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Staff Report

Applicant: Cherdon Enterprises Ltd. Location: Application: Hwy#1, km 188.9 MV2009Q0022 Date Prepared: Meeting Date: October 23, 2014 November 6, 2014 Subject: Extension Request

1. Purpose/Report Summary The purpose of this Report is to present to the Mackenzie Valley Land and Water Board (MVLWB/the Board) an extension request for Land Use Permit (LUP) MV2009Q0022 submitted by Cherdon Enterprises Ltd. to continue operation of their quarry located at Hwy #1, km 188.9.

2. Background  October 8, 2009 – LUP issued;  September 29, 2014 – extension request received;  October 2, 2014 – request sent to reviewers via the Online Review System;  October 7, 2014 – LUP expired;  October 16, 2014 – comments due from reviewers;  October 22, 2014 – response due from Cherdon Enterprises Ltd.; and  November 6, 2014 – presented to the Board for decision.

3. Discussion Cherdon Enterprises Ltd. has been conducting quarry operations near km 188.9 on Hwy #1 for five years. Cherdon Enterprises Ltd. is requesting an extension to continue operations.

4. Comments n/a

MV2009Q0022 – Cherdon Enterprises Ltd. Page 1 of 2

5. Reviewer Comments Comments were received from the following organizations  Deh Gah Got’ie First Nation letter dated October 14, 2014  Denroche & Associates letter dated October 15, 2014  Environment Canada letter dated October 16, 2014  Dehcho – Office of the Grand Chief letter dated October 17, 2014  GNWT-Department of Lands letter dated October 20, 2014

These comments are attached to this report for your review.

6. Security No security was requested during the initial issuance of the LUP.

7. Conclusion Responses have been received from Cherdon Enterprises Ltd.

8. Recommendation The cover page has been updated to reflect the date change if the Board approves the extension. Conditions have also been updated with administrative changes that have occurred in the last five years.

9. Attachments  Request for Extension  Deh Gah Got’ie First Nation letter dated October 14, 2014  Denroche & Associates letter dated October 15, 2014  Environment Canada letter dated October 16, 2014  – Office of the Grand Chief letter dated October 17, 2014  GNWT-Department of Lands letter dated October 20, 2014  Cherdon Enterprise Ltd letter dated October 22, 2014  Draft Land Use Permit Cover Page and Conditions  Draft Issuance Letter

Respectfully Submitted,

Tyree Mullaney Regulatory Officer

MV2009Q0022 – Cherdon Enterprises Ltd. Page 2 of 2 CHERDON ENTERPRISE LTD. Box 1500 Fort Providence, NT XOE OLO

October 22, 2014

Tyree Mullaney Regulatory Officer PO Box 2130 , NT X1A 2P6 Fax: ( 867) 873-6610

RE: Land Use Permit MV2009Q0022 2 Year Extension Request

Dear Ms. Mullaney,

Thank you for your fax dated October 20, 2014 requesting for my response to concerns expressed from the Deh Gah Got'ie First Nation and the Fort Providence Metis Council (FPMC).

I am confused why the Deh Gah Got'ie First Nation and the FPMC no longer support my land use permit as they have both supported my permit since 2002. I am the only contractor in Fort Providence who provides gravel to the community. I have supported the community of Fort Providence for many years and have always tried to hire locals where possible. Please refer to the attached Employee List proving that we have hired many locals.

The access road brought into question was an old logging trail that we widened. We have widened the corners to greatly improve visibility making the road much safer to drive. Please note that the Government of the NWT - Department of Transportation also use this access. To my knowledge, my drivers do not speed on the access.

The letter written by Inspector Norman Mccowan addresses all the concerns brought forward by the Deh Gah Got'ie First Nation and the FPMC. I concur with his response.

Please note that we have always tried to be in compliance with the terms and conditions of our land use permit and have worked directly with the Inspectors ensuring that we remain in compliance. We have spent considerable dollars developing this gravel pit since 2002. We need this pit for our business

If you require more information, I can be reached at (867) 699-4600.

Don Plante Owner Cherdon Enterprises ..... Cherdon Enterprises Ltd 0 Employee List as of 10f13i2014 ' "'..... Name Sln!atl Street2 City ' ... Provirle& Postal Code Phone 1 Phone2 Hire Data "'.....0 A.iiiiriria: Evelyn ·Goiiera1 t:ie11V..ry · - ···-·-- i''oit p,o;,iije;,;;;;·--· . - .. ··--· .. -- .. . -- . ------· ... N:W.t.· xoEnn.o · - ···· ·------··-·--- 031ii"i2013 ... Belcourt, Gornon Bo• 10 Fort Providence N.W.T. XOEOLO 01/1412013 ..... Belcourt, Irene General Delivery ... Fort Providence N.W.T. 02/04/2013 .. Betsaka, Romeo (lnac.•. Fort Providence 0 NWT 06/0912009 0 Bouvier, Georgette Ger>eral Oalr.ery Fort Providence N.W.T. XOEOLO 00/0112013 Bragg, S<:ott (lnacliva .•. 9619 112Ave, FT. St. John BC. V1J :I.NO 09/22/2009 Brown, GeOllJ• 13 Edwarns Stmet ~ Noith Sydney NS B2A 382 {902) 549-1 ... 12/08/2013 Croft, Neil General Delivery ,... Fort Providence N.W.T. XOEOLO 05/:1.6/2012 Co Eddie, Jennifer C. BOA Canterbury Street lngeraoll Ontario N>C 1C4 11/10/2013 _, Elleze, Howard General Delivery "' Fort Providence N.W.T. XOE OLO 05/0212014 Co Fediuk, Danny Box506 .... Shawnlgan Lake, BC WR2WO 0112712006 ... Field, Darryl (Inactive ... Fort Providence NWT ... Forsberg, Les (lnactr.•.. Box 118 Macrorie Sask SOL 2EO 02/10/2007 "'... Gargan, Darrel (lnactr. ... Fort Providence NWT Gargan, Rlcl

Tyree Mullaney Regulatory Officer Mackenzie Valley Land and Water Board

Via email: [email protected]

October 171 2014

RE: Extension Request Process - Quarry Operation - Highway# 1, km 188.9 Cherdon .Enterprises Ltd. Mr. Don Plante, Box 1500 Fort Provid~nce, NT

I am writing to provide support for the positons on this application expressed by Deh Gah Gotie Band and the Fort Providence Metis Council to the M ackenzie Valley Land and Water Board. Both have expressed significant opposition to Cherdon Enterprises Ltd. two-year extension for their quarry permit application.-

Dehcho First Nations cannot support a proponent who has failed to gain the support and trust of our member communities. 1

Deh Gáh Got’ie First Nation P.O. Box 200 FORT PROVIDENCE, NT X0E 0L0 Phone: (867) 699-7000 October 14, 2014

October 14, 2014 Ms. Tyree Mullaney Regulatory Officer Mackenzie Valley Land and Water Board Yellowknife, NT 867-766-7464 [email protected]

Re: Extension Request Process – Quarry Operation – Highway # 1, km 188.9 Cherdon Enterprises Ltd. Mr. Don Plante, Box 1500 Fort Providence, NT

Dear Ms. Mullaney,

I have been asked by the Council of the Deh Gah Got’ie Dene First Nation of Fort Providence, NT to notify your office that they officially OPPOSE the two years Extension Request of Cherdon Enterprises Ltd.

Further, we have had an opportunity to read Mr. Plante’s application for this process and would like to note a number of areas listed that are totally untrue and serve to mislead your review board in respect to authorizations sought and supposedly granted to Cherdon Enterprises Ltd. to move forward in the engagement aspects of the application.

We note the following regarding the submission of Cherdon Enterprises Ltd:

1. Mr. Plante states in #1. of his submission that “Fort Providence Resource Management Board has no objection of extended permit.”

The Renewable Resource Management Board is overseen and under the operational and financial management of the Deh Gah Got’ie Dene First Nation. There have been no approvals granted regarding this Extension Request. Mr. Plante’s statements are false.

2. Mr. Plante states that he obtained permission to proceed from Mr. Danny Beaulieu of Fort Providence, NT.

Mr. Beaulieu does not speak on behalf of the Fort Providence Renewable Resource Board. Mr. Beaulieu is not a member of the FP Renewable Resources Board.

DGG FN Chief and Council speak for the Renewable Resources Board in Fort Providence. 2

3. In Mr. Plante’s submission # 2 states that Ms., Susan Fleck of the Dehcho Land Use Planning Committee states that she has given her approval to proceed with the Extension Request.

Ms. Fleck is an employee of the Land Use Planning Committee, but does not speak for the group officially on such topics. The Land use Committee has a Chairman, Mr. Joachim Bonnetrouge of Fort Providence, NT.

The Chairman speaks on behalf of the Board of the Land Use Planning Committee. The DLUPC to date has NOT granted any approvals regarding this project. Nor have they even met regarding the issue as of this application.

The statements made by Cherdon Enterprises regarding the above are untrue and we feel mislead the review of this application.

4. The Deh Gah Got’ie Dene also would like to point out other concerns which frame our opposition to this Extension Request. a) Last year Cherdon Enterprises Ltd. started a fire to clear overburden along their lot perimeter; the fire was improperly monitored and resulted in the surrounding forest catching fire; endangering plans for forestry harvest of pellet production supply; The GNWT was notified; to date, no follow up or penalties was levied for the incident to the First Nation’s knowledge. b) DGG FN is concerned that any additional impact in that area could be detrimental concerning wild life, including the Woodland Caribou which reside and migrate thru the area; this concern is presently shared by the leadership and community of as they are presently engaged in discussions with ENR to study the acullumative effects of increased industrial development on wild life within their traditional habitat area. c) Cherdon Enterprises built a road without local consultation or approvals from their job site to the . Once at the site, they poured concrete and installed a car wash bay there. Again, without obtaining input or permission from local impacted parties. d) Presently, the company’s pit run is spilling over onto government lands reserved for drainage. The GNWT has been notified. To date no action appears to be forthcoming to address and correct the situation. e) Community employment opportunities offered by Cherdon to the First Nation at their last Extension Request was never met nor was any effort made to promote the employment or training of DGG band members as promised. Specific promises regarding offering discounts on materials to FN members never materialized as planned and have left the First Nation with a feeling of mistrust regarding this operation and the owner.

3

Thank you and your Board for the opportunity to hear our First Nation’s views on this Quarry Extension Request from Cherdon Enterprises Ltd.

Mashi cho,

Chief Joachim Bonnetrouge Deh Gah Got’ie Dene First Nation

Cc: DGG FN Council Cc: Grand Chief Herb Norwegian, Deh Cho First Nations Cc: Mrs. Dahti Tsetso, Deh Cho First Nations

Professional Chambers P.O. Box 2910 Alan C. Denroche, B.A. (Hons.), LLB. 5107 - 53rd Street Martha Temple Churchill, B.A., LLB. Yellowknife, Geoffrey P. Wiest, B.A., J.D. X1A 2R2

Telephone: (867) 920-4151 Email: [email protected] Facsimile: (867) 920-4252 www.DenrocheLaw.ca

October 15, 2014

VIA EMAIL

Mackenzie Valley Land and Water Board 7th Floor – 4910 50th Avenue P.O. Box 2130 Yellowknife, NT X1A 2P6

Attention: Tyree Mullaney

Dear Sir:

Re: Extension Request Process – Quarry Operation – Highway #1, km 188.9 Cherdon Enterprises Ltd. Mr. Don Plante

We act for the Fort Providence Metis Council (the “FPMC”) in this matter and have been asked to respond to the proposed extension of the above licence.

The FPMC held a Special Meeting on October 10, 2014 to discuss this Extension Request. A vote was held and the Council was unanimous in opposing this extension for Cherdon Enterprises Ltd.

The FPMC has had the opportunity to review the response of the Deh Gáh Got’ie First Nation and shares each and every concern raised by the First Nation. Furthermore, FPMC has the following questions and additional concerns:

1. How will the development impact the surrounding environment with the drought conditions being experienced? Will the proponent’s plan to dig deeper impact the water table?

2. FPMC is troubled that the proponent has installed a gate at the highway access to its pit. The proponent has attempted to restrict access to the road it built. To date the Department of Transportation has denied the proponent permission to lock this gate.

3. FPMC is not aware of a rehabilitation plan for this pit and believes that the overburden which is being burned should instead be put aside for rehabilitation. FPMC objects to how the pit will appear once abandoned with a large area of mineral soils on the surface where nothing will grow.

4. FPMC objects to third party interests being created in lands where it has an interest. The Dehcho Process main table negotiations are at land selection stage at this time. Page 2

5. FPMC believes that the large stockpile of pitrun the proponent has created next to FPMC’s business on highway 3 is a concern. FPMC states that it is unsightly and believes it may be negatively impacting the business owned and operated by FPMC on the adjoining lot, Big River Services. The proponent may have created highway safety issues by using its non- industrial access in this manner. The proponent’s expansion next to the FPMC property has resulted in the burying or possible removal of the survey pin between the properties.

6. FPMC has had numerous complaints of the proponent’ trucks speeding when encountered by traditional harvesters in narrow bush roads.

7. A few years ago the proponent was caught clearing a road from its lot through the riverbank and down to the water’s edge of the MacKenzie River. This was done without prior notification to anyone and without any approval or permit.

8. The proponent has without approval been using its lot for industrial purposes. It has a very big pit run stockpile near the edge of the highway creating an eyesore for nearby businesses and residents.

9. The community has always been mystified how the proponent was able to obtain a pit permit in the first place. It also somehow obtained approval to make a shortcut road through the forest without consulting the community. There was already a road that came up near to it. It subsequently obtained an extension without the knowledge and consent of FPMC.

The most serious concern that FPMC has with this process is its flawed nature. Neither FPMC nor the Deh Gáh Got’ie First Nation are listed as contacts on the Board's website despite the fact that they are the two organizations that are most seriously impacted by the activity of the proponent. The activity is within their area, yet neither the Board nor the proponent feel it is important to consult them and obtain their consent. There has been a complete lack of due process and a failure to fulfill the duty of consultation owed to these aboriginal organizations. The time frame for responding is unreasonable and should have been extended. For all of the above reasons, FPMC respectively requests that the application be denied or delayed until such time as proper consultation can take place. Yours very truly, DENROCHE & ASSOCIATES

Geoffrey P. Wiest

GPW/ cc. James Christie, FPMC Environment Environnement l+I Ca1nada Canada

Environmental Protection Operations Directorate (EPOD) Prairie & Northern Region (PNR) 5019 52nd Street, 4th Floor P.O. Box 2310 Yellowknife, NT X1A 2P7

October 16, ~!014 EC File: 5100 000 054/001 MVLWB File: MV2009Q0022 Tyree Mullarney Regulatory Officer Mackenzie Valley Land and Water Board 1 7tti Floor, 4922 48 h St P.O. Box 2130 Yellowknife, NT X1A 2P6

Via on1ine submission Attention: Tyree Mullaney

RE: MV2009t:l0022 (Extension Request - Aggregate Source - Cherdon Enterprises Ltd.)

Environment Canada (EC) has reviewed the information submitted to the Mackenzie Land and Water Board (MVLWB) regarding the above-mentioned extension request and will not be submitting any new comments at this time. Environment Canada notes that this licence is a continuation of the same activity currently licenced under MVLWB licence number: MV2009Q00~~2 and as such the previous comments provided by EC for this licence are still applicable. These comments are available on the MVLWB's Public Registry. Environment Canada's spE~cial ist advice is provided pursuant to the Canadian Environmental Protection Act 1999, the polllution prevention provisions of the Fisheries Act, the Migratory Birds Convention Act, and the Species at Risk Act.

Should you ri:!quire further information, please do not hesitate to contact me at (867) 669-4707 or [email protected].

Sincerely,

Bradley Summerfield Environmentc1I Assessment Coordinator cc: Lorett;3 Ransom, A/Head, Environmental Assessment North (NT and NU), PNR-EPOD ... Cana d . a www.ec.gc.ca Northwest0 Territories Department of Lands Telephone: 867-874-6995 Government of the NWT Fax: 867-874-2460 41 Capital Drive #203 Hay River, NT XOE 1G2

October 20, 2014

Tyree Mullaney Regulatory Officer Mackenzie Valley Land and Water Board P.O. Box 2130 Yellowknife, NT X1 A 2P6

Dear Ms. Mullaney,

Re: Land Use Permit MV2009Q0022 Cherdon Enterprises Ltd. Extension Request

I have reviewed the two letters submitted by the Fort Providence Metis Council (FPMC) dated October 15, 2014 and by the Deh Gah Got'ie First Nation dated October 14, 2014. These letters were written in response to Cherdon Enterprises Ltd. written request for a two year extension to the above noted land use permit.

I will provide a response to the FPMC letter as they have expressed environmental concerns in regards to the operations of Cherdon Enterprises. I will address the nine points of concern individually.

1. The operations at this gravel pit do not have any significant impact on the surrounding water table. The Department of Transportation and the proponent have constructed drainage ditches in the pit area which has lowered the water table. This is a standard operating practice in all gravel pits.

The proponent will not be digging any deeper as he is restricted by the depth of the gravel. Once the proponent reaches clay, he cannot dig any deeper. This is standard operating practice in all gravel pits.

2. Cherdon Enterprises did install a gate near the highway on the access at Km 188.9. I advised Mr. Don Plante in 2002 that the gate could not be locked as he could not restrict public access. He understood my direction and though the gate has remained in place, it has never been closed or locked. To my knowledge, the gate has never been an issue.

3. The following land use permit conditions attached to Land Use Permit MV2009Q0022 directly deal with the restoration of the site once the pit becomes depleted: Northwest0 Territories

Permit Condition #12 (Excavations and Embankments) states "The Permittee shall slope the sides of excavations and embankments, except in solid rock to a horizontal/vertical ratio of two horizontal to one vertical. "

Permit Condition #24 (Burn Brush) states "The Permittee shall totally dispose of all debris and brush by burning."

Permit Condition #27 (Save and Place Organic Soil) states "The Permittee shall save the organic soil stripped from the excavation area and place the organic soil over the disturbed area prior to the expiry date of this Permit':

Permit Condition #28 (Clean-Up) states "The Permittee shall complete all clean­ up and restoration of the lands used prior to the expiry date of this Permit':

Overburden is the layer of gravely sub-soil material sitting above the gravel deposit. The overburden layer at this site is approximately 30 cm in depth. The overburden has been stripped and stockpiled on the north side in accordance with Permit Condition #27. Once the pit is depleted, the proponent will be directed by the Inspector to contour the disturbed area and then spread the overburden over the site to promote revegetation. The overburden will remain stockpiled away from the working face of the gravel pit until such time as the pit becomes depleted.

As it is not possible to burn overburden, the FPMC may be confusing the burning of overburden with the burning of brush and debris as authorized by Permit Condition #24.

4. The concerns expressed in Point 4 reference a political process not specifically relevant to the application to extend the land use permit for an additional two years.

5. The concern of a stockpile of gravel next to FPMC business (Big River Services) may be negatively affecting its business due to its unsightliness is unfounded. In addition, this concern has no relevance on the application to extend the land use permit for an additional two years.

6. The numerous complaints regarded the proponents speeding trucks on narrow bush roads should be directed to the RCMP. I am not sure where these narrow bush roads are but this concern has no relevance on the application to extend the land use permit for an additional two years. The proponent is required by the Department of Transportation to have signage on the highway indicating hauling gravel trucks are present. The public must be diligent when travelling haul roads where signage indicates that gravel trucks are hauling.

7. The concern regarding the unauthorized clearing of a road to the Mackenzie River from its lot in Fort Providence is not applicable to th is application. This Northwest0 Terrltortes

concern has no relevance on the application to extend the land use permit for an additional two years.

8. The use of the industrial lot within the boundaries of the Hamlet of Fort Providence is the responsibility of the Hamlet of Fort Providence. This concern has no relevance on the application to extend the land use permit for an additional two years.

9. The Fort Providence Metis Council, Deh Gah Got'ie First Nation and Deh Cho First Nations were consulted by the MVLWB on August 26, 2002 in regards to the first land use permit issued to the proponent for this pit (MV2002Q0043). All three groups provided no objection to the applications.

The comment that the proponent somehow obtained approval to make a shortcut through the forest without consulting the community needs clarification. Note that the access existed at time of application. The Fort Providence Metis Council, Deh Gah Got'ie First Nation and Deh Cho First Nations were all provided a copy of the land use permit application in 2002 for MV2002Q0043. In this application regarding the access, the proponent stated that this would be a pioneered road using an existing cutline (The Shortcut). The map included with the application clearly shows the Km 188.9 access as an option and this is the only access showing access to NWT Highway No. 1. Therefore in our view, the community was consulted on the "shortcut though the fore st".

The proponent, Cherdon Enterprises Ltd. is in good standing under the terms and conditions of Land Use Permit MV2009Q0022. There are no environmental concerns associated with the operations of Cherdon Enterprises Ltd. under the authority of Land Use Permit MV2009Q0022. As such, I recommend that Land Use Permit MV2009Q0022 be extended for two years as applied for.

If you have any questions or require additional information, I can be reached at (867) 87 4-6995 ext. 24.

Sincerely,

NOrifi'anccowan Resource Management Officer Ill

cc: Maurice Evans, Regional Superintendent, , Lands