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Director's Order Ministry ofthe Environment Ministere de I'Environnement et de I'Action and Climate Change en matiere de changement climatique r'~ t?ontario Director's Order Environmental Protection Act, R.S.O. 1990, c. E 19, 18, 132, 194and196 (EPA) Ontario Water Resources Act, Section 32, 60, and 61, TO: ESSAR Steel Algoma Inc. (the Company) Head Office 105 West Street, Sault Ste. Marie, Ontario, Canada P6A 7B4 AND TO: Essar Mumbai Essar House, 11 K K Marg. Mahalaxmi, Mumbai 400 034 India AND TO: Jalinder Mehra, Director 145 East 48th Street, 36th Floor New York, NY 10017 United States AND TO: Kalyan Ghosh, President & Chief Executive Officer, Director 1305 Ontario Street Apt. 1704 Burlington ,ON L7S 1X3 Canada AND TO: Naresh Kothari, Director 8th Floor, Ashford Centre Shankarrao Naram Marg, Lower Parcel Mumbai 400013 India AND TO: Kishore Mirchandani, Director 450 Alton Road, Suite 3506 Miami Beach FL 33139 United States AND TO: Pramod Kumar Shukla, Chief Operating Officer 105 West Street, Sault Ste. Marie, Ontario, Canada P6A 7B4 AND TO: Rajat Marwah, Chief Financial Officer 105 West Street, Sault Ste. Marie, Ontario, Canada P6A 7B4 Page 1 of 13 AND TO: David James Rennie, Officer, Vice President, Human Resources 105 West Street, Sault Ste. Marie, Ontario, Canada P6A 784 AND TO: J. Robert Sandoval, General Counsel & Corporate Secretary 105 West Street, Sault Ste. Marie, Ontario, Canada P6A 784 SITE: (1) The steel mill located at 105 West Street, Sault Ste. Marie, Ontario, Canada; and (2) the Mcleod Mine property located adjacent to the Magpie River, immediately north of Wawa, Ontario, Canada; and the (3) the Goudreau Mine located at approximately 35 km northeast of Wawa in Aguonie Township, collectively referred to as the "Site". PART 1: LEGAL AUTHORITY AND REASONS Relevant Provisions of the Environmental Protection Act ("EPA'? Regarding this Order 1.1 Pursuant to subsection 1 (1) of the Environmental Protection Act, R.S.O. 1990, c. E.19, as amended (the "EPA"), "contaminant" means any solid, liquid, gas, odour, heat, sound, vibration, radiation or combination of any of them resulting directly or indirectly from human activities that causes or may cause an adverse effect. 1.2 Pursuant to subsection 1 (1) of the EPA the meaning of "discharge", when used as a verb, includes add, deposit, leak or emit and, when used as a noun, includes addition, deposit, emission or leak. 1.3 Pursuant to subsection 1 (1) of the EPA "adverse effect" means one or more of, (a) impairment of the quality of the natural environment for any use that can be made of it, (b) injury or damage to property or to plant or animal life, (c) harm or material discomfort to any person, (d) an adverse effect on the health of any person, (e) impairment of the safety of any person, (f) rendering any property or plant or animal life unfit for human use, (g) loss of enjoyment of normal use of property, and (h) interference with the normal conduct of business. 1.4 Pursuant to subsection 1(1) of the EPA "natural environment" means the air, land and water, or any combination or part thereof, of the Province of Ontario. 1.5 Pursuant to subsection 14(1) of the EPA, subject to subsection (2) but despite any other provision of this Act or the regulations, a person shall not discharge a contaminant or cause or permit the discharge of a contaminant into the natural environment, if the discharge causes or may cause an adverse effect. 1.6 Pursuant to subsection 27(1) of the EPA no person shall use, operate, establish, alter, enlarge or extend, (a) a waste management system; or (b) a waste disposal site, Page 2of13 Unless a certificate of approval or provisional certificate approval therefore has been issued by the Director and except in accordance with any conditions set out in such certificate. 1.7 Subsection 18(1) of the EPA provides that the Director in the circumstances mentioned in subsection (2), by written order, may require a person who owns or owned or who has or had management or control of an undertaking or property to do any one or more of the following: 1. To have available at all times, or during such periods of time as are specified in the order, the equipment, material and personnel specified in the order at the locations specified in the order. 2. To obtain, construct and install or modify the devices, equipment and facilities specified in the order at the locations and in the manner specified in the order. 3. To implement procedures specified in the order. 4. To take all steps necessary so that procedures specified in the order will be implemented in the event that a contaminant is discharged into the natural environment from the undertaking or property. 5. To monitor and record the presence or discharge into the natural environment of a contaminant specified in the order and to report thereon to the Director. 6. To study and to report to the Director upon, i. The presence or discharge of a contaminant specified in the order, ii. the effects of the presence or discharge of a contaminant specified in the order, iii. measures to control the presence or discharge of a contaminant specified in the order, iv. the natural environment into which a contaminant specified in the order may be discharged. 7. To develop and implement plans to, i. reduce the amount of a contaminant that is discharged into the natural environment, ii. prevent or reduce the risk of a spill of a pollutant within the meaning of Part X, or iii. prevent, decrease or eliminate any adverse effects that result or may result from a spill of a pollutant within the meaning of Part X or from any other discharge of a contaminant into the natural environment, including, a) plans to notify the Ministry, other public authorities and members of the public who may be affected by a discharge, and b) plans to ensure that appropriate equipment, material and personnel are available to respond to a discharge. 8. To amend a plan developed under paragraph 7 or section 91.1 in the manner specified in the order. 1.8 Subsection 18(2) of the EPA provides that the Director may make an order under subsection 18(1) if the Director is of the opinion, on reasonable and probable grounds, that the requirements specified in the order are necessary or advisable so as, a) to prevent or reduce the risk of a discharge of a contaminant into the natural environment from the undertaking or property; or b) to prevent, decrease or eliminate an adverse effect that may result from, i. the discharge of a contaminant from the undertaking, or ii. the presence or discharge of a contaminant in, on or under the property. 1.9 Subsection 132 of the EPA provides that the Director may include in an Order a requirement that the person to whom the order is directed provide financial assurance to the Crown in right of Ontario for the performance of any action specified in the Order. 1.1 O Subsection 194 (1 ) of the EPA Every director or officer of a corporation threat engages in an activity that may result in the discharge of a contaminant into the natural environment contrary Page 3of13 to this Act or the regulations has a duty to take all reasonable care to prevent the corporation from causing or permitting such unlawful discharge. 1.11 Subsection 196(1) of the EPA provides that the authority to make an order under this Act includes the authority to require the person or body to whom the order is directed to take such intermediate action or such procedural steps or both as are related to the action required or prohibited by the order and as are specified in the order. 1.12 Subsection 196(2) of the EPA provides that a person who has authority under the Act to order that a thing be done on or in any place also has authority to order any person who owns, occupies or has the charge, management or control of the place to permit access to the place for the purpose of doing the thing. Relevant Provisions ofthe Ontario Water Resources Act ("OWRA '? Regarding this Order 1.13 Section 32 of the Ontario Water Resources Act, R.S.O. 1990, c. 0.40, as amended, (the "OWRA") provided that a Director, where it is the Director's opinion that it is in the public interest to do so, may by Order require a person who owns, manages or has control of a sewage works which may discharge material into a water or watercourse that may impair the quality of the water, to do any one or more of the following; 1. To have available at all times. Or during such periods of time as are specified in the Order, the equipment, material and personnel specified in the order at the location specified in the Order. 2. To obtain, construct and install or modify the devices, equipment and facilities specified in the Order at the locations and in a manner specified in the Order. 3. To implement procedures specified in the Order. 4. To take all steps necessary so that procedures specified in the order will be implemented in the event that a water or watercourse becomes impaired or may become impaired. 5. To monitoring and record the quality and quantity of any water specified in the Order and to report thereon to the Director. 6. To study and to report to the Director upon, a.
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