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Spill Contingency Plan Land Use Permit MV2016C0023

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Spill Contingency Plan Land Use Permit MV2016C0023 Spill Contingency Plan Land Use Permit MV2016C0023 Revised February 12, 2017 Summary of Changes in the Document Issue Page Change Project proponent all Identified Darnley Bay as project proponent & permit holder Permit Background 1 Updated permit timeline and background information Receivership order 1 Removed reference to receivership order Sale agreement 1 Added information about sale to DB Permitted Activities 2 Updated list Compliance 2 Inserted text that contractors must comply with Plan and Permit conditions Chemical Storage 4 Updated Table 1 to correspond with Section 11 of the Summary permit application re: max volumes of diesel, gasoline and propane stored on-site Fuel Storage 4 Inserted reference to permit conditions related to fuel storage; inserted map with proposed storage location. Reclamation and 5 Inserted text on land reclamation and restoration in the Restoration event of a spill. Spill Prevention 6 Clarified contractor’s responsibility to comply with permit conditions regarding spill prevention measures. Posting Flowchart 7 Inserted text that flowchart should be posted Spill Response 7 Inserted text on reporting spill to government Contacts 7,8,9 Updated contact names and numbers Reportable levels 8 Added table of reportable spill quantities ECCC typo 9 Fixed typographical error Inspectors 9 Updated phone numbers per information in permit Contractor Training 12 Added text that DB will confirm contractors have spill response training Incineration 12 Inserted text that burning and incineration may only be done in an approved incinerator References 13 Added new references to document related to reportable quantities and ECCC approved incinerators Spill Report Form 14 Appended to document MV2016C0023 Table of Contents 1 Background ........................................................................................................................................... 1 2 Introduction .......................................................................................................................................... 1 3 Petroleum Storage and Transport ........................................................................................................ 4 4 Spill Response Organization .................................................................................................................. 5 4.1 On-Site Contact Coordinator/DB Representative ......................................................................... 5 4.2 Environmental Advisor .................................................................................................................. 5 4.3 Contract Employees ...................................................................................................................... 5 5 Initial Spill Response ............................................................................................................................. 6 5.1 First Person at the Site .................................................................................................................. 6 5.2 On-Site Contract Coordinator ....................................................................................................... 6 6 Spill Response Notification Process ...................................................................................................... 7 7 Spill Response Contacts ........................................................................................................................ 8 7.1 Internal Contacts ........................................................................................................................... 8 7.2 External Contacts .......................................................................................................................... 9 8 SPILL RESPONSE ACTION PLAN ............................................................................................................. 9 8.1 Diesel Fuel, Hydraulic Oil and Lubricating Oil ............................................................................... 9 8.2 Gasoline ...................................................................................................................................... 10 8.3 Antifreeze .................................................................................................................................... 10 8.4 Propane ....................................................................................................................................... 11 9 SPILL RESPONSE EQUIPMENT ............................................................................................................. 11 9.1 General Equipment ..................................................................................................................... 11 9.2 Spill Kits ....................................................................................................................................... 11 10 DISPOSAL METHODS ....................................................................................................................... 12 11 SPILL RESPONSE TRAINING ............................................................................................................. 12 12 Spill Scenarios ................................................................................................................................. 12 12.1 Most Probable Spill ..................................................................................................................... 12 12.2 Worst Case Spill .......................................................................................................................... 13 13 REFERENCES .................................................................................................................................... 13 1 Background The mineral industry is critical to the economic health of the Northwest Territories and it is the position of the Government of the Northwest Territories to support development of the mining industry. The mining industry provides for economic investment opportunities and provides education, training and long term employment and opportunity to local communities and the territory as a whole. • July 2, 2009 – MV2008C0023 issued to Tamerlane Ventures Inc. by the Board; • January 30, 2014 – Tamerlane placed in receivership by Ontario Superior Court of Justice (the Court), Duff & Phelps (subsequently KSV Advisory) appointed receiver; • April 3, 2014 – Letter requesting a two year extension to MV2008C0023 received; • June 19, 2014 – Extension Request presented to the Board; and • June 19, 2014 - Board Staff recommends that the Board approve the request for a two year extension to MV2008C0023 • June 19, 2014 - The Mackenzie Valley Land and Water Board extends Land Use Permit MV2008C0023 to July 1, 2016. • August 10, 2016 – Initial application for a land use permit to conduct mineral exploration at Pine Point that is similar to the scope and extent of MV2008C0023 submitted to the MVLWB • December 19, 2016 – MV2016C0023 issued to Pine Point Holding Corporation (PPHC) • January 12, 2017 – Application to assign MV2016C0023 from KSV Advisory Inc., Court Appointed Receiver for PPHC, to Darnley Bay Resources Limited (DB) was sent to MVLWB. During the 7 year term of MV2008C0023, drilling only occurred in years 2010 and 2011. Lack of activity was due mainly to the lack of investment in the junior mining market and a continued depression of prices in base metals. 2 Introduction Pursuant to an order of the Ontario Superior Court of Justice dated January 30, 2014 (the “Receivership Order”), KSV Kofman Inc. (formerly Duff & Phelps Canada Restructuring Inc.) was appointed receiver (the “Receiver”) of all of the assets, undertakings and properties of Tamerlane Ventures Inc. (“Tamerlane”) and Pine Point Holding Corp. (“PPHC” and together with Tamerlane, the “Companies”). On December 9, 2016, the Receiver entered into an Asset Purchase Agreement with Darnley Bay resources Ltd. (“Darnley Bay”), the effect of which is to convey to Darnley Bay PPHC’s and the Receiver’s right, title and interest in certain assets, including mining claims and leases, in the Pine Point area. The transaction was approved by the Court pursuant to an Order dated December 16, 2016 and the transaction closed on December 20, 2016. DB’s policy is to comply with all existing laws and regulations to help ensure protection of the environment. DB cooperates with other groups committed to protecting the environment and ensures that employees, government and the public are informed of the procedures to follow to help protect the environment. 1 MV2016C0023 In accordance with the Mackenzie Valley Resource Management Act and subject to regulations, terms, and conditions, a 5 year Land Use Permit (LUP) Land Use Permit MV2016C0023 was granted by the Mackenzie Valley Land and Water Board (MVLWB) on December 19, 2016 with an expiry date of December 18, 2021. This Permit entitled DB to conduct the following activities: a) Diamond drilling on the following Mineral Claims and Canada Mining Leases: G3H2A (mining lease #4858), G3H2B (mineral lease #4859), M2, M3M4, M5, M6, M7, M8, M9, M10, M11, M12, M13, M14, M15, M16, M18 (mineral lease #4861), M19 (mineral lease #4862), M20 (mineral lease #4863), M21 (mineral lease #4864), M22 (mineral lease #4865), M23 (mineral lease #4866), M24 (mineral lease #4867), N1, N2, N3, N4, N5, N6 (mineral lease #4868), N7 (mineral lease #4869), N8 (mineral lease #4870), N9 (mineral lease #4871), N10 (mineral lease #4872),
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