Application for New Aquaculture Site At Kadla Coulee

For: Wild West Steelhead

March 16, 2010

Sweeney International Management Corp. 103 Milltown Blvd., P.O. Box 52 St. Stephen, NB, E3L 2W9 (506) 467-9014

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SIMCorp Marine Environmental Inc. 47B Harbour Drive, P.O. Box 340 Harbour Breton, NL, A0H 1P0

2008 Visionary of the Year 103 Milltown Blvd, P.O. Box 52 St. Stephen, N.B., E3L 2W9 Ph: (506) 467-9014 Fax: (506) 467-9503 www.simcorp.ca

March 16, 2010

SIM Corp. File # SW2009-032

Dean Foss Wild West Steelhead Box 190 Lucky Lake, CANADA S0L 1Z0

Dear Mr. Foss,

Reference: Application for new aquaculture cage site at Kadla Coulee

Please find enclosed the supporting materials for the above mentioned application for .

If you have any questions or comments on the above noted report, please do not hesitate to contact me at 902-838-5180.

Sincerely,

Tara Daggett, M.Sc. Sr. Project Biologist Sweeney International Management Corp. [email protected]

cc: Bob Sweeney (SIMCorp) Tom Maher (Sask Env)

EXECUTIVE SUMMARY

Project: Application for new aquaculture cage site in Kadla Coulee, Lake Diefenbaker, Saskatchewan, application for production increase of 300 MT of Oncorhynchus mykiss, and application for increase in permitted feed use by 450 MT.

Wild West Steelhead (WWS) is making application for a new trout aquaculture site in Lake Diefenbaker in southern Saskatchewan. The new cage site is required in order to split production and prevent over-crowding of the stock on the existing cage site operation in Cactus Bay. The additional site will also allow WWS to realize a vital increase in production capacity. WWS currently has a demand for product they cannot meet at their present production capacity. An increase in production would help the business to grow and achieve better financial stability while providing more jobs to nearby townships. An additional cage site is preferable to increasing the production at the existing cage site in Cactus Bay. WWS feels that an increase of production in Cactus Bay could challenge the environment too far and could potentially negatively affect water quality and increase benthic impacts.

The addition of a new cage site in Kadla Coulee is expected to have a few environmental effects. The benthos below the cage system will likely be impacted by organic sediment from the fish, possibly making it inhospitable to certain species of benthic organisms. However, this may be offset by augmentation of sediments surrounding the cage site, resulting in increased benthic invertebrate biomass and fecundity. WWS will strive to reduce as much as possible the impacts of the fish farm on the local environment by employing strict feed management resulting in little or no waste feed. Phosphorus concentrations in the water column are expected to increase somewhat at the cage site in Kadla Coulee, however, the increase in phosphorus is not expected to be significant or cause changes in the lake’s trophic level.

The expansion of the WWS operations will create 5 or 6 new full time positions within the company. This will provide a boost to the local economy by giving unemployed people an opportunity to work. While the new cage site will occupy an area of 12 ha, access to the bay will not be blocked. Boaters and anglers will still be able to access the Bay for recreational activities. The north side of the bay, which is where the preferred anchorages are, will have the widest access. No conflicts with land owners are anticipated since WWS will access the site by boat or snow machine over ice. Only during the late fall and early spring when the ice on the lake is not safe to travel on will WWS crews travel over land to access the site. WWS crews will use the beaches at this time.

Environmental impacts will be monitored as per the “Permit to Operate an Industrial Effluent Works”, should the new site be approved. It is expected that water quality monitoring at the cage site, upstream of the cage site, downstream of the cage site and inside the bay will be required by Saskatchewan Environment and will include measurement of variables such as phosphorus and nitrogen. Sediment monitoring will likely include sample locations at the cage site, upstream of the cage site and downstream of the cage site and will likely include measurement of nitrogen, phosphorus, and carbon and also include a textural analysis. WWS also proposes to

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monitor the shoreline near the Kadla Coulee cage site during scheduled beach clean-up events. A photo record of shoreline erosion will be maintained.

As for the established site in Cactus Bay, contingency plans will be in place to aid WWS staff and crew members in responding to upset situations. First and foremost, all staff members receive Occupational Health and Safety training that is relevant to their work position within the company. In the event of a hazardous spill, spill kits are available for cleaning up the spill. Employees are directed to call the Provincial Enforcement Centre Spill Report Line. In the event of storm damage or destruction of equipment, site crews will assess the damage and make necessary repairs once it is deemed safe to do so. In the event of a mass escape from the net pens, Saskatchewan Environment will be notified and efforts made to recapture the lost fish.

When WWS, its heirs, and/or agents are obligated to decommission the site, decommissioning will take place in conformance with all environmental regulations of that time. Decommissioning of the site will be conducted in a safe and efficient manner.

Public consultation has been undertaken as part of the preparation for application for a new aquaculture site at Kadla Coulee. A couple of municipalities have expressed their support of the proposed expansion of the WWS operations (Coteau and Canaan, 2006) but a couple of concerns were raised by other stakeholders. One concern involved the proximity of the Coteau Hills Rural Water Pipeline to the proposed site (~ 2.3 km distance). Water quality, specifically the need to increase water treatment at downstream locations from the cage site, was addressed. Nitrate and nitrite are not foreseen to exceed Canadian drinking water standards, even in water collected at the cage site. Pathogen transfer from cultured fish to drinking water is considered an extremely low risk. Thus additional treatment at downstream water treatment plants is not foreseen to be necessary with the installation of the new cage site.

A second concern raised by stakeholders was in relation to a filmy layer over the water near Cactus Bay. WWS believes that the phenomenon in question is related to the feed received by one of the suppliers. The film over the water is a sporadic event that is believed to be oil from the fish feed and the feed manufacturer is currently investigating the problem in an attempt to come up with a solution.

Further public consultations will take place when open houses are held to bring information to concerned stakeholders and local citizens. The dates for the open houses have not yet been set but details of the open houses will be compiled into a report and submitted to Saskatchewan Environment.

Sweeney International Management Corp. (SIMCorp) has assisted WWS in the application for a new cage site operation through the preparation and submission of the aforementioned report. All correspondence should be copied to SIMCorp.

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TABLE OF CONTENTS

PAGE 1.0 INTRODUCTION...... 1 1.1 History ...... 1 1.2 Location...... 2 1.3 Operations...... 4 1.4 Employment ...... 6 1.5 Environmental Protection ...... 8 1.5.1 Environmental Protection Activities ...... 8 1.5.2 Water Source ...... 8 1.5.3 Solid Waste ...... 9 1.6 Other Users ...... 9 1.7 Predator Control ...... 10 1.8 Monitoring...... 10 1.9 Carrying Capacity of Lake Diefenbaker for Aquaculture...... 13 1.10 Bibliography of Studies on the Basin and Lake Diefenbaker ...... 14 1.11 Project Team and Contact Information ...... 16 2.0 PROJECT DESCRIPTION...... 17 2.1 Project Ownership ...... 17 2.2 Location...... 17 2.3 Rationale ...... 17 2.4 Construction, Anticipated Schedule, and Project Life...... 18 2.5 Proposed Facilities ...... 18 2.5.1 Cage System Description...... 23 2.6 Shore-based Facilities ...... 23 2.7 Docks ...... 24 2.8 Power Supply ...... 24 2.9 Washroom Facilities ...... 24 2.10 Shelters ...... 24 2.11 Site Access...... 24 3.0 PROPOSED OPERATIONS ...... 25 3.1 Production Plan ...... 25 3.2 Activity Level ...... 25 3.3 Feed Use...... 26 3.4 Fish Health Management ...... 27 3.5 Predator Control ...... 28 3.6 Hazardous Materials...... 28 3.7 Waste Management ...... 32

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3.8 Contingency Plans...... 32 3.8.1 Spills...... 32 3.8.2 Storm Damage ...... 32 3.8.3 Disease ...... 33 3.8.4 Environmental Stress ...... 33 3.9 Security, OH&S, Cage Marking, and Lighting...... 33 4.0 CACTUS BAY INFRASTRUCTURE...... 35 4.1 Office Structures, Parking, and Roadways ...... 35 4.2 Storage...... 35 4.3 Hatchery ...... 35 4.4 Septic System...... 35 4.5 Processing...... 36 4.6 Aquatic Facilities...... 38 4.7 Other Infrastructure ...... 38 4.8 Boat Traffic ...... 38 4.9 Energy Demand...... 38 5.0 EXISTING ENVIRONMENT ...... 39 5.1 Lake History, Geography, and Geology...... 39 5.2 Physical Environment ...... 42 5.2.1 Flow Data, Water Levels, and Bathymetry ...... 42 5.2.2 Water Currents...... 45 5.2.3 Water Temperatures ...... 45 5.2.4 Water Chemistry ...... 46 5.2.5 Water Quality ...... 46 5.2.6 Sediment Sampling ...... 47 5.2.7 Dissolved Oxygen ...... 51 5.3 Biological Environment ...... 51 5.3.1 Benthic Community ...... 51 5.3.2 Fish Species and Habitat ...... 58 5.3.3 Migratory Bird Nesting, Feeding, and Staging Areas...... 58 6.0 SOCIO-ECONOMIC AND LAND USE ISSUES ...... 60 6.1 Employment ...... 60 6.2 Recreational Use of Kadla Coulee...... 62 6.2.1 Recreational Fisheries...... 62 6.2.2 Other Recreational users ...... 62 6.2.3 Aboriginal Considerations ...... 62 6.2.4 Land Use...... 63 7.0 OCCUPATIONAL HEALTH AND SAFETY...... 64 8.0 PUBLIC INVOLVEMENT ...... 65

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9.0 IMPACT ASSESSMENT AND MITIGATION...... 67 9.1 Impacts to the Environment from the Project...... 67 9.1.1 Water Quality ...... 67 9.1.2 Cumulative Effects ...... 72 9.1.3 Sediment Deposition ...... 74 9.1.4 Escapes ...... 75 9.1.5 Species at Risk ...... 76 9.1.6 Species at Risk Recovery Initiatives...... 82 9.1.7 Air Quality...... 84 9.1.8 Angling ...... 84 9.1.9 Recreational Activity...... 85 9.1.10 Aesthetics ...... 86 9.1.11 Predator Control...... 87 9.1.12 Heritage Resources ...... 87 9.2 Impacts to the Project from the Environment...... 88 9.2.1 Climate Considerations ...... 88 9.2.2 Ice Damage...... 88 9.2.3 Human Interaction...... 89 9.2.4 Water Quality ...... 89 9.2.5 Endemic Fish Diseases and Parasites...... 90 10.0 MONITORING REQUIREMENTS ...... 92 10.1 Cactus Bay Water Quality ...... 92 10.2 Kadla Coulee Baseline ...... 92 10.3 Future Monitoring ...... 92 11.0 DECOMMISSIONING AND RECLAMATION ...... 94 12.0 APPROVALS...... 95 13.0 SUMMARY...... 96 14.0 REFERENCES...... 98

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LIST OF FIGURES

Figure 1. Cactus Bay, Lake Diefenbaker...... 3 Figure 2. Wild West Steelhead Infrastructure at Cactus Bay ...... 4 Figure 3. Yearly Average of Total Phosphorus Plotted with Feed Use ...... 11 Figure 4. Yearly Average of Total Ortho-phosphorus Plotted with Feed Use ...... 11 Figure 5. Yearly Average of Total Ammonia Plotted with Feed Use ...... 12 Figure 6. Yearly Average of Total Nitrogen Plotted with Feed Use...... 12 Figure 7. Unionized Ammonia (µg/L) in Sediments at Cactus Bay in March 2009...... 13 Figure 8. Plan View of Proposed Site...... 19 Figure 9. Site Development Plan of Proposed Site ...... 20 Figure 10. Cross-sectional Plan “A” of Proposed Site...... 21 Figure 11. Cross-sectional Plan “B” of Proposed Site...... 22 Figure 12. Floor Plan of Processing Facility...... 37 Figure 13. Map of Existing Resource Users...... 40 Figure 14. Surficial Geology Map of the Area Surrounding Kadla Coulee ...... 41 Figure 15. Approximate Daily Inflow to Lake Diefenbaker ...... 42 Figure 16. Approximate Daily Outflow from Lake Diefenbaker ...... 43 Figure 17. Bathymetry of Proposed Site ...... 44 Figure 18. Mean Annual Water Temperatures at 4 m Deep as Measured in Cactus Bay ...... 46 Figure 19. Kadla Coulee Sediment Carbon Concentration (mg/g)...... 48 Figure 20. Kadla Coulee Sediment Nitrogen Concentration (mg/g) ...... 49 Figure 21. Kadla Coulee Sediment Phosphorus Concentration (mg/g) ...... 50 Figure 22. Dissolved Oxygen (mg/L) Trend at 4 m Deep in Cactus Bay from 2006 to 2009...... 51 Figure 23. Oligochaeta Abundance (# of individuals/m2) and Distribution in Kadla Coulee ...... 53 Figure 24. Nematoda Abundance (# of individuals/m2) and Distribution in Kadla Coulee ...... 54 Figure 25. Pelecypoda Abundance (# of individuals/m2) and Distribution in Kadla Coulee ...... 55 Figure 26. Chironomidae Abundance (# of individuals/m2) and Distribution in Kadla Coulee...... 56 Figure 27. Ostracoda Abundance (# of individuals/m2) and Distribution in Kadla Coulee ...... 57 Figure 28. Extent of the Missouri Coteau...... 59 Figure 29. Chart Showing Water Quality Sampling Locations ...... 71

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LIST OF TABLES

Table 1. Scheduling of Full-time Staffing Positions...... 7 Table 2. Project Team...... 16 Table 3. Proposed Coordinates of Kadla Coulee Lease Area ...... 17 Table 4. Proposed Schedule of Construction and Stocking...... 18 Table 5. Monthly Summary Production Plan for Year 1 at Kadla Coulee ...... 25 Table 6. Labour Force Indicators for Area Communities and Province ...... 61 Table 7. Industries of Area Communities and Province ...... 61 Table 8. Public Consultation Record...... 66 Table 9. DFO Water Quality Testing in Cactus Bay, Kadla Coulee, and Belhumeur Bay from 2008...... 70 Table 10. Endangered and Threatened Species near Lake Diefenbaker...... 77

LIST OF APPENDICES

Appendix 1 – Permit to Operate an Industrial Effluent Works Appendix 2 – Adjacent Land Photos Appendix 3 – Feed Ingredient Lists Appendix 4 – Frequency Distribution Graphs and Current Rose Plots Appendix 5 – Land Use Map Appendix 6 – Public Involvement Letters

vii March 2010

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1.0 INTRODUCTION Wild West Steelhead (WWS) operates the finfish aquaculture site in Cactus Bay, Lake Diefenbaker, in the Canaan Rural Municipality of Saskatchewan. WWS is applying for a new cage site operation at Kadla Coulee (aka Maskepetoon Bay), which is approximately 3.5 km north of the current location. WWS would also like to apply for a production increase that would bring their total production to 1750 MT (i.e. an increase of 300 MT). Should the production increase be granted, WWS will require an increase in permitted feed use and thus is concurrently applying for an increase of 450 MT of feed.

The reasons for requesting the production increase are primarily economic. In order to better meet market demands WWS needs to increase their product volume. At the current level of production, WWS cannot meet the market demands. An additional 300 MT of production would allow WWS to better meet their market demands. The increased sales generated from the increased production would provide WWS with a higher level of economic security. The increased production would also provide more work for WWS employees and make new jobs available.

The request for the new cage site stems from several reasons. First and foremost, WWS would like to increase their production and split the stock between the existing cage site and a new location. Splitting the stock between two locations would have a number of benefits, including improved water quality. During warm water months, dissolved oxygen (DO) concentrations in the cage system can decrease posing a potential threat to fish health. Moving some of the stock to a new location would decrease the localized demand for DO in Cactus Bay.

The second reason for requesting a new aquaculture site is environmental. WWS is interested in taking a proactive approach to environmental stewardship. Splitting their stock between two cage sites rather than maintaining all stock on one site should help dilute and disperse the waste products that are produced by the farmed fish. Reducing the density of fish that are kept in Cactus Bay should decrease any benthic impacts of rearing the fish. WWS has never produced their full complement of fish due to environmental reasons. WWS does not want to over-burden the environment of Cactus Bay and feels that splitting the stock between two sites would make for better environmental stewardship while allowing them to increase production to a more competitive level.

A third reason for splitting the stock between two cage sites is simply precautionary. Should one cage site become damaged or the stock become diseased, the second site will be separate and independent and thus should not suffer the same fate as the first. While the chances of disease are considered slim, the splitting of stock would add a level of comfort to the WWS operations.

1.1 History In April of 1992, with its original cage site located in Kadla Coulee, AgPro Fish Farms began as a joint venture between the Arctic Fish Company and AgPro Grain Inc. The original cage site consisted of plastic circular cages and small steel pens. In June of

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1992, AgPro Grain Inc., which was a wholly owned subsidiary of the Saskatchewan Wheat Pool, took full control of the operation. By 1993, the farm had nearly doubled its capacity from 6 to 11 cages and brought 225 MT of fish to market. The cage site was then relocated to its current location in Cactus Bay in 1994.

In 1995/1996 the farm was granted, through its license, a production capacity of 450 MT of fish. Also in 1996 the original cages were replaced with twenty 50-foot, square Kropf cages and a 12 x 30 foot barge was purchased. On December 6, 1996, two more production increases were granted allowing for the production of 650 MT for the 1996/1997 production cycle and 850 MT for the 1997/1998 production cycle. In 1996/1997 the processing facility was expanded to handle the increased production.

By May of 1998 the farm had undergone a name change to CanGro Processors, when it was reorganized within the Saskatchewan Wheat Pool and placed in the Heartland Livestock Services division. In 1998, CanGro Processors began upgrading the cage system by adding 100-foot, square, steel cages. The hatchery was also built in 1998 allowing the company to produce about 70% of their stock from eggs rather than purchasing all of their stock as fingerlings. Then on March 25, 1999, a production increase was granted to bring the production limit up to 1200 MT of fish with the condition that the annual feed use would not exceed 1800 MT.

In 2000, ice movement resulted in major damage and stock loss from the Cactus Bay site necessitating the rebuilding of most of the 100-foot, square cages. In response to the ice damage, the mooring system was rebuilt with larger anchors and heavier ropes. Heavier mesh nets were also installed to reduce the wear on the nets and the potential for fish losses. The cages were also relocated to a more sheltered section of Cactus Bay to avoid the potential for future ice damage.

In July of 2004 the operation once again changed hands, with the sale of the Heartland Livestock Services division to Nil-Ray Farms Ltd. The acquisition was completed on July 24, 2004 and a final name change was made to Wild West Steelhead.

In September 2005, a proposal was made to increase the annual production limit to 1450 MT for the 2006/2007 production cycle. The proposal originally expressed the intention to distribute the total production over the Cactus Bay site and three additional new sites. While the production increase was granted and currently stands at 1450 MT, the decision to pursue three additional farms was temporarily suspended. In 2008, a new barge was constructed for harvesting and feed transport and, in 2009, the processing facility was completely rebuilt after being destroyed by fire.

WWS is still interested in applying for new cage sites but has reconsidered their application for three new cage sites on Lake Diefenbaker and at this time will only be applying for one new site (i.e. Kadla Coulee).

1.2 Location The WWS operation is currently located in Cactus Bay on Lake Diefenbaker, Saskatchewan, Canada (Fig. 1). Lake Diefenbaker is a multi-purpose reservoir on the South Saskatchewan River in southern Saskatchewan. It was formed by the

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construction of and the Qu'Appelle River Dam across the South Saskatchewan and Qu'Appelle Rivers, respectively. The reservoir was developed as a joint undertaking by the Canadian and Saskatchewan governments to provide for a wide range of uses including power production, flood control, irrigation, industrial water supply, recreation, and augmentation of flows in the Qu'Applelle River by diversion through the Qu'Appelle Dam (International Lake Environment Committee).

Cactus Bay is approximately 6 km north of the ferry crossing, on the western side of the lake. When the Riverhurst ferry is operational, the WWS operation is approximately equidistant from both Saskatoon and Regina. Both cities are about a 2 hr drive over provincial highways. The shore-based facilities at Cactus Bay, located at NE 21 – 23 – 7 – W3, include a hatchery, feed shed, processing plant, treatment lagoon, offices, staff housing, and an equipment yard (Fig. 2). The shore area leased by WWS is less than 30 acres but provides ample room to house the necessary infrastructure to support the WWS operations, from egg to market product, and affords opportunities for expansion if necessary.

Figure 1. Cactus Bay, Lake Diefenbaker

Luck Lake N Lake Diefenbaker

Lucky Lake

Kadla Coulee Riverhurst Proposed cages

3 km

Cactus Bay Existing cages

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Figure 2. Wild West Steelhead Infrastructure at Cactus Bay Note: Photo was taken prior to the processing facility fire. The new facility covers much of the area occupied by the collection of buildings that surrounded the former processing plant (except the employee housing, which is still standing) and the workshop was rebuilt north and slightly west of the previous location.

Feed Storage Waste Water Lagoon Former Work Parking Bone Yard Hatchery Shop Raceways Former Processing Hatchery Well Employee Housing N

Boat Docks Processing Plant Well

Cage Site

1.3 Operations WWS operations involve the entire production of trout from hatchery to processed product. Eggs are imported from producers in the United States, usually four times per year. Eggs are certified disease free and are accompanied by a Canadian Health Certificate, a Certificate of Origin, a Statement of Quality Assurance, and a Live Fish Import Permit.

Once in the hatchery, the eggs are quarantined and hatched after approximately 1 week. No feeding or water treatment, other than UV sterilization, occurs during this phase of production. After hatching the alevin are moved into raceways and, once they reach the swimming fry stage, feeding is initiated. The fry are fed by hand. In 2009, approximately 8000 kg of feed were used in the hatchery. After reaching an optimal size, the fish are moved from the raceways to circular tanks for the next phase of growth. Fish are then moved from the circular tanks to the net pens on the lake. The transfer of fish from the hatchery to the net pens is dependent on a number of factors including: the size of the fish, the availability of tank space in the hatchery, seasonal considerations, and production timelines.

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Once the fish have reached an acceptable size, they are transferred to the net pens via a pipeline from the hatchery to a portable net pen. Fish typically range between 12 and 25 g upon transfer to net pens. Once the net pen has been filled with juvenile trout, it is towed from shallow water back to the cage system in Cactus Bay and fixed in place. Approximately 600,000 fish are introduced per year to the Cactus Bay net pens. During the following two years, the fish are fed, graded, weight sampled and finally harvested. WWS is limited in their yearly production by their license which stipulates a maximum production of 1450 MT. Biomass hits its peak at the end of October, just before winter harvesting begins.

Feeding at the net pen stage is accomplished with an automated, pneumatic, pop-feeder system. At each cage, the aluminum hoppers intermittently dispense a uniform ration of feed at a controllable interval. This feeding system minimizes waste feed and necessary human involvement. The quantity of feed delivered to the fish is dependent on feeding tables which calculate the amount of the feed that should be required for the biomass of fish on site. Feeding activity of the fish is monitored with underwater cameras to ensure that overfeeding does not occur. Minimizing waste feed is economically very important to the aquaculture operations. During the warm water months feeding activity is at a maximum. Feeding activity slows drastically during the winter months thus the period of highest feed consumption is May through October. Feed use is regulated and WWS is limited to 1800 MT of feed per year. The actual yearly consumption of feed and the actual biomass on site have always remained below the regulated levels.

WWS uses several methods to prevent escapes from occurring. During fish transfers, catch nets are used to prevent fish from falling into the lake and escaping. Containment nets at the cage site are inspected regularly for damage and repairs are made as needed. The cages are also inspected regularly for damage and precautions are taken to reduce or eliminate ice damage (e.g. positioning of the cages in sheltered areas versus more exposed areas).

To prevent the introduction of disease to the WWS facility, eggs are certified disease free before being shipped to WWS. After arrival at the hatchery, the eggs are disinfected and quarantined. Water that supplies the egg trays and newly hatched fry (up to 1 g) is treated with ultraviolet light. The hatchery is a biosecure facility in which footbaths are in continual use. Cage site and processing plant workers are not permitted access to the hatchery for biosecurity reasons. Water quality in the hatchery is monitored daily and morts are retrieved regularly. Veterinary assistance is retained if mortalities are suspicious.

Harvesting takes place year round. The fish are seined out of the production pens and dip-netted into 454-kg capacity plastic tubs filled with ice and chlorinated water. The totes are taken to shore by a barge and transported to the on-site processing facility. The basic processing procedure is as follows:

 Fish are slaughtered by electrocution  Fish are counted and weighed (heads are removed for Head-off Dressed product)  Fish are gutted

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 Fish are cleaned, graded, weighed, and packaged for transport  For filleted steelhead, an automatic filleting machine removes the fillets which are then trimmed by hand and pin-boned before the product is weighed and packaged

WWS has earned a reputation for having a high quality product and so has been able to maintain strong pricing while remaining in the position of having more market to supply than they have product for. While there has been interest in the WWS product oversees, to date all product has been sold in Canada and the United States. Approximately 65% of the WWS product is sold in New York while the bulk of the remainder is sold in Toronto, Vancouver, Los Angeles, and Seattle. There is also a small local market that WWS aims to satisfy. With room to increase sales in existing markets and the potential for new markets, WWS must increase their production if they are to build their business and remain economically strong.

1.4 Employment WWS is a major employer for persons residing in Lucky Lake, Birsay, and the surrounding communities and currently provides work for 22 full-time positions and 4 part-time positions. Four of these positions are filled by the General Manager, Production Manager, Marketing Director, and Accounting Manager. A fifth position, the Executive Assistant, is currently vacant. The remaining positions are within the scope of the Collective Agreement with the Grain Services Union. These positions include: Processor, Fish Technician, Senior Processor, Maintenance Worker, Senior Fish Technician, Outside Supervisor, Dive Coordinator, Hatchery Technician, Processing Supervisor, and Fingerling Production Supervisor. These positions require no prerequisite training, as extensive training is provided on site. Table 1 shows the scheduling of the full-time positions at WWS.

Processors, Senior Processors, and the Processing Supervisor are all responsible for upholding plant occupational health and safety practices, ensuring conformity to the Hazard Analysis Critical Control Points (HACCP) Plan and the Quality Management (QMP) Plan, and ensuring compliance in general with the regulations of both the Canadian Food Inspection Agency and the Fish Inspection Regulations. Other duties include processing and packaging the fish, routine cleaning, and construction and maintenance of plant equipment.

Fish Technicians, Senior Fish Technicians, the Outside Supervisor, and Dive Coordinator are responsible for the day-to-day operation of the cage system. Collectively referred to as the “outside staff”, their duties include feeding the fish, feeding system maintenance, construction and maintenance of all components of the cage system and its accessories, routine SCUBA diving, operation of site boats, environmental monitoring, inventory control, harvesting, and upholding occupational health and safety protocols.

The Hatchery Technician and Fingerling Production Supervisor are responsible for the administration of the on-site hatchery. Duties include water quality monitoring, plumbing and pump maintenance, feeding and care of the fish, inventory control, cleaning and maintenance of the hatchery and laboratory, construction of tanks and rearing systems,

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______maintaining biosecurity protocols, and upholding occupational health and safety practices.

The Maintenance Worker works the hatchery, processing plant, and the grow-out facility. The responsibilities of this position are limited to maintenance not covered under service contracts or work requiring a certified tradesman.

The General Manager is responsible for all aspects of the operation, its procedure and protocols, including the development of long term production and marketing goals as well as all treasury issues.

The Marketing Manager is responsible for fish sales and brand development, distribution as it relates to sales and administration of regulatory compliance to the Fish Inspection Act. The position also controls purchasing with respect to the processing plant.

The Production Manager is responsible for a consistent, constant supply of marketable product including feed selection and feed policy, especially with respect to maximizing feed conversion while maintaining conditions for optimal efficiency. This position is also responsible for purchasing and distribution with respect to the grow-out system.

The Accounting Manager is responsible for the daily financial well being of the organization. The Accounting Manager is responsible for all funds entering or leaving the operation, including purchasing, with respect to the office and payroll.

The Executive Assistant aids all four other members of the executive committee while also taking on the portfolios of environmental compliance and fish health.

Table 1. Scheduling of Full-time Staffing Positions

Staffing Position Work Days Work Hours Processing Monday – Thursday 7:00 to 17:30 Monday – Friday (winter) Outside staff 8 hours Monday – Sunday (summer) Hatchery Monday – Sunday 7:00 to 15:30 Maintenance Monday – Friday 17:00 to 15:30 Office Monday – Friday 8:00 to 17:00

WWS is the single largest employer in the Town of Lucky Lake. The farm also maintains a comprehensive environmental monitoring database which monitors the quality of the lake water within the vicinity of the cage site and provides useful information regarding the quality of the water which is also used for irrigation and drinking water supplies. The collection of this information is a valuable resource for the community and the province.

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______1.5 Environmental Protection

1.5.1 Environmental Protection Activities WWS employs several methods to minimize the potential impact the farm has on the surrounding environment. For example, WWS stocks all-female triploid fish. Since triploid fish are sterile, in the event of an escape, they are incapable of breeding with stocked or naturalized fish. This prevents the mixing of genes from the hatchery fish with other fish and causing potential genetic problems in future generations of Lake Diefenbaker stocks.

WWS uses a low phosphorus feed and continues to try new feed formulations with lower phosphorus levels and better feed conversion ratios (FCRs). Better FCRs mean decreased production of faecal material by the fish and better growth rates on smaller quantities of feed. Feeding activities are closely monitored in an effort to achieve the farm’s motto of “zero wastage” of feed.

In the past, processing wastes from the operation were delivered to Saskatoon Processors Ltd. for rendering, Horizon Pet Nutrition for secondary processing into pet food, and Dunblane BioDiesel for biodiesel production. Currently, much of the processing waste is being used to create hog feeds and biodiesel.

WWS has spoken with the Town of Outlook regarding the recycling of cardboard and plastic. WWS continues to pursue the potential to employ a recycling program. Drinking water bottles are currently being recycled.

1.5.2 Water Source WWS derives its water primarily from two wells. One well supplies that hatchery and the other supplies the processing plant and the office building. Both wells are approximately 0.9 m in diameter and 15.2 m deep. Water usage from both wells is monitored by metering devices and averages approximately 125 m3 per day in the hatchery and 20 m3 per day in the processing plant. Water is treated by a UV filter before its use in the hatchery to render potential pathogens incapable of reproducing. The water used in the processing plant is treated with chlorine before use in cleaning and washing operations.

Waste water from the processing plant is held in a treatment lagoon where the water is aerated and held until environmental discharge standards have been met. In accordance with the WWS “Permit to Operate an Industrial Effluent Works”, issued by Saskatchewan Environment, the waste water is then field-injected into neighboring agricultural land once per year. The volume of the lagoon is regulated and the water level is not permitted to come within 1 m of the top of the dykes. In the event that the increase in production challenges the lagoon’s maximum volume (i.e. ~ 3785 m3), the option of constructing a second water treatment lagoon has been discussed with Saskatchewan Environment and if it becomes necessary, permits would be applied for. However, WWS are exploring ways to reduce their water usage. With reduced water usage, a second lagoon would likely be unnecessary.

The cage system is located in Cactus Bay, Lake Diefenbaker and as such utilizes the lake as a water source. Water flowing through the cage system is not treated before or

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______after entering the net pens. Water flow in the net pens is aided through the use of an aeration system.

1.5.3 Solid Waste The majority of solid wastes generated by WWS originate in the processing plant. These include fish offal/heads, and fish unsuitable for processing and/or human consumption. Projections estimate that during a 1200 MT production year, 264 MT of offal would be generated. The breakdown of the processing waste is as follows:

 204 MT of viscera (80%)  12 MT of heads (5%)  25 MT of frames/skeletal remains (10%)  14 MT of carcasses (5%)

The majority of the solid waste output (i.e. viscera) is used to create hog feeds and biodiesel. The mortalities (morts) from the cage system and the hatchery are buried on the private property of a nearby cattle rancher. The amount buried each year is < 50 MT.

Sewage at WWS is held in four septic tanks with one at the hatchery, one at the cabin, and one at the house. The office building and processing plant share the fourth septic tank. Sewage is handled by a local septic services company. In 2006, the total volume of waste water from the processing facility and the septic tanks was 3685.6 m3.

Regular garbage removal occurs weekly and is taken to the Saskatoon Landfill. The amount of garbage produced decreased drastically when WWS switched feed bag sizes from 50 lb bags to 1 MT bags. Plastics are the biggest component of the solid waste production and constitute an estimated 80% of the total. Of the plastic waste generated at the WWS operations, approximately 1360 kg are 1000-kg capacity bulk feed bags, 1360 kg are 25-kg capacity feed bags, and 907 kg are from plastic wrap that the packaging materials for the processing facility are shipped in. Of the other forms of waste, cardboard would be the second major component followed by household-type wastes.

1.6 Other Users Other users of the lake resource include anglers, boaters, and, in winter, rare snowmobilers. Anglers continue to use the Cactus Bay area for fishing and there is some anecdotal evidence that fishing is good in Cactus Bay. This may have served to increase sport fishing in Cactus Bay. The Lake Diefenbaker Yacht Club has identified Cactus Bay as a safe anchorage. Boats may still navigate around the cage system and enter Cactus Bay as the mouth of the bay is not blocked by the cage system. To prevent accidents, the cage system is lighted so that boaters or the occasional winter- time visitor can navigate around the system safely.

SW2009-032  9 March 2010

______1.7 Predator Control The predators that have proven to be a nuisance to the WWS operations are all birds, with gulls and white pelicans being the most common nuisances. WWS employs bird nets on the cages to prevent predators from gaining access to the fish. To prevent gulls from accessing, consuming, and wastefully dispensing feed stored on site, WWS covers any feed that is left outside. WWS also employs scare tactics to deter birds from roosting on the site and otherwise making themselves into general nuisances.

A “Kill Birds to Protect Fish Stocks Permit” was issued under section 26.1(1) of the Migratory Birds Regulations (Permit no. WS-W1). This permit allows WWS to kill 8 gulls per month from May 1 through August 31 and 16 gulls per month in April, September, and October. Due to an increase in white pelican numbers migrating over Cactus Bay, a Nuisance Wildlife Control Permit was sought out and granted by Saskatchewan Environment under The Wildlife Act. The permit allows for the shooting of a limited number of white pelicans to eliminate property damage and requires that carcasses be disposed of by approved methods.

1.8 Monitoring Required monitoring at the Cactus Bay cage site includes Lake Diefenbaker water analysis from four sampling stations. Water is collected from 300 m upstream of the cages, the center of the cages, 300 m downstream of the cages, and 150 m west of the cages and is analyzed for ammonia, total N, total P, and ortho-phosphorus 3 times per year. A map showing the locations of the sampling are included in Figure 28, section 9.1.1.2 Drinking Water Implications. Yearly mean totals of phosphorus, ortho- phosphorus, ammonia, and total nitrogen shown with feed usage are illustrated in Figures 3, 4, 5, and 6, respectively.

Required Lake Diefenbaker sediment analysis is conducted once per year. Samples are collected from 300 m upstream of the cage system, the center of the cage system, and 50 m downstream of the cage system. Sediment samples are analyzed for texture, total C, total N, and total P. Figure 7 summarizes the unionized ammonia in the sediments around the Cactus Bay cage site in March 2009. Both the water quality monitoring and sediment monitoring requirements are described in the “Permit to Operate an Industrial Effluent Works” Schedule B, issued by Saskatchewan Environment (Appendix 1).

SW2009-032  10 March 2010

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Figure 3. Yearly Average of Total Phosphorus Plotted with Feed Use Note: Figure supplied by DFO – Freshwater Institute

0.040 1800000

0.035 1600000

1400000 0.030

1200000

0.025 (kg) Feed

1000000 0.020 Total P (ppm) Total 800000

0.015 600000

0.010 400000

0.005 200000

0.000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year

Upstream At Cages Back of Bay Downstrean Feed May to Nov.

Figure 4. Yearly Average of Total Ortho-phosphorus Plotted with Feed Use Note: Figure supplied by DFO – Freshwater Institute

0.005 1800000

0.004 1600000

0.004 1400000

0.003 1200000 Feed (kg) Feed 0.003 1000000

0.002 800000 Ortho-P (ppm) Ortho-P

0.002 600000

0.001 400000

0.001 200000

0.000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year

Upstream At Cages Back of Bay Downstream Feed May to Nov.

SW2009-032  11 March 2010

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Figure 5. Yearly Average of Total Ammonia Plotted with Feed Use Note: Figure supplied by DFO – Freshwater Institute

0.10 1800000

0.09 1600000

0.08 1400000

0.07

1200000 (kg) Feed 0.06 1000000 0.05 800000 0.04 NH3-N (ppm) NH3-N 600000 0.03

400000 0.02

0.01 200000

0.00 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year

Upstream At Cages Back of Bay Downstream Feed May to Nov.

Figure 6. Yearly Average of Total Nitrogen Plotted with Feed Use Note: Figure supplied by DFO – Freshwater Institute

0.800 1800000

0.700 1600000

1400000 0.600

1200000 Feed (kg) 0.500

1000000 0.400

Total NTotal (ppm) 800000

0.300 600000

0.200 400000

0.100 200000

0.000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year Upstream At Cages Back of Bay Downstream Feed May to Nov.

SW2009-032  12 March 2010

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Figure 7. Unionized Ammonia (µg/L) in Sediments at Cactus Bay in March 2009 Note: Figure supplied by DFO – Freshwater Institute

1.9 Carrying Capacity of Lake Diefenbaker for Aquaculture In a 1999 evaluation by Canadian Aquaculture Systems, Inc., a conservative estimate of 2205 MT of rainbow trout was calculated as the aquaculture carrying capacity of Lake Diefenbaker. The estimate was based largely on the size of areas that were considered deep enough to house aquaculture cages and afforded some protection from wind and waves. The evaluation only identified areas which could house summer and winter cage sites in adjacent parcels. Also considered in the evaluation were potential user conflicts and ease of site access by existing roads or boat docks. The government of Saskatchewan has placed restrictions on aquaculture development and these restrictions were considered in the 1999 evaluation. The restrictions included:

 A minimum of 2 km between culture operations  Cage culture operations cannot block more than 2/3 of the navigation channel in the lake  Cage culture operations must be a minimum of 500 m from communities, cabins, or docks not owned or leased by the licensee  Cages will not be permitted where they would interfere with commercial, recreational, or native food-fish fisheries

The aquaculture carrying capacity of 2205 MT may have been underestimated because it is not necessary to have two parcels per location (i.e. summer and winter sites), as

SW2009-032  13 March 2010

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WWS has shown. Some areas tucked into bays where they are afforded some protection from ice damage can be used year round and it is not necessary to transport cages between summering and wintering sites. The Canadian Aquaculture Systems, Inc. (1999) evaluation also only considered placing four 50-m plastic circular cages at a site. WWS has successfully grown trout in Cactus Bay with larger and more numerous square steel cages than the evaluation considered.

Using factors obtained from literature, calculations of nutrient loading to the lake were made. Concentrations of ortho-phosphorus were considered to be the most relevant because it is reactive and biologically available and thus plays a role in eutrophication of lake environments. However, total phosphorus, most of which settles from the water column, was also of interest because of the potential for resuspension and liberation of bound particles making the phosphorus more biologically available. Aquaculture operations totaling 2205 MT of trout were estimated to produce less than 1.7% of the total phosphorus load to Lake Diefenbaker (Canadian Aquaculture Systems, Inc. 1999). This was considered to be insignificant with respect to the annual variability of phosphorus loads to the lake and that further comprehensive monitoring may reveal that the lake could support a greater level of aquaculture development. It should be noted that, if the new site application and production increase are approved, the production capacity for WWS will be 1750 MT. This number remains below the estimated carrying capacity of Lake Diefenbaker of 2205 MT.

1.10 Bibliography of Studies on the South Saskatchewan River Basin and Lake Diefenbaker Canadian Aquaculture Systems Inc. 1999. Biophysical evaluation & environmental carrying capacity of Lake Diefenbaker for aquaculture. Saskatchewan Department of Agriculture & Food, Regina, 28 pp.

Carson, M.A., 1992. Assessment of the impact of farmland erosion on sediment quality: the Saskatchewan River basin, western Canada. Erosion and Sediment Transport Monitoring Programmes in River Basins (In: Proceedings of the Oslo Symposium, August 1992). IAHS Publ. no 210, 1992.

Cessna, A.J., J.A. Elliott, L. Tollefson, and W. Nicholaichuk, 2001. Herbicide and nutrient transport form an irrigation district in to the South Saskatchewan River. J. Environ. Qual. 30: 1796-1807.

Charleton, S.E.D., 1986. A summary of ecological characteristics of the South Saskatchewan River basin with specific reference to the Bow River (1979-82). Alberta Environment, 21 p.

Cork, H.F., 1974. Lake Diefenbaker energy budget. Hydrometeorological report (Prairie Hydrometeorological Centre (Canada)); 11, 12 p.

SW2009-032  14 March 2010

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Giesy, J.P., S. Li, and J.S. Khim, 2009. Water Quality Analysis Report: Nutrient loading and toxic algal blooms in Lake Diefenbaker. Report to Mid Saskatchewan Regional Economic and Co-operative Development. March 31, 2009.

Gregor, D.J. and M. Munawar, 1989. Assessing toxicity of Lake Diefenbaker (Saskatchewan, Canada) sediments using algal and nematode bioassays. Hydrobiologia 188/189: 291-300.

Hall, R.I., P.R. Leavitt, A.S. Dixit, R. Quinlan, J.P. Smol, 1999. Limnological succession in reservoirs: a paleolimnological comparison of two methods of reservoir formation. Can J. Fish. Aquat. Sci. 56: 1109-1121.

McCarthy, L.H., 1990. Summary and interpretation of biogeochemical data for the South Saskatchewan-Lake Diefenbaker system, 1984/85. prepared for Dr. D. Gregor National Water Research Institute, Environment Canada, Canada Centre for Inland Waters, Burlington, Ontario on behalf of Water Quality Branch, Western and Northern Region Regina, Saskatchewan. 37 p.

Penner, L.A., 1993. Shore erosion on prairie lakes and reservoirs: a photographic catalogue for three western Canadian prairie reservoirs. Canada. Prepared for Environment Canada; J.D. Mollard and Associates Limited, 23 p.

Penner, L.A., 1993. Shore erosion on prairie lakes and reservoirs: erodibility coefficients of common shore zone materials around Lake Diefenbaker, Avonlea Reservoir, and Lake of The Prairies. Prepared for Environment Canada; J.D. Mollard and Associates Limited, 7 p.

Saskatchewan Environment and Environment Canada, 1988. Lake Diefenbaker and upper South Saskatchewan River water quality study 1984-85. Water Quality Branch Saskatchewan Environment and Public Safety and Water Quality Branch Inland Water Directorate Environment Canada, WQ 111, 194 p.

Taylor, B.R. and H.R. Hamilton, 1993. Regional and temporal patterns of total solutes in the Saskatchewan River basin. Water Resources Bulletin, 29 (2): 221-234.

SW2009-032  15 March 2010

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1.11 Project Team and Contact Information Table 2 summarizes the project team, their qualifications and roles with respect to the preparation of this report.

Table 2. Project Team

Team Member Affiliation Role Qualification Wild West Dean Foss Corporate Support General Manager Steelhead Bob Sweeney SIMCorp Sr. Project Manager Company Owner Tara Daggett SIMCorp Sr. Project Biologist M.Sc.

Michelle McCray SIMCorp Sr. Project Technician ATP Murphy Surveys Survey Plan Rob Mann Land Surveyor (1990) Ltd. Preparation

Contact Information Proponent: Company Name: Wild West Steelhead Principal Contact: Dean Foss Mailing Address: Box 190 Lucky Lake, Saskatchewan, S0L 1Z0 Telephone: (306) 858-2208 Facsimile: (306) 858-2286 Cellular: (306) 858-7411 E-mail: [email protected]

Project Management: Company Name: Sweeney International Management Corp. Principal Contact: Bob Sweeney Mailing Address: 103 Milltown Blvd., P.O. Box 52 St. Stephen, New Brunswick, E3L 2W9 Telephone: (506) 467-9014 Facsimile: (506) 467-9503 Cellular: (506) 469-0344 E-mail: [email protected]

SW2009-032  16 March 2010

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2.0 PROJECT DESCRIPTION

2.1 Project Ownership Wild West Steelhead is owned and operated by the Heartland Livestock Services division of Nil-Ray Farms Ltd. The new site application is being made by WWS and, if granted, the new site will be operated by WWS.

2.2 Location WWS is proposing to increase production and place some of it at a new cage site in Kadla Coulee. This is the same location where the original cage site was located in 1992, however, Kadla Coulee hasn’t been used as a cage site since all production was moved to Cactus Bay in 1994. Table 3 lists the coordinates of the proposed lease corners.

Table 3. Proposed Coordinates of Kadla Coulee Lease Area

APPROXIMATE SITE CO-ORDINATES (NAD 83) Corner Latitude Longitude 100 51o 00 23.154 106o 54 42.251 101 51o 00 23.656 106o 54 11.482 102 51o 00 17.185 106o 54 11.217 103 51o 00 16.683 106o 54 41.985

Kadla Coulee can be located on topographic map 72O Rosetown Saskatchewan (Canada Center for Mapping, Natural Resources Canada). The proposed site is located in NE¼, Section 33, Township 23, Range 7, W3M and NW ¼, Section 34, Township 23, Range 7, W3M. Similar to the Cactus Bay site, the surrounding land at Kadla Coulee is used for agriculture, irrigated agriculture, and pastureland. Photos of the up-shore area, down-shore area, and across the water from the proposed lease are provided in Appendix 2.

Kadla Coulee was identified by the Canadian Aquaculture Systems (1999) study of Lake Diefenbaker as an area suitable for aquaculture. The bay is located ~10 km from the Riverhurst Ferry Provincial Recreation Site/Palliser Regional Park and ~6 km from Hitchcock Bay where a 4-H camp and a Girl Guide camp are located.

2.3 Rationale The main purpose for the new cage site is to increase and distribute the production of WWS over a larger area. This would help disperse and dilute any the waste products from the fish in the net pens. The second site will allow for year class separation at Kadla Coulee. The separation of year classes will allow the lake bottom below the cages at Kadla Coulee to experience a relatively low impact because the fish are young and small. Feeding at this stage of production is not intensive and faecal production is

SW2009-032  17 March 2010

______low. The addition of the new site would allow for an increase in production without further challenging the Cactus Bay site.

The splitting of production between two cage sites would also reduce the risks of concentrating the entire product into one area. Stock splitting and separation can improve fish health management, reduce losses due to ice damage or destruction, and improve the water quality within the net pens. Smaller fish, just entering the net pens, would be housed at Kadla Coulee and the harvestable fish would be maintained at Cactus Bay where the harvesting and processing activities occur.

2.4 Construction, Anticipated Schedule, and Project Life The anticipated construction and stocking schedule is provided in Table 4. Construction activities would take place at the WWS operations at Cactus Bay on Company leased property.

Table 4. Proposed Schedule of Construction and Stocking

Activity Timeline  Installation of new anchoring system at Kadla Coulee May – June 2010  Removal of six 50 x 50 feet cages from Cactus Bay and transfer to Kadla Coulee  Transfer of fish from Cactus Bay hatchery to Kadla Coulee for first year July – October 2010 class production  Construction and installation of 100 x June 2011 – June 2012 100 feet net pens for Cactus Bay  Transfer of fish from Kadla Coulee to Cactus Bay harvest site July – October 2011  Restock Kadla Coulee for second year class production

2.5 Proposed Facilities The proposed lease at Kadla Coulee is 600 x 200 m, for a lease area of 12 ha. Within the lease area WWS proposes to install 4 iCages™ (2250 m3) and 6 traditional steel (15 m by 15 m). The steel cages are linked together with a hinge and pin system and have wooden walkways between the cages for the crew to work off of. The iCages™ will be serviced from a work boat or barge. The proposed lease area and the proposed equipment to be installed within the lease are shown in Figures 8, 9, 10, and 11.

SW2009-032  18 March 2010

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Figure 8. Plan View of Proposed Site

SW2009-032  19 March 2010

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Figure 9. Site Development Plan of Proposed Site

SW2009-032  20 March 2010

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Figure 10. Cross-sectional Plan “A” of Proposed Site

SW2009-032  21 March 2010

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Figure 11. Cross-sectional Plan “B” of Proposed Site

SW2009-032  22 March 2010

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2.5.1 Cage System Description

2.5.1.1 Steel Cages Mooring System  Scope is 2:1  5 MT cement block anchors  40’ anchor chains  1⅝” polysteel rope  20’ buoy chains  5’ steel buoys  Shackles and galvanized thimbles to connect chain to polysteel

Cage System  15 m square steel cages  Nets are 12 m deep and constructed of nylon  Mesh size ranges between ¾ and 1⅛”, depending on the size of the fish  Bird nets are constructed of nylon

Steel Cage Deployment Moving six 15-m steel cages from Cactus Bay to Kadla Coulee would involve first moving the anchors. A winch and barge would be used to complete this task. The cages would then be towed to Kadla Coulee and tied in place. The cages are connected together by a steel pin and hinge system. The process should only take about 2 weeks to accomplish.

2.5.1.2 iCages™ Mooring System  Each iCage™ is independently moored with three cement anchor blocks (maximum of 5 MT each)

Cage System  High-density polyethylene  Nets are constructed of ultra-high molecular weight polyethylene (Dyneema®) iCage™ Deployment The cages will be assembled in Cactus Bay using WWS barges and floating equipment. They will be temporarily anchored in Cactus Bay during assembly. Once completed, they will be towed to Kadla Coulee and set with the permanent anchors. Installation of four iCages™ at the Kadla Coulee site should take approximately 20 days to complete.

2.6 Shore-based Facilities The shore-based facilities that will be used as a base of operations for the Kadla Coulee site will be the same shore-based facilities that are used by the Cactus Bay aquaculture site. WWS leases the land at Cactus Bay from Saskatchewan Agriculture, Food and Rural Revitalization. The lease number is 191365 and is issued to Nil-Ray Farms Ltd.

SW2009-032  23 March 2010

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The leased land parcel is 25.73 acres. There are no plans at this time to build shore- based infrastructure at the Kadla Coulee site.

2.7 Docks There are two docks at the Cactus Bay operation. Boats from both the Cactus Bay and the Kadla Coulee sites will use these docks. No new docks are anticipated at this time.

2.8 Power Supply The Cactus Bay operations are hooked into the power grid and run on 660 V, 3-phase power. An underwater cable runs from shore to the Cactus Bay cage site to meet the cage site power requirements. No upgrades to the power system are foreseen. The power for Kadla Coulee will be supplied by portable generator. Solar collectors may also be used to help power some equipment, such as operational lighting. The feed blowers will be operated by gas engines. The feed blowers will represent the largest power requirement of the Kadla Coulee site.

2.9 Washroom Facilities The cage crew at Cactus Bay has access to onshore toilet facilities, however, this will not be the case at Kadla Coulee. Instead, WWS will provide a portable toilet for the Kadla Coulee crew to use.

2.10 Shelters A small shelter building will be constructed on the Kadla Coulee cage site for the crew to take shelter in during unexpected storm events. The shelter may also serve as a break room and a place for the crew to store personal items out of the weather.

2.11 Site Access During open water months and during ice movement events the Kadla Coulee site will be accessed by boat. Vessels will leave the Cactus Bay docks and travel to the Kadla Coulee site. During months that the lake is ice covered, the site will be accessed by snow machines travelling over the ice. Snow machines will leave from the Cactus Bay base of operations. During periods when the ice is too thin for snow machines to travel over, the site will be accessed by all-terrain vehicles travelling over land, along the shoreline. This method of travel will not be used during piping plover season.

SW2009-032  24 March 2010

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3.0 PROPOSED OPERATIONS

3.1 Production Plan WWS intends to stock all-female, triploid Oncorhynchus mykiss at Kadla Coulee. WWS sources most of its eyed eggs for production from Troutlodge, Inc., which is based in Washington, USA. Eyed eggs are placed in the hatchery and allowed to develop until the fish are large enough to make the transition to the net pens on the lake. A summary of the first year of expected production at Kadla Coulee is presented in Table 5. Only one age class is expected to be housed at Kadla Coulee at a time. However, within the year class, four different batches of fish are included. The following production plan is a summary of the four batches of fish within the same year class.

Table 5. Monthly Summary Production Plan for Year 1 at Kadla Coulee

Year End of Mean # of Fish Total Stocking Food Month Water Biomass Density Usage Temp (oC) (kg) (kg/m3) (MT) 2010 May 6.5 548,626 19,234 4.5 6.77 2010 Jun 12.2 545,886 34,151 8.0 13.56 2010 Jul 18.0 692,784 62,575 13.1 24.98 2010 Aug 19.9 689,325 83,075 10.2 23.03 2010 Sep 17.7 688,849 121,920 14.9 45.00 2010 Oct 13.7 685,409 180,305 14.4 71.05 2010 Nov 8.0 681,986 221,433 14.4 51.33 2010 Dec 2.5 678,580 254,013 14.3 18.84 2011 Jan 1.0 675,192 236,620 11.7 2.83 2011 Feb 1.0 671,820 237,731 11.8 2.84 2011 Mar 1.0 668,465 238,820 11.8 2.86 2011 Apr 2.0 665,127 244,520 12.1 8.65

WWS expects the Kadla Coulee site to produce 300 MT of fish each year for transfer to the Cactus Bay site, where harvesting will take place. The fish are expected to be approximately 0.5 kg at transfer to Cactus Bay and about 2 kg at harvest time. The maximum total feed use at the Kadla Coulee site is expected to be 450 MT annually, thus WWS would like to apply for that allowance.

3.2 Activity Level The installation of cages, nets, and associated gear would take place in May through June. Once the anchoring system, cages, and nets have been installed and inspected by the dive crew, fish are transferred to the site from the WWS hatchery. The fish will be placed in net pens at the Cactus Bay facility and towed to the Kadla Coulee site, where the net pens will be fixed in place.

SW2009-032  25 March 2010

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The daily duties at the Kadla Coulee site will include travel to the site by boat, inspection of the cage system and moorings, feeding the fish, general clean-up and husbandry, recordkeeping, and travel back to Cactus Bay via boat. Feed will be transported to the site with the crew. Hand feeding of the fish is practiced for the first three months after transfer to net pens and typically takes place in the morning. Weekly duties will include mort dives to remove deadstock. Refuse from the site and deadstock are transported back to the shore facilities with the returning crew. Nets will be inspected monthly for wear or damage. During the summer months, the nets are cleaned of algae by lifting the fouled portion of the nets to allow them to air-dry.

After the first three months, hand feeding will cease and automated feeders will be installed. Feed will then be delivered to the site by barge. Feed deliveries will take place daily so that feed will not need to be stored on site. This will decrease the likelihood of attracting birds. Divers will continue to remove deadstock on a weekly or bi- weekly basis until December when the water temperature drops. By January, water and air temperatures allow for maintenance husbandry only on the system and mort dives will occur on a monthly basis. Net inspections will occur in conjunction with the mort dives. Deadstock will be transported back to shore on the return trip of the feed barge.

Feeding activity increases again by May when water temperatures have increased. Feed will be transported to the site with the crew on their daily runs, until December when the water temperatures drop again.

Water temperatures and DO are measured daily. Water chemistry is monitored quarterly (i.e. January, June, August, and October).

3.3 Feed Use WWS uses manufactured feeds from contracted feed producers, such as Unifeed (Chilliwack, BC). Feeds are formulated to use as little phosphorus as is feasible and formulations are continually being improved in this regard. The ingredient lists and guaranteed analyses of the feeds used by WWS are proprietary information and located in Appendix 3.

Dry feeds are delivered to the fish by hand for the first three months after stocking in net pens. After three months, the feed pellets are delivered to the fish by use of automated feeders. The aluminum hoppers intermittently dispense a uniform ration of feed at a controllable interval. This feeding system minimizes waste feed and necessary human involvement. Feed volumes delivered to the fish are calculated with the aid of feed tables, which specify a determined amount of feed for the existing biomass and water temperature. Feeding activity of the fish is monitored with underwater cameras to verify that the fish are eating. Minimizing waste feed is economically very important to the aquaculture operations and minimizes impact on the environment. With this method of feeding WWS achieves a feed conversion ratio (FCR) of approximately 1.5. In other

SW2009-032  26 March 2010

______words, 1.5 kg of feed is required to produce 1 kg of fish. In comparison, sheep and cattle have an FCR of ~8, pork has an FCR of ~3.5, and poultry has an FCR ranging between 2 and 4 (Wikipedia 2009a). During the warm water months feeding activity is at a maximum. Feeding activity slows drastically during the winter months thus the period of highest feed consumption is May through October. Feed use is regulated and WWS is currently limited to 1800 MT of feed per year with 1450 MT as a yearly production. WWS has, to date, remained below their regulatory limit of feed use at the net pens.

Medicated feeds would be used only as necessary and as prescribed by a veterinarian. Medicated feed, like the regular feed formulation, is stored under cover to prevent feed loss due to birds or inclement weather.

3.4 Fish Health Management To prevent the introduction of disease to the WWS facility, eggs are certified disease free before being shipped to WWS. After arrival at the hatchery, the eggs are disinfected and quarantined. Water that supplies the egg trays and newly hatched fry (up to 1 g) is treated with ultraviolet light. The hatchery is a biosecure facility in which footbaths are in continual use. Cage site and processing plant workers are not permitted access to the hatchery for biosecurity reasons. Water quality in the hatchery is monitored daily and morts are retrieved regularly. Veterinary assistance is retained if mortalities are suspicious. Most disease treatments are limited to the hatchery and usually consist of sodium chloride baths to treat fungal infections. In the event that diseased stocks are found in the hatchery, the population would be treated with a prescription from a veterinarian. While dorsal injections are an option, most treatments would be administered via baths or feed. The veterinarian WWS uses is Dr. Bill Cox from Chilliwack, BC (ph: 604 316-1656 or cell: 604 795-2362).

The majority of the mortalities experienced in the net pens are due to environmental factors, such as DO concentration. Oncorhynchus mykiss is not a native species to Lake Diefenbaker and common diseases of salmonids are seemingly not present in the lake. Routine examination of deadstock has never yielded any conclusive disease discovery, with only the bacterium Aeromonas hydrophila being identified. Lake Diefenbaker is a relatively disease free location for growing trout and thus disease treatment is rare at most.

In the event that diseased stocks are found in the cage system, medicated feed would be used to treat the stock. Appropriate withdrawal times would be observed. In an average year, less than 1% of feed distributed at the cage site is medicated feed. WWS has never used any pesticides or bath treatments at the Cactus Bay cage site.

None of the diseases that could potentially affect the WWS stocks are harmful to humans. There is an extremely low risk of pathogen threat to drinking water from cultured fish (B. Cox, veterinarian, pers. com.).

SW2009-032  27 March 2010

______3.5 Predator Control As at the Cactus Bay site, all predator control tactics will be related to avian species since they will be the only predators that will harass the fish. The most likely species to impact the farm are white pelicans and seagulls. Cormorants, herons, and cranes occasionally act as pests to the operation but not significantly enough to warrant control. While seagulls and some blackbirds will occasionally prey on smaller fish, they are mainly attracted to exposed feed. Therefore, all feed that is left outside will be covered with a tarp. Scare tactics may also be used to deter birds from roosting on the net pens system (i.e. compressed gas cannons).

Predation at the farm is a seasonal problem which is mitigated through the use of bird nets that cover the tops of the cages. Smaller mesh sizes have been incrementally implemented at the Cactus Bay site from 1999 to 2006 but seagulls have proven to be unrelenting pests. A “Kill Birds to Protect Fish Stocks Permit” was issued under section 26.1(1) of the Migratory Birds Regulations (Permit no. WS-W1). This permit allows WWS to kill 8 gulls per month from May 1 through August 31 and 16 gulls per month in April, September, and October. The object of the permit is not to eliminate a migrating flock but to deter predation trough intimidation. This method has proven effective. Annual reports of eliminated gulls are made to Environment Canada each January. A permit will be sought for the Kadla Coulee site.

Due to an increase in white pelican numbers migrating over Cactus Bay, a “Nuisance Wildlife Control Permit” was sought out and granted by Saskatchewan Environment under The Wildlife Act. The permit allows for the shooting of a limited number of white pelicans to eliminate property damage and requires that carcasses be disposed of by approved methods. A “Nuisance Wildlife Control Permit” will be sought for the Kadla Coulee site.

3.6 Hazardous Materials The following are hazardous materials used at the Cactus Bay site by WWS.

 Methyl hydrate  NP 1  Oxygen  Propane  Universal antifreeze/coolant  Diesel fuel  Ether  Gasoline

With the exception of diesel and gasoline, the products listed above are used mostly in the winter season but are present for use in infrequent maintenance situations. Most are used for routine maintenance of the feeding and harvesting equipment. All hazardous liquids are stored in double-walled containers. Containers are securely fastened to the

SW2009-032  28 March 2010

______vessels to prevent spills or losses. Waste oil and fuels can be disposed of at the Lucky Lake disposal drop-off.

Hazardous materials that are used in the hatchery include:

 Amerlock 2 Cure  Ammonia cyanurate reagent  Ammonia nitrogen reagent #1  Ammonia salicylate reagent  Ammonium chloride  AmVer Low Range Ammonia Test ’N Tube reagent  Bromocresol green – Methyl red indicator powder  Carbon dioxide reagent B  Chloramine-T  Chloride 2 indicator  Citric acid anhydrous, USP/FCC  Citric acid, anhydrous  Copper sulphate  Crystal violet  Dissolved oxygen 1 reagent  Dissolved oxygen 2 reagent  Dissolved oxygen 3 powder pillows  FerroVer iron reagent  Foaming acid cleaner  Force  Formaldehyde 37%, Z8001  Formalin (aqueous formaldehyde solution)  Gram decolorizer  Gram safranin  Hydrochloric acid  Hydrogen peroxide concentration  Iodine concentrate  Iodine diluent  Instant hand sanitizer  Liquid micr-organisms (Bactpure)  Nessler reagent  Nitrate 3 powder pack, 10 and 25 mL  NitriVer 3 nitrate reagent  NitraVer 5 nitrate reagent  Oatey heavy duty gray PVC solvent cement  Oatey purple primer/cleaner  Oxytetracycline (Terramicin)  Phenol red

SW2009-032  29 March 2010

______

 Phenolphthalein indicator, 1% or chloride C  Phenolphthalein indicator powder  Rocco  Silver nitrate titrant 0.0493 N  Sodium bicarbonate  Sodium bicarbonate, USP powdered  Sodium chloride (salt)  Sodium hydroxide  Sodium hydroxide, 1.0N  Sodium hydroxide standard solution 0.01 N  Sodium hypochloritem 5-15 trade percent (bleach)  Stoddard solvent, silica crystalline quartz  Sulfuric acid standard solution, 0.030 N  Sulfuric acid solution 0.1 N to 2.6 N  TF-15  Thermofit heat-shrinkable polymeric products  TMS  Touch ‘n Seal  Virkon  Virucidal Extra  Wright giemsa stain  Wright & Wright stain pack rinse  Zep amine A  Zep FS antimicrobial hand cleaner  Zep-I-Dine

Hazardous materials used in the processing plant include:

 Liquid organic waste and odour digester (septic treatment)  Envirozyme BioPouches (sewer and drain trap cleaner)  Citrus floor degreaser (floor cleaner)  Antiseptic lotion soap (hand cleaner)  Processing cleaner – hard water (food grade detergent)  Amine A (disinfectant/sanitizer)  Contrac Blox (rat poison – handles by PCO staff only)  Citrus Kleen (degreasing compound)

Hazardous materials used in the work shop include:  Amerlock 400 Epoxy Paint  Benzomatic Propane Bottles  Citrus floor degreaser  CRC Di-Electric Grease  CRC 3-36 food-grade lubricant

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 Deisel engine anitfreeze  DMO 0W-30 oil  Esso ATF oil  Glyfos weed killer  Gun glass cleaner  Gunk diesel fuel conditioner  IPS weld-on solvent cement  IPS weld-on primer  Kleen Flo starting fluid  Kleen Flo air tool oil  Kleen Flo choke and carb cleaner  Kleen Flo gas line antifreeze  Konk fly killer  Lloyd's Loob-It lubricant  Loctite electrical contact cleaner  LPS food-grade silicone lubricant  Methyl hydrate  Mobil 5W-30 synthetic oil  NAPA Diesel fuel conditioner  NAPA fuel stabalizer  PermaTex Fast Orange hand cleaner  Permatex thread sealant  Rust-oleum flourescent enamel  RV antifreeze  Tremclad rust paint  Walter RPL dry lubricant  WD-40  XD-3 10W-30 oil  ZEP Amine-A cleaner

WWS keeps on file the MSDS sheets for each of the hazardous materials used in their operations. Copies of the MSDS sheets are kept in the processing plant, in the hatchery, and in the workshop.

All hazardous materials will be separated from the regular garbage and collected in designated containers. Where applicable, chemicals and hazardous materials will be disposed of as per the manufacturer’s instructions on the product labels. Any wastes considered hazardous will be taken to approved facilities for disposal. Should quantities of hazardous wastes require disposal, the wastes would be sent to EnviroTech Services in Saskatoon.

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______3.7 Waste Management In addition to the handling and disposal of hazardous wastes discussed in section 3.6 Hazardous Materials, regular garbage will be disposed of responsibly. No debris will be purposely released to the environment. The removal of waste from the Kadla Coulee site will occur with the return trips carrying crew to and from the site (i.e. small loads of trash). Larger loads of trash will return to shore with the return trip of the feed barge (i.e. feed bags, plastic wrapping, mortalities, etc.). Once on shore, garbage is contained and stored at the WWS’s shore-based facility. Regular garbage removal occurs weekly and is taken to the Saskatoon Landfill.

Materials that can be recycled (i.e. water bottles) will be sent for recycling.

Human waste is not released to the environment. Onshore toilet facilities are provided for the Cactus Bay crew. A portable toilet will be made available for the Kadla Coulee crew. Septic tank contents are handled by a local septic services company.

3.8 Contingency Plans

3.8.1 Spills WWS uses environmental grade hydraulic fluid for all equipment uses on the lake. If a spill were to occur, it would be less damaging than conventional hydraulic oil.

In the event that a spill occurs on the deck of a boat or barge, spill kits are available for use in cleaning up the spill. In the event that a spill was to occur in the water, WWS would contact the Provincial Enforcement Centre Spill Report Line (1-800-667-7525) and follow the instructions provided. Hazardous spills in the water would be reported to the National Response Center (1-800-424-8802) and Saskatchewan Watershed Authority will also be contacted (306-694-3900).

A spill in Kadla Coulee would be very undesirable. Even though the proposed cage location is ~2 km from the pump station, which draws water for municipal and other uses, a spill would cause public concern. Boats will not be refueled while in Kadla Coulee. All gas cans will be properly closed and secured to the vessels. When equipment at the cage site is being refueled or serviced, all hazardous materials (e.g. gasoline) will be handled with extreme care to prevent spills. Spill kits will be kept on hand during refueling activities so spills can be contained and cleaned up quickly if one should occur. No more than 100 L of fuel will be onsite at one time

3.8.2 Storm Damage In the event of storm damage, divers and crew would access the site and assess the damage once it was deemed safe to do so (i.e. once the inclement weather was

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______passed). Repairs would be made as necessary. Should cages be destroyed and unsafe to work on, they would be towed to shore for repair, recycling, or disposal.

In the event of a mass escape of fish, WWS would notify Saskatchewan Environment. Appropriate permits would be applied for and, once received, nets set to “recapture” farmed fish.

3.8.3 Disease In the event that stocks at the WWS facility become diseased, veterinary assistance would be retained. The fish would be treated based on recommendations made by the veterinarian. If treatment of the diseased stock is either uneconomical or impractical the diseased fish may be harvested and destroyed. Should destruction of the stock be the preferred option, dead or diseased stocks would be removed from the cage system by use of braille nets and divers. Deadstock would be transported to shore facilities for safe disposal. Incineration of the deadstock would be the preferred method of disposal.

3.8.4 Environmental Stress The environmental stress of greatest concern to the WWS operations is low DO. WWS employs an air bubbling system at the cages to help move water through the cages and decrease the occurrences of localized oxygen depletion. If DO concentrations drop below acceptable levels, WWS ceases feeding activities at the cage site. This allows the fish time to rest and decreases their metabolic activity thus decreasing their oxygen demand. Decreasing stocking densities by splitting the stock among more cages helps to ensure sufficient DO concentrations within the cages. Should all of the above mentioned mitigations for low DO concentrations fail and WWS experiences high levels of mortality in the net pens, morts and moribund fish would be removed from the cages using Braille nets and divers. Deadstock would be transported to shore for proper disposal.

3.9 Security, OH&S, Cage Marking, and Lighting There will be no night-time security at the Kadla Coulee site. However, cage site personnel will be at the site daily to feed the fish and check for damage or other security issues.

In the event that the hatchery alarm is triggered, four WWS employees are alerted by phone by the automated system. The General Manger, the Hatchery Manager, the Head of Maintenance, and one other staff member are all alerted in the case of a hatchery emergency.

No new processes or changes to work are expected with the addition of the Kadla Coulee site. Therefore, no new occupational health and safety issues are expected or

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______need to be addressed at this time. Section 7.0 Occupational Health and Safety, briefly reviews the WWS OH&S policy and the company’s history with safety.

Cages will be marked according to Navigable Waters Protection requirements and solar LEDs will be used to mark the cage system.

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4.0 CACTUS BAY INFRASTRUCTURE

4.1 Office Structures, Parking, and Roadways The establishment of the Kadla Coulee site and the associated production increase will result in an increase in activity at the existing Cactus Bay infrastructure. For example 5 to 6 new employees would be hired to work the Kadla Coulee site, and help with the extra product in the processing plant, if it is approved. This would require parking space to be available for the workers when they arrive for their shifts. Currently the parking lot at Cactus Bay is only filled to 50% of capacity at peak usage so there is plenty of space available for parking at the Cactus Bay shore-base (see Fig. 2 section 1.2 Location). No additional office space will be required with the Kadla Coulee expansion. The current office building is more than sufficient to house the present office staff and no new office positions will be created with the Kadla Coulee site coming into operation.

The road from highway 373 to the fish farm can handle additional traffic, although a drastic increase in traffic is not expected. Feed deliveries would likely increase to two loads per week in the summer during peak feeding season. This would account for the largest increase in road traffic.

4.2 Storage The existing storage building is large enough to handle any additional feed storage requirements that would be necessary should the Kadla Coulee site be approved. Feed storage needs would not increase substantially as feed is typically not stored long and is delivered as needed.

4.3 Hatchery The hatchery is not anticipating expansion at this time to meet the increased demands for stocking. The well that currently supplies the hatchery would be able to meet any increased demand if additional raceways and tanks were installed (i.e. the maximum well usage stands at 125 m3/day and 576 m3/day are available). However, the option to purchase fingerlings and stock them directly into the net pens would still remain viable. Fingerlings would arrive via tanks hauled by a transport truck and the fish would be stocked directly into waiting net pens.

4.4 Septic System The present septic system can handle the sewage created by the additional employees. If it becomes necessary, the septic tanks would be pumped more frequently. Effluent from the processing plant would increase marginally only. Most of the water consumed in the processing plant is used during clean-up operations and would not change significantly with the additional product for processing as clean-up duties are the same

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______regardless of volume of fish processed. The presently-used water treatment lagoon runs at less than 70% capacity and should therefore be able to handle the additional blood water and sewage generated by the new site and increased production. As WWS explores ways to reduce their water usage the likelihood of challenging the capacity of the existing lagoon is diminished. However, if necessary, a secondary lagoon may be constructed to deal with the overflow.

4.5 Processing The processing plant, at the time of this application, was under reconstruction due to an unrelated fire event. The newly constructed processing plant will be large enough to handle all of the presently approved production as well as any increases in production volume from the Kadla Coulee site. The new processing facility will house staff break rooms, washrooms, locker rooms, administration offices, storage space, a freezer room, cooler rooms, an ice making facility etc. (Fig. 12).

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Figure 12. Floor Plan of Processing Facility

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______

4.6 Aquatic Facilities The Cactus Bay cage site will require some additional cages. These cages would replace some of the 15 x 15 m cages that would be transferred to Kadla Coulee (i.e. six cages would be moved). The new cages constructed for Cactus Bay would be 30 x 30 m. Larger cages would replace the smaller ones as larger fish would be housed at Cactus Bay while the smaller fish are reared at Kadla Coulee. No additional docks, loading equipment, or designated shore areas should be required with the production increase. All transportation of fish and workers to and from the Cactus Bay cages can continue with existing boats and equipment.

4.7 Other Infrastructure Additional infrastructure that may be installed as a result of operating the Kadla Coulee site includes cages. If the site is approved and runs successfully, additional cages may be added to the Kadla Coulee site at a future date. If additional cages are installed at Kadla Coulee, new plans would be drawn and submitted to Transport Canada.

4.8 Boat Traffic Boat traffic from the shore-based facility at Cactus Bay will increase as one boat is dedicated to transporting crew to and from the Kadla Coulee site daily. However, the expected impact of the increased boat traffic is anticipated to be minimal, if any. The only other regular boat traffic in the area of the proposed cage site is the Riverhurst Ferry which is to the south of both Cactus Bay and Kadla Coulee. Thus there will be no regular opportunity for conflict regarding vessel traffic. WWS boat operators at the Kadla Coulee site will be properly trained in boat handling and water safety. Maximum cruising speeds will be approximately 5 knots in the larger vessels (i.e. barges) thus limiting wake formation and disturbance to occasional other users of the lake resource (e.g. recreational fishing vessels).

4.9 Energy Demand The establishment of the Kadla Coulee site will result in an increase in energy usage by WWS. The largest energy demand will be in the form of fuel consumption by boats and fuel consumed by the feed blowers. There will be a very small increase in fuel consumption by land vehicles and most of this will come during the period when the site is accessed by all-terrain vehicle. The estimated increase in diesel fuel consumption is estimated to be approximately 15% (i.e. 2067 L) and the increase in gasoline is estimated to be 30% (i.e. 1832 L). WWS is applying for a production increase with the new site. Should the production increase be approved, the processing facility will see an increase in production, and therefore power consumption, by approximately 25%. Since the processing facility uses approximately 50% of the energy consumed by WWS, this means a total overall increase in electrical demand of about 12.5%.

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5.0 EXISTING ENVIRONMENT

5.1 Lake History, Geography, and Geology Lake Diefenbaker is the largest body of water in southern Saskatchewan. It was formed by the construction of the Gardiner and the Qu’Appelle River Dams; the Gardiner Dam controls the water flow into the South Saskatchewan River and the Qu’Appelle Dam controls the flow into the Qu’Appelle River. Construction began on the dams in 1958 and the lake was filled in 1967. The two dams regulate the water flow out of the lake and thus control the water level. Lake Diefenbaker contributes to a large network of water projects in Saskatchewan and provides domestic water for approximately 45% of Saskatchewan’s people (Government of Saskatchewan 2007). It contributes significantly to the water supply in Moose Jaw, Regina, and many smaller communities via the Qu'Appelle River and Buffalo Pound Lake (Government of Saskatchewan 2008). Water is also stored for use by 10 potash mines, 4 major irrigation projects, and various industries and wildlife interests (Saskatchewan Watershed Authority). The land around the location of the proposed aquaculture site is primarily used for agriculture. The most common agricultural products produced in the area include grains and cattle.

In addition to being a source for municipal and industrial water, Lake Diefenbaker is a major recreation facility. Boating, angling, swimming, sightseeing, and other water- based activities and sports occur on the lake. Sections 9.1.8 Angling and 9.1.9 Recreational Activity describe these activities further. Figure 13 illustrates the area of the proposed aquaculture site and known existing users of the lake resource within a 5 km radius of the proposed site.

The lake also plays an important role in power generation and flood control. The spillway of the Gardiner Dam is designed to handle a discharge of 7500 m3/sec (Saskatchewan Watershed Authority).

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Figure 13. Map of Existing Resource Users

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______

The town of Outlook, which is approximately 54 km to the north of the proposed site, reports a total annual precipitation of 338 mm with 200 mm of that falling from May through August (Government of Saskatchewan 2008). The daily average temperature at Outlook ranges from approximately -15 oC in January to approximately 20 oC in July.

The area under application for an aquaculture cage site is Kadla Coulee, approximately 10 km north of the Riverhurst ferry crossing. The benthos and shoreline of Lake Diefenbaker in the area of the proposed cage site are glaciolacustrine deposits (Fig. 14) (Government of Saskatchewan 2009). The lake bed under the proposed site is composed of thick, grey clay and gravel. The shoreline near the proposed cage site appears to be mostly gravel and sandy material.

Figure 14. Surficial Geology Map of the Area Surrounding Kadla Coulee Note: Figure was produced by the Government of Saskatchewan (2009)

LUCKY LAKE

Village Railroad Park Kadla Coulee site Cactus Bay infrastructure Glaciolacustrine plain Alluvial plain Glaciofluvial eroded

Glaciofluvial and fluvial plains and terraces Glaciofluvial and fluvial deposits

Glaciolacustrine deposit Glacial deposits Eolian deposits

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______5.2 Physical Environment

5.2.1 Flow Data, Water Levels, and Bathymetry Inflow to Lake Diefenbaker is primarily from the South Saskatchewan River, which originates as the Oldman, Bow, and Red Deer Rivers in southwestern Alberta. These rivers drain much of southern Alberta. Approximately 90% of the drainage to Lake Diefenbaker is from snowmelt and rainfall in the Rocky Mountains (Gregor and Munawar 1989), so Lake Diefenbaker is usually at its lowest point in early spring and rises until mid-July (SaskPower 2009). The effective drainage area for lake Diefenbaker is 126,000 km2 (Saskatchewan Watershed Authority). The reported volume of the lake is 9.4 km3 and the residence time is 2.5 yr (International Lake Environment Committee). Flow data for Lake Diefenbaker is illustrated in Figures 15 and 16. Data for Figure 15 is calculated from 2008 flow data gathered from the Red Deer River near Bindloss and the South Saskatchewan River at Medicine Hat and represents approximately 97% of the inflow to Lake Diefenbaker while Figure 16 shows 2008 data for the South Saskatchewan River at Saskatoon and represents approximately 98% of the outflow from Lake Diefenbaker (Saskatchewan Watershed Authority, pers. com.). Data for both Figures 14 and 15 were collected by Environment Canada (2008).

Figure 15. Approximate Daily Inflow to Lake Diefenbaker

/s)

3 2000

1500

1000

500

0

Inflow Diefenbaker (m to Lake 8 8 8 8 8 8 0 08 0 08 08 0 -0 - r-0 eb p p- A Jul- e Oct- -F 5- S -Dec-0 1-Jan- 1 3-Mar 3- 4-May-08 4-Jun- 5-Aug-08 5- 6- 6-Nov-08 7 Date

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Figure 16. Approximate Daily Outflow from Lake Diefenbaker

500 /s) 3

400

300

200

100

0 Lake Diefenbaker Outflow (m

8 8 8 8 8 8 8 -0 0 -0 -0 -08 -08 0 -0 0 n b- r n g v c- e Ja Ap Ju -Jul u ep- No - - - 5 -S - -De 1 1-F 3-Mar-08 3 4-May-08 4 5-A 5 6-Oct-08 6 7 Date

Calculated from data from 1968 to 1994, annual water level changes average 6.3 m with a range of 2 to 10 m (Hall et al. 1999). Figure 17 illustrates the bathymetry of the proposed Kadla Coulee. WWS intends to locate the site in the deeper portion of the bay. The data the bathymetric map is based on were collected in June 2008 and the data is corrected to full supply level of 556.9 m.

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Figure 17. Bathymetry of Proposed Site Note: Bathymetry was produced by DFO – Fresh Water Institute

N

600 m LEASE AREA 200 m

Steel cages iCages™

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5.2.2 Water Currents Current meters were placed by DFO – Fresh Water Institute in Kadla Coulee to measure direction and strength of currents. A basic summary of the data is as follows:

Direction:  The upper cells of the water column (0 – 10 m) are dominated by NE flow (between 7.5o and 67.5o)  The frequency of northeasterly flow decreases and southwesterly flow (between 202o and 232o) increases steadily as depth increases  SW and NE flow are about equally frequent at mid column (13 m from surface), though velocities remained higher towards the NE  Below 13 m the frequency and velocity of SW flow continued to increase and is the primary direction of flow at the bottom of the column

Velocity:  Average current speeds were very low for all profiles, never exceeding 3 cm/s  The highest average current speeds were recorded near the surface at 3 m and 6 m (2.86 and 2.85 cm/s, respectively)  Speeds of < 3 cm/s occurred at least 50% of the time at all depths  The cell with the least current activity was at 13 m below the surface  74% of currents were < 3 cm/s  Only 0.9% exceeded 8 cm/s

Figures showing the current class frequency distributions and current rose plots for the various cells of the water column are in Appendix 4. The raw data is property of DFO- Fresh Water Institute and any requests for raw data would have to be made to Cheryl Podemski, PhD (Fisheries and Oceans Canada, Central and Arctic Region, 501 University Crescent, Winnipeg, MB, R3T 2N6).

5.2.3 Water Temperatures Water temperatures have been monitored in Cactus Bay as part of the regular operations at the cage site. At 4 m deep, temperatures typically range between a low of 0.5 oC (measured in 2001) and a high of 22.4 oC (measured in 2007). Figure 18 illustrates the mean annual temperature trend at 4 m deep in Cactus Bay based on 8 years of data.

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Figure 18. Mean Annual Water Temperatures at 4 m Deep as Measured in Cactus Bay

25

20 C) o

15

10

5 Temperature ( Temperature

0 1 5 9 13172125293337414549

Week

5.2.4 Water Chemistry Some water chemistry data was collected at the Riverhurst Ferry crossing near the mid- point of the lake in 1984-85 (International Lake Environment Committee). This data indicated a range in pH of 8.3 to 8.6. Total nitrogen ranged from a low of 0.19 mg/L in October to 0.51 mg/L in March (no data were available for November, December or April). Phosphorus concentration ranged from 8 to 30 µg/L, with the highest concentrations being observed in September and July (Again, no data were available for November, December, or April). In a 1984-85 study, the concentrations of major ions (e.g. calcium, magnesium, sodium, potassium, bicarbonate, sulphate, and chloride) did not exceed the Canadian or Saskatchewan guidelines and objectives for most sensitive uses including drinking water supply, irrigation, and livestock watering (Saskatchewan Environment and Environment Canada, 1988).

Data collected in 1994 and presented in Hall et al. (1999) indicated a pH 7.8 ± 0.7 (± SD), a dissolved carbon concentration (mg/L ± SD) of 6.3 ± 5.8, and dissolved nitrogen and phosphorus concentrations (µg/L ± SD) of 205 ± 86 and 93 ± 71, respectively. Saskatchewan Environment and Environment Canada (1988) reported the mean total phosphorus load to Lake Diefenbaker to be 1229 MT per year and that ~89% of the total phosphorus load entering the lake is particulate phosphorus.

5.2.5 Water Quality Lake Diefenbaker has exhibited three distinct periods of production. After inundation, the reservoir experienced an increase in primary productivity for approximately 4 years, followed by a ten year period of oligotrophication, and then a shift to its current trophic status (Hall et al. 1999). Hall et al. (1999) have theorized that the initial period of

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______productivity was due to nutrients from flooded soils, submerged vegetation, and erosion of littoral zone materials promoting eutrophic conditions, including relatively large populations of Stephanodiscus niagarae, S. parvus, and cyanobacteria. The ensuing period of reduced reservoir production began around 1972 and lasted for at least 10 years. Hall et al. (1999) hypothesized that the declines in primary production were likely due to a reduced nutrient influx as benthic sediments became permanently buried under mineral materials eroded from the lakeshore. This seems plausible due to the substantial water depth of the lake, the lack of woody vegetation as a substrate, and the high littoral erosion. Since circa 1986 paleolimnological evidence suggests that the trophic status of Lake Diefenbaker has increased (Hall et al. 1999). The WWS fish farm was first established in 1992 and would not be the cause of the change in trophic status of the lake.

The current trophic status of Lake Diefenbaker is considered to be one of moderate eutrophication or mesotrophy (Saskatchewan Environment and Environment Canada 1988, Geisy et al. 2009). Giesy et al. (2009) suggested that the total phosphorus concentration in the lake is determined by upstream sources (e.g. municipal effluent from Alberta) as concentrations of total phosphorus were not found to increase significantly while water was in the reservoir. Additionally, phosphorus concentrations were not found to be significantly different at sampling locations upstream or downstream of the Cactus Bay cage site.

5.2.6 Sediment Sampling Some sediment chemistry data was collected by DFO – Fresh Water Institute (Podemski, unpublished data) in the area of the proposed aquaculture site. Carbon, nitrogen, and phosphorus data are presented in Figures 19, 20, and 21, respectively. These are considered baseline values as the site was not in place at the time the data was collected. Locations of the core samples collected for measuring carbon, nitrogen, and phosphorus are shown on the following maps by purple “x”s. The estimated location of the cage system is shown by a green grid, however, the proposed location of the cages has changed slightly since these maps were produced. Bathymetric contours are in meters and are adjusted to full supply level of 556.9 m. All core samples were collected in May 2009 and only the top 2 cm of the cores were analyzed. The proposed area of the cage systems is characterized by relatively high concentrations of carbon, nitrogen, and phosphorus when compared to the sampled areas closer to shore.

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Figure 19. Kadla Coulee Sediment Carbon Concentration (mg/g) Note: Figure was produced by DFO – Fresh Water Institute

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Figure 20. Kadla Coulee Sediment Nitrogen Concentration (mg/g) Note: Figure was produced by DFO - Fresh Water Institute

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Figure 21. Kadla Coulee Sediment Phosphorus Concentration (mg/g) Note: Figure was produced by DFO – Fresh Water Institute

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5.2.7 Dissolved Oxygen Some dissolved oxygen (DO) data was collected at the Riverhurst Ferry crossing near the mid-point of the lake in 1984-85 (International Lake Environment Committee). DO fluctuated with the time of year and varied with water depth. The highest dissolved oxygen measured in 1984-85 occurred in February at depths of 15 m and less (i.e. 12.0 – 12.1 mg/L). The lowest DO concentrations occurred in August and were noticeably lower at depths of 30 m and greater. The lowest measured DO concentration was 2.7 mg/L at a depth of 35 m. At 25 m deep and shallower, DO concentrations remained at approximately 6 mg/L or more.

WWS has measured DO at the Cactus Bay site at depths ranging from 0 to 20 m deep. In 2009, the lowest DO recorded was 6.1 mg/L at 2 m deep and was in late August. The 2009 highest recorded DO was 14.0 mg/L at 12, 16, and 18 m deep and was in early May. WWS monitors DO most intensely from July through September because of the lower ambient DO and the higher metabolic rates of the fish (i.e. they require more oxygen during warm water months when they are feeding most heavily) during this time period. The DO trend at 4 m deep for the years 2006 through 2009 is shown in Figure 22.

Figure 22. Dissolved Oxygen (mg/L) Trend at 4 m Deep in Cactus Bay from 2006 to 2009

14

12

10

8

6

4

2 Dissolved Oxygen (mg/L) Oxygen Dissolved

0

g ing ng mer Fall mer Fall inter mer Fall inter mer Fall Winter Spr Winter Spri W Sprin W Spring um Sum Sum Sum S 2006 2007 2008 2009

5.3 Biological Environment

5.3.1 Benthic Community Historically, there appears to be very little work on the benthic community of Lake Diefenbaker. As reported in a review and evaluation of Lake Diefenbaker by Canadian Aquaculture Systems, Inc. (1999), in 1969 shortly after the lake was created, chironomids dominated the lake sediments. Amphipods, which require oxygen rich

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______waters, were commonly observed to depths of 30 m and oligochaetes, which tolerate low oxygen environments, dominated depths between 30 and 40 m.

Benthic invertebrates were identified and enumerated by DFO – Fresh Water Institute from sediment samples collected in Kadla Coulee. The results are considered to be baseline data since cores were collected approximately 15 years after the aquaculture cages were removed. Benthic cores of a minimum depth of 10 cm (surface area of 21.23 cm3) were collected in March of 2009. Only the top 2 cm of each core were analyzed. Samples were preserved in 10% formalin for approximately 2 weeks before washing and sieving. After sieving, samples were preserved in 70% ethanol, sorted, and counted. Most of the organisms identified were minute and required the use of a 250 µm mesh during the sieving process. Oligochates, nematodes, pelecypods, chironomids, and ostracods were all identified and enumerated. The most abundant groups identified were the nematodes and oligochaetes. The proposed cage site would be located near relatively high densities of nematodes and oligochaetes but near relatively low densities of pelecypods, chironomids, and ostracods. Figures 23, 24, 25, 26, and 27 illustrate the abundance and approximate distribution of the various groups of organisms. In each figure, the approximate location of the proposed cages is shown by a green grid and each sample location is marked by a purple “x”. Since these figures were drawn, the proposed location of the cage systems has moved slightly.

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Figure 23. Oligochaeta Abundance (# of individuals/m2) and Distribution in Kadla Coulee Note: Figure was supplied by DFO – Fresh Water Institute

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Figure 24. Nematoda Abundance (# of individuals/m2) and Distribution in Kadla Coulee Note: Figure was supplied by DFO – Fresh Water Institute

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Figure 25. Pelecypoda Abundance (# of individuals/m2) and Distribution in Kadla Coulee Note: Figure was supplied by DFO – Fresh Water Institute

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Figure 26. Chironomidae Abundance (# of individuals/m2) and Distribution in Kadla Coulee Note: Figure was supplied by DFO – Fresh Water Institute

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Figure 27. Ostracoda Abundance (# of individuals/m2) and Distribution in Kadla Coulee Note: Figure was supplied by DFO- Fresh Water Institute

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5.3.2 Fish Species and Habitat Lake Diefenbaker is home to 26 species of fish (Saskatchewan Watershed authority 2007), 11 of which are native and stocked game-fish species (Wikipedia 2009b). The most common species of fish that inhabit Lake Diefenbaker include northern pike, walleye, and rainbow trout (Lake Diefenbaker Tourism 2008). Yellow perch, burbot, lake whitefish, sauger, goldeye, lake trout, and Atlantic salmon are also game fish species that can be found in Lake Diefenbaker waters. Pike and walleye are often fished at the head of flooded coulees early in the season. Rock points, sunken islands, and areas of sudden depth change are the most common places sport fishermen find walleye and northern pike are often found patrolling the weed beds (CJM Holdings Ltd. 2005).

The demand for fish in the prairies increased due to the rapid settlement of the west in the early twentieth century. The Fort Qu’Appelle Fish Culture Station began operating in 1915 to raise fish for release into water bodies where winterkill or overfishing had occurred or where natural reproduction was not successful (Saskatchewan Environment and Resource Management). It currently produces fish for stocking in about 100 lakes in Saskatchewan with walleye, brown trout, and rainbow trout comprising the majority of station stock. Species that have been reared at the station include whitefish, cisco, perch, bass, walleye, brown trout, rainbow trout, lake trout, brook trout, smelt, arctic grayling, kokanee salmon, alpine char, splake trout, coho salmon, cutthroat trout, and tiger trout. To date, the station has supplied more than 2 billion fish to stock water bodies throughout the province. Stocking of non-native fish into Saskatchewan waters has been occurring for many years. For example, rainbow trout are not native to Lake Diefenbaker but are considered a naturalized species. A significant population of rainbow trout inhabits the lake, largely due to stocking efforts, improvement or restoration of spawning habitat, and the maturation of the lake (Canadian Aquaculture Systems Inc. 1999).

5.3.3 Migratory Bird Nesting, Feeding, and Staging Areas According to Lake Diefenbaker Tourism (2008), the Lake Diefenbaker area coincides with the sandhill crane migration corridor. The sandhill crane is listed as “not at risk” by COSEWIC and it has no SARA status. The whooping crane and piping plover also can be found along the shores of Lake Diefenbaker (Lake Diefenbaker Tourism 2008). The piping plover nests along the shores of Lake Diefenbaker and is considered endangered by COSEWIC and is listed on the SARA Schedule 1. When migrating, whooping cranes stop to roost and feed in a variety of wetlands and croplands however Lake Diefenbaker isn’t considered to be current natural nesting ground for this species (Department of Justice Canada 2009).

The proposed aquaculture site sits on the edge of the Missouri Coteau, which is an extensive glacial moraine covering approximately 7 million ha in Canada and the United States, of which 3 million ha occur in Saskatchewan (Nature Conservancy Canada 2009) (Fig. 28). The Missouri Coteau is considered to be an important waterfowl breeding area with the wetland complexes or "prairie potholes" having been identified as

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Western Hemisphere Shorebird Reserve Network, RAMSAR, and Important Bird Area sites. The Missouri Coteau is home to several species at risk including the Piping Plover, Burrowing Owl, Sprague’s Pipit, Ferruginous Hawk, Loggerhead Shrike, Long- billed Curlew, Yellow Rail, Northern Leopard Frog, and Monarch Butterfly (Nature Conservancy Canada 2009).

Figure 28. Extent of the Missouri Coteau Note: Map was taken from the Nature Conservancy Canada (2009) website

N

Kadla Coulee

Swift Current

100 km

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6.0 SOCIO-ECONOMIC AND LAND USE ISSUES

6.1 Employment Tables 6 and 7, obtained from the Statistics Canada (2007a, b, and c) website, outline employment rates and industries relative to the communities nearby the WWS operations and the province of Saskatchewan as a whole. The data is based on the 2006 census.

The 2006 census showed that in Saskatchewan, 65% of the population lived in urban areas and 35% of the population lived in rural areas (Statistics Canada 2009), thus there is considerable reliance on natural-based processes (e.g. farming). The finfish aquaculture industry is a good example of the importance of a natural-based industry and the strong local market demonstrates that. Finfish aquaculture has the potential to be an economically sustainable, reliable, and environmentally sustainable industry in the Lake Diefenbaker area.

WWS currently provides 22 full time positions and 4 part time positions and the proposed new site would increase the number of full time positions by 5 or 6. WWS is currently the single largest employer in the Lucky Lake area, and although Tables 6 and 7 depict an extremely low unemployment rate, the company receives a steady flow of applications and resumes. They do not anticipate having any difficulty filling these new positions. Staff training is conducted by WWS so new hires require no specific education or skills sets.

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Table 6. Labour Force Indicators for Area Communities and Province

Labour Force Village of Luck Lake Village of RiverhurstR.M. of Canaan R.M. of Coteau Village of Beechy Saskatchewan Indicators Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Participation rate 48.8 70.6 34.8 45.5 50 40 92.3 93.3 75 85.5 88.4 78.8 53.8 81.2 33.3 68.4 74.4 62.8

Employment rate 48.8 70.6 34.8 45.5 41.7 40 92.3 100 66.7 84.2 90.7 78.8 46.2 81.2 20.8 64.6 70 59.4

Unemployment rate 00000000000014.30255.65.95.3

Table 7. Industries of Area Communities and Province

Village of Luck Lake Village of Riverhurst R.M. of Canaan R.M. of Coteau Village of Beechy Saskatchewan Industry Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total - Experienced labour force 100 60 40 50 25 20 115 75 40 320 190 130 105 65 40 517,475 274,140 243,340 Agriculture and other resource-based industries 50 35 15 10 10 0 80 70 10 215 165 50 20 20 0 84,305 64,265 20,040 Construction 0000000001000010029,94026,8353,105 Manufacturing 101000000002502500029,86522,9856,885 Wholesale trade 0000000001000001019,10014,0705,035 Retail trade 25101500000000040201556,73025,62031,110 Finance and real estate 0000000001001000025,2809,24516,035 Health care and social services 0 0 0 10 0 10 10 0 10 35 0 40 10 10 10 58,405 8,855 49,545

Educational services 0000001502000000040,31512,20028,115 Business services 10 0 0 10 10 0 10 0 0 15 10 10 10 10 0 70,545 43,090 27,450 Other services 00015100001010100000102,99046,97056,025

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6.2 Recreational Use of Kadla Coulee

6.2.1 Recreational Fisheries Lake Diefenbaker is known for its world class fishing and boasts that the world record rainbow trout was landed from its waters (International Game Fish Association). The 2010-2011 fishing season runs from May 8 until March 31 (Saskatchewan Ministry of the Environment 2009). The main fish caught are walleye, rainbow trout, and goldeye whereas the fish with highest percentages kept (i.e. preferred species) are rainbow trout (93%); sauger (82%) and walleye (61%) (T. Johnston, pers. com.). WWS does not anticipate that the new site will cause any significant negative changes to the existing recreational fishery because the cages will be placed in the mouth of the bay where the water is deep and not of typical walleye habitat. Some complaints have been expressed by recreational anglers that the trout aquaculture, specifically the escape event of 2000, has negatively impacted walleye fishing (T. Johnston, pers. com.). Weak or strong year classes of walleye tend to correlate with regional climate (Wallace and Jensen 2004). While the data presented by Wallace and Jensen (2004) were not considered suitable for detecting any impacts of escaped rainbow trout on walleye growth, they reported that walleye spawning populations remained healthy for three years after the escape event.

Positive effects the new cage site may have on the fishery include additional shelter and food for wild, stocked, or naturalized fish. Anecdotal evidence suggests that some anglers have had increased fishing success in Cactus Bay where WWS currently maintains aquaculture cages. In addition, the site location will not prohibit entrance in to the bay and anglers will continue to have full access to the shallower waters near shore.

6.2.2 Other Recreational users In addition to fishing, Lake Diefenbaker is home to many recreational activities including camping, sailing, water skiing, swimming, and jet skiing. It is unlikely the new site will affect camping, water skiing or swimming as there are no camp grounds, boat landings, or sandy beaches within 2 km of the site (see Fig. 12 resource users map section 5.1 Lake History Geography, and Geology).

Kadla Coulee is considered a safe anchorage bay and is often used by the Lake Diefenbaker yacht club. The preferred anchorage in this bay is along the northwest edge (S. Turk, pers. com.) and the site will be placed in the center of the mouth of the bay, (see Fig. 8 section 2.5 Proposed Facilities). The mouth of Kadla Coulee is very large and access to the bay from both sides will be maintained. In actuality, the cages will only take up approximately 3 – 5% of the width of the bay as measured from shoreline to shoreline at FSL.

6.2.3 Aboriginal Considerations There are no First Nations’ reserves established in the immediate area of Kadla Coulee. The closest resident First Nations to the proposed aquaculture site is the Whitecap Dakota First Nations. Attempts were made to contact the Whitecap Dakota First Nations regarding any potential conflicts the WWS project in Kalda Coulee may have with First

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Nations’ rights. However, to date, no replies have been received. However, correspondence from the Ministry of Environment, Aboriginal Affairs Branch (R. Brown pers. com.), indicates that the general area has cultural and spiritual significance to the First Nations people and was historically used as hunting grounds. Contemporary usage of Lake Diefenbaker by aboriginal peoples is in general very limited and the specific area of Kadla Coulee is not presently used by First Nations people. The historic and contemporary use of the area would be by the Touchwood Agency Tribal Council and the File Hills Qu'Appelle Tribal Council (R. Brown pers. com.).

6.2.4 Land Use The land surrounding Kadla Coulee has been designated by the Saskatchewan Watershed Authority as a “Restricted Building Area”. A map of the Lake Diefenbaker area showing land use was produced by the WaterWolf Advisory Planning Commission (2008) (Appendix 5). WWS plans to access the proposed new site via the water during open water months and will use their existing land-based infrastructure to support this site. During months of ice cover on the lake, WWS will access the site by snowmobile over the ice. Only during periods when the ice is soft or thin will WWS access the site by land. During these periods, WWS will use the beaches. Therefore, no conflicts with land owners are anticipated.

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7.0 OCCUPATIONAL HEALTH AND SAFETY WWS is a company in good standing with the Saskatchewan Workers Compensation Board. Since 2007, they have received a discount in their compensation rates due to a low injury/accident rate.

All new and existing employees are trained in the WWS company “Health and Safety Program” prior to the commencement of work. The program includes; a safety policy, rights and responsibilities, discipline for safety infractions, hazard identification, safety rules, committees, and safe operating procedures. Due to the length of the company health and safety program, a copy of it is not included in this application, however, it will be made available upon request.

In addition to the safety orientation training in the company program, WWS provides other safety training based on:  Skills and knowledge required to complete assigned tasks and operate the required tools and equipment in a competent manner;  Compliance with Occupational Health and Safety Legislation;  Introduction or modifications to processes or equipment.

Since WWS has an existing site that has been incorporated into the company health and safety program, they do not anticipate the new site will require any changes be made to the program.

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8.0 PUBLIC INVOLVEMENT The original application put forward by WWS requested a production increase and the development of three new sites, at three separate locations. That application was submitted to Saskatchewan Environment in July 2006. The application did not see completion since WWS, at the time, did not have the resources to dedicate to the project. Moreover, WWS decided to partner with DFO – Freshwater Institute on an ACRDP project involving modeling of freshwater aquaculture sites and dedicated significant resources to the project.

Leading up to the July 2006 submission of the application there were meetings with Saskatchewan Environment, the council of the Rural Municipality of Coteau #255, and the council of Canaan #225. Letters of support from the council meetings and an agenda from the Saskatchewan Environment meeting are attached in Appendix 6.

In 2008, WWS decided to again apply for a production increase and the development of a single new site. Saskatchewan Environment was again contacted, and on March 18, 2008 they issued “Project Specific Guidelines for the Preparation of an Environmental Impact Statement” to WWS. As word of the proposed application spread, Saskatchewan Environment received letters of opposition from the Rural Municipalities of Victory #226 and Maple Bush #224 (Appendix 6). The letter from Maple Bush #224, raised the concern of sites being placed in “popular recreation areas” and cited the areas of Belhumeur Bay and South Ferry, which were two of the three sites under the original application. However, the present application only covers the area of Kadla Coulee. Belhumeur and South Ferry are not being pursued as potential aquaculture sites at this time.

The opposition letter from the Victory #226 expressed a concern for water quality near the Coteau Hills Rural Water Pipeline. In Saskatchewan Environment’s response (Appendix 6) it was explained that the EIA was expected to address the potential effects of the fish farm on the water quality. Section 9.1.1 Water Quality explains in detail the potential impacts to water quality and what mitigation efforts WWS will utilize to reduce or eliminate those effects.

In 2009, SIMCorp was contracted by WWS to assist in the completion of the EIA and application process. In November 2009, the SIMCorp team traveled to Saskatchewan to meet with WWS and Tom Maher of the Saskatchewan Environment. This meeting was to inform Saskatchewan Environment of the intension of WWS to move forward with the application and to confirm that the previous issued guidelines still fulfilled the province’s requirements for the application. Public consultation is part of those requirements. In addition to the many consultations that have been done in compiling the data for the EIA (Table 8), it is WWS’s intention to have two separate open houses, one in Lucky Lake and one in Riverhurst. Although the dates are not yet confirmed, the open houses will be announced early enough to ensure a reasonable amount of time is provided for all interested area residents to make plans to attend. SIMCorp will be available at the open

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houses to answer any questions regarding the EIA. The open houses will provide an opportunity for the general public and all other stakeholders to voice their comments and concerns. An addendum to this report will be provided to the reviewing agencies upon the conclusion of the open houses. This follow-up report will provide information from the open houses such as attendance records and comments or concerns expressed during the meeting.

Table 8. Public Consultation Record

Name of Phone Date of Reason for Affiliation E-mail contact # contact contact Sask. 306- Inflow & Doug Jan Watershed N/A 694- outflow data for Kilgour 21/10 Authority 3113 the lake Sask. 306- Inflow & Martin Jan Watershed N/A 694- outflow data for Grayjczyk 21/10 Authority 3893 the lake 506- Andrew Open Ocean Jan Information on [email protected] 672- Storey Systems 28/10 iCages™ 7968 Denise Feb Waterwolf [email protected] N/A Land use map Strodder 8/10 306- Tanya Ministry of Feb [email protected] 787- Sport fisheries Johnston Environment 8/10 2467 Fish diseases Feb Bill Cox DVM [email protected] N/A & human 8/10 health risks Commercial 306- Peter Feb Commercial Fishery [email protected] 787- Ashcroft 8/10 fisheries Specialist 2877 306- First Nations Susan Government of Feb [email protected] 787- and Metis Birley Saskatchewn 8/10 9039 relations Lake 306- Scott Feb Diefenbaker [email protected] 956- Recreation Turk 8/10 Yacht Club 6447 Whitecap 306- Warren Feb First Nations Dakota First [email protected] 477- Buffalo 9/10 activities Nations 0908 Ministry of 306- Jennifer Environment, Feb Aboriginal [email protected] 787- McKillop Aboriginal 17/10 treaties, etc. 9643 Affairs Ministry of 306- Aboriginal Roger Environment, Mar [email protected] 787- treaties & land Brown Aboriginal 1/10 1990 use Affairs

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9.0 IMPACT ASSESSMENT AND MITIGATION

9.1 Impacts to the Environment from the Project

9.1.1 Water Quality

9.1.1.1 General Dissolved phosphorus and other nutrients may leach out of wasted feed and enter the water column. Increased concentrations of dissolved phosphorus are a cause of eutrophication in lakes. Thus, wasted feed is not only an economic problem that results in lower profits, it is an environmental hazard. WWS mitigates against the unnecessary input of excessive sediments and dissolved nutrients by limiting waste feed. Minimizing waste feed is achieved by feeding only once per day. This ensures that the fish are hungry when fed and will eat the food that is presented to them. Feeding the fish twice per day results in wasted food because the fish do not need nor respond to the food that is offered during the second feeding. To further reduce waste feed, WWS uses feed tables and uses cameras to monitor the fish feeding behaviour. When the fish feeding activity slows, food is no longer offered.

Phosphorus is added to the environment via the feed that the cultured fish are fed. The addition of phosphorus to the environment occurs largely through the faecal material produced by the fish. WWS strives to reduce the amount of phosphorus that is introduced to the environment by utilizing feeds that are as low in phosphorus as possible. Additionally, feed use by WWS is regulated to ensure that an acceptable amount of phosphorus released to the environment is not exceeded. WWS upholds this regulation and does not exceed the permitted amount of feed. At a feeding rate of 1800 MT/yr, WWS estimates that 4.11 MT of dissolved phosphorus enters Lake Diefenbaker each year from the Cactus Bay site. In comparison, dissolved phosphorus loads to the Lake Diefenbaker reservoir are estimated to be 121 ± 60 MT/yr (Canadian Aquaculture Systems Inc. 1999). Should a production increase be granted to WWS and an increase of feed use be permitted, WWS will adhere to the new regulated amounts.

Nitrogenous compounds are also released to the environment as the fish excrete waste products. It is widely accepted that nitrogen and phosphorus are a concern with water quality, particularly because of their role in supporting toxic algal blooms. The report Nutrient loading and toxic algal blooms in Lake Diefenbaker (Giesy et al. 2009) provides information on the trophic state of Lake Diefenbaker (i.e. it is considered mesotrophic) and the roles nitrogen and phosphorus play in harmful algal blooms in the lake. In Lake Diefenbaker, phosphorus is the limiting factor for algal production and nitrogen is not a significant predictor of algal growth. Therefore, the addition of nitrogenous compounds originating from the fish farm will not contribute to algal blooms that may occur. Additionally, most of the phosphorus in Lake Diefenbaker originates upstream of the Lake (e.g. Calgary) and concentrations of total phosphorus do not increase significantly while water is in the reservoir. Therefore, any addition of phosphorus originating from

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______the aquaculture site is insignificant when compared to the total phosphorus entering the lake from upstream sources and would not be the cause of any algal blooms that may occur. However, WWS remains committed to minimizing the addition of phosphorus to the Lake ecosystem through responsible feed management.

During the summer months, dissolved oxygen (DO) levels in the lake naturally fluctuate. Higher DO concentrations are present through the daylight hours. As darkness progresses, DO decreases until after sunrise when DO begins to increase again. Algae, which are naturally present in the lake water, are responsible for producing much of the oxygen that that is present. Wind and wave action also disturb the water surface and increase DO levels. The fish held in Cactus Bay consume oxygen through their metabolic processes and can cause a localized reduction in DO, especially within the cage system. Reduced DO concentrations are not healthy for the farmed fish or other aquatic animals. WWS feeds their fish in the morning after the DO levels have reached a satisfactory level. This helps to ensure that localized oxygen depletion does not occur at the cage site and thus is better for fish health. WWS also utilizes a forced air system which produces air bubbles in the cage system. The air system adds some oxygen to the water but more importantly helps to circulate the water in and through the cage system, thus decreasing the potential for localized oxygen depletion. During the winter months, algae are comparatively inactive but the water temperatures are very low and allow for higher concentrations of DO. Over the 4 years from which DO data is available from the Cactus Bay site (see section 5.2.6 Dissolved Oxygen), the lowest DO concentrations measured occurred in August and September with the lowest readings occurring at 0 and 20 m deep (i.e. 5.2 and 5./4 mg/L, respectively). Generally speaking, the DO concentrations at the Cactus Bay cage site remain above 6 mg/L. It is recommended that the DO remain above 5.0 mg/L for trout farming (Manitoba Water Stewardship Fisheries Branch 2004).

9.1.1.2 Drinking Water Implications Since there is a pumping station in Kadla Coulee that draws water for drinking water supplies, consideration must be given to the threat of contaminants from the cage site reaching the pumping station. The pumping station is ~2.0 km from the proposed lease area. With respect to fish diseases, none of the pathogens that could potentially affect the WWS stocks are harmful to humans and there is an extremely low risk of pathogen threat to drinking water, from cultured fish stocks (B. Cox, DVM, pers. com.). Additional treatment for pathogens at water treatment facilities downstream of the proposed Kadla Coulee site is not anticipated to be necessary.

Nitrogenous compounds such as nitrate (NO3), nitrite (NO2), and ammonia may enter the water as metabolic wastes from the fish or through uneaten feed particles. Canada has established guidelines for some of these substances in drinking water. The upper limit recommended by Health Canada (2010) for nitrate is 10 mg/L as nitrate-nitrogen and the upper limit for nitrite is 3.2 mg/L when nitrate and nitrite are determined separately. Health Canada has set no maximum limit for ammonia since it is produced by the body

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______and enzymes efficiently process it in healthy individuals. Phosphorus is not included in the Health Canada drinking water chemical/physical parameters considered.

Canada has set guidelines for the acceptable concentrations of nitrate-nitrogen and nitrite-nitrogen in drinking water. The maximum acceptable concentration of nitrate- nitrogen is 10 mg/L (or 10,000 µg/L) and the maximum acceptable concentration of nitrite-nitrogen is 3.2 mg/L (or 3200 µg/L). Water quality testing completed by DFO includes measurements of nitrate and nitrite concentrations at the cage site in Cactus Bay, at locations upstream and downstream of the cage site, and at Kadla Coulee and Belhumeur Bay. The Kadla Coulee and Belhumeur Bay results could be used as control stations with which to compare the Cactus Bay data as no aquaculture activities are presently occurring in those locations. Table 9 outlines some of the 2008 results of the water quality testing at Cactus Bay, Kadla Coulee, and Belhumeur Bay. None of the results from 2008 exceed the upper limits for nitrate or nitrite, including the results from water samples collected from the aquaculture cages. Similar results were obtained in 2009, with none of the results exceeding the maximum limits. In fact, nitrate and nitrite concentrations from 2009 were less than those from 2008. Only 2008 data are presented here since maps of the sampling locations were available for certain sampling events in 2008 only (Fig. 29) and for brevity only data from two sampling depths are presented. When considering the entire dataset from 2008 and 2009, the maximum concentration of nitrate-nitrogen encountered in Cactus Bay was 350 µg/L and the maximum concentration of nitrite-nitrogen was 20 µg/L, both values are far below the acceptable levels. The highest concentrations of nitrate and nitrite encountered were from Belhumeur Bay, which is far upstream from the aquaculture cages and would not be affected by the aquaculture activities. These results would suggest that no further water treatment for nitrate or nitrite will be required at water treatment facilities downstream of the Kadla Coulee aquaculture site, if approved. Furthermore, the fish that will be maintained at Kadla Coulee will be small in comparison to those at Cactus Bay and should produce even fewer metabolic wastes in total.

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Table 9. DFO Water Quality Testing in Cactus Bay, Kadla Coulee, and Belhumeur Bay from 2008 Notes: established acceptable upper limit (UL) of nitrate is 10,000 µg/L, UL of nitrite is 3200 µg/L, the method detection limit (MDL) for nitrate nitrogen = 0.8 µg/L and MDL for nitrite nitrogen = 0.2 µg/L)

Sampling Date Bay Location Depth Nitrate (ug/L) Nitrite (ug/L) 27/08/2008 Belhumeur mouth of bay 10 m 207 12 27/08/2008 Belhumeur inside bay 10 m 213 15 27/08/2008 Kadla Coulee mouth of bay 10 m 243 6 27/08/2008 Kadla Coulee inside bay 10 m 246 6 27/08/2008 Cactus Bay downstream 10 m 243 6 27/08/2008 Cactus Bay upstream 10 m 237 12 27/08/2008 Cactus Bay back of bay 10 m 243 9 27/08/2008 Cactus Bay cages 10 m 285 3 02/10/2008 Belhumeur inside bay 10 m 212 2 02/10/2008 Belhumeur mouth of bay 10 m 210 2 02/10/2008 Kadla Coulee inside bay 10 m 242 6 02/10/2008 Kadla Coulee mouth of bay 10 m 248 6 02/10/2008 Cactus Bay downstream 10 m 248 6 02/10/2008 Cactus Bay upstream 10 m 238 6 02/10/2008 Cactus Bay back of bay 10 m 242 8 02/10/2008 Cactus Bay cages 10 m 240 8 04/11/2008 Belhumeur mouth of bay 10 m 184 1 04/11/2008 Belhumeur inside bay 10 m 183 1 04/11/2008 Kadla Coulee mouth of bay 10 m 242 2 04/11/2008 Kadla Coulee inside bay 10 m 246 2 04/11/2008 Cactus Bay downstream 10 m 232 2 04/11/2008 Cactus Bay upstream 10 m 224 2 04/11/2008 Cactus Bay back of bay 10 m 226 2 04/11/2008 Cactus Bay cages 10 m 222 2 27/08/2008 Belhumeur mouth of bay near surface 216 6 27/08/2008 Belhumeur inside bay near surface 216 12 27/08/2008 Kadla Coulee mouth of bay near surface 240 6 27/08/2008 Kadla Coulee inside bay near surface 240 9 27/08/2008 Cactus Bay downstream near surface 243 6 27/08/2008 Cactus Bay upstream near surface 243 6 27/08/2008 Cactus Bay back of bay near surface 249 6 02/10/2008 Belhumeur inside bay near surface 204 2 02/10/2008 Belhumeur mouth of bay near surface sample lost sample lost 02/10/2008 Kadla Coulee inside bay near surface 232 6 02/10/2008 Kadla Coulee mouth of bay near surface 234 6 02/10/2008 Cactus Bay downstream near surface 246 10 02/10/2008 Cactus Bay upstream near surface 226 4 02/10/2008 Cactus Bay back of bay near surface 240 6 02/10/2008 Cactus Bay cages near surface 244 8 04/11/2008 Belhumeur mouth of bay near surface 182 1 04/11/2008 Belhumeur inside bay near surface 184 1 04/11/2008 Kadla Coulee mouth of bay near surface 242 2 04/11/2008 Kadla Coulee inside bay near surface 246 2 04/11/2008 Cactus Bay downstream near surface 230 2 04/11/2008 Cactus Bay upstream near surface 224 1/2 MDL 04/11/2008 Cactus Bay back of bay near surface 226 2 04/11/2008 Cactus Bay cages near surface 220 2 SW2009-032  70 March 2010

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Figure 29. Chart Showing Water Quality Sampling Locations Note: Locations shown in the legend correspond to locations listed in Table 9.

N Kadla Coulee

Cactus Bay

LEGEND Inside bay Mouth of bay Back of bay Cages

Belhumeur Bay Upstream 3 km Downstream

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9.1.2 Cumulative Effects Fish excrete nitrogenous wastes directly into the lake water. However, the cumulative effects of the nitrogen excreted by fish introduced at the Kadla Coulee site should be insignificant with respect to eutrophication of the lake. In a study by Giesy et al. (2009), it was determined that the limiting factor controlling algal growth in Lake Diefenbaker was total phosphorus, while total nitrogen was not a significant predictor of algal production. However, Kullman et al. (2009) found that, in both the second and third years following the initiation of a trout farm, there was a significant increase in nitrogen isotopes of rainbow trout feed in all organisms they sampled (littoral, pelagic, and profundal) in the experimental lake. This indicated that the wasted feed and faecal material from the aquaculture operation was progressively becoming a more important component of the organisms’ diets. It would seem reasonable that the same would be true of Lake Diefenbaker and it is likely that the Kadla Coulee fish farm will become a source of food for both invertebrates and small fish. Over time this may translate into a higher wild fish biomass (e.g. minnows) near the new cage site.

The addition of phosphorus to the environment via fish feed and faeces is controlled by both the amount of feed WWS is permitted to use and by WWS’ practices of severely limiting wasted feed and over-feeding. Figure 4 (Section 1.8 Monitoring) illustrates that ortho-phosphorus concentrations do not vary greatly between locations upstream and downstream of the fish farm. In most years, ortho-phosphorus concentrations in the water column are greater at the cage site than either upstream or downstream. This would imply that the effects of the fish farm are quite localized and not discernable on a lake-wide scale. Given the small scale of the WWS operations, the large quantity of water in Lake Diefenbaker, and the lake’s moderate residence time, the addition of phosphorus to the lake water by the fish farming operations is not likely to be significant. Canadian Aquaculture Systems, Inc. (1999) calculated an estimated annual total phosphorus load from 2205 MT of cultured rainbow trout in aquaculture cages on Lake Diefenbaker (note: WWS is currently licensed to produce 1450 MT of trout annually). When compared to the total phosphorus loads to the reservoir from other sources, the aquaculture contributions would amount to 1.7% of the total load and would not be significant with respect to the annual variability of phosphorus loads to the lake.

Background levels of total phosphorus in Lake Diefenbaker water, as estimated from the upstream sample results in Figure 3 (section 1.8 Monitoring), generally fall between 10 and 20 µg/L, the range set by Vollenweider (1968) and Sawyer (1947) as indicative of mesotrophic lakes. It is interesting to note that the major source of phosphorus to the lake is not local agricultural lands. Carson (1992) concluded that the major sources of phosphorus carrying sediments entering Lake Diefenbaker were not from farmland erosion and noted that present-day eutrophication of large rivers occurs downstream of the major sewage treatment plants and does not seem to be directly related to sediment. Cessna et al. (2001) also noted that agricultural run-off through drainage ditches did not significantly increase nutrient concentration in the South Saskatchewan River water. Giesy et al. (2009) have shown that phosphorus concentrations in Lake Diefenbaker do

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______not increase significantly while the water is in the reservoir and that most of the phosphorus originates from upstream sources. Thus eliminating inputs of phosphorus to the environment from the fish farm will not appreciably lower the phosphorus concentrations in Lake Diefenbaker water. The increased trophic status of Lake Diefenbaker that occurred circa 1986 (see section 5.2.4 Water Quality) cannot be mitigated by controls implemented at the fish farm. Although what phosphorus enters the lake from the fish farming operations may not produce any discernable cumulative effects regarding phosphorus accumulation on a lake-wide basis, it is still prudent for WWS to continue to minimize wasted feed and minimize the addition of phosphorus to the environment.

The addition of excess feed to the environment results in degraded bottom sediments and benthic conditions that can be hostile to benthic infauna. The cumulative effects of the fish farming operations on the lake will be most discernable as impacts to the lake bottom in a localized area either directly under the cage site or very near the cage site as solid wastes from the farm settle out of the water column. A study of the effects of caged fish aquaculture on the communities of a shallow lake in China (Guo and Li 2003) indicated that the negative effects of aquaculture may be detected up to 50 m from cage edge. However, work conducted in the Experimental Lakes Area of Ontario (Kullman et al. 2007, Rooney and Podemski 2009) suggested that the detrimental benthic impacts of fresh water cage culture of rainbow trout in a lake environment are localized and restricted to the area immediately below the cage system (i.e. death of fingernail clams) and that outside, but very near the cage system, the fingernail clams experienced an increase in both growth and fecundity. These works suggests that the aquaculture operation my have both negative and positive effects to the benthic invertebrate community, making some areas of the benthos uninhabitable while augmenting other portions of the lake floor.

DFO – Fresh Water Institute – Environmental Sciences Division has done some predictive modeling in an effort to estimate potential impacts to the benthic environment (C. Podemski, unpublished data). The DEPOMOD software has not yet been validated for use in freshwater environments but it was used as a tool to provide an estimate of the future distribution of carbon (g C/m2/day), originating from the cage culture, in the lake bed. The results of the DEPOMOD model suggest that the carbon deposition from the farm in Kadla Coulee will drop below 1 g C/m2/day between 35 and 70 m from the center of the cage array. Impacts will likely be influenced by feeding effort, with higher feeding rates resulting in greater deposition of carbon.

Irrigation is the most consumptive use of prairie water. Almost all of the irrigated land in the prairies is in the south Saskatchewan basin (Schindler and Donahue 2006). Schindler and Donahue (2006) reported that 13 irrigation districts and privately irrigated lands apply about 2.5 km3 of water to approximately 1.63 million acres annually. Typically, about 20% of this is returned to the rivers and can contain pathogens, nutrients, pesticides, and herbicides (Schindler and Donahue 2006). In comparison, the cage structures at Cactus Bay cover an area of approximately 3.5 acres and do not

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______make use of pesticides or herbicides. Given that WWS has not had any major outbreaks of disease with their fish, release of pathogens into the lake water is a low risk.

9.1.3 Sediment Deposition Sediment deposition occurs directly below aquaculture cage sites. Waste feed pellets and fish faeces tend to settle fairly quickly from the water column and rest on the substrate below and immediately around the cage system. With the precautions taken by WWS to avoid inefficient feeding of the fish, it is likely that most of the sediment that will fall below the Kadla Coulee cage site will be fish faeces. The resulting sediment layer will likely be quite soft and “fluffy” in nature. The lower bulk density of the sediment directly below the cages may make it an inhospitable environment for benthic invertebrates such as molluscs (Kullman et al. 2007). Clams can sink into the sediment below aquaculture cages which likely inhibits their ability to carry out normal respiratory and feeding behaviours (Kullman et al. 2007). However, Kullman et al. (2007) found that sediments collected from only 1 m away from an aquaculture cage was not only able to support live clams but that the clams experienced higher growth rates and increased reproduction than clams maintained in sediments from further away from the cage site. This suggests two things. First, the detrimental effects of the cage site were confined to an area directly below the cage system and, second, the organic enrichment of the sediment with farm wastes diminished quickly with distance from the cage site.

The presence of copper and zinc in aquaculture sediments may cause toxic effects in benthic organisms such as clams or other bivalves. Both copper and zinc are required in the diet of salmonids and are added to the feed used by WWS (Appendix 2). Therefore, copper and zinc likely will be deposited in the sediments below the cage site at Kadla Coulee. In a study by Kullman et al. (2007), copper and zinc concentrations in sediments from directly under an aquaculture operation in the Experimental Lakes Area of Ontario were observed, but concentrations in sediments collected only 1 m from the cage edge were not significantly different from samples collected 50 m away from the site. This would suggest that the presence of copper and zinc in the sediments, deposited from the aquaculture site at Kadla Coulee, would be highest directly below the cage system and would rapidly decrease with distance from the cages.

Another source of copper in sediments at aquaculture sites is the anti-foulant paint applied to the nets and other structures. Kullman et al. (2007) compared the concentrations of copper and zinc in fish feed, faeces, and net material from a freshwater, experimental, aquaculture operation. They found that the net material was the largest source of copper and zinc, over both the feed and faecal sources. However, WWS only treats the upper half of their nets with anti-foulant agents rather than treating the entire net surface. This reduces the use of anti-foulant. So, the presence of copper in the sediments below the Kadla Coulee site may contain less copper than the sediments analyzed by Kullman et al. (2007).

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It should be noted that the Kadla Coulee site is intended to be used for juvenile fish, which will be ≤ 0.5 kg, and so will not consume as much food as fish grown for a full production cycle. This will reduce the benthic impacts of the fish farm in Kadla Coulee as less feed will be used and less faecal material will be produced.

9.1.4 Escapes The fate and behaviour of escaped Oncorhynchus mykiss is not well understood and difficult to assess in large water bodies where most aquaculture occurs. However, studies involving the intentional release of rainbow trout in the Experimental Lakes Area of Ontario have shown that most of the fish released spent a significant amount of time at the cage site, presumably ingesting wasted feed pellets or minnows, which can be abundant at cage sites (Blanchfield et al. 2009). However, Blanchfield et al. (2009) also noted that escaped fish spent some time in nearshore areas, away from the cage canopy. Use of the nearshore areas by released trout could be explained by higher prey abundance in these areas.

WWS has experienced some fish losses due to storm damage. In 1994, while the cages were being transferred from Kadla Coulee to Cactus Bay, some fish escaped. No data is available regarding this event as management has since changed. A second escape event occurred in 1999 when a storm caused a hole in one of the containment nets. Approximately 8000 fish were lost at that time. The largest escape event occurred in 2000 when an April storm caused sheets of ice, which had begun to break up during the spring thaw, to move and collide with the cage system. At that time, the cage system in Cactus Bay was located further to the east where they were more exposed to the northeast winds during the storm. Consequently, they took damage from moving ice. Approximately 360,000 fish were lost during the storm event.

Intentionally released cultured rainbow trout can experience a mortality rate greater than 50% during the first year of release (Blanchfield et al. 2009). Only 20% of fish survived for two years after release and no fish survived longer than 3 years in the study by Blanchfield et al. (2009). The authors hypothesized that some of the mortalities were due to avian predation. In Lake Diefenbaker, where large predatory fish are present, at least some of the escaped trout from the WWS operations would no doubt have become food for larger predatory fish. Some of the WWS escapees may have also been taken by avian predators as they spent time in shallower, nearshore areas. Other studies (Wenger et al. 1985, Haynes et al. 1986) have shown high losses of rainbow trout due to angling activity and anecdotal evidence suggests that trout fishing on Lake Diefenbaker was enhanced following the mass escape event of 2000.

WWS has learned from each of the escape events experienced and now positions the cage system further into Cactus Bay (i.e. further to the west) to allow for more protection from moving ice. WWS also strives to keep the ice sheet that forms in the bay as intact as possible until it naturally breaks up. This leaves the ice little room to move and reduces the chances of damage.

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WWS inspects the cages and nets on a regular basis (i.e. inspection is on a six week cycle) to check for holes or other damage that may lead to an escape if not repaired in a timely manner. To prevent losses during harvest or introductions, WWS uses catch nets. Bird nets are also employed to prevent avian predation and escapes achieved with the help of avian predators. When an escape event occurs, WWS notifies Saskatchewan Environment. After the mass escape of 2000, WWS made attempts to recapture the lost fish. However, approvals are required for recapture activities and the one to two weeks needed to have the approvals in place limited the effectiveness of the recapture attempts. Approximately 10,000 fish were retrieved from the mass escape of 2000.

Obviously, WWS does not want to experience another major loss such as the escape of 2000 but there are two differing views held by recreational anglers regarding the escape events at WWS. One view is that the escaped fish out-compete “wild” fish populations and cause decreases in catch rates of fish such as walleye. The second view is that the escaped fish from WWS are the best thing to happen to recreational fishing on Lake Diefenbaker. Since trout is the preferred species caught on Lake Diefenbaker (determined by percentage of fish kept - T. Johnston, pers. com.), adding more trout to the system seems like a good thing to some anglers. The Ministry of Environment still gets inquiries as to the likelihood of another escape event from anglers hoping for more opportunities to catch rainbow trout (T. Johnston, pers. com.). Some anglers also believe that “wild” trout will loiter about the aquaculture cages and eat any feed that escapes the nets, thus growing larger and making for better trophy fish. The actual percentages of the main species caught on Lake Diefenbaker would indicate that rainbow trout (29%), walleye (25%), and sauger (24%) are approximately equally available for catching (T. Johnston, pers. com.).

9.1.5 Species at Risk There are a number of species found in Southern Saskatchewan, near Lake Diefenbaker, that are listed by COSEWIC (2003) and the Government of Canada Species at Risk Act (Department of Justice Canada, 2009) as either endangered, threatened or of special concern. Table 10 lists those species, their status, and their occurrence in the study area.

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Table 10. Endangered and Threatened Species near Lake Diefenbaker Note: all information in Table 10 was obtained from the Species at Risk Public Registry)

COMMON SCIENTIFIC COMMENTS NAME NAME SARA Status: Endangered Species -Last COSEWIC designation: Endangered -True causes of widespread decline are unknown but agriculture and a lack of suitable burrows are thought to Athene be a main cause of the species decline. Burrowing owl cunicularia - The species is protected under the Saskatchewan Wildlife Act, 1998, which prohibits killing, harassing, or collecting burrowing owls or destroying their habitat -May occur near the study area. -Last COSWIC designation: Endangered -Found in sagebrush communities and semi-arid short- grass prairie in southern Canada. -In the South Saskatchewan River area, the populations are restricted to the upper slopes of canyon or coulee, Greater short- Phrynosoma predominantly on the south-facing bank. horned lizard hernandesi -The greater short-horned lizard is protected under the federal Species at Risk Act (SARA). -All reptiles and amphibians are protected under the provincial Wildlife Act in Saskatchewan. -Not likely to occur near the study area. -Last COSEWIC designation: Endangered -Prefers open, sparsely vegetated, sandy habitats that facilitate its hopping locomotion and extensive burrowing. -Protected under the federal Species at Risk Act (SARA). Ord’s kangaroo rat Dipodomys ordi -The Wildlife Habitat Protection Act protects Ord’s Kangaroo Rat habitat by prohibiting the clearing and fragmentation of Crown lands. -Not likely to occur near the study area. -Last COSEWIC status: Endangered -On the prairies, nesting occurs on gravel shores of shallow, saline lakes and on sandy shores of larger prairie lakes. Seeps also provide important foraging Charadrius habitat on the Prairies. Piping plover melodus -Protected under the federal Species at Risk Act (SARA). circumcinctus -Protected by the federal Migratory Birds Convention Act. -Protected under the provincial Wildlife Act in Saskatchewan. -May occur in the study area.

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SARA Status: Threatened Species -Last COSEWIC status: threatened -The species breeds in east central Saskatchewan. -It roosts in chimneys, crevices, caves, and hollow trees. Chaetura -The chimney swift is protected under the federal Chimney swift pelagica Migratory Birds Convention Act, 1994. This law makes it an offence to disturb, kill, or collect adults, juveniles, or eggs. -Not likely to occur in the study area. -Last COSEWIC designation: Threatened -The Loggerhead Shrike excubitorides subspecies is protected under the federal Species at Risk Act (SARA). -Protected under the Migratory Birds Convention Act, 1994. Lanius -In Canada, most of the suitable habitats for this species Loggerhead shrike ludovicianus are on private land, thus habitat protection must rely on excubitorides voluntary land stewardship programs. This type of program promotes the installation of fences around small areas with shrubs or windbreaks, the protection of trees from livestock and the planting of trees or shrubs favoured by shrikes. -May occur near the study area. -Last COSEWIC designation: Non-active -Peregrines prefer open habitats such as wetlands, Falco peregrinus tundra, savanna, sea coasts and mountain meadows, Peregrine falcon anatum but will also hunt over open forest. -May range up to 27 km from the nesting site. -Not likely to occur in the study area. -Last COSEWIC designation: Threatened -Grows in open, short- to mid-grass prairie in sandy, alkaline soil that is dry for most of the year but may be Slender mouse- Halimolobos moist in spring. ear-cress virgata -Protected under the federal Species at Risk Act (SARA). -Protected by the Saskatchewan Wildlife Act, under which it is prohibited to kill, harass, or harm this species. -May occur near the study area. -Last COSEWIC designation: Threatened -Inhabits unstable sand areas. Chenopodium -Protected under the federal Species at Risk Act (SARA) Smooth goosefoot subglabrum and provincial legislation in Saskatchewan. -Occurs in a conservation area in Douglas Provincial Park, approximately 28 km from the study area.

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-Last COSEWIC designation: Threatened -Native grassland is an important habitat for Sprague's Pipits. The species is rarely found in cultivated lands, or in areas where native grasses have been replaced with introduced forages. This makes it unlikely that the bird Sprague’s pipit Anthus spragueii will occur very near the study area. -Protected under the federal Species at Risk Act (SARA). -Protected by the federal Migratory Birds Convention Act, under which it is prohibited to kill, harm, or collect adults, young, or eggs -Protected by the Saskatchewan Wildlife Act. -Last COSEWIC designation: Threatened -A perennial flowering plant of sand dunes. -Occurs in Douglas Provincial Park in Saskatchewan, Western Tradescantia approximately 28 km from the study area. spiderwort occidentalis -Is designated as endangered under the Saskatchewan Wildlife Act and is protected from being disturbed, collected, harvested, captured, killed, or exported.

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SARA Status: Species of Special Concern -Last COSEWIC status: non-active -In most areas in Canada, the numbers of bigmouth Ictiobus Bigmouth buffalo buffalo are low. The exception is the Qu'Appelle cyprinellus system in Saskatchewan, where a commercial fishery exists. Ichthyomyzon -Last COSEWIC status: special concern Chestnut lamprey castaneus -Inhabits moderate-sized rivers and large creeks. -Last COSEWIC designation: Threatened -Prefers prairies and open, arid habitats dominated by grasses or sagebrush. -Preferred prey is the Richardson's ground squirrel Ferruginous hawk Buteo regalis -It is not found where trees are abundant or where cultivation is extensive. -In Saskatchewan, the species is not protected under any provincial law. -Last COSEWIC designation: Special concern -The great plains toad is protected under the federal Species at Risk Act (SARA). Great plains toad Bufo cognatus -In Saskatchewan, any person may collect, study, hunt, and hold in captivity, without a license, any toad that is not in a protected area (game preserve, wildlife refuge, regional park, and provincial park or recreation site). -Last COSEWIC designation: Special concern -Appear to be able to use some agricultural areas for feeding and raising young. Prefers shallow waters. Numenius -Protected under the federal Species at Risk Act Long-billed curlew americanus (SARA). -Protected from hunting and collection in Canada under the Migratory Bird Convention Act. -May occur near the study area. -Last COSEWIC designation: Special concern -In Saskatchewan, McCown’s longspur is restricted to grasslands in the southwestern corner of the province, primarily south of the South Saskatchewan River and McCown’s Calcarius west of Regina. longspur mccownii -Protected under the federal Species at Risk Act (SARA). -Protected under the Migratory Birds Convention Act, 1994, which prohibits the destruction of birds, nests, and eggs. Danaus -Last COSEWIC designation: Special concern Monarch butterfly plexippus -Monarchs in Canada exist primarily wherever

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milkweed (Asclepius) and wildflowers (such as goldenrod, asters, and purple loosestrife) exist. This includes abandoned farmland, along roadsides, and other open spaces where these plants grow. -Protected under the federal Species at Risk Act (SARA). -Last COSEWIC designation: Special concern -A typical breeding pond is 30 to 60 m in diameter, 1.5 to 2.0 m deep, located in an open area, with a lot of emergent vegetation, and no fish. Northern leopard Lithobates -Protected under the federal Species at Risk Act frog pipiens (SARA). -The Saskatchewan Wildlife Act prohibits commercial exploitation of the species. -May occur near the study area. -Last COSEWIC designation: Special concern -Nest in isolated pairs on the margins of wetlands -Protected under the federal Species at Risk Act Euphagus Rusty blackbird (SARA). carolinus -Protected under the Migratory Birds Convention Act, 1994, which prohibits the capture, destruction, or possession of this bird. -Last COSEWIC designation: Special concern -Breeds in all of Canada's provinces and territories, but Short-eared owl Asio flammeus is most frequently found in the Prairie provinces and along the Arctic coast. -Last COSEWIC designation: Special concern -Nesting yellow rails are typically found in marshes dominated by sedges, true grasses, and rushes, where there is little or no standing water (generally 0-12 cm water depth), and where the substrate remains saturated throughout the summer. They can be found Coturnicops in damp fields and meadows, on the floodplains of Yellow rail noveboracensis rivers and streams, in the herbaceous vegetation of bogs, and at the upper levels (drier margins) of estuarine and salt marshes. -Protected under the federal Species at Risk Act (SARA) and the federal Migratory Birds Convention Act. -May occur near the study area.

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No SARA Status but with COSEWIC Designation -Last COSEWIC designation: Threatened -Found in a variety of forest types, but it is most abundant in wet, mixed deciduous-coniferous forest with a well-developed shrub layer. It is also found in riparian shrub forests on slopes and in ravines and in Canada Wilsonia old-growth forests with canopy openings and a high warbler canadensis density of shrubs, as well as in stands regenerating after disturbances. - The Canada warbler is protected under the Migratory Birds Convention Act, 1994. This act prohibits the harming of birds and the disturbance or destruction of their nests and eggs. -Last COSEWIC designation: Threatened -Nests in a wide range of open, vegetation-free habitats, including dunes, beaches, recently harvested forests, burnt-over areas, logged areas, rocky Common outcrops, rocky barrens, grasslands, pastures, peat Chordeiles minor nighthawk bogs, marshes, lakeshores, and river banks. This species also inhabits mixed and coniferous forests. - In Canada, the common nighthawk, its nests, and its eggs are protected under the federal Migratory Birds Convention Act, 1994. -Last COSEWIC designation: Special concern -A common summer resident in Saskatchewan Horned Grebe – -Threats include wetland breeding habitat degradation, western Podiceps auritus drought and nest predators. population -The species is protected under the federal Migratory Birds Convention Act, 1994. -Last COSEWIC designation: Endangered Lake sturgeon Acipenser fulvescens -Exists in the Saskatchewan River. -Fishing and river dams are the most important threats.

9.1.6 Species at Risk Recovery Initiatives

9.1.6.1 Burrowing owl (Athene cunicularia) Summary of Recovery Activities [Excerpts from the Government of Canada website (2009a)]: Monitoring efforts over the past 10 years have documented the burrowing owl's significant decline in Canada. Population models show that low productivity, high juvenile mortality and/or unknown dispersal of juveniles are the major factors implicated

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______in the decline of this species. Stewardship programs are in place in Saskatchewan to protect nesting owls and their habitat.

Many recovery activities for the burrowing owl are geared towards the general public, particularly landowners, as burrowing owls are often found on private lands. In the late 1980s, Operation Burrowing Owl was launched in Saskatchewan. This initiative involved landowners in the protection of nesting habitat by encouraging private land stewardship through voluntary habitat conservation agreements. Other public outreach activities include the Owls on Tour Program which travels to rural schools in southern Saskatchewan to raise awareness of the burrowing owl and its habitat requirements, and The Saskatchewan Burrowing Owl Interpretive Centre which opened in Moose Jaw in 1997 and allows visitors to view live burrowing owls, and increase their awareness and understanding of grassland conservation.

Mitigation Plan for Wild West Steelhead: Although there is no known burrowing owl nesting burrow on WWS property, the property is located within the burrowing owl’s range (Government of Canada 2009a). WWS will not kill, harass or collect burrowing owls or destroy their habitat. Should a burrowing owl nesting burrow be found on WWS property, the burrowing owl recovery team will be contacted and notified of the presence of the burrow (Troy Wellicome - Chair - Environment Canada; Phone: 780-951-8671; Fax: 780-495-2615; E-mail: [email protected]).

Saskatchewan Environment (2003) recommends a buffer distance between burrowing owl nest burrows of 200 m during peak nest site activity (i.e. April 1 to July 15) for activities considered to be of a low disturbance level. Low level disturbances would include foot traffic, ATV traffic, and small vehicles (< 1 ton). WWS would follow the recommended buffer distances as set out by Saskatchewan Environment.

9.1.6.2 Piping Plover (Charadrius melodus circumcinctus) Summary of Recovery Activities [Excerpts from Environment Canada website (2009b)]: A significant success in plover management has been the development and wide-scale implementation of a small, portable predator “exclosure”. Studies show that predator exclosures placed over nests are effective in increasing hatching success. This inexpensive and effective management tool has gained widespread use in Alberta, Saskatchewan, and Manitoba. Predator exclosures more than double piping plover hatching success at managed sites.

Piping Plovers are highly vulnerable during the breeding season to disturbance by people, pets, cattle, and all-terrain vehicles. Their well-concealed nests are easily trampled. Therefore, co-operation by landowners, livestock producers, government agencies, conservation organizations, bird watchers, and recreationists is essential to protecting piping plovers and their habitat during their breeding season. Regulations and outreach are both used to discourage disturbance at nesting beaches. In some areas, volunteer guardians patrol the beaches in order to share information about the plover and encourage people to respect exclosures. In Saskatchewan, there is a guardian program at Lake Diefenbaker, where approximately one quarter of Saskatchewan’s piping plovers nest.

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Mitigation Plan for Wild West Steelhead: WWS will not kill, harm, or collect adults, young, or eggs of the piping plover. WWS will not be accessing the new cage site by land except during periods when the site cannot be accessed by boat or snow machine (i.e. during periods of thin ice). This time of year is outside of piping plover nesting and fledging activity. WWS has no plans for utilizing any of the beaches surrounding the new cage site so vehicle traffic along the beaches by WWS staff will be minimal. WWS staff will access the beaches near the new cage site for conducting beach clean-up activities. WWS will perform beach clean-ups to remove any debris that may have washed ashore, particularly debris from the aquaculture operation. However, WWS staff will conduct the beach clean-ups early in the spring, after ice break-up and before the nesting period of the piping plover, and again in the fall after the fledglings have left the nests. Should any exclosures for piping plover nests be found, WWS will not disturb them.

Since the piping plover nests along beaches where it could be vulnerable to the wake of passing boats, WWS will minimize wake formation by maintaining a distance 500 m of shore during nesting and fledging season of the piping plover.

To decrease the chances of attracting predators to the cage site, which may also prey upon nearby piping plover nests, both fish feed and food for human consumption (e.g. lunches) will not be left out unattended and uncovered.

9.1.7 Air Quality There are two features of the WWS operations that may produce an unpleasant odour. They are the dead fish removed from the cage system (morts) and the waste water treatment lagoon. No morts will be stored at the new cage site and there will be no lagoon there. All morts and fish for processing will be taken to the Cactus Bay land- based infrastructure. Morts will be buried on nearby agricultural land. The water treatment lagoon will continue to be aerated and operated as per the Saskatchewan Environment requirements to decrease BOD and potential odour.

The prevailing winds are from the northwest which means that the nearest land-based neighbour, a portion of land used for agriculture, is across the lake and > 2 km away.

9.1.8 Angling

9.1.8.1 Commercial Fisheries Lake Diefenbaker currently has one small commercial fishery for bait fish, mostly emerald and spottail shiners (P. Ashcroft, pers. com.). It is unlikely the proposed new site will conflict with this fishery as bait fish are caught in seine nets, very close to shore in shallow waters (P. Ashcroft, pers. com.), and the proposed site will be located out in the open, deeper water of the bay.

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Prior to 1986, there was a small whitefish fishery (Canadian Aquaculture Systems Inc. 1999). Although in recent years there have been requests made to Saskatchewan Environment to reopen the fishery, this is unlikely to occur as Lake Diefenbaker has a large and well established recreational fishery that would conflict with a commercial gill- net fishery (P. Ashcroft, pers. com.).

9.1.8.2 Recreational Fishing Angling activity on Lake Diefenbaker is primarily focused on walleye, rainbow trout, sauger, and pike. Walleye are often caught off rock points, sunken islands, and areas where the water depth changes dramatically; pike are typically caught in the shallower areas of the lake in weed beds where they spawn (CJM Holdings 2005). Sauger seem to prefer turbid waters where water currents change suddenly, such as around deep pools and sunken logs or boulders (www.fishalberta.com). The proposed cage site is not believed to be in a prime fishing area as it would be located in the mouth of Kadla Coulee where the water is deep and the bottom is relatively flat (Fig. 16 section 5.2.1 Flow Data, Water Levels, and Bathymetry). However, it is possible that rainbow trout and sauger may be present in the area of the proposed cage site. Section 6.2.2 Recreational Fisheries contains more information on the recreational fishery of Lake Diefenbaker and section 9.1.4 Escapes covers some perspectives of anglers regarding trout escaped from aquaculture cages.

Some anglers have found it good sport to fish in Cactus Bay. The assumption is that the cage site in Cactus Bay provides shelter for wild fish, which are then attracted to the area. This increases the wild fish population that utilizes Cactus Bay and improves angling success there. If wild fish use the new cage structures at Kadla Coulee for shelter and refuge, and if angling increases because of increased fish occurrence near the cages, it is likely that most anglers would fish from boats rather than the shoreline, which would be at least 390 m away from the cage site center. However, in general, slightly more people tend to fish from shore than from boats (T. Johnston, pers. com.). To prevent collisions between boaters and the Kadla Coulee structures, the cage system will be properly marked according to NWP requirements. Fishing will not be permitted to occur within 100 m of the cage site but since the cages will not be located in prime walleye habitat, the cages should not grossly inhibit fishing activities.

9.1.9 Recreational Activity With over 800 km of coastline, Lake Diefenbaker offers several opportunities for recreation. Full-service marinas are located at Riverhurst, Elbow, and Saskatchewan Landing Provincial Park. Several other boat launches are located at various locations all around the lake (Fig. 12 section 5.1 Lake History, Geography, and Geology). Boat rentals are available at Saskatchewan Landing, Hitchcock’s Hideaway, Elbow, and Palliser Regional Park with several different types of watercraft to choose from. Water sport activities on the Lake include tubing, kneeboarding, wakeboarding, water skiing, jet skiing, sailing, canoeing, and kayaking.

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Riverboat tours also operate on Lake Diefenbaker. At least one tour company has visited the Cactus Bay aquaculture site as a stop of interest for some of their tour packages (Sask River Tours). WWS continues to give tours to schools and other educational institutions.

Seventy-five members and their families make up the Lake Diefenbaker Yacht Club. The Club marina is located at Elbow, approximately 24 km east northeast of Kadla Coulee. Both sailboats and power boats are berthed at the marina, which can hold about 150 boats, with most docks rented for the season (Town of Davidson 2008).

Boating will still be able to occur in Kadla Coulee. The cage site will not block the entire mouth of the bay and will be properly marked for navigation purposes.

9.1.10 Aesthetics WWS will be employing iCages™ at the Kadla Coulee site. These cages are largely submerged with only a small portion (i.e. 20%) visible from the water’s surface. Steel cages will also be employed and are more visible because of the walkways between the cages. All cages will be properly marked to prevent collisions with boaters.

Grow lights are not planned for use on the Kadla Coulee site. However, some operational lighting may be installed but would only be used when crew members are working on the site. There will likely be some solar LEDs to mark the corners of the cage system and possibly the lease area as well. All lease markings will be in compliance with Navigable Waters – Transport Canada.

Noise generated by site activities will include the sound of boat engines as the crew travels to and from the site. The feeding machines also make noise as the compressed air blows the feed into the cages.

There are no cottages or houses visible from the proposed cage location in Kadla Coulee. Therefore, the new cage system should not affect any landowner’s viewscape. The nearest neighbour to the Kadla Coulee proposed site is approximately 2 km away and should not be affected by the sights and sounds of the aquaculture site.

In a communication from the Lake Diefenbaker Yacht Club, comments were made about club members encountering a film over the water in the vicinity of Cactus Bay during the latter part of the summer (S. Turk., pers. com.). Yacht club members assumed the film was due to an algal bloom caused by nutrients entering the water at the cage site, however it is more likely that the phenomenon is due to oils present in the fish feed. WWS has occasionally had problems with the feed from one of their suppliers. The oil in the feed and the softness of the pellet lead to the fish “burping” and regurgitating oil, particularly when the DO levels are decreasing or water temperatures are increasing. This agrees with the observations of the yacht club members that the film appears in the

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______latter part of the summer, when DO is lowest and temperatures are highest. WWS has addressed the problem with the feed supplier who is now working on a solution.

9.1.11 Predator Control All predator control tactics are related to avian species since they are the only predators that harass the fish. The most likely species to impact the farm are white pelicans and seagulls. While seagulls and some blackbirds will occasionally prey on smaller fish, they are mainly attracted to exposed feed. Therefore, WWS routinely uses tarps to cover any feed that is left outside where birds may otherwise have access to it.

Scare tactics are also used to deter birds from roosting on the net-pen system. Compressed gas cannons and the regular venting of gas from the compressed-air system produce an audible disturbance that discourages birds from becoming a nuisance. Cormorants, herons, and cranes occasionally act as pests to the operation but not significantly enough to warrant control.

Predation at the farm is a seasonal problem which is mitigated through the use of bird nets that cover the top of the cages. Smaller mesh sizes have been incrementally implemented from 1999 to 2006 but seagulls have proven to be unrelenting pests. A Kill Birds to Protect Fish Stocks permit was issued under section 26.1(1) of the Migratory Birds Regulations (Permit no. WS-W1). This permit allows WWS to kill 8 gulls per month from May 1 through August 31 and 16 gulls per month in April, September, and October. The object of the permit is not to eliminate a migrating flock but to deter predation trough intimidation. This method has been proven effective. Annual reports of eliminated gulls are made to Environment Canada each January.

Due to an increase in white pelican numbers migrating over Cactus Bay, a Nuisance Wildlife Control Permit was sought out and granted by Saskatchewan Environment under The Wildlife Act. The permit allows for the shooting of white pelicans to eliminate property damage and requires that carcasses be disposed of by approved methods.

9.1.12 Heritage Resources The closest national historic site to the proposed project is the Wanuskewin Heritage Park, which is approximately 130 km north of Kadla Coulee. The closest provincial historic site to the proposed project is Last Mountain House, which is approximately 136 km east of Kadla Coulee. The Tunnels of Moose Jaw, a tourist attraction of historical significance, is located approximately 117 km southeast of Kadla Coulee. The Swift Current Petroglyph Boulder, a designated provincial heritage site, is located approximately 100 km southwest of Kadla Coulee. The closest known historical landmark to the proposed project in Kadla Coulee is Jack Hitchcock’s cabin located on the shore of Hitchcock Bay. The proposed aquaculture site would have no foreseeable effect on any of the heritage resources.

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______9.2 Impacts to the Project from the Environment

9.2.1 Climate Considerations Lake Diefenbaker experiences two very distinct seasons throughout the year, open water months and months where the lake is covered in ice. During open water months the Kadla Coulee site will be accessed by boat. The site will be accessed daily for performance of feeding, inspection, and maintenance duties. Mort dives will be conducted weekly. However, during the period when ice covers the lake, access will be achieved by snow machines. Feeding will decrease to a basic maintenance level which, due to the water temperatures and the fish’s decreased metabolism, is all that will be necessary. Mort dives will be conducted monthly in the winter. During the period of ice break up or when the ice is too thin for snow machines to travel on, the site will be accessed by all terrain vehicles and by foot. Boats will be used during ice movement events.

The potential for damage to the cage system caused by wind and wave action is decreased by locating the cages in a sheltered area such as a bay. By locating the cages within Kadla Coulee, the threat of damage from wind and waves is greatly reduced from areas like the central channel of the lake where the fetch can be much greater and the waves larger.

In cold climates such as that experienced in southwest Saskatchewan, ice can build up on structures exposed to freezing spray. Four of the cages that will be employed at the Kadla Coulee site will be iCages™ which are designed to roll in the water. Manually rolling the cages at regular intervals will prevent the build-up of ice from occurring on the cages, thus eliminating the risk of sinking or damages cages from ice build-up. The remaining 6 cages at Kadla Coulee will be the traditional steel cages such as what is currently employed at the Cactus Bay site. These cages will be kept ice-free by use of an ice mallet.

Water near the surface of the lake may approach lethal temperatures for O. mykiss, be exposed to the effects of storm activity, or contain periodic harmful algal blooms (HABs) such as cyanobacteria. To avoid damage to the fish stock, nets in the steel cage system will have to be deep enough to allow the fish to retreat to depths where the water is safer. The steel cages that will be employed will be fitted with nets that are 12 to 15 m deep. The water temperatures at the bottom of the nets in the Cactus Bay site (also 12 to 15 m deep) are typically a few degrees (~ 3 oC) lower than the surface during the warmest time of year. The iCages™ are submersible and can be lowered during short- term events such as storm events and HABs.

9.2.2 Ice Damage Ice is most damaging to aquaculture operations when it is moving and collides with a cage system, such as what happened in Cactus Bay in 2000. To prevent future impacts of moving ice sheets, the Cactus Bay cages have been moved further into the bay where

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______they are less exposed to wind and shifting ice. WWS staff members also take precautions to maintain an intact ice sheet around the cage system so that the potential for ice to move and collide with the system is greatly diminished until the ice softens and naturally breaks up. The same precautions will be taken at the Kadla Coulee site.

9.2.3 Human Interaction The Kadla Coulee site will be located in an area of relatively deep water where the lake bottom is fairly flat. This is not an area where sport fish such as walleye and pike would normally be fished. However, there is some anecdotal evidence to suggest that some types of sport fishing may be enhanced by the presence of an aquaculture cage site. This may attract anglers to the vicinity of the Kadla Coulee site. WWS will post signs to inform anglers of the 100 m exclusion zone for fishing around the aquaculture site. Anyone seen fishing within the 100 m would be asked to leave and given an explanation why. If problems persist, WWS would notify the appropriate authorities.

Vandalism is not foreseen to be a big threat at the Kadla Coulee site. The location is somewhat remote and will only be accessible by boat during the spring, summer, and autumn months. Very little vandalism is seen at the Cactus Bay site, and it is more accessible than the proposed Kadla Coulee site. During winter, access over ice is possible so there may be more potential for vandalism. However, the most likely problem would be the theft of fish but, again, the potential for this is likely small. The fish at the Kadla Coulee site will be small (≤ 0.5 kg) and not so attractive to thieves looking for an easy lunch. If vandalism or theft were noted at the Kadla Coulee site, the RCMP would be notified.

9.2.4 Water Quality Lake Diefenbaker contains high quality water that is used for municipal water supplies, irrigation projects, recreation, and supporting the existing aquaculture site in Cactus Bay. However, the water quality can fluctuate throughout the year and issues may arise with decreased DO, the presence of harmful algal blooms, and changes in chemical composition of the lake water during periods of high run-off (e.g. spring snow melt, rain storms, etc.). As stated in section 9.1.1 Water Quality, WWS only feeds the fish during periods when DO is suitable. If DO concentration falls below acceptable levels, either locally or lake-wide, WWS will not feed the fish and will allow them to rest and conserve energy and oxygen. WWS also employs an air-bubbling system which helps to circulate the water in the cages and adds oxygen to the water.

Water near the surface of the lake may contain harmful algal blooms (HABs) during some warm-water months. WWS will have in place a means to allow the fish stock to avoid the surface waters where a HAB would be concentrated (e.g. cyanobacteria). Nets on the steel cages will have to be deep enough to allow the fish to retreat to safer water. The iCages™ will have the potential to be submerged during HAB activity. To prevent the fish from becoming excited and occupying the surface water, WWS will not

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______feed the fish during periods of HABs. This will prevent stress and decrease the exposure of the fish to algal toxins and harmful effects. However, WWS has never experienced a toxic algal bloom at the Cactus Bay site and considers the potential for problems to be very small.

The quality of water entering Lake Diefenbaker is generally very good (International Lakes Environment Committee). However, the inflowing rivers to Lake Diefenbaker also receive irrigation return flows and municipal and industrial effluents and there is the potential for chemicals that could be harmful to fish to enter the lake in larger volumes during periods of high run-off. To limit the exposure of the WWS stock to potential harmful run-off from the land, the cages in Kadla Coulee will not be located in shallow water or near shore. The cages in Kadla Coulee are intended to be located in the deepest part of the bay. While they will be tucked into the bay far enough to avoid the areas with the highest potential for ice damage, they will not be located very near to shore or inlets where run-off would likely be the most concentrated.

9.2.5 Endemic Fish Diseases and Parasites During the 18 years that WWS has been producing fish on Lake Diefenbaker, no major outbreaks of disease or illness have occurred in the net pens. This would indicate that there are very few pathogens specific to salmonids in the portion of Lake Diefenbaker that WWS operates in. WWS fish have however, had experience with Coldwater Disease (Flavobacterium psychrophilum), a bacterial disease which erodes the caudal peduncle and causes acute septicemia infection (LaFrentz and Cain 2004). Coldwater Disease is treatable and the WWS veterinarian has had experience with this.

Other bacterial diseases maybe transmitted by wild fish and while WWS has not experienced any troubles with these diseases they are aware of their potential to cause problems. Enteric redmouth disease is a bacterial infection of freshwater and marine fish caused by the pathogen Yersinia ruckeri, which is primarily found in Oncorhynchus mykiss and is characterized by subcutaneous hemorrhaging of the mouth, fins, and eyes (Wikipedia 2009c). Redmouth disease can be treated with several different antibiotics. Should WWS experience an outbreak of a bacterial disease, their veterinarian would be consulted and any prescribed medication administered according to instructions. Appropriate withdrawal times would be observed.

Furunculosis is a bacterial infection occurring particularly in farmed trout and salmon. The disease is caused by Aeromonas salmonicida bacteria. The symptoms the fish show are external and internal hemorrhaging, swelling of the vents and kidneys, boils, ulcers, liquefaction, and gastroenteritis (Wikipedia 2009d). Furunculosis can be treated with antibiotics. So far, only Aeromonas hydrophila has been identified on morts from the WWS cages.

Bacterial Kidney Disease (Renibacterium salmoninarum) occurs in wild and farmed populations of salmonids. The incubation period is long and the clinical signs, often

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______prompted by environmental causes, usually occur in fish over 1 year old (Intervet 2009). The best method of controlling this disease is introduction of controlled pathogen-free stocks. The eggs WWS imports are certified disease free.

Parasitic diseases can be common. Ichthyophthirius multifiliis (aka Ick or white spot) is one of the most prevalent protozoan parasites of fish and is an important pathogen of ornamental and farm-raised food fish species when reared under intensive conditions (Wikipedia 2009e). Wild fish populations are also susceptible and outbreaks are occasionally seen. If WWS were to experience an outbreak of Ick, veterinary advice and instruction would be sought out and followed.

Trichodina is a genus of ciliate protists that is ectocommensal or parasitic on fish (Wikipedia 2009f). When trichodinids become a problem in aquaculture, it usually indicates eutrophication or poor water quality. High bacterial loads provide abundant food for trichodininds, which subsequently proliferate on hosts and then cause attachment-related pathologies. Maintaining good water quality at the cage site is important for WWS and a condition the company strives to maintain.

Viral diseases are the most threatening to fish culture. Two diseases that could possibly affect the WWS operations are Infectious Pancreatic Necrosis and Infectious Hematopoietic Necrosis. However, given that WWS has no history with these diseases, they aren’t considered a serious threat at this time. Fish are tested for these viruses when they are transferred so they are not likely to be introduced with any fish or eggs WWS purchases.

Viral Hemorrhagic Septicemia is not found in Saskatchewan (Saskatchewan Ministry of Environment 2009). Historically, VHS was associated mostly with freshwater salmonids in Western Europe and has been documented as a pathogenic disease among cultured salmonids since the 1950s (Wikipedia 2009g). Farmed rainbow trout are susceptible to the disease and The Great Lakes region variant has killed lake trout, steelhead trout, chinook salmon, yellow perch, gobies, emerald shiners, muskies, whitefish, and walleye (Wikipedia 2009g). Saskatchewan has restricted the importation of live fish and fish eggs from areas that are known to be infected with VHS to protect the fisheries resource. In compliance with provincial restrictions, WWS only imports eggs from certified disease free sources.

Many outbreaks of disease among cultured stocks are the result of stressed fish. To prevent diseases that present in stressed fish, WWS aims to maintain fish densities below a level which causes undue stress on the animals. Fish are only fed during periods when DO is acceptable and fish are not encouraged to eat or become excited during stressful environmental events.

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______10.0 MONITORING REQUIREMENTS

10.1 Cactus Bay Water Quality Water quality monitoring has been occurring at the Cactus Bay aquaculture site since 1995. Both WWS and DFO – Fresh Water Institute have conducted monitoring within this time period. Phosphorus, orthophosphate (soluble, reactive phosphorus that is readily available for biological uptake), ammonia, and total nitrogen have been measured by DFO (see Figs. 3, 4, 5 and 6 in section 1.8 Monitoring). WWS has collected temperature (Fig. 17 in section 5.2.3 Water Temperatures) and DO data (Fig. 21 in section 5.2.7 Dissolved Oxygen) from Cactus Bay.

10.2 Kadla Coulee Baseline Baseline data from Kadla Coulee has been collected in the form of benthic data (DFO). Data on carbon, nitrogen, and phosphorus concentrations in the sediments near the proposed Kadla Coulee cage site have been collected. DFO has also collected samples for identification and enumeration of benthic invertebrates. Baseline sediment data and invertebrate data have been presented in sections 5.2.6 Sediment Sampling and 5.3.1 Benthic Community.

10.3 Future Monitoring WWS plans to continue to monitor DO and temperature at the new cage site, if approved. Temperature will be monitored daily and DO will be monitored most closely during the late spring, summer, and early autumn months. Temperature and DO would be made at various depths (i.e. 0 – 20 m deep). The monitoring requirements of lake water analysis (i.e. ammonia, total nitrogen, total phosphorus, and ortho-phosphorus) and sediment analysis (i.e. texture, total carbon, total nitrogen, total phosphorus) are conditions of the “Permit to Operate an Industrial Effluent Works” issued by Saskatchewan Environment. WWS expects that similar monitoring requirements will be made conditions of the new “Permit to Operate” for the Kadla Coulee site, however, the requirements likely will be determined by Saskatchewan Environment. WWS would expect that a monitoring program would include water quality monitoring three times per year at the cage site, 300 m downstream of the cage site, and 150 m west of the cage site in Kadla Coulee (i.e. as is required for the Cactus Bay site). Samples likely would be collected at 10 cm and 10 m below the water surface. However, WWS would suggest that the location 300 m upstream of the Cactus Bay site be used for both the Cactus Bay site and the Kadla Coulee site as the “control” location. The same suggestion would be made for the sediment analysis, which occurs once per year, as the location 300 m upstream from Cactus Bay could serve as a control for the Kadla Coulee site as well.

The monitoring that is currently being done by DFO is part of an Aquaculture Collaborative Research and Development Program (ACRDP) project that WWS is

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______involved in. Prior to the commencement of the ACRDP project WWS did the monitoring themselves and will revert back to collecting the samples themselves once the ACRDP project is over.

Terrestrial impacts due to site access should be minimal since most of the year the site will be accessed by either boat or snowmobile. Shorelines will only be used during the few weeks of the year when the ice is too thin for snowmobiles to traverse safely. What impact there is to the shoreline will likely be obscured by erosion, which can be substantial when the lake is at or near full supply level. The lake varies in level by ~ 6 m yearly which would make it difficult to distinguish shoreline impacts due to WWS crews accessing the site from impacts due to erosion. However, during beach clean-up activities the Kadla Coulee site crew will make note of and record any shoreline impacts that have occurred that could be due to their activities or other human actions. Photos will be taken of the area in which the crews conduct beach clean-ups. Photos will be maintained by WWS and included with the annual report that is submitted to Saskatchewan Environment.

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11.0 DECOMMISSIONING AND RECLAMATION When WWS, its heirs, and/or agents are obligated to decommission the site, decommissioning will take place in conformance with all environmental regulations of that time. Decommissioning of the site will be conducted in a safe and efficient manner.

Decommissioning will occur in the reverse order of installation, which is described in section 2.5 Proposed Facilities of this report. The first stages of decommissioning a site would be the removal of all nets. This step will be the same for both the iCage™ and steel cage systems. The nets would be taken to the existing company facility were they would be either sold or stored for use on another facility.

Once the nets are removed, the steel cages would be unhinged from each other and towed back to the assembly area to be disassembled. The anchor system would then be taken apart and the anchor blocks would be retrieved using a winch. These would be transported to shore for storage at the company shore facility. Items such as moorings, cages, and nets would be cleaned and either sold or reused elsewhere. Items that are not able to be sold or reused will be disposed of properly.

As the site will be located in the deeper water of the bay, it is unlikely damage to the shore or shallow water near the shore will occur, however the lake bottom may be affected by the deposition of sediments from the farm, consisting mostly of faeces and perhaps some uneaten feed as described in section 9.1.3 Sediment Deposition. WWS has policies in place to reduce the impacts to the lake bottom. WWS has a “zero waste” feed policy and cameras are used to reduce feed wastage. Feeding practices have been described in detail in section 3.3 Feed Use of this report. In addition, routine benthic monitoring will be done on the Kadla Coulee site in accordance with the requirements of the site’s “Permit to Operate an Industrial Effluent Works”.

Dredging is an unlikely option for reclamation and would likely cause significant damage; therefore, upon decommissioning of the site, the area will remain undisturbed to allow natural processes to breakdown the organic wastes.

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12.0 APPROVALS In addition to the Commercial Aquaculture license, issued by the Fisheries Branch of Saskatchewan Environment, the following licenses, permits and/or approvals are required by WWS for the construction/operation of a new site:

 Transport Canada under the Navigable Waters Protection Act will require WWS to apply for an approval for equipment and works on the site.

 The Ministry of Agriculture will require an annual permit to lease parcels of lake bed for the site anchoring system.

 Saskatchewan Environment, under the Environmental Management and Protection Act requires an application for an Aquatic Habitat protection Permit.

 Saskatchewan Watershed Authority, under the Reservoir Development Area regulations, will also require a permit.

All of the above mentioned approvals/permits have application requirements that are met or exceeded by the requirements of the EIA. In addition, all the permits require application forms, which were completed and submitted to the appropriate government agency with this report.

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13.0 SUMMARY  There are expected to be some benthic impacts associated with the establishment of a new aquaculture site in Kadla Coulee. Negative impacts to the sediment could include decreased dissolved oxygen at the sediment water interface and decreased consolidation of the sediments due to settling organics from the fish farm. These changes would likely result in a loss of habitat for benthic infauna such as clams and worms. However, while the area immediately under and very near the cages may not be hospitable to benthic fauna, the organic enrichment of the sediments just beyond the boundary of the cage system may result in increased fecundity and higher biomass of benthic organisms.

 Impacts to the water quality are expected to be localized and not discernible on a lake-wide level. There is expected to be small increases in phosphorus and nitrogen and a small decrease in dissolved oxygen at the cage system. These impacts are mitigated for by a “zero wastage” feed policy at WWS, which reduces unnecessary input of nutrients to the lake environment. An air bubbling system mitigates against localized dissolved oxygen depletion by ensuring that the water in the cage system is constantly moving and mixing with water outside the cage system.

 No direct impacts to species at risk are anticipated. Shoreline monitoring will increase as crews conduct beach clean-up activities. A photo record will be maintained.

 Navigation would be marginally affected by the establishment of the new cage site. Boaters would have to navigate around the cage array, which will be appropriately marked according to NWP, however, the navigation channel into the bay would not be blocked. In actuality, the cages will take up approximately 3 - 5% of the width of the bay (shoreline to shoreline) at FSL.

 Fishing and boating activity near the new cage site may increase somewhat if the cages serve to increase fish productivity nearby, however, angling is not permitted to take place within 100 m of the aquaculture site. The cage site would not be located over prime walleye or pike fishing grounds so this should not pose a problem.

 Any fish that escape from the aquaculture cages may impact resident fish populations through increased competition for food and habitat. However, the fish that would be housed at the Kadla Coulee site would be small and if any escaped they may become prey for larger predatory fish. Escapees may also increase angling success in the lake for a short time after the escape event.

 Disease transmission from caged fish to native or naturalized populations is considered to be a very low risk.

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 Additional water treatment for pathogens, nitrate, or nitrite at downstream water treatment facilities is not anticipated to be necessary.

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