamation Certificates were issued in 2011 for the portion of the lease site that included the Subject Property and in 2012 for the remainder of the lease. As the Site was determined to be reclaimed, the potential environmental risk to the Property from the former well site is considered to be low.

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• The following potential environmental issues were not found to be of concern on the Subject Property: air emissions, air quality, asbestos, chemical use and storage, drains and sumps, fill and stockpiles, freons, halons, hazardous storage and wastes, heating and cooling systems, landfills and dumps, lead, liquid effluents and site runoff, mechanical equipment, mercury, methane, oil and gas facilities, pesticides and herbicides, pits and lagoons, polychlorinated biphenyls, radioactive materials and equipment, radon, solid wastes and sewage disposal, underground storage tanks, unidentified substances, urea formaldehyde foam insulation, utilities, roads, parking facilities, right-of-ways, ditches and wells.

Based on the current, historical and surrounding land uses, ParklandGEO considers the level of environmental risk associated with the Property to be low to moderate and no additional environmental assessments are recommended at this time.

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EXECUTIVE SUMMARY ...... i

TABLE OF CONTENTS...... iii

1.0 INTRODUCTION ...... 1

1.1 PROJECT BACKGROUND ...... 1 1.2 QUALIFICATIONS ...... 1

2.0 SITE ASSESSMENT PROCESS ...... 2

2.1 OBJECTIVES AND SCOPE OF WORK ...... 2 2.2 METHODOLOGY...... 2

3.0 PROPERTY DESCRIPTION...... 4

3.1 LOCATION, SITE OCCUPANCY AND DEVELOPMENT DETAILS ...... 4 3.2 PHYSICAL DESCRIPTION ...... 4 3.3 TOPOGRAPHY AND DRAINAGE ...... 4 3.4 REGIONAL GEOLOGY AND GROUNDWATER ...... 5

4.0 HISTORICAL REVIEW...... 6

4.1 PREVIOUS REPORTS AND INVESTIGATIONS ON THE PROPERTY ...... 6 4.2 PREVIOUS REPORTS AND INVESTIGATIONS ON ADJACENT PROPERTIES ...... 6 4.3 HISTORICAL OWNERSHIP AND TENANCY ...... 7 4.4 HISTORICAL AIR PHOTO REVIEW ...... 7

5.0 CORRESPONDENCE AND INTERVIEWS ...... 9

5.1 SUMMARY OF INTERVIEWS ...... 9 5.2 REGULATORY SEARCHES ...... 9 5.2.1 Federal ...... 9 5.2.2 Provincial ...... 10 5.2.3 Municipal and Local ...... 12 5.2.4 Other...... 12

6.0 SITE INSPECTION RESULTS ...... 13

6.1 SITE APPEARANCE ...... 13 6.2 BUILDING INFORMATION...... 13

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6.3 ADJACENT LAND USE ...... 14

7.0 ENVIRONMENTAL ISSUES...... 15

7.1 AIR EMISSIONS OR AIR QUALITY...... 15 7.2 ASBESTOS CONTAINING MATERIALS (ACMs) ...... 15 7.3 CHEMICAL USING ACTIVITY AND CHEMICAL STORAGE...... 15 7.4 DRAINS AND SUMPS ...... 15 7.5 FILL AND STOCKPILES ...... 15 7.6 FREONS AND HALONS ...... 15 7.7 HAZARDOUS MATERIALS USE AND STORAGE ...... 16 7.8 HAZARDOUS WASTES...... 16 7.9 HEATING AND COOLING SYSTEMS ...... 16 7.10 LANDFILLS AND DUMPS ...... 16 7.11 LEAD ...... 16 7.12 LIQUID EFFLUENTS AND SITE RUNOFF ...... 16 7.13 MECHANICAL EQUIPMENT ...... 16 7.14 MERCURY ...... 16 7.15 METHANE ...... 16 7.16 OIL AND GAS FACILITIES...... 17 7.17 PESTICIDES AND HERBICIDES ...... 17 7.18 PITS AND LAGOONS ...... 17 7.19 POLYCHLORINATED BIPHENYLS (PCBs)...... 17 7.20 RADIOACTIVE MATERIALS AND EQUIPMENT...... 17 7.21 RADON...... 17 7.22 SOLID WASTE AND SEWAGE DISPOSAL...... 18 7.23 STAINS AND SPILLS...... 18 7.24 UNDERGROUND (USTs) AND ABOVEGROUND STORAGE TANKS (ASTs) ...... 19 7.25 UNIDENTIFIED SUBSTANCES ...... 19 7.26 UREA FORMALDEHYDE FOAM INSULATION (UFFI)...... 19 7.27 UTILITIES, ROADS, PARKING FACILITIES AND RIGHT-OF-WAYS...... 19 7.28 VEGETATION...... 19 7.29 WATERCOURSES, DITCHES AND STANDING WATER ...... 20 7.30 WELLS...... 20

8.0 CONCLUSIONS AND RECOMMENDATIONS...... 21

9.0 LIMITATIONS AND CLOSURE ...... 23

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FIGURES Figure 1 Area Plan

Figure 2 Site Plan

Figure 3 Regional Plan

Figures 4 to 8 Aerial Photographs

APPENDICES Figures Appendix A Site Photographs Appendix B Searches and Regulatory Correspondence Limitations General Terms, Conditions and Limitations

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1.1 PROJECT BACKGROUND

Parkland Geotechnical Ltd. (ParklandGEO) was commissioned by Mr. Ron Ritchie, President of Ritchie Bros. Construction Inc. and 331294 Alberta Ltd., to conduct a Phase 1 Environmental Site Assessment (ESA) on Lot 2, Block 1, Plan 102 5482, located at 6362 Township Road 695A in Grovedale. The Phase 1 ESA was required prior to the sale of the Property.

The Property is referred to in this report as the “Property”, “Subject Property” or “Site” and is depicted on Figures 1 and 2. The Property in relation to surrounding lots is shown on Figure 3.

1.2 QUALIFICATIONS

The historical searches, drafting, site inspection and report preparation were completed by Ms. Tannis Gardiner. Ms. Gardiner has a diploma in Biological Sciences Technology Environmental Sciences from the Institute of Technology and has three years experience in environmental consulting. During her time with ParklandGEO, she has completed over 60 Phase 1 investigations.

Senior review was provided by Ms. Monique Tenszen, P.Eng. Ms. Tenszen has a B.Sc. in Environmental Engineering from the University of Alberta and over ten years of consulting experience, during which time she has completed and reviewed over 300 Phase 1 investigations.

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2.1 OBJECTIVES AND SCOPE OF WORK

The primary objectives of this Phase 1 ESA were to identify environmental issues associated with the Property and to determine whether any issues identified during the assessment require an intrusive site investigation and, if so, the nature of such work. The scope of work for this assessment was outlined in Proposal PRO-GP17-197 dated October 11, 2017 and included:

• conducting a historical review of the Property and surrounding properties;

• interviewing and/or contacting local, municipal agencies, and other parties familiar with the Property;

• conducting a site inspection of the Property to identify potential environmental concerns; and

• preparing a report summarizing the methodology and findings of this study.

Authorization to proceed with this assessment was provided by Mr. Ron Ritchie, President of Ritchie Bros. Construction Inc. and 331294 Alberta Ltd., on October 12, 2017 via a signed Agreement for Professional Services.

2.2 METHODOLOGY

The scope of work was conducted in accordance with ParklandGEO’s standard environmental site assessment procedures which reflect CSA requirements1 and Alberta Environment and Parks (Alberta Environment) guidelines2. Available historical information regarding the Property was reviewed to determine present and past land use and incidents or operations which could be associated with environmental concerns on the Property. Individual tasks included:

• reviewing time lapse aerial photography of the Property and surrounding region to record land use, development, and historical site occupancy;

• obtaining current and historical land titles from Alberta Registries to determine past site owners and review registered right-of-ways attached to the Property;

• searching the National Pollutant Release Inventory (NPRI) compiled and maintained by Environment and Climate Change Canada to obtain information on significant pollutant releases to the Property or adjacent properties;

1 Phase 1 Environmental Site Assessment (CSA Z768-01). Canadian Standards Association (CSA). 2003. Ottawa, Canada.

2 Alberta Environmental Site Assessment Standard. Alberta Environment and Parks. March 1, 2016. , Alberta.

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• searching the Alberta Environment Site Assessment Repository (ESAR), an online database of environmental assessment reports and reclamation certificates;

• contacting the Municipal District of Greenview No. 16 to obtain information on historical land- use (landfills, waste sites, nuisance grounds, waste discharges), bylaw investigations, zoning, tickets, prosecutions, reports of any other environmental issues, and current zoning information;

• contacting the Petroleum Tank Management Association of Alberta (PTMAA) to determine if any historical or current underground storage tanks are located on or in the vicinity of the Property;

• contacting the Alberta Energy Regulator (AER) for information on oil and gas facilities, spills and releases, or any environmental occurrences related to the Property and adjacent lands within a 1 km radius;

• contacting the Environmental Law Centre (ELC) for information about enforcement actions against owners, current and past Property occupants, along with neighboring companies;

• conducting a search of the Alberta Environment Provincial Groundwater Well Information Database for groundwater wells in the vicinity of the Property;

• contacting the current property owners for historical and current information;

• reviewing any previous environmental and/or geotechnical assessments conducted on the Property;

• conducting an inspection of the Property and adjacent lands noting any environmental concerns; and

• preparing a report summarizing the findings and making recommendations regarding the Property.

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3.1 LOCATION, SITE OCCUPANCY AND DEVELOPMENT DETAILS

Legal Description: Lot 2, Block 1, Plan 102 5482 Within NW 1/4 33-69-6-W6M Municipal Address: 6362 Township Road 695A Grovedale, Alberta Current Owner: 331294 Alberta Ltd. Current Occupants: Ritchie Bros. Construction Inc. Water Supply: Well Sewer Service: Septic Tanks and underground field

Current Zoning: Rural Commercial Property Size: Approximately 12.13 hectares (29.97 acres)

3.2 PHYSICAL DESCRIPTION

The Property was located approximately 356 m east of the Range Road 64 and Township Road 695A intersection in Grovedale, Alberta. At the time of the assessment, a large two storey building was observed on the western side and a one-storey shed was observed near the northwest corner of the Property. The Property was primarily gravel surfaced and the yard was fenced with chain-link and barbed wire. Vehicles, equipment and five aboveground storage tanks were observed in the yard at the time of the assessment.

The adjacent properties in all directions were primarily residential, cattle farm land, light commercial and light industrial businesses. Two small UN#1075 (Petroleum gases) ASTs were observed near the northeast corner of the storage yard located south of the Subject Property.

3.3 TOPOGRAPHY AND DRAINAGE

The Property generally sloped towards the north. A ditch was observed along the west side of the yard. The Property was lower in elevation than Township Road 695A to the south. Mr. Ritchie stated that a low-lying area along the east side of the Site was wet for part of the year.

The closest permanent water body was an unnamed lake located approximately 1.1 km southwest. A pond was observed 86 m south and a pond was observed 321 m southwest of the Subject Property.

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3.4 REGIONAL GEOLOGY AND GROUNDWATER

A search of groundwater wells was conducted in the Alberta Environment Provincial Groundwater Well Information Database. The search indicated that there was one well located on the Property and four wells located on the quarter section as summarized in the table below:

Location Completion Date Well ID Total Depth Static Water Owner Use dd/mm/yyyy (m) Level (m)

14-33-69- Ritchie Brothers New Well - 11/09/2012 9486178 67.06 29.87 6-W6M Construction Industrial

High Standard 13/05/2003 1500363 48.77 26.76 Construction

NW 1/4 33- 27/09/2005 1500374 55.47 25.51 Lionel Carlson New Well - 69-6-W6M Pioneers of Domestic 14/01/2009 1501684 48.77 26.69 Grovedale

23/07/2012 9646026 60.96 29.88 Sureway Logging

The soil lithology was described as clay till and sand underlain by alternating layers of sandstone and shale. The groundwater levels ranged from 25.51 to 29.88 m. Deep groundwater conditions or shallow perched groundwater conditions may be found in this area.

Groundwater elevations will fluctuate on a seasonal basis and will be highest after periods of heavy, prolonged precipitation or snow-melt. Groundwater infiltration may be slowed and perch conditions may be present during periods of higher precipitation.

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4.1 PREVIOUS REPORTS AND INVESTIGATIONS ON THE PROPERTY

The following documents were available through ESAR for the Property and NW 1/4 33-69-6-W6M:

• Environmental Imaging to Investigate Subsurface Conditions at Site (14-33-69-6- W6M), Located South of , Alberta. Prepared for Encana Corporation. Directed by SNC Lavalin Environment Inc. July 6, 2009. • Phase 2 Environmental Site Assessment Report, 14-33-69-6-W6M. Prepared for Encana Corporation. Prepared by SNC Lavalin Environment Inc. April 7, 2010. • Reclamation and Remediation Audit Program, Completeness Review Checklist, LSD 14-33-69-6-W6M. • Remedial Excavation. Prepared by SNC Lavalin Environment Inc. March 31, 2010. • Wellsite Reclamation Certificate Application. October 7, 2011. • Reclamation Certificate No. 286620-00-00. March 16, 2011. • Reclamation Certificate No. 299184-00-00. March 7, 2012.

Background information indicated that the well bore was drilled in 1985 from the surface location within LSD 14-33-69-6-W6M. The surface location was located approximately 31 m south of the Subject Property. The well produced a mixture of crude oil, gas and water between January 1986 and January 1989. The well was suspended in 1989 and down hole abandonment activities were conducted in 1995. An environmental imaging investigation was conducted to investigate and delineate elevated conductivity distributions. A Phase 2 ESA was conducted on the Property to evaluate soil and groundwater conditions. Ethylbenzene, PAH (polycyclic aromatic hydrocarbons), barium, lead, selenium and Petroleum Hydrocarbon Fraction (PHC) F2 concentrations exceeded the applicable guidelines in the soil near a former sump area. Barium and lead concentrations exceeded the applicable guidelines in one surface soil sample near the well centre. Dissolved selenium, uranium and/or zinc concentrations exceeded the applicable guideline values in each of the monitoring wells. Sulphate and/or chloride exceeded the applicable guidelines in two locations. Remedial excavation activities were conducted to remove the PHC and metal impacts from the former sump area and area near the well centre. A total of 5,484.33 tonnes of hydrocarbon impacted soils were removed and disposed of at Secure Landfill. Clean soil from Secure was transported to site and used as backfill. All confirmatory soil samples contained PHC and metal concentrations that were less than the applicable guidelines. A partial reclamation certificate (No. 286620-00-00) was issued to Encana Corporation on March 16, 2011. A reclamation Certificate (No. 299184-00-00) was issued for the remainder of the area to Encana Corporation on March 7, 2012.

4.2 PREVIOUS REPORTS AND INVESTIGATIONS ON ADJACENT PROPERTIES

A search with Alberta Environment Environmental Site Assessment Repository (ESAR) and ParklandGEO did not identify any other records on the quarter section or within a 300 m radius of the Subject Property.

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4.3 HISTORICAL OWNERSHIP AND TENANCY

A review of the current and historical ownership records for the Property is summarized below:

From To Location Title # Owner dd/mm/yyyy dd/mm/yyyy

Lot 2, 29/04/2011 Current 112 120 867 331294 Alberta Ltd. Block 1, 14/10/2010 29/04/2011 102 363 176 Plan 102 5482 28/09/2010 14/10/2010 102 343 641 Frederick Warren Mcausland 17/08/2007 28/09/2010 072 496 502 +1

28/07/2005 17/08/2007 052 310 169 NW 1/4 33-69-6- 28/07/2005 28/07/2005 052 310 167 Robert M Lewis W6M 20/10/2003 28/07/2005 032 399 737 William Mathew Winters 08/05/1973 20/10/2003 40W263

331294 Alberta Ltd. has owned the Property since 2011. Prior to 2011, the Property was privately owned. Ritchie Bros. Construction Inc. has tenanted the Property since the building was constructed in 2013. The current and historical landowners and tenant pose a low to moderate potential environmental risk to the Property.

4.4 HISTORICAL AIR PHOTO REVIEW

Aerial photographs were reviewed for the years 1961, 1985, 1995, 2006 and 2013. The aerial photographs were obtained from Alberta Environment and Abadata 2.0 and are included in Figures 4 to 8.

Figure 4 • The northern side of the Property was forested land and the southern portion was agricultural land. Year 1961 • Township Road 700 was visible to the north. Roll 0810 • Forested lands were visible to the north, east and west. • Agricultural lands were visible to the south, southeast and west. Photo # 085 • Small buildings were visible to the northeast and northwest.

Figure 5 • Part of the forested land on the northern side of the Property was developed into agricultural land. Year 1985 • Buildings were constructed and an unnamed roadway was Roll 3212 developed to the north and northwest.

Photo # 142-ep

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Figure 6 • The Property and surrounding lands were relatively unchanged.

Year 1995

Roll 4652

Photo # 025

Figure 7 • The Property was relatively unchanged. • Small buildings were constructed to the north. Year 2006 • Roadways were visible to the northeast. Roll TRSG060 2

Photo # 4184-ps

Figure 8 • The Property was cleared and a building was constructed on the western side. Year 2013 • Township Road 695A, a pond, building and access roadway were Abadata 2.0 developed to the south.

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5.1 SUMMARY OF INTERVIEWS

Interviewee Comments

Mr. Curtis Ritchie, - Ritchie Bros. Construction Inc. had tenanted the Property since the building was General Manager of constructed in 2013 Ritchie Bros. - Conducted administrative work, maintenance, repairs and washing of heavy equipment Construction Inc. within the building - Equipment parking, storage and fueling activities from the tank area were conducted in the Interviewed in yard person at time of - Canadian Thistle was sprayed for in the fall assessment. - Burns bins were used to burn cardboard and wood - The reclamation conducted on-site was conducted after a roadway was developed through the lease site, the northern portion of the lease was part of the Subject Property and the well was located to the south off-site. - The Site was serviced using a well, septic tanks and a septic field - Not aware of any other USTs other than the septic and water tanks - The liquid from the drain systems goes into a septic holding tank which is vacuum trucked out and disposed of off-site on an as needed basis - The only water damaged areas that he was aware of included the two stained ceiling tiles within the building that were caused by condensation and have since been insulated and repaired - Forced air, in-floor heating, ceiling fans and air conditioning are used to heat and cool the building - Not aware of any large stains or spills, drip trays are used in the shop and absorbent material is used to clean up any small spills promptly - Not aware of any environmental concerns with the Property or surrounding lands - Not aware of any previous environmental assessments on the Property

5.2 REGULATORY SEARCHES

Correspondence with Federal, Provincial and Municipal regulatory agencies is presented in Appendix A, and is summarized below.

5.2.1 Federal

The National Pollutant Release Inventory (NPRI), compiled and maintained by Environment and Climate Change Canada and updated up to December 2016, was searched for significant releases for the Property and quarter section. There were no records registered with NPRI for the Property or within a 1 km radius.

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5.2.2 Provincial

The online Environmental Site Assessment Repository (ESAR), compiled and maintained by Alberta Environment, was searched for routinely available scientific/technical information for the Property and adjacent properties. Refer to Sections 4.1 and 4.2 for records held by ESAR for the Property and the quarter section.

The ESAR was searched for records of Wellsite Reclamation certificates applied for or issued for the Property or quarter section. Two reclamation certificates (No. 286620-00-00 and 299184-00-00) were issued to EnCana Corporation for LSD 14-33-69-6-W6M. Refer to Section 4.1 for details.

An inquiry was made to the Petroleum Tank Management Association of Alberta (PTMAA) to determine if any petroleum storage tanks are presently or have historically been located on the Property. Records registered with the PTMAA for the Property are summarized in the table below.

Company & Location Distance Notes Potential to Site Risk

6362 Township Road 695A Property - 5 steel AST’s Low to Grovedale, Alberta - Installed in May 2013 and April 2017 moderate - Contained gasoline, diesel and used oil - 4,550 to 35,000 litres in capacity - Secondary containment (double walled), Leak detection (monitoring secondary containment) and Overfill Prevention (tank gauging) systems in place for each of the tanks

The Environmental Law Centre (ELC) was contacted regarding the following owners and tenant: 331294 Alberta Ltd., Fredrick Warren Mcausland, Ellen Mcausland, Robert M Lewis, William Mathew Winters and Ritchie Bros. Construction Inc. There were no results on file with the ELC for any of the owners or tenant.

A search of groundwater wells was conducted in the Alberta Environment Provincial Groundwater Well Information Database. The search indicated that there was one well located on the Property and four records registered for the quarter section. Refer to Section 3.4 for details.

A search was conducted of Alberta Environment approvals, licences, registrations and permits issued under the Water Act and AEPEA (Alberta Environmental Protection and Enhancement Act) for the Property and quarter section. There were ten listings on file for the quarter section as summarized in the table below:

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Approval Effective Date Expiry Date Approval Notes Potential Number (dd/mm/yyyy) (dd/mm/yyyy) Holder Risk

D. Harms Removing ground, vegetation or 0025106 07/11/2008 31/10/2009 Contracting other material to construct borrow Low 5-00-00 Ltd. pits

0039372 12/05/2017 31/08/2017 Low 8-00-00 Divert water for the purpose of oil 0039443 24/05/2017 31/08/2017and gas drilling and conventional Low 8-00-00 Inception completion 0039610 Exploration 27/06/2017 30/09/2017 Low 6-00-00 Ltd.

Divert water for the purpose of oil 0039424 19/05/2017 30/09/2017 and gas drilling and horizontal Low 7-00-00 fracturing completion

0025106 Does not 16/03/2011 Low 5-00-00 expire Encana Reclamation Certificate (located 0029918 Does not Corporation on the Subject Property) 07/03/2012 Low 4-00-00 expire

0033046 Watercourse crossings affecting 23/05/2013 Not Listed Low 6-00-00 Alberta Big Mountain Creek 0038832 Transportation Watercourse crossings affecting 04/01/2017 Not Listed Low 9-00-00 an unnamed stream

0039151 Pipelines and telecommunication 23/03/2017 Not Listed ATCO Gas Low 8-00-00 lines crossing under a water body

A request was made to the Alberta Energy Regulatory (AER) and a search was conducted through the Abacus Datagraphics website to determine if there have been any upstream gas or oil wells, pipelines, licenced facilities, landfills or waste disposal sites on the Property or adjacent properties. The search indicated that none of the items listed above were registered on the Property. One well was registered within a 300 m radius of the Property, as summarized in the following table:

Location/ Distance Type of Facility Status Licensee License/ Potential Surface & Facility Risk Location Direction ID

100/14-33-69- Abandoned - Encana 31 m - S Crude Oil Well 0118751 Low 6-W6M/0 Rec Certified Corporation

A request was made to the Alberta Energy Regulatory (AER) and a search was conducted through the Abacus Datagraphics website to determine if there have been any complaints, spills or incidents on the Property or adjacent lots. There was one spill and one complaint registered within a 300 m radius, as summarized in the following table:

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Location Licencee Distance & Complaint Completed Incident Incident & Potential Direction dd/mm/yyyy dd/mm/yyyy # Cause Risk

1.0 m3 crude oil 4-4-70-6- 289 m - 1989 Unknown 19/08/1989 19/08/1989 spilled - 0.0 Low W6M NW 1263 m3 recovered

13-33-69- 2005 Unknown 111 m - W 22/02/2005 22/02/2005 Odours Low 6-W6M 0529

Alberta Health Services (AHS) was contacted regarding any landfills, waste sites, nuisance grounds, or environmental incidents on the Property or surrounding lands. AHS had not responded to the search request at the issuance of this report, if additional information is received an addendum letter will be issued.

5.2.3 Municipal and Local

A search was conducted with the Municipal District of Greenview No. 16 regarding landfills, fires, waste sites, nuisance grounds, or environmental incidents for the Property or surrounding lots. The record stated that development permits had been issued for an industrial yard and shop. The Property was zoned as Rural Commercial. No compliance issues, bylaw infractions, landfills, emergency response, fire rescue service records or environmental reports on file for the Subject Property.

5.2.4 Other

Fire insurance plans, inspection reports and site plans within a 250 m radius were requested through Opta EnviroScan. There were no records on file for the Property or within a 250 m radius.

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A visual inspection of the Property was conducted on November 8, 2017 by Ms. Tannis Gardiner of ParklandGEO to assess for environmental concerns on the Property. Site photographs are included in Appendix A.

6.1 SITE APPEARANCE

At the time of the assessment, the Property was tenanted by Ritchie Bros. Construction Inc. A large two storey building was observed on the western side and a one-storey storage shed was observed near the northwest corner of the Property. The yard was gravel surfaced and fenced with chain-link and barbed wire. Forest stands and vegetation were observed along the north and east sides of the Property. Two burn bins, a stockpile of topsoil and a fire pond connection line were observed along the northern side of the Property. Four ASTs were observed along the north side of the Property. Concrete barriers surrounded the tanks and the area was bermed to north, east and west. Drip trays and canisters were equipped for the hoses and nozzles on each of the tanks. A loading ramp, utility boxes, a septic holding tank cistern and a metals disposal dumpster were observed along the northwest side of the Property. A shed was observed near the northwest corner of the Site. Pails of synthetic lubricant and paint were stored near the west doorway to the shed. A ditch was observed along the west side of the Property. Equipment, vehicles and pails of paint were stored in the central area of the yard. A parking area and utility box were observed along the north side of the main building. A generator was stored in a small trailer near the southwest corner of the building. An Alliance Disposal dumpster, used oil tank, trailers and compressed gas cylinder storage were observed along the north side of the main building. The trailers contained parts, filters, equipment and tools. The used oil tank was connected to a hose and pump system that transported used oil from inside the main building. Septic and water tank cisterns were observed near the northeast corner of the building (Photographs 1 to 25).

6.2 BUILDING INFORMATION

Office space, a reception area, bathrooms, a shop, a wash bay, storage rooms and utility rooms were observed within the main building. Two small stains was observed on the ceiling tiles within the main floor office area and second floor office area. Tools, parts, equipment, a crane and hoist system, air compressor, engine oil tank, hydraulic oil tank, vehicle maintenance chemicals, household cleaning chemicals and paint were stored throughout the shop. Oil changing equipment was stored along the north side of the shop. Two drain systems were observed in the main shop area and a drain system was observed in the wash bay area. The drain systems appeared to be in good condition and no visible sheen or odors were observed at the time of the assessment. Pressure washing equipment and pails of degreaser were observed within the wash bay area (Photographs 26 to 45).

The storage shed was gravel floored with concrete pads beneath the storage shelves. Tools, parts, equipment and pails of paint were stored on pallets within the shed (Photographs 46 to 48).

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6.3 ADJACENT LAND USE

The Subject Property was surrounded by the following properties at the time of the assessment:

Direction from Property Current Property Tenant/Owner Potential Risk

Residential land, Township Road 700, Grovedale Community North Low Centre

Northeast Residential land Low

East A residence and cattle farm Low

Southeast A grazing pasture Low

Township Road 695A, a pond, a storage yard, Sureway Logging South Low Ltd., undeveloped lands

Undeveloped lands, an unnamed roadway, Public Service Southwest Low Building, a pond, a communication tower

West Undeveloped land, Range Road 64 Low

Museum, Penson School, Grovedale General Store, residential Northwest Low land

The adjacent properties in all directions were primarily residential, grazing pasture, light commercial and light industrial businesses. Two small UN#1075 (Petroleum gases) ASTs were observed near the northeast corner of the storage yard located south of the Subject Property. A pond was observed 86 m south and a pond was observed 321 m southwest of the Subject Property. The potential environmental risk to the Property from the surrounding lands is considered to be low (Photographs 49 to 54).

No high risk properties such as landfills, rail loading yards, chemical plants or heavy manufacturing plants were observed within 300 m of the Property.

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Information regarding significant environmental issues is summarized below.

7.1 AIR EMISSIONS OR AIR QUALITY

Two small stains were observed on the ceiling tiles within the main floor office area and second floor office area. Mr. Ritchie stated that the main floor stain was caused by condensation from the air intake and the second floor stain was caused by condensation from the bathroom fan. Both areas have since been insulated and repaired.

7.2 ASBESTOS CONTAINING MATERIALS (ACMs)

There were no sources of asbestos containing materials observed on the Property at the time of the assessment. Given the age of the building, none would be suspected.

7.3 CHEMICAL USING ACTIVITY AND CHEMICAL STORAGE

Vehicle maintenance and repair chemicals, household cleaners and paints were stored throughout the main building. Paints were stored within the shed. A pallet of paints was observed in the yard.

7.4 DRAINS AND SUMPS

Two drain systems were observed within the shop area and a drain system was observed within the wash bay area. The drains appeared to be in good condition and no odours or visible sheens were observed at the time of the assessment. Mr. Ritchie stated that the sumps drained into a septic storage tank which was vacuum trucked out when required and the contents were disposed of off- site.

7.5 FILL AND STOCKPILES

A stockpile of topsoil was observed along the northern side of the Property. Mr. Ritchie stated the topsoil was from stripping activities during site development.

7.6 FREONS AND HALONS

No sources of freons, which are used in some commercial freezers and air conditioning units, were observed on the Property at the time of the assessment. Given the age of the building, none would be suspected.

No sources of halons, which are used in some types of fire extinguishers, were observed on the Property.

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7.7 HAZARDOUS MATERIALS USE AND STORAGE

No hazardous materials were observed on the Property during the assessment.

7.8 HAZARDOUS WASTES

No hazardous wastes were stored on the Property during the assessment.

7.9 HEATING AND COOLING SYSTEMS

Forced air, in-floor heating, ceiling fans and air conditioning was used within the main building. The shed was not equipped with any heating or cooling systems.

7.10 LANDFILLS AND DUMPS

There were no landfills or dumps observed on the Property or within a 300 m radius of the Site.

7.11 LEAD

There were no sources of lead containing materials noted on the Property at the time of the assessment.

7.12 LIQUID EFFLUENTS AND SITE RUNOFF

The Property generally sloped towards the north. A ditch was observed along the western side of the Site. Mr. Ritchie stated that an area along the east fence-line was wet for part of the year and drained off-site.

7.13 MECHANICAL EQUIPMENT

Pressure washing equipment, an air compressor, crane and hoist systems, power tools and maintenance equipment was observed within the shop.

7.14 MERCURY

No sources of mercury were observed on the Property at the time of the assessment.

7.15 METHANE

Methane gas is produced when organic matter decays in an oxygen deficient environment, such as wetland areas, landfills or nuisance grounds. Methane is of concern as it is highly explosive in confined spaces. Methane can enter a building through cracks in the foundation or sumps. As the Property was not located within a wetland area and no evidence of historical domestic waste landfills

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or dumps on the Property were found, concentrations of methane gas are not considered to be a concern.

7.16 OIL AND GAS FACILITIES

There were no upstream oil and gas facilities located on the Property at the time of the assessment. Reclamation Certificates were available for a former well site located approximately 31 m south of the Subject Property. Records indicate that the northern portion of the lease was located on the Subject Property and the well was located to the south (Refer to Section 5.2.2).

7.17 PESTICIDES AND HERBICIDES

No signs of pesticide or herbicide use were observed during the assessment.

7.18 PITS AND LAGOONS

There were no pits or lagoons observed on the Property during the assessment. Ponds were observed approximately 86 m south and approximately 321 m southwest of the Subject Property.

7.19 POLYCHLORINATED BIPHENYLS (PCBs)

There were no sources of PCBs observed on the Property at the time of the assessment.

7.20 RADIOACTIVE MATERIALS AND EQUIPMENT

There were no radioactive materials or equipment observed on the Property during the assessment.

7.21 RADON

Historically, large portions of Canada were not considered to have a significant risk of radon exposure, however in June 2007, Health Canada decided to lower the action level for radon from 800 Bq/m3 to 200 Bq/m3 based on international standards and newer scientific research. This is reflected in recent changes to the National Building Code. Radon is a gas formed by the breakdown of uranium, a natural radioactive material found in all soil and rock. Long-term exposure to radon is the 2nd leading cause of lung cancer after smoking. Health Canada found that: approximately 7% of homes have high levels of radon; radon levels vary significantly across the country; and that there are no areas of the country that are 'radon free,' but there are areas of the country where high levels of indoor radon are more prevalent.

For most of the year, the air pressure inside a building is lower than the pressure in the soil surrounding the foundation. This difference in pressure draws air and other gases contained in the soil, including radon, into the interior. Gas containing radon can enter a building through any opening where the foundation, basement or floor slab contacts the soil. These openings will be present even in newer, well-built structures. Potential entry routes for radon include cracked foundations or slabs,

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areas with exposed soil or rocks, openings for utility lines or the gap between the floor slab and wall, sumps, etc.

Materials used to construct a building - stone, bricks, cement/concrete, or granite, for example - are not a significant source of radon. Natural materials taken from the ground, like granite or concrete aggregate, can contain some uranium and may have higher levels of radiation or radon, but in the vast majority of cases these levels are not significant.

Workplace exposure to radon is addressed by guidelines for naturally occurring radioactive materials (NORM). Details are given in the Canadian Guidelines for Management of Naturally Occurring Radioactive Materials (Prepared by the Canadian NORM Working Group of the Federal Provincial Territorial Radiation Protection Committee. Revised 2011).

Incidentally Exposed Workers are employees whose regular duties do not include exposure to NORM sources of radiation. They are considered as members of the public who work in an occupational exposure environment and, as such, the annual effective dose limit for these workers is 1 mSv. The sievert (Sv) is the unit of Effective Dose of radiation, and accounts for the total effect of different types of radiation on different parts of the body.

Radon released from soil beneath a building gives rise to an average indoor background concentration of about 45 Bq/m3, but much higher values are possible in some areas. This concentration is variable with time; therefore long-term assessment measurements are recommended. As radon concentration can vary considerably, Health Canada is recommending that all workplaces be assessed for potential elevated levels. The derived working limit (DWL) for radon is 200 Bq/m3. Where the annual average concentration of radon gas is expected to be above 200 Bq/m3, measurements should be made to estimate the average annual radon gas concentration.

For the Subject Property, the general interior ventilation was considered good, with no below grade spaces and limited potential migration pathways for radon gas to enter the structure. The potential incremental risk from radon exposure to the building occupants is considered low. As per Health Canada's recommendation, a long-term test to measure the interior radon concentration is recommended as part of a standard health and safety program, but this is not essential for the assessment of the environmental risk associated with this Property.

7.22 SOLID WASTE AND SEWAGE DISPOSAL

An Alliance Disposal Dumpster and metals disposal dumpster were observed in the yard. Septic and water tank cisterns were observed on the Property. Mr. Ritchie stated that an underground septic field was used along the east side of the Site. A septic holding tank was used to store the liquid from the wash bay prior to the contents being vacuum trucked out and disposed of off-site.

7.23 STAINS AND SPILLS

No stains or spills were observed on the Property at the time of the assessment although observations were limited by snow cover. Mr. Ritchie stated that occasional small spills from

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maintenance activities may have occurred within the shop, however, drip trays were generally used to prevent spills and absorbent materials were used to clean up any stains or spills promptly.

7.24 UNDERGROUND (USTs) AND ABOVEGROUND STORAGE TANKS (ASTs)

There were five ASTs registered to the Property with the PTMAA. Refer to Section 5.2.2 for details. Four of the ASTs were observed along the north side of the Property. Concrete barriers surrounded the tanks and the area was gravelled and bermed to the north, east and west. Drip trays and canisters were equipped for the hoses on each of the tanks. The used oil tank was stored near the northeast corner of the building and was connected to a hose and pump system that was used to transport the used oil from within the building to the tank. No signs of overflow, stains or spills were observed around any of the tanks at the time of the assessment. A engine oil tank and a hydraulic oil tank were stored within the shop. Mr. Ritchie was not aware of any USTs on the Property except for the water and septic tanks. Two small UN#1075 tanks were observed on the storage yard located south of the Subject Property. The potential environmental risk to the Property from the ASTs is considered to be low to moderate.

7.25 UNIDENTIFIED SUBSTANCES

No unidentified substances were noted on the Property during the assessment.

7.26 UREA FORMALDEHYDE FOAM INSULATION (UFFI)

There were no sources of UFFI observed during the inspection.

7.27 UTILITIES, ROADS, PARKING FACILITIES AND RIGHT-OF-WAYS

The Property was accessed from the south along Township Road 695A. Parking areas were observed south and east of the main building. The utility right-of-ways and zoning regulations registered on the Property are summarized in the following table:

Location Caveator Date (dd/mm/yyyy) Registration #

Lot 2, ATCO Electric Ltd. 16/01/2012 122 016 378 Block 1, Plan 102 5482 Royal Bank of Canada 31/07/2012 122 246 949

7.28 VEGETATION

Forested areas were observed along the north and east sides of the building. Mr. Ritchie stated that noxious weeds, such as Canadian Thistle were sprayed for in the fall.

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7.29 WATERCOURSES, DITCHES AND STANDING WATER

The Property generally sloped towards the north. A ditch was observed along the west side of the Site. Mr. Ritchie stated that a low-lying area that was wet for part of the year was located along the east side of the Property.

7.30 WELLS

A search of groundwater wells was conducted in the Alberta Environment Provincial Groundwater Well Information Database. The search indicated that there was one well located on the Property and four wells located on the quarter section. Refer to Section 3.4 for details.

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Based on the available information gathered during the Phase 1 ESA, the following conclusions have been made:

• At the time of the assessment, a large two storey building was observed on the western side and a one-storey shed was observed near the northwest corner of the Property. The Property was primarily gravel surfaced and the yard was fenced with chain-link and barbed wire. The Property has been tenanted by Ritchie Bros. Construction Inc. since the building was constructed in 2013. Prior to 2013, the Property was agricultural land. The potential environmental risk to the Property from the historical owners and current tenant is considered to be low to moderate.

• The adjacent properties in all directions were primarily residential, grazing pasture, light commercial and light industrial businesses. Two small UN#1075 (Petroleum gases) aboveground storage tanks were observed near the northeast corner of the storage yard located south of the Subject Property. The potential environmental risk to the Property from the surrounding lands is considered to be low.

• Five aboveground storage tanks (ASTs) were observed on the Property and were registered with the PTMAA at the time of the assessment. The tanks contained diesel, gasoline and used oil and were equipped with secondary containment, leak detection and overfill prevention systems. Four of the ASTs were observed along the north side of the Property. Concrete barriers surrounded the tanks and the area was bermed to the north, east and west. Drip trays and canisters were equipped for the hoses and nozzles on each of the tanks. One of the ASTs contained used oil and was located near the northeast corner of the building. The used oil tank was connected to a hose and pump system that transported used oil from inside the main building. The potential environmental risk to the Property from the ASTs is considered to be low to moderate.

• Historical searches indicated that two reclamation certificates were issued on the quarter section and included the southeastern corner of the Subject Property. Records indicated that a well, which was located approximately 31 m south of the Subject Property, had been suspended and abandoned. Soil and groundwater sampling was conducted and impacted soils were removed. Reclamation Certificates were issued in 2011 for the portion of the lease site that included the Subject Property and in 2012 for the remainder of the lease. As the Site was determined to be reclaimed, the potential environmental risk to the Property from the former well site is considered to be low.

• The following potential environmental issues were not found to be of concern on the Subject Property: air emissions, air quality, asbestos, chemical use and storage, drains and sumps, fill and stockpiles, freons, halons, hazardous storage and wastes, heating and cooling systems, landfills and dumps, lead, liquid effluents and site runoff, mechanical equipment, mercury, methane, oil and gas facilities, pesticides and herbicides, pits and lagoons, polychlorinated biphenyls, radioactive materials and equipment, radon, solid wastes and

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sewage disposal, underground storage tanks, unidentified substances, urea formaldehyde foam insulation, utilities, roads, parking facilities, right-of-ways, ditches and wells.

Based on the current, historical and surrounding land uses, ParklandGEO considers the level of environmental risk associated with the Property to be low to moderate and no additional environmental assessments are recommended at this time.

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The American Society for Testing and Materials Standard of Practice notes that no environmental site assessment can wholly eliminate uncertainty regarding the potential for recognized environmental conditions in connection with a property. Performance of a standardized environmental site assessment protocol is intended to reduce, but not eliminate, uncertainty regarding the potential for recognized environmental conditions in connection with the subject property, given reasonable limits of time and cost.

This report has been prepared for the exclusive use of Ritchie Bros. Construction Inc., 331294 Alberta Ltd., and their approved agents. Any use which a third party makes of this report, or any reliance on or decisions to be made based on it, are the responsibility of such third parties. PARKLAND GEOTECHNICAL LTD., and The ParklandGEO Consulting Group accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this report. No other warranty, expressed or implied, is made.

We trust that this report meets with your current requirements. If there are any questions, please contact the undersigned at 780-539-5102.

Respectfully Submitted,

PARKLAND GEOTECHNICAL LTD. APEGA Permit to Practice No. P - 9516

Tannis Gardiner Environmental Technician

November 14, 2017

Reviewed by: Monique Tenszen, P. Eng. Principal Geo-Environmental Engineer

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FIGURES

FIGURE 1: AREA PLAN

FIGURE 2: SITE PLAN

FIGURE 3: REGIONAL PLAN

FIGURES 4 TO 8: AERIAL PHOTOGRAPHS TOWNSHIP ROAD 700

TOWNSHIP ROAD 695A RANGE ROAD 63 RANGE ROAD 64

CLIENT: AREA PLAN RITCHIE BROS. CONSTRUCTION INC. PHASE 1 ENVIRONMENTAL SITE ASSESSMENT LOT 2, BLOCK 1, PLAN 102 5482; GROVEDALE, ALBERTA C/O 331294 ALBERTA DRAWN: CHK'D.: REV #: DATE: LTD. TG MT 0 OCTOBER 2017 SCALE: JOB NO. DRAWING NO. NTS GP3655 FIGURE 1 TOWNSHIP ROAD 700

TOWNSHIP ROAD 695A PROPERTY RANGE ROAD 64

NOTES: 1. SURVEY PLAN OBTAINED FROM THE GOVERNMENT OF ALBERTA SPATIAL INFORMATION SYSTEM DATED SEPTEMBER 28, 2010.

CLIENT: SITE PLAN RITCHIE BROS. CONSTRUCTION INC. PHASE 1 ENVIRONMENTAL SITE ASSESSMENT LOT 2, BLOCK 1, PLAN 102 5482; GROVEDALE, ALBERTA C/O 331294 ALBERTA DRAWN: CHK'D.: REV #: DATE: LTD. TG MT 0 OCTOBER 2017 SCALE: JOB NO. DRAWING NO. NTS GP3655 FIGURE 2

TOWNSHIP ROAD 700

PROPERTY

SCALE (metres) NOTE: AERIAL PHOTOGRAPH OBTAINED FROM ALBERTA ENVIRONMENT AND PARKS. DATED MAY 17, 1961. -100 -50 0 50 100 200

CLIENT: 1961 AERIAL PHOTOGRAPH RITCHIE BROS. CONSTRUCTION INC. PHASE 1 ENVIRONMENTAL SITE ASSESSMENT LOT 2, BLOCK 1, PLAN 102 5482; GROVEDALE, ALBERTA C/O 331294 ALBERTA DRAWN: CHK'D.: REV #: DATE: LTD. TG MT 0 OCTOBER 2017 SCALE: JOB NO. DRAWING NO. 1:5000 GP3655 FIGURE 4 TOWNSHIP ROAD 700

PROPERTY

SCALE (metres) NOTE: AERIAL PHOTOGRAPH OBTAINED FROM ALBERTA ENVIRONMENT AND PARKS. DATED JUNE 25, 1985. -100 -50 0 50 100 200

CLIENT: 1985 AERIAL PHOTOGRAPH RITCHIE BROS. CONSTRUCTION INC. PHASE 1 ENVIRONMENTAL SITE ASSESSMENT LOT 2, BLOCK 1, PLAN 102 5482; GROVEDALE, ALBERTA C/O 331294 ALBERTA DRAWN: CHK'D.: REV #: DATE: LTD. TG MT 0 OCTOBER 2017 SCALE: JOB NO. DRAWING NO. 1:5000 GP3655 FIGURE 5 TOWNSHIP ROAD 700

PROPERTY

SCALE (metres) NOTE: AERIAL PHOTOGRAPH OBTAINED FROM ALBERTA ENVIRONMENT AND PARKS. DATED SEPTEMBER 13, 1995. -100 -50 0 50 100 200

CLIENT: 1995 AERIAL PHOTOGRAPH RITCHIE BROS. CONSTRUCTION INC. PHASE 1 ENVIRONMENTAL SITE ASSESSMENT LOT 2, BLOCK 1, PLAN 102 5482; GROVEDALE, ALBERTA C/O 331294 ALBERTA DRAWN: CHK'D.: REV #: DATE: LTD. TG MT 0 OCTOBER 2017 SCALE: JOB NO. DRAWING NO. 1:5000 GP3655 FIGURE 6 TOWNSHIP ROAD 700

PROPERTY

SCALE (metres) NOTE: AERIAL PHOTOGRAPH OBTAINED FROM ALBERTA ENVIRONMENT AND PARKS. DATED AUGUST 2, 2006. -100 -50 0 50 100 200

CLIENT: 2006 AERIAL PHOTOGRAPH RITCHIE BROS. CONSTRUCTION INC. PHASE 1 ENVIRONMENTAL SITE ASSESSMENT LOT 2, BLOCK 1, PLAN 102 5482; GROVEDALE, ALBERTA C/O 331294 ALBERTA DRAWN: CHK'D.: REV #: DATE: LTD. TG MT 0 OCTOBER 2017 SCALE: JOB NO. DRAWING NO. 1:5000 GP3655 FIGURE 7 TOWNSHIP ROAD 700

PROPERTY TOWNSHIP ROAD 695A

SCALE (metres) NOTE: AERIAL PHOTOGRAPH OBTAINED FROM ABADATA 2.0. DATED AUGUST 12, 2013 TO SEPTEMBER 10, 2013. -100 -50 0 50 100 200

CLIENT: 2013 AERIAL PHOTOGRAPH RITCHIE BROS. CONSTRUCTION INC. PHASE 1 ENVIRONMENTAL SITE ASSESSMENT LOT 2, BLOCK 1, PLAN 102 5482; GROVEDALE, ALBERTA C/O 331294 ALBERTA DRAWN: CHK'D.: REV #: DATE: LTD. TG MT 0 OCTOBER 2017 SCALE: JOB NO. DRAWING NO. 1:5000 GP3655 FIGURE 8 Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Assessment

APPENDIX A

SITE PHOTOGRAPHS (TAKEN NOVEMBER 8, 2017) Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 1: West-facing view of building.

Photograph 2: Southwest-facing view of the Site access gate. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 3: East-facing view of the eastern side of the Property.

Photograph 4: Northeast-facing view of the topsoil stockpile observed along the northern side of the Property. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 5: Burn bins observed along the north side of the Property.

Photograph 6: Fire pond line observed along the north side of the Property.

Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 7: Northwest facing view of the four ASTs observed along the north side of the yard.

Photograph 8: View of the ASTs and equipped drip canisters for the nozzles. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 9: North-facing view of the bermed edge around the ASTs.

Photograph 10: Drip tray observed under one of the tanks grate. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 11: North-facing view of the loading ramp used to load heavy equipment onto trailers.

Photograph 12: Utility boxes observed along the north side of the Property. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 13: Septic holding tank cistern observed along the north side of the Site.

Photograph 14: Metals disposal dumpster observed along the north side of the Property. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 15: North-facing view of the shed located in the northwest corner of the Property.

.

Photograph 16: West-facing view of the she located in the northwest corner of the Property. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 17: South-facing view of the ditch observed along the west side of the Property.

.

Photograph 18: East-facing view of the yard. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 19: East-facing view of the southern side of the yard.

Photograph 20: View of items stored along the west side of the main building. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 21: East-facing view of the items stored along the north side of the building.

Photograph 22: East-facing view of the used oil tank observed near the northeast corner of the building. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 23: Southwest-facing view of the used oil tank.

Photograph 24: West-facing view of the cisterns observed near the northeast corner of the building. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 25: Southeast-facing view of the eastern side of the building.

Photograph 26: Reception and office area observed on the main floor of the building. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 27: Forced air vent and stained ceiling tile observed in the main floor of the building.

Photograph 28: Stained ceiling tile observed in the second floor office area. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 29: Items stored within the shop.

Photograph 30: Items stored within the shop. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 31: Oil changing equipment observed within the shop.

Photograph 32: Vehicle maintenance chemicals stored within the shop. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 33: Vehicle maintenance chemicals stored within the shop.

Photograph 34: Air compressor observed within the shop. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 35: Engine oil tank observed within the shop.

Photograph 36: Hydraulic oil tank observed within the shop. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 37: Tools, parts, equipment and the crane and hoist system observed within the shop.

Photograph 38: Tools, parts and equipment observed within the shop. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 39: Drain systems observed in the eastern side of the shop.

Photograph 40: Drain system observed in the central portion of the shop. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 41: View of the drain and wash bay area.

Photograph 42: Pressure washing equipment and degreaser observed within the wash bay. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 43: View of the parts storage room.

Photograph 44: Utility room observed in the shop area. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 45: Utility room observed on the second floor of the building.

Photograph 46: South-facing view of the interior of the storage shed. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 47: Paint stored within the shed.

Photograph 48: North-facing view of the interior of the storage shed. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 49: View of the small UN#1075 tanks observed on the storage yard located south of the Subject Property.

Photograph 50: Undeveloped land observed south of the Subject Property. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 51: Unnamed road developed south of the Property.

Photograph 52: Public Service Building observed south of the Subject Property. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Inspection

Photograph 53: Pond observed approximately 86 m south of the Subject Property.

Photograph 54: Pond observed approximately 321 m southwest of the Subject Property. Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Assessment

APPENDIX B

SEARCHES AND REGULATORY CORRESPONDENCE

LAND TITLE CERTIFICATE

S LINC SHORT LEGAL TITLE NUMBER 0034 501 198 1025482;1;2 112 120 867

LEGAL DESCRIPTION PLAN 1025482 BLOCK 1 LOT 2 EXCEPTING THEREOUT ALL MINES AND MINERALS AREA: 12.13 HECTARES (29.97 ACRES) MORE OR LESS

ESTATE: FEE SIMPLE ATS REFERENCE: 6;6;69;33;NW

MUNICIPALITY: MUNICIPAL DISTRICT OF GREENVIEW NO. 16

REFERENCE NUMBER: 102 363 176

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

112 120 867 29/04/2011 TRANSFER OF LAND $300,000 $300,000

OWNERS

331294 ALBERTA LTD. OF BOX 78 SILVER VALLEY ALBERTA T0H 3E0

------ENCUMBRANCES, LIENS & INTERESTS

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

122 016 378 16/01/2012 CAVEAT RE : UTILITY RIGHT OF WAY CAVEATOR - ATCO ELECTRIC LTD. ATTENTION: LAND & PROPERTIES, 10035-105 STREET EDMONTON ALBERTA T5J2V6 AGENT - JENNA GIALET

( CONTINUED ) ------ENCUMBRANCES, LIENS & INTERESTS PAGE 2 REGISTRATION # 112 120 867 NUMBER DATE (D/M/Y) PARTICULARS ------

122 246 949 31/07/2012 MORTGAGE MORTGAGEE - ROYAL BANK OF CANADA. 9815-98 ST GRANDE PRAIRIE ALBERTA T8V2E4 ORIGINAL PRINCIPAL AMOUNT: $2,000,000

TOTAL INSTRUMENTS: 002

THE REGISTRAR OF TITLES CERTIFIES THIS TO BE AN ACCURATE REPRODUCTION OF THE CERTIFICATE OF TITLE REPRESENTED HEREIN THIS 12 DAY OF OCTOBER, 2017 AT 11:26 A.M.

ORDER NUMBER: 33871748

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). • Government of Alberta _ Environmental Management Northern Region Environment Room 1801 Main Floor, 10320 - 99 Street Grande Prairie, Alberta Canada T8V 5J4 Telephone: (780) 538-5351 Fax: (780) 538-5336 www.alberta.ca

File Reference No. 286620 March 16, 2011

Robert Martens EnCana Corporation 150- 9th Ave. S.W. , AS T2P 2S5

Dear Mr. Martens:

RE: ECA ELM 14-33-69-6 14-33-69-6 W6M

Your application for a reclamation certificate on the above site has been reviewed and found to be satisfactory. Please note, only 1.58 acres (Northern portion) of ECA ELM 14-33-69-6 W6M has been certified. 7.26 acres of lease/access road still requires a reclamation certificate.

Please find enclosed Reclamation Certificate No. 286620-00-00 for your records.

Sincerely,

Danielle Siemens Environmental Protection Officer

Enclosure

cc: RAC- Lidia Lizama Frederick Warren & Ellen McAusland

Freedom To Create. Spirit To Achieve. ENVIRONMENT

RECLAMATION CERTIFICATE NO. 00286620-00-00 LICENSE NO. 0118751

This reclamation certificate is issued pursuant to section 138 of the Environmental Protection and Enhancement Act, following a review of the information contained in the application submitted to Alberta Environment. No field inquiry was held.

This certifies that the surface of the land held by EnCana Corporation

within NW Sec. 33 Tp. 069 Rge. 06 W6M

in connection with or incidental to ECA ELM 14-33-69-6 WELL, as shown outlined on the attached plan(s), complies with the conservation and reclamation requirements of Part 6 of the Act.

Issued this I Co day of ,20 l/

Operator!Agent: EnCana Corporation 18008552 ST SW BOX 2850 Calgary, Alberta T2P 2S5

The Director may cancel this reclamation certficate where he/she is of the opinion that further work may be necessary to conserve and reclaim the above specified land to which this certificate relates.

Section 91 of the Environmental Protection and Enhancement Act may provide a right of appeal against this decision to the Chair, Environmental Appeals Board. There may be a strict time limit for filing such an appeal. For further information contact the Board Secretary of the Environmental Appeals Board at 3rd Floor, Peace Hills Trust Tower, 10011 -109 Street, Edmonton, Alberta T5J 3S8. Telephone (780)427-6207; Fax (780)427-4693, C of r. h 1/4" pd.1 1~ ' Y'103

RE SIDENCE PLAN SCALE- 1150000

30. 4B ROAO Pia. ~02~ p~

o :r: , o .... .o :> o .,"

------""TI~~3TcsI4 ac> 0- D ..; LS 12 LS-'-,---- 00 OJ 0- % ::; RGE. 6 W.S M. ..a: HWY. ~a OftOV~OALe " 51 ~ ~ll 38 08'm

fWP. 69

5.18 :z: 5.18 1-"a: . 0" e I z3

ROUTE MAP SCI.LE . HO 000 20.00

Z1qDI4I·OO· US.20 r 'dJ. ~~~:;;;~~::;;r;:;:;;;;;;;;:;;;:~~~3--- ft.4 I § rol)c;,~ I Reclamation Certificate Area ,-­ ../. North Wellsite: 0.640 ha 1.58 Ac NOTE : Th,r, Ott no ReQi".rtd Plan. or Surrac. ItIIQr~manll ..IIIIin 200m 01 Well Cenlro 0'".. thon ,hOlin.: Divided Well Site IAreas --;1' REVISED North: 0.64 ha 1.58 Ac PLAN SHOWING LOCATION OF South: 0.66 ha 1.63 Ac DOME et 01 ELMWORTH 14-33-69-6 Total : 1. 30 ha 3.21 Ac IN LSD. 14 SEC. 33 TWP. 69 RGE . 6 W.6 M.

SCALE . I t 5000 CO-ORDINATES' 359.2 S. of N. Bdy. and 753.39 E. of W. Bdy. of Soc_ 33-69 -6 W. 6 M.

I Cfffify tllat 111& IU~ rsprnlntGd by t~ pIOn I, comet AREAS he At WELL SITE and tM to the bes1 Qf my koowle. ClOd wal cQ,np~od Well Slto 1.300 3,21 CORNER ELEVATIONS ~RQQd2.279 5.63 NE - 665.33 "'''''~t~'' AD~ L 3.579 8.84 SE' 664.05 SW- 665.08 ALS . WilMa. NW· 665.00 GROUND ELEVATION· 664.1 LEGEND For DOME Survey rooruncnt found shown tim ~_____O 30cm Iron SpikI planted Ihown !flus 0 Portions merred to shown thut ______DiIfoncef, ora in metre; and ~ tfleroof.

~ I\LL-CAN ~t.lct:.RING 8t SUWEYSII9T61 LTD. JctINo.85-1120 ICheCkid G.R. ([)ate 15/10/8~ ------~ --

Environmental Operations Government of Alberta • Northern Region Room 1801 Environment and Water Main Floor, 10320-99 Street Grande Prairie, Alberta Canada T8V 6J4 Telephone: (780) 538-5351 Fax: (780) 538-5336 www.alberta.ca

File Reference No. 299184 March 7, 2012

Robert Martens EnCana Corporation 150- 9th Avenue S.W. Box 2850 Calgary, AB T2P 2S5

Dear Mr. Martens:

RE: ECA ELM 14-33-69-6 WELL LSD 14 SEC 33 TWP 69 RGE 6 W6M Your File No. S201642

Your application for a reclamation certificate on the above site has been reviewed and found to be satisfactory.

Please find enclosed Reclamation Certificate No. 299184-00-00 for your records.

Sincerely, , ~~ Danielle Siemens Environmental Protection Officer

Enclosure

cc: ·RAe- Lidia Lizama Frederick and Ellen McAusland

Freedom To Create. Spirit To Achieve. AII:Dta ENVIRONMENT

RECLAMATION CERTIFICATE NO. 00299184-00-00

This reclamation certificate is issued pursuant to section 138 of the Environmental Protection and Enhancement Act, following a review of the information contained in the application submitted to Alberta Environment. No field inquiry was held.

This certifies that the surface of the land held by EnCana Corporation

within NW Sec. 33 Tp. 069 Rge. 06 W6M

in connection with or incidental to ECA ELM 14-33-69-6 WELL, as shown outlined on the attached plan(s), complies with the conservation and reclamation requirements of Part 6 of the Act.

Issued this l day of Ma..rc. h , 20 12. ~ Designated Inspector under the Act

Operator/Agent: EnCana Corporation ENCANA ON 9TH 150 9 AVE SW BOX 2850 Calgary, Alberta T2P 2S5

The Director may cancel this reclamation certficate where he/she is of the opinion that further work may be necessary to conserve and reclaim the above specified land to which this certificate relates.

Section 91 of the Environmental Protection and Enhancement Act may provide a right of appeal against this decision to the Chair, Environmental Appeals Board. There may be a strict time limit for filing such an appeal. For further information contact the Board Secretary of the Environmental Appeals Board at 3rd Floor, Peace Hills Trust Tower, 10011 - 109 Street, Edmonton, Alberta T5J 3S8. Telephone {780)427-6207; Fax {780)427-4693. 0 C-·22 °G - ROO£R BOIS4014NAULT n2•d ~ 000 oHo-ED YATES "2·0 0 4C~ o lo-DE NNIO HOI!fi!LL ~n-0 0 0 D ·DOnOTttY COMr.~u 032·0~~~ oJo• JACK tti'!IA!ALa B30•SG511 1 o~o • riiiL COtdUU D3t· 31111 °K • WILI.!AY WINUR8 G'D•UOO of 0 . ~. 11r.U.LIJEAD._J~..U--' J.'..::.Hrt!UY.I£...0J.I..OJI. __.J.HL.I!li.Q!4.._1l ______.

C ol T. i" 1/4 ~3 I Vd .l. 15-Y·I 03

RESIDENCE PLAN SCALE · loSOOOO

30.4B ROAO Plqn 502~ PX

0 % 0 ... ..0 .:> 0 ""'

RGE, 6 W.6M. OAOVEDALE 20.00 ~4 . 1 . HWY. eeo oo0 oo' R . ~ 31 ~ ~33 36 o.e• tm

TWP. 69

e I

ROUTE MAP SCI.LE · 250 000

Z11l"A 1° oo" 393.20

NOrE : There ore no RCI,liatered Plan& or Sutlace lmpr~monts within 200m ot Well Centre other lhGn •ho111n . ' ~REVISED PLAN SHOWING LOCATION OF DOME et al ELMWORTH 14-33-69-6 IN LSD. 14 SEC. 33 TWP. 69 RGE. 6 W.6 M.

SCALE · I• ~000 CO-ORDINATES· 359,2 S. of N. Bdy. and 7~3.39 E. of W. Bdy. of Sec. 33-69-6 W. 6 M. 1certify that the survey represented by this piOn Is cori'0Ct AREAS ha Ac WELL SITE ood true to fM best of my knowledge ood woa c~nptmod Wtll Sift lo300 3.21 CORNER ELEVATIONS tfr!ftRO

LEGEND For DOME P~'JfOLEUM LIMITED Survey rnoawment found lhown thus ------• 30cm Iron Spila plontftd &hown t1tus o Portions referred to shown thus ~-.---:-----­ ~are in mfirel ood decimds thereof. ~-

~ALL-CAN ENGI>JEERtNG 6SURVEYSU976)LTD. Job No. 85-1120 lChtelted G.R.Iocto 15/10/85

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f—l™’sÿjlÿqtruvrutqwÿupxyptzÿ{ “k’pÿqÿrÿq MUNICIPAL DISTRICT OF GREENVIEW NO. 16

October 25, 2017

Parkland Geotechnical Ltd #101, 15810 – 102 Street Grande Prairie, AB, T8X 0K7

RE: Phase I Environmental Site Assessment - Lot 2, Block 1, Plan 1025482 NW-33-69-6-W6M

In follow-up to your request of October 24, 2017 we offer the following information from research of our records:

1. We are a non-accredited municipality and therefore do not issue Plumbing, Gas, Electric, or Building Permits. These provincial permits are issued through an accredited agency such as Inspections Group or Superior Safety Codes. 2. Development Permits were issued for an industrial yard and shop. 3. This parcel is currently zonned as Rural Commercial in accordance with our Land Use Bylaw. 4. There are no compliance issues with any use or Bylaw. 5. There are no bylaw infractions noted on our file. 6. We have no record of any landfills or dumpsites within 1000 meters of the quarter. 7. We do not have any Emergency Response/Fire Rescue Services records for this quarter, or any documentation evidencing installation or removal of underground storage tanks. 8. We do not have any environmental reports on file for this quarter, or immediately adjacent quarters.

Should you have any additional questions please contact the undersigned.

Sincerely,

Lindsey Lemieux Development Officer

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x”#ÿ’˜” dr“‰•S™™‘S”‰‰ Ritchie Bros. Construction Inc. c/o 331294 Alberta Ltd. Project GP3655 6362 Township Road 695A; Grovedale, Alberta November 14, 2017 Phase 1 Environmental Site Assessment

LIMITATIONS

GENERAL TERMS, CONDITIONS AND LIMITATIONS THE PARKLANDGEO CONSULTING GROUP GENERAL TERMS, CONDITIONS AND LIMITATIONS

The use of this attached report is subject to the following general The CLIENT acknowledged that: terms and conditions. a) the investigation findings are based solely on the information generated as a result of the specific scope of 1. STANDARD OF CARE - In the performance of professional the investigation authorized by the CLIENT; services, ParklandGEO used the degree of care and skill b) unless specifically stated in the agreed Scope of Work, the ordinarily exercised under similar circumstances by reputable investigation will not, nor is it intended to assess or detect members of its profession practicing in the same or similar potential contaminants or environmental liabilities on the localities. No other warranty expressed or implied is made in Site; any manner. c) any assessment regarding geological conditions on the Site is based on the interpretation of conditions determined at 2. INTERPRETATION OF THE REPORT - The CLIENT specific sampling locations and depths and that conditions recognizes that subsurface conditions will vary from those may vary between sampling locations, hence there can be encountered at the location where borings, surveys, or no assurance that undetected geological conditions, explorations are made and that the data, interpretations and including soils or groundwater are not located on the Site; recommendation of ParklandGEO are based solely on the d) any assessment is also dependent on and limited by the information available to him. Classification and identification of accuracy of the analytical data generated by the sample soils, rocks, geological units, contaminated materials and analyses; contaminant quantities will be based on commonly accepted e) any assessment is also limited by the scientific possibility practices in geotechnical or environmental consulting practice of determining the presence of unsuitable geological in this area. ParklandGEO will not be responsible for the conditions for which scientific analyses have been interpretation by others of the information developed. conducted; and f) the laboratory testing program and analytical parameters 3. SITE INFORMATION - The CLIENT has agreed to provide all selected are limited to those outlined in the CLIENT's information with respect to the past, present and proposed authorized scope of investigation; and conditions and use of the Site, whether specifically requested or g) there are risks associated with the discovery of hazardous not. The CLIENT acknowledged that in order for ParklandGEO materials in and upon the lands and premises which may to properly advise and assist the CLIENT, ParklandGEO has inadvertently discovered as part of the investigation. The relied on full disclosure by the CLIENT of all matters pertinent to CLIENT acknowledges that it may have a responsibility in the Site investigation. law to inform the owner of any affected property of the existence or suspected existence of hazardous materials 4. COMPLETE REPORT - The Report is of a summary nature and and in some cases the discovery of hazardous conditions is not intended to stand alone without reference to the and materials will require that certain regulatory bodies be instructions given to ParklandGEO by the CLIENT, informed. The CLIENT further acknowledges that any such communications between ParklandGEO and the CLIENT, and discovery may result in the fair market value of the lands to any other reports, writings or documents prepared by and premises and of any other lands and premises ParklandGEO for the CLIENT relative to the specific Site, all of adjacent thereto to be adversely affected in a material which constitute the Report. The word "Report" shall refer to respect. any and all of the documents referred to herein. In order to properly understand the suggestions, recommendations and 6. COST ESTIMATES - Estimates of remediation or construction opinions expressed by ParklandGEO, reference must be made costs can only be based on the specific information generated to the whole of the Report. ParklandGEO cannot be responsible and the technical limitations of the investigation authorized by for use of any part or portions of the report without reference to the CLIENT. Accordingly, estimated costs for construction or the whole report. The CLIENT has agreed that "This report has remediation are based on the known site conditions, which can been prepared for the exclusive use of the named CLIENT. Any vary as new information is discovered during construction. As use which a third party makes of this report, or any reliance on some construction activities are an iterative exercise, or decisions to be made based on it, are the responsibility of ParklandGEO shall therefore not be liable for the accuracy of such third parties. ParklandGEO accepts no responsibility for any estimates of remediation or construction costs provided. damages, if any, suffered by any third party as a result of decisions made or actions based on this report." 7. LIMITATION OF LIABILITY - The CLIENT has agreed that to the fullest extent permitted by the law ParklandGEO’s total liability The CLIENT has agreed that in the event that any such report to CLIENT for any and all injuries, claims, losses, expenses or is released to a third party, the above disclaimer shall not be damages whatsoever arising out of or in anyway relating to the obliterated or altered in any manner. The CLIENT further Project is contractually limited, as outlined in ParklandGEO’s agrees that all such reports shall be used solely for the purposes standard Consulting Services Agreement. Further, the CLIENT of the CLIENT and shall not be released or used by others has agreed that to the fullest extent permitted by law without the prior written permission of ParklandGEO. ParklandGEO is not liable to the CLIENT for any special, indirect or consequential damages whatsoever, regardless of cause. 5. LIMITATIONS ON SCOPE OF INVESTIGATION AND WARRANTY DISCLAIMER 8. INDEMNIFICATION - To the fullest extent permitted by law, the There is no warranty, expressed or implied, by ParklandGEO CLIENT has agreed to defend, indemnify and hold that: ParklandGEO, its directors, officers, employees, agents and a) the investigation uncovered all potential geo-hazards, subcontractors, harmless from and against any and all claims, contaminants or environmental liabilities on the Site; or defence costs, including legal fees on a full indemnity basis, b) the Site is entirely free of all geo-hazards or contaminants damages, and other liabilities arising out of or in any way related as a result of any investigation or cleanup work undertaken to ParklandGEO's work, reports or recommendations. on the Site, since it is not possible, even with exhaustive sampling, testing and analysis, to document all potential geo-hazards or contaminants on the Site.

M:\Contracts\ParklandGEO Limitations Terms and Conditions Jan 2014.wpd