Environmental and Socio-Economic Assessment

NOVA Gas Transmission Ltd. Section 58 Application McDermott Extension, Calumet River Sales and Calumet River No. 2 Sales Meter Stations Attachment 12

November 2014

MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

Environmental and Socio-economic Assessment

Submitted to: NOVA Gas Transmission Ltd. A Wholly Owned Subsidiary of TransCanada PipeLines Limited 450 - 1st Street SW Calgary, AB T2P 5H1

Report Number: 1313340056-5000/5001 Distribution:

REPORT 1 copy TransCanada PipeLines Limited Calgary, AB 1 copy Golder Associates Ltd. Calgary, AB

MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

Executive Summary NOVA Gas Transmission Ltd. (NGTL), a wholly owned subsidiary of TransCanada PipeLines Limited (TransCanada), is applying to the National Energy Board (NEB) under section 58 of the National Energy Board Act (NEB Act) for an order to authorize construction and operation of the McDermott Extension, Calumet River Sales and Calumet River No. 2 Sales Meter Stations (the Project).

NGTL retained Golder Associates Ltd. (Golder) to prepare this Environmental and Socio-economic Assessment (ESA) to meet the requirements and guidance of the NEB, including the NEB Filing Manual (NEB 2014a). This ESA report is submitted to the NEB as part of NGTL’s section 58 Application for the Project.

The Project is located entirely on Crown land in the Green Area of Alberta, in the Regional Municipality of Wood Buffalo, approximately 20 kilometres (km) north of Fort McKay, Alberta. The Project will include approximately 7.9 km of nominal pipe size (NPS) 20 inch pipeline to transport sweet natural gas from the existing Ells River Extension pipeline located in SE 22-96-11 W4M to two new Calumet River Sales Meter Stations (Calumet River Sales Meter Station and Calumet River No. 2 Sales Meter Station) located in SW 6-97-10 W4M. The Project parallels approximately 5.6 km of TransCanada’s wholly owned subsidiary Northern Courier Pipeline GP Ltd.’s Northern Courier Pipeline Project and crosses the Athabasca River.

NGTL proposes to use existing commercial and camp accommodations to house the temporary Project construction personnel.

The Project parallels existing disturbance considered contiguous by the NEB (i.e., parallel to an electrical transmission line, oil or gas pipeline, railway or all-season public highway) for approximately 5.6 km or 71 percent (%) of the route.

The Project footprint required for construction consists of new permanent right-of-way (ROW) and temporary workspace (TWS). By using TWS on an existing ROW, the need for new ROW is minimized; this also results in a variable ROW width depending on the existing ROW paralleled. The minimum ROW width required for safe and efficient construction will be 27 metres (m), which includes 20 to 27 m of new permanent ROW. TWS is required at highway, road, pipeline and watercourse crossings, log deck sites, truck turnarounds, and other locations to accommodate safe pipeline construction activities (e.g., grading).

The Project crosses forested land, wetlands, and one watercourse, the Athabasca River, which is approximately 737 m wide (bankfull width) and the valley approximately 35 m deep at the planned crossing location. The watercourse crossing is planned to be constructed by horizontal direction drilling (HDD) as other typical crossing methods (e.g., isolated open-cut) are not considered feasible due to the width and depth of the watercourse. An open-cut contingency crossing design has been prepared for discussion with regulators and use, if required.

No new temporary or permanent access is planned to support construction or operation of the Project. Access to the Project during construction will be primarily by existing highways and public roads, industry access roads, pipeline ROW, and the proposed Project ROW.

The Project footprint of 24.6 hectares (ha) is dominated by approximately 14.0 ha (57% of the Project footprint) of existing disturbance (e.g., disturbed land, revegetated industrial land), with 3.5 ha (14% of the Project footprint) of undisturbed upland vegetation, and 7.1 ha (29% of the Project footprint) of wetlands, all of which are

November 2014 Report No. 1313340056-5000/5001 MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

peatland (organic) wetlands. The Project crosses Key Wildlife and Biodiversity Zone (KBWZ) for approximately 7.4 km (94.1%) of the pipeline route.

The design, construction and operation of the Project will comply with all applicable codes, standards and regulations. Subject to regulatory approval, construction is scheduled to commence with the Project HDD watercourse crossing in September 2015 and the Project pipeline and facility construction in November 2015, with an expected in service date of April 2016. It is anticipated that some activities will be necessary during the Restricted Activity Period, January 15 to April 30, for the KWBZ. A KWBZ Protection Plan to address this potential occurrence was developed in consultation with and submitted to Alberta Environment and Sustainable Resource Development, and will be finalized prior to construction.

Preparation of the ESA included desktop studies, which were conducted for all environmental and socio- economic elements considered in the effects assessment, and field studies for specific elements. Appropriately timed field studies were conducted in 2013 and 2014 for the following environmental elements:  wildlife surveys, including reconnaissance level, remote camera, amphibian, yellow rail and breeding bird surveys;  vegetation and wetlands surveys, including reconnaissance level, listed plants, and noxious weeds surveys; and  aquatic and fish habitat surveys, including watercourse crossing location surveys. Golder did not conduct field based activities (e.g., helicopter flyovers, Traditional Land and Resource Use [TLU] community sessions, or ground-based surveys) in relation to TLU specifically for the Project. However, individuals from two communities participated in Golder-led biophysical and cultural field studies in August 2014.

Based on desktop investigation presented in the Statement of Justification submitted for the Project, Alberta Culture advised that no further palaeontological investigation was required. A Historical Resources Impact Assessment (HRIA) completed for the Project determined that the Project encounters no previously recorded historic resource sites or structures, and a recommendation was made in the HRIA final report that clearance under the Alberta Historic Resources Act be granted for the Project.

The socio-economic assessment considered the traditional, recreational and industrial activities occurring in the Regional Municipality of Wood Buffalo. The potential effects on communities, including Aboriginal communities, and on infrastructure and services, were assessed based on introducing the Project workforce, which is expected to reach 120 persons at the peak of construction.

The potential environmental effects associated with the Project are those typically encountered during pipeline and meter station construction and operation in a forested setting in the Green Area of Alberta. Similarly, potential socio-economic effects are those typically identified in association with pipeline and facility construction projects in northern Alberta.

Project-specific mitigation will be implemented by NGTL to avoid or reduce potential adverse effects during construction and operation. The environmental protection measures designed to mitigate potential environmental effects are presented in the Environmental Protection Plan (Appendix A) and on the Environmental Alignment Sheets (Appendix B) of this ESA. Mitigation as set out in this ESA will also be implemented to alleviate potential adverse socio-economic effects, and will include safety protocols, accepted industry construction and operations

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standards, adherence to all applicable regulations, as well as order and permitting conditions, and ongoing consultation with Aboriginal communities and other stakeholders.

The design and implementation of TransCanada’s environmental compliance strategy – including environmental protection planning and implementation, environmental inspection and monitoring, and post-construction monitoring and follow-up – is expected to avoid or mitigate potential adverse environmental and socio-economic effects as a result of the Project. Assessment of the potential environmental and socio-economic effects resulted in the prediction that any adverse residual Project-related effects will be not significant.

The Project is expected to act cumulatively with existing and foreseeable future developments, including transportation, oil and gas, and forestry. The cumulative effects from existing and approved developments on wildlife and wildlife habitat in the terrestrial regional study area represent a management concern for all wildlife key indicators. Consequently, the cumulative effects on the wildlife and wildlife habitat valued component are considered to be significant. Cumulative effects in the region on all other valued components considered in the cumulative effects assessment are predicted to be not significant.

These cumulative effects exist within the context of the Lower Athabasca Regional Plan and regional initiatives to address cumulative effects. The cumulative effects identified are realized before construction and operation of the proposed Project. Projects and activities contributing to the cumulative effects in the region are being approved under accepted regulatory processes that consider economic, social and environmental aspects. NGTL has considered the intent and strategic direction of the regional initiatives during Project planning, and the Project complies with the development strategy for the area. The Project’s location is based on its purpose to support existing and proposed future infrastructure, and to take advantage of adjacent disturbances as much as possible to minimize the Project effects.

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MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

Table of Contents

1.0 INTRODUCTION ...... 1-1

1.1 Proponent ...... 1-3

1.2 Contacts ...... 1-3

1.3 Regulatory Approvals and Authorizations ...... 1-3

1.4 Document Organization ...... 1-4

1.5 Project Assessment Team ...... 1-5

1.6 Concordance with the NEB Filing Manual ...... 1-6

2.0 PROJECT DESCRIPTION ...... 2-1

2.1 Purpose and Need for the Project ...... 2-1

2.2 Project Alternatives ...... 2-1

2.3 Pipeline Route Selection ...... 2-1

2.3.1 Control Points ...... 2-1

2.3.2 Routing Considerations ...... 2-2

2.3.3 Route Alternatives ...... 2-2

2.3.4 Pipeline Route Selection Considerations and Rationale ...... 2-2

2.4 Project Components ...... 2-3

2.4.1 Pipeline ...... 2-3

2.4.2 Meter Stations ...... 2-4

2.4.3 Associated Facilities ...... 2-5

2.4.4 Temporary Facilities ...... 2-5

2.5 Construction...... 2-6

2.5.1 Pipeline Construction Activities ...... 2-6

2.5.2 Meter Stations ...... 2-7

2.5.3 Inspection ...... 2-7

2.5.4 Workforce Requirements ...... 2-8

2.6 Operations and Maintenance ...... 2-8

2.6.1 Project Operation and Integrity Management ...... 2-8

2.6.2 System Protection and Controls ...... 2-9

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2.6.3 Maintenance ...... 2-9

2.7 Schedule ...... 2-9

2.8 Public Awareness ...... 2-10

2.9 Decommissioning and Abandonment ...... 2-11

3.0 PROJECT ENGAGEMENT PROGRAM ...... 3-1

3.1 Principles and Goals ...... 3-1

3.2 Engagement Methods ...... 3-1

3.2.1 Aboriginal Communities ...... 3-2

3.2.2 Stakeholders ...... 3-3

3.3 Engagement Outcomes ...... 3-3

4.0 ENVIRONMENTAL AND SOCIO-ECONOMIC EFFECTS ASSESSMENT METHODOLOGY ...... 4-1

4.1 Identifying Valued Components and Key Indicators ...... 4-1

4.2 Describing the Existing Environment ...... 4-10

4.2.1 Baseline Data Collection ...... 4-10

4.3 Identifying Project and Environment Interactions ...... 4-10

4.4 Temporal and Spatial Boundaries ...... 4-12

4.4.1 Temporal Boundaries ...... 4-12

4.4.2 Spatial Boundaries ...... 4-13

4.4.3 Socio-economic Study Area ...... 4-19

4.5 Project Effects Assessment ...... 4-20

4.5.1 Identification of Potential Effects ...... 4-20

4.5.2 Identification of Mitigation ...... 4-20

4.5.3 Prediction of Residual Effects ...... 4-21

4.5.4 Assessment of Predicted Residual Effects ...... 4-21

4.5.4.1 Description of Residual Effects ...... 4-21

4.5.4.2 Assess Importance of Predicted Residual Effects ...... 4-24

4.5.5 Determination of Significance ...... 4-25

4.6 Cumulative Effects Assessment ...... 4-26

4.7 Prediction of Confidence in the Effects Assessment ...... 4-28

4.8 Inspection and Monitoring ...... 4-28

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5.0 ENVIRONMENTAL AND SOCIO-ECONOMIC SETTING ...... 5-1

5.1 Physical and Meteorological Environment ...... 5-1

5.1.1 Baseline Setting Data Collection Methods ...... 5-1

5.1.2 Baseline Conditions ...... 5-1

5.2 Soil and Soil Productivity ...... 5-3

5.2.1 Baseline Setting Data Collection Methods ...... 5-3

5.2.2 Baseline Conditions ...... 5-3

5.3 Vegetation ...... 5-7

5.3.1 Baseline Setting Data Collection Methods ...... 5-7

5.3.2 Baseline Conditions ...... 5-9

5.4 Surface Water ...... 5-23

5.4.1 Baseline Setting Data Collection Methods ...... 5-23

5.4.2 Baseline Conditions ...... 5-24

5.5 Groundwater ...... 5-29

5.5.1 Baseline Setting Data Collection Methods ...... 5-29

5.5.2 Baseline Conditions ...... 5-31

5.6 Fish and Fish Habitat ...... 5-35

5.6.1 Baseline Setting Data Collection Methods ...... 5-35

5.6.2 Baseline Conditions ...... 5-36

5.7 Wetlands ...... 5-39

5.7.1 Baseline Setting Data Collection Methods ...... 5-39

5.7.2 Baseline Conditions ...... 5-41

5.8 Wildlife and Wildlife Habitat ...... 5-42

5.8.1 Baseline Setting Data Collection Methods ...... 5-43

5.8.2 Baseline Conditions ...... 5-53

5.8.3 Wildlife Management Areas and Acts ...... 5-68

5.9 Species at Risk or Species of Special Status and Related Habitat ...... 5-68

5.9.1 Vegetation ...... 5-69

5.9.2 Fish Species ...... 5-69

5.9.3 Wildlife Species ...... 5-69

5.10 Air Emissions ...... 5-70

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5.10.1 Baseline Setting Data Collection Methods ...... 5-70

5.10.2 Baseline Conditions ...... 5-71

5.11 Greenhouse Gas Emissions ...... 5-73

5.11.1 Baseline Setting Data Collection Methods ...... 5-73

5.11.2 Baseline Conditions ...... 5-74

5.12 Acoustic Environment ...... 5-75

5.12.1 Baseline Setting Data Collection Methods ...... 5-75

5.12.2 Baseline Conditions ...... 5-75

5.13 Human Occupancy and Resource Use ...... 5-78

5.13.1 Baseline Setting Data Collection Methods ...... 5-78

5.13.2 Baseline Conditions ...... 5-78

5.14 Heritage (Historic) Resources ...... 5-85

5.14.1 Baseline Setting Data Collection Methods ...... 5-86

5.14.2 Baseline Conditions ...... 5-86

5.15 Traditional Land and Resource Use ...... 5-88

5.15.1 Baseline Setting Data Collection Methodology ...... 5-90

5.15.2 Baseline Conditions ...... 5-92

5.16 Navigation and Navigation Safety ...... 5-108

5.16.1 Baseline Setting Data Collection Methods ...... 5-108

5.16.2 Baseline Conditions ...... 5-108

5.17 Quality of Life ...... 5-109

5.17.1 Baseline Setting Data Collection Methods ...... 5-109

5.17.2 Baseline Conditions ...... 5-110

5.18 Human Health ...... 5-111

5.18.1 Baseline Setting Data Collection Methods ...... 5-111

5.18.2 Baseline Conditions ...... 5-111

5.19 Infrastructure and Services ...... 5-111

5.19.1 Baseline Setting Data Collection Methods ...... 5-111

5.19.2 Baseline Conditions ...... 5-112

5.20 Employment and Economy ...... 5-116

5.20.1 Baseline Setting Data Collection Methods ...... 5-117

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MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

5.20.2 Baseline Conditions ...... 5-117

6.0 ENVIRONMENTAL AND SOCIO-ECONOMIC EFFECTS ASSESSMENT ...... 6-1

6.1 Soil and Soil Productivity ...... 6-1

6.1.1 Effects Analysis Approach ...... 6-1

6.1.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-1

6.1.3 Evaluation of Predicted Residual Effects of the Project ...... 6-11

6.2 Vegetation ...... 6-12

6.2.1 Effects Analysis Approach ...... 6-12

6.2.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-12

6.2.3 Evaluation of Predicted Residual Effects of the Project ...... 6-17

6.3 Surface Water ...... 6-19

6.3.1 Effects Analysis Approach ...... 6-19

6.3.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-20

6.3.3 Evaluation of Predicted Residual Effects of the Project ...... 6-22

6.4 Groundwater ...... 6-23

6.4.1 Effects Analysis Approach ...... 6-23

6.4.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-23

6.5 Wetlands ...... 6-25

6.5.1 Effects Analysis Approach ...... 6-25

6.5.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-26

6.5.3 Evaluation of Predicted Residual Effects of the Project ...... 6-31

6.6 Wildlife and Wildlife Habitat ...... 6-32

6.6.1 Effects Analysis Approach ...... 6-33

6.6.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-33

6.6.3 Evaluation of Predicted Residual Effects of the Project ...... 6-50

6.7 Species at Risk or Species of Special Concern and Related Habitat ...... 6-58

6.7.1 Vegetation Species and Ecological Communities ...... 6-58

6.7.2 Wildlife Species ...... 6-59

6.8 Air Emissions ...... 6-59

6.8.1 Effects Analysis Approach ...... 6-59

6.8.2 Potential Air Emissions Effects, Mitigation, and Predicted Residual Effects ...... 6-60

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6.8.3 Evaluation of Predicted Residual Effects of the Project ...... 6-61

6.9 Greenhouse Gas Emissions ...... 6-63

6.9.1 Effects Analysis Approach ...... 6-63

6.9.2 Potential Greenhouse Gas Emissions Effects, Mitigation, and Predicted Residual Effects...... 6-63

6.9.3 Effects Description and Determination of Significance ...... 6-64

6.10 Acoustic Environment ...... 6-65

6.10.1 Effects Analysis Approach ...... 6-65

6.10.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-66

6.10.3 Evaluation of Predicted Residual Effects of the Project ...... 6-68

6.11 Human Occupancy and Resource Use ...... 6-70

6.11.1 Effects Analysis Approach ...... 6-70

6.11.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-70

6.11.3 Evaluation of Predicted Residual Effects of the Project ...... 6-76

6.12 Heritage (Historic) Resources ...... 6-79

6.12.1 Effects Analysis Approach ...... 6-79

6.12.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-79

6.13 Traditional Land and Resource Use ...... 6-82

6.13.1 Effects Analysis Approach ...... 6-82

6.13.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-82

6.13.3 Evaluation of Predicted Residual Effects of the Project ...... 6-88

6.14 Navigation and Navigation Safety ...... 6-91

6.14.1 Effects Analysis Approach ...... 6-91

6.14.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-91

6.15 Quality of Life ...... 6-92

6.15.1 Effects Analysis Approach ...... 6-92

6.15.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-93

6.15.3 Evaluation of Predicted Residual Effects of the Project ...... 6-96

6.16 Human Health ...... 6-98

6.16.1 Effects Analysis Approach ...... 6-98

6.16.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-99

6.16.3 Evaluation of Predicted Residual Effects of the Project ...... 6-100

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MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

6.17 Infrastructure and Services ...... 6-101

6.17.1 Effects Analysis Approach ...... 6-101

6.17.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-101

6.17.3 Evaluation of Predicted Residual Effects of the Project ...... 6-105

6.18 Employment and Economy ...... 6-106

6.18.1 Effects Analysis Approach ...... 6-106

6.18.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-107

6.18.3 Evaluation of Predicted Residual Effects of the Project ...... 6-109

6.19 Accidents and Malfunctions ...... 6-110

6.19.1 Effects Assessment Approach ...... 6-110

6.19.2 Potential Effects, Mitigation, and Predicted Residual Effects ...... 6-111

6.19.3 Evaluation of Predicted Residual Effects of the Project ...... 6-119

6.20 Summary of Environmental and Socio-economic Effects Assessment ...... 6-121

6.21 Effects of the Environment on the Project ...... 6-128

6.21.1 Effects Assessment Approach ...... 6-128

6.21.2 Potential Effects, Mitigation and Predicted Residual Effects ...... 6-128

6.21.3 Effects Description and Determination of Significance ...... 6-131

7.0 CUMULATIVE EFFECTS ASSESSMENT ...... 7-1

7.1 Other Projects and Activities ...... 7-2

7.1.1 Existing and Approved Disturbances and Developments ...... 7-2

7.1.2 Quantitative Analysis of Land Use and Existing Disturbances ...... 7-9

7.2 Potential Cumulative Effects ...... 7-13

7.2.1 Soil and Soil Productivity ...... 7-18

7.2.2 Vegetation ...... 7-19

7.2.3 Surface Water ...... 7-23

7.2.4 Wetlands ...... 7-24

7.2.5 Wildlife and Wildlife Habitat ...... 7-27

7.2.6 Species at Risk or Species of Special Concern and Related Habitat ...... 7-41

7.2.7 Air Emissions ...... 7-41

7.2.8 Greenhouse Gas Emissions ...... 7-42

7.2.9 Acoustic Environment ...... 7-43

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7.2.10 Human Occupancy and Resource Use ...... 7-44

7.2.11 Traditional Land and Resource Use ...... 7-46

7.2.12 Quality of Life ...... 7-49

7.2.13 Human Health ...... 7-51

7.2.14 Infrastructure and Services ...... 7-52

7.2.15 Employment and Economy ...... 7-53

7.2.16 Accidents and Malfunctions ...... 7-54

7.3 Summary of Cumulative Effects...... 7-54

8.0 INSPECTION, MONITORING, AND FOLLOW-UP ...... 8-1

8.1 Compliance and Orientation ...... 8-1

8.1.1 Environmental Policy ...... 8-1

8.1.2 Environmental Protection Planning ...... 8-1

8.1.3 Orientation and Training ...... 8-1

8.2 Environmental Inspection during Construction...... 8-1

8.3 Monitoring during Construction ...... 8-3

8.4 Post-Construction Monitoring and Follow-up ...... 8-3

8.4.1 Pipeline Right-of-Way Monitoring ...... 8-4

8.4.2 Meter Station Site Monitoring ...... 8-5

8.4.3 Criteria for Success ...... 8-5

8.4.4 Selection of Remedial Measures ...... 8-5

8.4.5 Post-Construction Reporting ...... 8-6

8.4.6 Stakeholder Consultation ...... 8-6

8.5 Environmental Compliance during Operation ...... 8-6

8.6 Decommissioning and Abandonment ...... 8-6

9.0 CONCLUSION ...... 9-1

10.0 CLOSURE ...... 10-1

11.0 REFERENCES ...... 11-1

TABLES Table 1.3-1: Summary of Potential Environmental Permits and Approvals Required Prior to Project Construction ...... 1-4

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Table 1.5-1: ESA Team for the McDermott Extension, Calumet River Sales and Calumet River No. 2 Sales Meter Stations Project ...... 1-5

Table 1.6-1: Concordance with Guide A – A.2 Environmental and Socio-economic Assessment of the NEB Filing Manual(a)...... 1-6 Table 2.3-1: Project Tie-In Points ...... 2-1 Table 2.4-1: Technical Details of the Project ...... 2-4 Table 2.5-1: Activities Associated with Pipeline Construction ...... 2-6 Table 2.5-2: Activities Associated with Meter Station Construction ...... 2-7 Table 2.7-1: Proposed Construction and Operation Schedule ...... 2-10 Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale ...... 4-3 Table 4.3-1: Project Interactions with Environmental and Socio-economic Valued Components...... 4-11 Table 4.3-2: Valued Components Not Interacting with the Project ...... 4-12 Table 4.4-1: Study Areas Used in the Environmental and Socio-economic Setting and Effects Assessment ...... 4-14 Table 4.4-2: Communities Considered in the Socio-economic Study Area ...... 4-19 Table 4.5-1: Definition of Criteria Used to Describe Predicted Residual Effects for Key Indicators ...... 4-22 Table 4.5-2: Main Criteria for Assessing the Importance of Predicted Residual Effects ...... 4-24 Table 4.5-3: Definitions of the Assessed Levels of Importance of Predicted Residual Effects ...... 4-25 Table 4.5-4: Definitions of the Significance Determination of Predicted Residual Effects ...... 4-26 Table 5.1-1: Mildred Lake Climate Conditions (1981 to 2010) ...... 5-2 Table 5.2-1: Characteristics of Soils in the Soil Regional Study Area ...... 5-3 Table 5.2-2: Areal Extent of Soils in the Soil Local Study Area and Regional Study Area ...... 5-4 Table 5.2-3: Management Interpretations and Risk Ratings in the Soil Local Study Area ...... 5-6 Table 5.3-1: Ecological Land Classification Units in the Terrestrial Local Study Area ...... 5-11 Table 5.3-2: Ecological Land Classification Units in the Terrestrial Local Study Area ...... 5-11 Table 5.3-3: Listed Plant Species Historical Occurrences Recorded in the Terrestrial Regional Study Area (ACIMS 2014) ...... 5-13 Table 5.3-4: Provincially Tracked Ecological Communities for the Central Mixedwood Natural Subregion ...... 5-20

Table 5.3-5: Listed Ecological Communities Historical Occurrences Recorded in the Terrestrial Regional Study Area (ACIMS 2014)...... 5-20 Table 5.3-6: Environmentally Significant Areas in the Terrestrial Regional Study Area ...... 5-21 Table 5.3-7: 2013 Noxious Weed Observations in the Terrestrial Local Study Area ...... 5-22 Table 5.4-1: Hydrological Characteristics of Watercourses at Crossings ...... 5-24 Table 5.4-2: Available Long-Term Hydrometric Stations near the Aquatic Regional Study Area ...... 5-26 Table 5.4-3: Local Alberta Transportation Bridge Files ...... 5-27 Table 5.4-4: Derived Flood Discharges for the Athabasca River at the Proposed Crossing Location ...... 5-27

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Table 5.4-5: Derived Mean Monthly Flows for the Athabasca River at the Proposed Crossing Location ...... 5-27 Table 5.4-6: Surface Water Licences in the Aquatic Regional Study Area ...... 5-27 Table 5.4-7: Historical Water Quality Data Near the Athabasca River Crossing ...... 5-28 Table 5.5-1: Data from De-watering Wells Recorded in the Water Well Database in the Project Vicinity ...... 5-34 Table 5.6-1: Watercourse Crossing Locations ...... 5-36 Table 5.6-2: Fish Species Documented in the Athabasca River Basin in Alberta(a) ...... 5-37 Table 5.6-3: Fish Species Recorded at Four Sites in the Athabasca River as part of the Regional Aquatics Monitoring Program, 2001-2013 ...... 5-38 Table 5.7-1: Summary of Canadian Wetland Classification System Wetland Types ...... 5-40 Table 5.7-2: Alberta Wetlands Inventory Classification Standards ...... 5-40 Table 5.7-3: Wetlands and Open Water Ecological Land Classification Units in the Terrestrial Local Study Area...... 5-41 Table 5.8-1: Wildlife Surveys Completed in the Terrestrial Local Study Area ...... 5-43 Table 5.8-2: Species at Risk Observed Historically in the Terrestrial Local Study Area ...... 5-54 Table 5.8-3: Species at Risk Observed Historically in the Terrestrial Regional Study Area ...... 5-55 Table 5.8-4: Breeding Bird Survey Plots by Habitat Type in the Terrestrial Local Study Area ...... 5-56 Table 5.8-5: Breeding Bird Observations in the Terrestrial Local Study Area ...... 5-56

Table 5.8-6: Breeding Bird Relative Abundance by Habitat Group in the Terrestrial Local Study Area During the Breeding Bird Surveys ...... 5-58

Table 5.8-7: Breeding Bird Species Richness by Habitat Group in the Terrestrial Local Study Area During the Breeding Bird Surveys ...... 5-59

Table 5.8-8: Breeding Bird Species Diversity by Habitat Group in the Terrestrial Local Study Area During the Breeding Bird Surveys ...... 5-59 Table 5.8-9: Highest Call Index of Amphibian Detections by Habitat Type in the Terrestrial Local Study Area ...... 5-60 Table 5.8-10: Yellow Rail Plots and Observations by Habitat Type in the Terrestrial Local Study Area ...... 5-60 Table 5.8-11: Results of Fall 2013 Non-Baited Photographic Monitoring Surveys ...... 5-61 Table 5.8-12: Results of Winter 2014 Non-Baited Photographic Monitoring Surveys ...... 5-62 Table 5.8-13: Results of Spring 2014 Non-Baited Photographic Monitoring Surveys ...... 5-62 Table 5.8-14: Results of Summer 2014 Non-Baited Photographic Monitoring Surveys ...... 5-63 Table 5.10-1: Alberta Ambient Air Quality Objectives for Criteria Air Contaminants of Interest...... 5-71

Table 5.10-2: Ambient Sulphur Dioxide (SO2) Concentrations at the Canadian Natural Resources Limited Horizon Air Monitoring Station 15 ...... 5-71

Table 5.10-3: Ambient Nitrogen Dioxide (NO2) Concentrations at the Canadian Natural Resources Limited Horizon Air Monitoring Station 15 ...... 5-72

Table 5.10-4: Ambient Particulate Matter (PM2.5) Concentrations at the Canadian Natural Resources Limited Horizon Air Monitoring Station 15 ...... 5-73 Table 5.10-5: Ambient Carbon Monoxide (CO) Concentrations at Athabasca Valley Monitoring Station ...... 5-73 Table 5.11-1: Greenhouse Gas Emissions in Alberta and Canada in from 1990 to 2012(a) ...... 5-74

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Table 5.13-1: Socio-economic Study Area Population from 2006 to 2012 ...... 5-79

Table 5.13-2: Disposition Holders and Surface Activity Codes within 1,000 m of the Project (i.e., Resource Use Local Study Area) ...... 5-80 Table 5.13-3: Outfitter Allocations in the Resource Use Regional Study Area ...... 5-82 Table 5.13-4: Registered Fur Management Areas in the Resource Use Regional Study Area ...... 5-82 Table 5.15-1: Summary of Traditional Land Use in the Traditional Land and Resource Use Local Study Area ...... 5-106 Table 5.16-1: Filing Requirements related to Navigation and Navigation Safety ...... 5-108 Table 5.19-1: 2013 Average Annual Daily Traffic on Highway 63 ...... 5-112

Table 5.19-2: Class Size Averages by Jurisdictions for All Subjects in the Socio-economic Study Area School Districts for the 2013/2014 School Year ...... 5-115 Table 5.20-1: Labour Force Activity in 2006 and 2011 in the Socio-economic Study Area ...... 5-117 Table 5.20-2: Labour Force Activity of the Aboriginal Population in 2006 and 2011 in the Socio-economic Study Area .... 5-118 Table 5.20-3: Educational Attainment in 2006 and 2011 in the Socio-economic Study Area and Alberta ...... 5-120 Table 5.20-4: Educational Attainment of the Aboriginal Population in 2006 and 2011 in the Socio-economic Study Area ...... 5-120 Table 5.20-5: Personal Income in 2010 in the Socio-economic Study Area ...... 5-121 Table 5.20-6: Personal Income of the Aboriginal Population in 2010 in the Socio-economic Study Area ...... 5-121 Table 5.20-7: Major Proposed and Approved Projects in the Socio-economic Study Area ...... 5-122 Table 6.1-1: Potential Soil and Soil Productivity Effects, Mitigation and Predicted Residual Effects ...... 6-7 Table 6.1-2: Predicted Residual Project Effects Description and Importance for Soil and Soil Productivity ...... 6-11 Table 6.2-1: Loss or Alteration of Ecological Land Classification Units in the Terrestrial Local Study Area ...... 6-13 Table 6.2-2: Potential Vegetation Effects, Recommended Mitigation, and Predicted Residual Effects ...... 6-16 Table 6.2-3: Magnitude Definitions for Vegetation ...... 6-18 Table 6.2-4: Predicted Residual Project Effects Description and Importance for Terrestrial Vegetation ...... 6-18 Table 6.3-1: Potential Surface Water Effects, Mitigation and Predicted Residual Effects ...... 6-21 Table 6.3-2: Magnitude(a) Definition for Predicted Effects on Surface Water ...... 6-22 Table 6.3-3: Predicted Residual Project Effects Description and Importance for Surface Water ...... 6-22 Table 6.4-1: Potential Groundwater Effects, Mitigation, and Predicted Residual Effects ...... 6-24 Table 6.5-1: Area of Wetlands Potentially Affected by the Pipeline Project in the Terrestrial Local Study Area...... 6-26 Table 6.5-2: Potential Wetlands Effects, Mitigation, and Predicted Residual Effects ...... 6-29 Table 6.5-3: Magnitude Definitions for Wetlands ...... 6-31 Table 6.5-4: Predicted Residual Project Effects Description and Importance for Wetlands ...... 6-31 Table 6.6-1: Summary of Potential Effects on Key Indicators of Wildlife and Wildlife Habitat ...... 6-34 Table 6.6-2: Alteration to Wildlife Habitat in the Terrestrial Local Study Area and Project Footprint ...... 6-35 Table 6.6-3: Potential Wildlife and Wildlife Habitat Effects, Mitigation and Predicted Residual Effects ...... 6-40

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Table 6.6-4: Predicted Residual Project Effects and Importance for Wildlife and Wildlife Habitat ...... 6-50

Table 6.7-1: Potential Wildlife Species at Risk or Special Concern Effects, Recommended Mitigation and Predicted Residual Effects ...... 6-59 Table 6.8-1: Potential Air Emissions Effects, Mitigation, and Predicted Residual Effects ...... 6-61 Table 6.8-2: Predicted Residual Project Effects Description and Importance for Air Emissions ...... 6-61 Table 6.9-1: Potential Greenhouse Gas Emissions Effects, Mitigation, and Predicted Residual Effects ...... 6-64 Table 6.9-2: Predicted Residual Project Effects Description and Importance for Greenhouse Gas Emissions ...... 6-64 Table 6.10-1: Potential Acoustic Environment Effects, Mitigation, and Predicted Residual Effects...... 6-68 Table 6.10-2: Predicted Residual Project Effects Description and Importance for Acoustic Environment ...... 6-69

Table 6.11-1: Potential Effects on Human Occupancy and Land and Resource Use, Mitigation, and Predicted Residual Effects ...... 6-75

Table 6.11-2: Predicted Residual Project Effects Description and Importance for Human Occupancy and Land and Resource Use...... 6-77 Table 6.12-1: Potential Heritage (Historic) Resource Effects, Mitigation, and Predicted Residual Effects ...... 6-81 Table 6.13-1: Potential Traditional Land and Resource Use Effects, Mitigation and Predicted Residual Effects ...... 6-87 Table 6.13-2: Predicted Residual Project Effects Description and Importance for Traditional Land and Resource Use ...... 6-88 Table 6.14-1: Potential Effects on Navigation and Navigation Safety, Mitigation and Predicted Residual Effects ...... 6-92 Table 6.15-1: Potential Effects on Quality of Life, Mitigation, and Predicted Residual Effects ...... 6-95 Table 6.15-2: Predicted Residual Project Effects Description and Importance for Quality of Life ...... 6-97 Table 6.16-1: Potential Effects on Human Health, Mitigation, and Predicted Residual Effects ...... 6-100 Table 6.16-2: Predicted Residual Project Effects Description and Importance for Human Health ...... 6-100 Table 6.17-1: Potential Effects on Infrastructure and Services, Mitigation, and Predicted Residual Effects ...... 6-104 Table 6.17-2: Predicted Residual Project Effects Description and Importance for Infrastructure and Services...... 6-105 Table 6.18-1: Potential Effects on Employment and Economy, Mitigation, and Predicted Residual Effects ...... 6-108 Table 6.18-2: Predicted Residual Project Effects Description and Importance for Employment and Economy...... 6-109 Table 6.19-1: Potential Accidents and Malfunctions Effects, Mitigation, and Predicted Residual Effects ...... 6-117 Table 6.19-2: Predicted Residual Effects Description and Importance for Accidents and Malfunctions ...... 6-119 Table 6.20-1: Summary of Predicted Project Effects and Environmental Significance ...... 6-122 Table 7.1-1: Projects or Activities Considered in the Cumulative Effects Assessment, date August 2014 ...... 7-3 Table 7.1-2: Land Use Features and Assumptions used for the Quantitative Analysis ...... 7-11 Table 7.1-3: Known, Existing, Approved and Project Linear Development in the Terrestrial Regional Study Area ...... 7-11 Table 7.1-4: Existing and Approved Developments within the Terrestrial Regional Study Area...... 7-12 Table 7.2-1: Potential Project Interactions and Cumulative Effects ...... 7-14 Table 7.2-2: Cumulative Effects and Importance for Soil and Soil Productivity ...... 7-18 Table 7.2-3: Cumulative Effects and Importance for Vegetation ...... 7-20

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Table 7.2-4: Remaining Land Cover Area in the Terrestrial Regional Study Area After Existing and Approved Disturbances (2014) and Development of the Proposed Project ...... 7-21 Table 7.2-5: Cumulative Effect and Importance for Surface Water ...... 7-23 Table 7.2-6: Cumulative Effects and Importance for Wetlands ...... 7-24 Table 7.2-7: Cumulative Effects and Importance for Wildlife and Wildlife Habitat ...... 7-29

Table 7.2-8: Remaining Habitat in the Terrestrial Regional Study Area After Existing and Approved Disturbances (2014) and Development of the Proposed Project...... 7-30

Table 7.2-9: Remaining Moose Habitat in the Terrestrial Regional Study Area and Loss of Suitable Habitat After Existing and Approved Disturbances (2014) and Development of the Proposed Project ...... 7-32

Table 7.2-10: Remaining Furbearer / Carnivore Habitat in the Terrestrial Regional Study Area and Loss of Suitable Habitat After Existing and Approved Disturbances (2014) and Development of the Proposed Project ...... 7-33

Table 7.2-11: Remaining Old Growth Forest Bird Habitat in the Terrestrial Regional Study Area and Loss of Suitable Habitat After Existing and Approved Disturbances (2014) and Development of the Proposed Project ...... 7-35 Table 7.2-12: Remaining Olive-sided Flycatcher Habitat in the Terrestrial Regional Study Area and Loss of Suitable Habitat After Existing and Approved Disturbances (2014) and Development of the Proposed Project ...... 7-36

Table 7.2-13: Remaining Yellow Rail Habitat in the Terrestrial Regional Study Area and Loss of Suitable Habitat After Existing and Approved Disturbances (2014) and Development of the Proposed Project ...... 7-37

Table 7.2-14: Remaining Canadian Toad Habitat in the Terrestrial Regional Study Area and Loss of Suitable Habitat After Existing and Approved Disturbances (2014) and Development of the Proposed Project ...... 7-38 Table 7.2-15: Cumulative Effect and Importance for Air Emissions ...... 7-41 Table 7.2-16: Cumulative Effect and Importance for Greenhouse Gas (GHG) Emissions ...... 7-42 Table 7.2-17: Cumulative Effects and Importance for Acoustic Environment ...... 7-44 Table 7.2-18: Cumulative Effects and Importance to Human Occupancy and Resource Use...... 7-44 Table 7.2-19: Cumulative Effects and Importance for Traditional Land and Resource Use ...... 7-47 Table 7.2-20: Cumulative Effects and Importance for Quality of Life ...... 7-49 Table 7.2-21: Cumulative Effects and Importance for Human Health ...... 7-51 Table 7.2-22: Cumulative Effects and Importance for Infrastructure and Services ...... 7-52 Table 7.2-23: Cumulative Effects and Importance for Employment and Economy ...... 7-53 Table 7.3-1: Summary of Assessed Cumulative Effects and Predicted Significance ...... 7-56

FIGURES Figure 1.0-1: Project Location ...... 1-2 Figure 4.4-1: Biophysical and Historic Resources Study Areas ...... 4-17 Figure 4.4-2: Socio-economic Study Areas ...... 4-18 Figure 5.3-1: Natural Subregions and Environmentally Sensitive Areas ...... 5-10 Figure 5.4-1: Watercourse Crossing Overview ...... 5-25 Figure 5.5-1: Baseline Groundwater ...... 5-30

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Figure 5.8-1: Breeding Bird Survey Locations 2014 ...... 5-45 Figure 5.8-2: Amphibian Survey Locations and Observations 2014 ...... 5-46 Figure 5.8-3: Yellow Rail Survey Locations 2014 ...... 5-47

Figure 5.8-4: Non-baited Photographic Monitoring Locations and Observations, Fall 2013, and Winter, Spring and Summer 2014 ...... 5-48 Figure 5.12-1: Acoustic Environment Study Areas and Noise Receptors ...... 5-77 Figure 5.14-1: Project Location and Local Historic Resource Sites ...... 5-87 Figure 5.15-1: Registered Fur Management Areas ...... 5-94 Figure 5.15-2: Fort McKay Furbearer Culturally Significant Ecosystem ...... 5-95 Figure 5.15-3: Fort McKay Large Game Culturally Significant Ecosystem ...... 5-97 Figure 5.15-4: Fort McKay Bird Culturally Significant Ecosystem ...... 5-99 Figure 5.15-5: Fort McKay Fish Culturally Significant Ecosystem ...... 5-101 Figure 5.15-6: Fort McKay Traditional Plant and Berry Harvesting Culturally Significant Ecosystem ...... 5-103 Figure 7.1-1: Known Existing and Approved Disturbances ...... 7-10

APPENDICES APPENDIX A Environmental Protection Plan

APPENDIX B Environmental Alignment Sheets

APPENDIX C Ecological Land Classification (ELC) Figures and Descriptions

APPENDIX D Incidental Wildlife Sightings

APPENDIX E Wildlife Monitoring Photos

APPENDIX F Wildlife Species of Special Status Observed or With the Potential to Occur Within the Terrestrial Local Study Area (LSA) and Regional Study Area (RSA)

APPENDIX G Traditionally Used Resources

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List of Acronyms, Abbreviations, Units, Symbols and Conversions

Acronym / Term / Symbol Definition / Unit Name % percent # number < less than > greater than ≤ less than or equal to ≥ greater than or equal to ° degree °C degrees Celsius µg/m3 micrograms per cubic metre µm micron or micrometre µS/cm micro-Siemens per centimetre AAAQOs Alberta Ambient Air Quality Objectives AADT Average Annual Daily Traffic AB Alberta ABMI Alberta Biodiversity Monitoring Institute ACA Alberta Conservation Association ACFN Athabasca Chipewyan First Nation ACIMS Alberta Conservation Information Management System AENV Alberta Environment AER Alberta Energy Regulator AGS Alberta Geological Surveys AMS Air Monitoring Station ANPC Alberta Native Plant Council AOA Area Operating Agreement AOSA Athabasca Oil Sands Area ARC Alberta Research Council ASL Ambient sound level ASRD Alberta Sustainable Resource Development ATV all-terrain vehicle AVI Alberta Vegetation Inventory AWI Alberta Wetlands Inventory BBS Breeding bird surveys BFNN forested bog BTNN treed bogs BTNN_bu treed bog – burned CAC Criteria Air Contaminant Canadian Natural Canadian Natural Resources Limited CAPP Canadian Association of Petroleum Producers

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Acronym / Term / Symbol Definition / Unit Name CEA Act 2012 Canadian Environmental Assessment Act, 2012 CEA Agency Canadian Environmental Assessment Agency CEMA Cumulative Effects Management Association cm centimetre CMHC Canada Mortgage Housing Corporation CNC Consultative Notation Company CNT Consultative Notation CO carbon monoxide

CO2 carbon dioxide

CO2e equivalent carbon dioxide COSEWIC Committee on the Status of Endangered Wildlife in Canada CPDFN Chipewyan Prairie Dene First Nation CRA Commercial, Recreational, and Aboriginal use CRB Conservation and Reclamation Business Plan CRDNC Christina River Dene Nation Council CRISP The Comprehensive Regional Infrastructure Sustainability Plan CSA Canadian Standards Association CSE Culturally Significant Ecosystems CTLA Coniferous Timber Licence/Permit CWCS Canadian Wetland Classification System CWS Canadian Wildlife Service dB decibels dBA “A-weighted” decibel DFO Department of Fisheries and Oceans DLO Licence of Occupation DML Micellaneous Lease DRS Disposition Reservation e.g. for example [Latin: exempli gratia] EIA Environmental Impact Assessment ELC Ecological Land Classification EMS Emergency Medical Services EPP Environmental Protection Plan ERP Emergency Response Plan ESA Environmental and Socio-economic Assessment ESRD Alberta Environment and Sustainable Resource Development et al. and others [Latin: et alia] ETS Electronic Transfer System EUB Alberta Energy and Utilities Board EUB/AGS Alberta Energy Utilities Board/Alberta Geological Survey

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Acronym / Term / Symbol Definition / Unit Name EZE Easement FCML 125 Fort Chipewyan Métis Local #125 FG Glaciofluvial deposits FHELP Fort Hills Energy Limited Partnership FIRM Facility Integrity and Reliability Management FMA Forest Management Agreement FMFN Fort McKay First Nation FMFN 468 Fort McMurray #468 First Nation FMML 63 Fort McKay Métis Local #63 FMML 1935 Fort McMurray Métis Local #1935 FMML 2020 Fort McMurray Métis Local #2020 FMU Forest Management Unit FONG graminoid fen FONS shrubby fen FRD Forestry Road FTNN treed fen FTNN_bu treed fen – burned FWMIS Fisheries and Wildlife Management Information System g gram GHG Greenhouse Gas GIS Geographic Information System Golder Golder Associates Ltd. GPS Global Positioning System ha hectare(s) HDD Horizontal Directional Drill HIS Hydrotechnical Information System HRIA Historic Resources Impact Assessment HRV Historic Resource Value HSI Habitat Suitability Index HWY Highway i.e. that is [Latin: id est] ID Identification igpm Imperial gallons per minute IR Indian Reserve km kilometre(s) km2 square kilometre km/hr kilometres per hour KP Kilometre Post kPa kilopascal

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Acronym / Term / Symbol Definition / Unit Name Kt kilotonnes KWBZ Key Wildlife and Biodiversity Zone LARP Lower Athabasca Regional Plan LOC License of Operation LSA Local study area LSD Legal Sub-Division LUF Land-Use Framework m metre(s) m3 cubic metres mbgs metres below ground surface m/s metres per second m3/d cubic metres per day m3/s cubic metres per second masl metres above sea level MBCA Migratory Birds Convention Act MCFN Mikisew Cree First Nation mg/L milligram per litre MLL Miscellaneous Lease MLP Miscellaneous Permit MLV Mainline valve mm millimetre(s) MMP Alberta Marsh Monitoring Program MNA Métis Nation of Alberta MNA-Region 1 Métis Nation of Alberta Region 1 MOU Memorandum of Understanding MSL Mineral Surface Lease Mt Megatonnes N north n/a not applicable NPA Navigation Protection Act NAD North American Datum NE Northeast NEB National Energy Board NEB Act National Energy Board Act NGTL NOVA Gas Transmission Limited NO nitric oxide No. number

NO2 nitrogen dioxide NOx nitrogen oxides

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Acronym / Term / Symbol Definition / Unit Name Northern Courier Northern Courier Pipeline GP Ltd. NPS Nominal Pipe Size NRC Natural Regions Committee NW Northwest OCC Operations Control Centre OD Outside Diameter OPR Onshore Pipeline Regulations PCM Post-construction Monitoring PCMP Post-construction Monitoring Program pers. comm. personal communication pH Potential hydrogen pHRIA palaeontological Historical Resources Impact Assessment PIL Pipeline Installation Lease Pipeline COP Code of Practice for Pipelines and Telecommunication Lines Crossing a Water Body PLA Pipeline Agreement PM Particulate Matter

PM2.5 particulate matter with a mean aerodynamic diameter of 2.5 microns (µm) or smaller PNT Protective Notation QA/QC Quality assurance/Quality control RAMP Regional Aquatics Monitoring Program RAP Restricted Activity Period RCMP Royal Canadian Mounted Police RDS Roadway RFMA Registered Fur Management Area RMWB Regional Municipality of Wood Buffalo ROW right-of-way RRD Registered Roadway RSDS Regional Sustainable Development Strategy RSA Regional study area S south SAGD Steam Assisted Gravity Drainage SARA Species at Risk Act SCADA Supervisory control and data acquisition SE southeast SML Surface Material Lease SNR Unranked. Conservation status not yet assessed.

SO2 sulphur dioxide

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Acronym / Term / Symbol Definition / Unit Name

SO3 sulphur trioxide SoJ Statement of Justification SOx sulphur oxides SONS shrubby swamp SSA Socio-economic study area STNN treed swamps STNN_bu treed swamps – burned SW southwest SWI Specific Work Instructions TC Transport Canada TDS Total dissolved solids TEK Traditional Ecological Knowledge TFA Temporary Field Authorization McDermott Extension, Calumet River Sales and Calumet River No. 2 Sales the Project Meter Stations Project TLU Traditional Land Use TPA Trapping Area TransCanada TransCanada PipeLines Limited Twp Township TWS temporary workspace UTM Universal Transverse Mercator VC valued components VCE Vegetation Control Easement W west W4M West of the Fourth Meridian WBEA Wood Buffalo Environmental Association WC Watercourse Crossing WHMIS Workplace Hazardous Materials Information System WLML 780 Willow Lake Métis Local #780 WMU Wildlife Management Unit WONN shallow open water

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1.0 INTRODUCTION NOVA Gas Transmission Ltd. (NGTL), a wholly owned subsidiary of TransCanada PipeLines Limited (TransCanada), is applying to the National Energy Board (NEB) under section 58 of the National Energy Board Act (NEB Act) for an order to authorize construction and operation of the McDermott Extension, Calumet River Sales and Calumet River No. 2 Sales Meter Stations (the Project) (Figure 1.0-1).

The Project is located on Crown land in the Green Area of Alberta, in the Regional Municipality of Wood Buffalo, approximately 20 kilometres (km) north of Fort MacKay, Alberta. The Project will include approximately 7.9 km of nominal pipe size (NPS) 20 inch pipeline to transport sweet natural gas from the existing Ells River Extension pipeline located in SE 22-96-11 W4M to two new Calumet River Sales Meter Stations (Calumet River Sales Meter Station and Calumet River No. 2 Sales Meter Station) located in SW 6-97-10 W4M. The Project parallels approximately 5.6 km of TransCanada’s wholly owned subsidiary Northern Courier Pipeline GP Ltd.’s (Northern Courier) Northern Courier Pipeline Project and crosses the Athabasca River.

The Project footprint required for construction consists of both permanent right-of-way (ROW) and temporary workspace (TWS). To the extent possible, NGTL has aligned and overlapped the Project with the approved Northern Courier Pipeline Project ROW or other linear disturbances such as pipelines, roads and electrical power lines, to minimize the requirement for new permanent ROW. Therefore, approximately 27 metres (m) of new permanent ROW width will be required to safely accommodate the Project for approximately 1.9 km, between kilometre post (KP) 0.0 to KP 2.1, and 20 m of new permanent ROW width will be required for approximately 6.0 km between KP 2.1 and KP 7.9. The Project parallels existing disturbance considered contiguous by the NEB (i.e., parallel to an electrical transmission line, oil or gas pipeline, railway or all-season public highway) for approximately 5.6 km or 71 percent (%) of the route. In addition to the permanent ROW, the Project footprint includes TWS at staging areas, side bends, highway, road, pipeline and watercourse crossings, where grading is necessary, and at other locations to accommodate safe pipeline construction activities.

Temporary infrastructure, such as staging areas, log decks and contractor yards will be required during construction. No new temporary or permanent access roads will be required for pipeline construction and operation.

This document has been prepared in accordance with the NEB Act and the NEB guidance, including the NEB Filing Manual, Release 2014-01 (NEB 2014a), as part of NGTL’s application for approval of the Project. Subject to regulatory approvals, pipeline construction is scheduled to begin in September 2015, with the pipeline scheduled to be in-service and the operation phase to commence in April 2016.

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R * McDERMOTT EXTENSION PROJECT DITCHLINE 2014-08-25 T

\ DESIGN SM 29 Jul. 2014 SCALE AS SHOWN REV. 0 S

T REFERENCES GIS MP 23 Oct. 2014 N

\ REVIEW CC 23 Oct. 2014 : DATUM: NAD83 PROJECTION: UTM ZONE 12 I MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

1.1 Proponent The Project will be constructed, owned and operated by NGTL, a wholly owned subsidiary of TransCanada. TransCanada operates the NGTL System pursuant to an Operating Agreement between TransCanada and NGTL. TransCanada applies corporate policies in its operations of the NGTL system that are common to TransCanada’s operation of other federally-regulated piplines, including the TransCanada Mainline and the Foothills System. 1.2 Contacts The contact person for the regulatory approvals aspect of the Project is:

Rick Baum Regulatory Services TransCanada PipeLines Limited 450 - 1st Street SW Calgary, AB T2P 5H1 Tel: (403) 920-5377 Fax (403) 920-2347 E-mail: [email protected]

The contact person for the environmental approvals aspect of the Project is:

Nancy Porter Senior Environmental Project Manager TransCanada PipeLines Limited 450 - 1st Street SW Calgary, AB T2P 5H1 Tel: (587) 933-3215 Fax: (403) 920-2452 E-mail: [email protected] 1.3 Regulatory Approvals and Authorizations The Project is subject to the NEB Act and requires an order pursuant to section 58 of the NEB Act. Application to the NEB involves submission of a summary Interactions Table which is supported by this ESA report prepared in accordance with the NEB Filing Manual (NEB 2014a).

This Project is not a “designated project” under the Regulations Designating Physical Activities under the Canadian Environmental Assessment Act, 2012 (CEAA 2012; Government of Canada 2012). Consequently, a federal environmental assessment is not required under CEAA 2012 for this Project.

This report will serve as the primary environmental application for the Project; however, other federal and provincial approvals will also be necessary. A summary of the potential permits and approvals required prior to construction of the Project is presented in Table 1.3-1.

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Table 1.3-1: Summary of Potential Environmental Permits and Approvals Required Prior to Project Construction Department Authority Permit / Approval / Authorization / Notification Federal Section 58 of the National Energy Board Approval under section 58 of the NEB Act Act (NEB Act) Section 108 of NEB Act Approval to construct a pipeline that passes on, over, along or under a utility If required, approval to construct, place, alter, repair, rebuild, remove or decommission a Section 6(1) of the work (i.e., permanent access road crossing structure) in, on, over, under, through or across Navigation Protection any navigable water that is listed in the schedule that the Minister has determined under National Energy Act (NPA) Board (NEB) section 5 is likely to substantially interfere with navigation. Under the memorandum of understanding (MOU) between the NEB and the Fisheries and Oceans Canada (DFO), the NEB will assess potential effects of the Project on fish or fish habitat and aquatic species at risk. Fisheries Act If the NEB determines that a Project could result in serious harm to fish or fish habitat, or adverse effects on species at risk, the NEB will notify DFO that a Fisheries Act authorization under section 35(2) and section 32 and/or section 73 Species at Risk Act (SARA) permit may be required. Provincial – Alberta Alberta Culture Historical Resources Act . Clearance under the Historical Resources Act . Temporary Field Authorization Alberta Public Lands Act . Approval for land use dispositions under the Public Lands Act: Environmental Field Environment and Report for the pipeline (DPL) and pipeline installation lease (DPI) on public lands Sustainable Resource . Notification under the Water Act Code of Practice for Pipelines and Development Telecommunications Lines Crossing a Water Body (Government of Alberta 2013a) (ESRD) Water Act . Notification under the Water Act Code of Practice for the Temporary Diversion of Water for Hydrostatic Testing of Pipelines (Government of Alberta 1999)

1.4 Document Organization The purpose of this ESA report is to meet the requirements of the NEB Filing Manual (NEB 2014a) in predicting and describing the effects that the Project may have on the biophysical and socio-economic environments, using an environmental assessment approach. In addition, the mitigation identified in the report and detailed in the Environmental Protection Plan (EPP) (Appendix A) as well as environmental contingency plans, environmental follow-up and monitoring plans, and the Environmental Alignment Sheets (Appendix B) as part of this ESA will form the foundation for future environmental management activities by NGTL.

The ESA document is presented in the following sections:  Section 1: Introduction – provides an overview of the Project and proponent, the regulatory framework, purpose and organization of the report, and the ESA team.  Section 2: Project Description – provides a description of the route selection process and rationale, justification and need for the Project, Project components, Project location, and the schedule of activities for Project construction and operation.  Section 3: Project Engagement Program – provides a summary of consultation and engagement with regulators, Aboriginal communities, and other stakeholders.

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 Section 4: Environmental and Socio-economic Effects Assessment Methodology – provides a description of the effects assessment methodology, including effects descriptors and criteria for significance determination.  Section 5: Environmental and Socio-economic Setting – provides a description of the existing biological and socio-economic environment.  Section 6: Environmental and Socio-economic Effects Assessment – identifies the potential environmental and socio-economic effects of the Project, mitigation to avoid or reduce potential effects, residual effects following implementation of mitigation, and determination of the significance of any residual effects.  Section 7: Cumulative Effects Assessment – provides a description of the cumulative environmental assessment methodology and assesses residual effects in combination with effects from other physical activities that have been or will be carried out.  Section 8: Inspection, Monitoring and Follow-up – outlines the various biophysical and socio-economic inspections, monitoring, and follow-up programs.  Section 9: Summary and Conclusions – provides a summary of the environmental and socio-economic assessment and its conclusions.  Section 10: Closure – closure of the ESA report.  Section 11: References – provides the sources of information to which the reader is referred throughout the ESA report. 1.5 Project Assessment Team The environmental assessment and ESA report were completed by Golder, in association with other companies. The associated companies and their responsibility in relation to completing the ESA are identified in Table 1.5-1.

Table 1.5-1: ESA Team for the McDermott Extension, Calumet River Sales and Calumet River No. 2 Sales Meter Stations Project Company Responsibility Project Description Pipeline Route Selection NGTL Public Consultation and Aboriginal Engagement Environmental Protection Planning Construction and Post-construction Monitoring Program Pipeline Route Selection Midwest Surveys Inc. Pipeline Route Survey

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Table 1.5-1: ESA Team for the McDermott Extension, Calumet River Sales and Calumet River No. 2 Sales Meter Stations Project Company Responsibility Soils Assessment Fisheries and Aquatic Study and Assessment Hydrology Study and Assessment Hydrogeology Assessment Vegetation Study and Assessment Wetland Study and Assessment Wildlife and Wildlife Habitat Study and Assessment Golder Air Quality Assessment Acoustic Environment Assessment Heritage (Historic) Resources Study and Assessment Palaeontogical Resources Assessment Traditional Land and Resource Use Assessment Socio-economic Assessment Environmental Protection Planning

The desktop and field studies, supporting studies and engagement indicated above provided information relevant to the existing environmental and socio-economic setting, relevant issues, appropriate mitigation and the effects assessment presented in this ESA. 1.6 Concordance with the NEB Filing Manual Table 1.6-1 is included as a reference to assist the regulators in locating the responses to NEB requirements in this ESA report, which was prepared based on the NEB Filing Manual (NEB 2014a).

Table 1.6-1: Concordance with Guide A – A.2 Environmental and Socio-economic Assessment of the (a) NEB Filing Manual Filing Section in this Filing Requirement Manual No. ESA Report A.2.5 Description of the Environmental and Socio-Economic Setting Identify and describe the current biophysical and socio-economic setting of each element 1. 5.0 (i.e., baseline information) in the area where the project is to be carried out. Describe which biophysical or socio- economic elements in the study area are of ecological, economic or human importance and require more detailed analysis taking into account the results of consultation (see Table A-1 for examples). Where circumstances require more detailed information 5.0 2. in an ESA, see: 6.0 i. Table A-2 – Filing Requirements for Biophysical Elements; or ii. Table A-3 – Filing Requirements for Socio- Economic Elements. Provide supporting evidence (e.g., references to scientific literature, field studies, local and traditional knowledge, previous environmental assessment and monitoring reports) for:

. information and data collected; 4.1 3 - 4. . analysis completed; 4.2 . conclusions reached; and 5.0 . the extent of professional judgment or experience relied upon in meeting these information requirements, and the rationale for that extent of reliance. Describe and substantiate the methods used for any surveys, such as those pertaining to wildlife, 5. fisheries, plants, species at risk or species of special status, soils, heritage resources or traditional 5.0 land use, and for establishing the baseline setting for the atmospheric and acoustic environment. 4.1 Applicants must consult with other expert federal, provincial or territorial departments and other 6. 4.2 relevant authorities on requirements for baseline information and methods. 5.0

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Table 1.6-1: Concordance with Guide A – A.2 Environmental and Socio-economic Assessment of the (a) NEB Filing Manual Filing Section in this Filing Requirement Manual No. ESA Report A.2.6 Effects Assessment A.2.6.1 Identification and Analysis of Effects Describe the methods used to predict the effects of the project on the biophysical and socio- 1. 4.0 economic elements, and the effects of the environment on the project. Predict the effects associated with the proposed project, including those that could be caused by construction, operations, decommissioning or abandonment, as well as accidents and malfunctions. 2. Also include effects the environment could have on the project. 6.0 For those biophysical and socio-economic elements or their valued components that require further analysis (see Table A-1), provide the detailed information outlined in Tables A-2 and A-3. A.2.6.2 Mitigation Measures 6.0 Describe the standard and project specific mitigation measures and their adequacy for addressing Appendix A (EPP) 1. the project effects, or clearly reference specific sections of company manuals that provide mitigation Appendix B measures. Ensure that referenced manuals are current and filed with the NEB. (Environmental Alignment Sheets) 8.1 8.2 Ensure that commitments about mitigative measures will be communicated to field staff for Appendix A (EPP) 2. implementation through an Environmental Protection Plan (EPP). Appendix B (Environmental Alignment Sheets) Describe plans and measures to address potential effects of accidents and malfunctions during 6.19 3. construction and operation of the project (see Subsection A.2.6). Appendix A (EPP) A 2.6.3 Evaluation of Significance After taking into account any appropriate mitigation measures, identify any remaining residual 1. 6.0 effects from the project. Describe the methods and criteria used to determine the significance of adverse effects, including 4.5.5 2. defining the point at which any particular effect on a valued component is considered “significant”. 6.0 Evaluate the significance of residual adverse environmental and socio-economic effects against the 3. 6.0 defined criteria. Evaluate the likelihood of significant, residual adverse environmental and socio-economic effects 4. 6.0 occurring and substantiate the conclusions made. A.2.7 Cumulative Effects Assessment A.2.7.1 Scoping and Analysis of Cumulative Effects Identify the valued components for which residual effects are predicted, and describe and justify the 6.0 1. methods used to predict any residual effects. 7.0 For each valued component where residual effects have been identified, describe and justify the 2. 7.2 spatial and temporal boundaries used to assess the potential cumulative effects. Identify other physical facilities or activities that have been or will be carried out within the identified 3. 7.1 spatial and temporal boundaries for the cumulative effects assessment. Identify whether the effects of those physical facilities or activities that have been or will be carried 7.2 4. out would be likely to produce effects on the valued components within the identified spatial or 7.3 temporal boundaries. Where other physical facilities or activities may affect the valued components for which residual effects from the applicant’s proposed project are predicted, continue the cumulative effects assessment, as follows: . Consider the various components, phases and activities associated with the applicant’s project 7.2 5. that could interact with other physical facilities or activities. 7.3 . Provide a description of the extent of the cumulative effects on valued components. . Where professional knowledge or experience is cited, explain the extent to which professional knowledge or experience was relied upon and justify how the resulting conclusions or decisions were reached.

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Table 1.6-1: Concordance with Guide A – A.2 Environmental and Socio-economic Assessment of the (a) NEB Filing Manual Filing Section in this Filing Requirement Manual No. ESA Report A.2.7.2 Mitigation Measures for Cumulative Effects Describe the general and specific mitigation measures, beyond project-specific mitigation already 6.0 1. considered, that are technically and economically feasible to address any cumulative effects. 7.0 A.2.7.3 Evaluation of Significance of Cumulative Effects After taking into account any appropriate mitigation measures for cumulative effects, identify any 7.2 1. remaining residual cumulative effects. 7.3 Describe the methods and criteria used to determine the significance of remaining adverse 4.5.5 2. cumulative effects, including defining the point at which each identified cumulative effect on a valued 4.6 component is considered “significant”. 7.0 Evaluate the significance of adverse residual cumulative effects against the defined criteria. If the 3. total cumulative effect on a given valued component is considered significant, describe the 7.2 incremental increase in the total cumulative effect caused by the project. Evaluate the likelihood of significant, residual adverse cumulative environmental and socio- 4. 7.0 economic effects occurring and substantiate the conclusions made. A.2.8 Inspection, Monitoring and Follow-up Describe inspection plans to ensure compliance with biophysical and socio-economic commitments, 1. consistent with sections 48 (Environmental Protection Program), 53 (General Compliance), and 8.0 54 (Construction Inspection) of the Onshore Pipeline Regulations (OPR). 2.6 Describe the surveillance and monitoring program for the protection of the pipeline, the public and 2. 6.19 the environment, as required by Section 39 of the OPR. 8.5 Consider any particular elements in the Application that are of greater concern and evaluate the 8.3 3. need for a more in-depth monitoring program for those elements. 8.4 For CEA Act designated projects, identify which elements and monitoring procedures would 4. Not applicable constitute follow-up under the CEA Act 2012. Table A-1 Circumstances and Interactions Requiring Detailed Biophysical and Socio-Economic Information Physical and meteorological environment 5.1 5.2 Soil and soil productivity 6.1 7.2.1 5.3 Vegetation 6.2 7.2.2 4.3 (Table 4.3-2) 5.4 5.5 Water quality and quantity 6.3 6.4 7.2.3 4.3 (Table 4.3-2) Fish and fish habitat, including any fish habitat compensation required 5.6 5.7 Wetlands 6.5 7.2.4 5.8 Wildlife and wildlife habitat 6.6 7.2.5 5.9 Species at Risk or Species of Special Status and related habitat 6.7 7.2.6

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Table 1.6-1: Concordance with Guide A – A.2 Environmental and Socio-economic Assessment of the (a) NEB Filing Manual Filing Section in this Filing Requirement Manual No. ESA Report 5.10 Air emissions 6.8 7.2.7 5.11 Greenhouse gas (GHG) emissions 6.9 7.2.8 5.12 Acoustic environment 6.10 5.13 Human occupancy and resource use 6.11 7.2.9 5.14 Heritage (Historic) resources 6.12 Navigation and navigation safety 5.16 5.15 Traditional land and resource use 6.14 7.2.10 5.17 Social and cultural well-being 6.15 7.2.11 5.18 Human health and aesthetics 6.16 7.2.12 5.19 Infrastructure and services 6.17 7.2.13 5.20 Employment and economy 6.18 7.2.14 (a) National Energy Board 2014.

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2.0 PROJECT DESCRIPTION This section describes the proposed Project, identifying the purpose and need for the Project, alternatives (including pipeline routing), Project location, Project components, and Project phases.

The Project is located in the Green Area of Alberta, entirely on Crown land in the Regional Municipality of Wood Buffalo (RMWB), approximately 20 km north of Fort MacKay, Alberta. The Project involves the construction and operation of approximately 7.9 km of NPS 20 inch outside diameter (OD) pipeline, from the Ells River Extension pipeline located in SE 22-96-11 W4M to two new Calumet River Sales Meter Stations located in SW 6-97-10 W4M (Figure 1.0-1). The Project parallels approximately 5.6 km of existing ROWs, including NGTL and third- party ROWs, and crosses the Athabasca River. For the remaining 2.3 km (29%) of its length, the Project does not follow existing linear disturbances. 2.1 Purpose and Need for the Project The purpose of the Project is to provide facilities to transport and measure sweet natural gas to meet increasing demand and aggregate firm service delivery contract obligations in the Fort Hill area. 2.2 Project Alternatives Alternatives to the Project are defined as functionally different ways to meet the need and achieve the purpose of the Project (CEA Agency 2007, 2013). Only buried pipeline options realistically meet the Project need and purpose, while being technically and economically feasible to implement.

There are no existing pipelines that provide a feasible alternative for transportation between the tie-in points. Therefore, there are no realistic alternatives that meet the Project need and purpose.

NGTL evaluated whether an alternative route could meet the Project need and purpose. The Project route selection process is discussed in Section 2.3. 2.3 Pipeline Route Selection Route selection is one of the primary mitigation options for avoiding conflict between the Project and environmental, socio-economic and historic resources. Many factors were considered during selection of a potential route for the Project. A description of the route selection process is provided in the following subsections. 2.3.1 Control Points In general, NGTL attempts to choose a pipeline route that minimizes the distance between points of origin and terminus (i.e., the control points) as much as feasible so that the facility construction and operation is efficient and economical. Tie-in locations are influenced by existing or anticipated downstream capacity. Primary control points and tie-in locations for the Project are indicated in Table 2.3-1.

Table 2.3-1: Project Tie-In Points Control Points and Tie-in Locations (Meter Station [MS] Site) Legal Land Description Source Control Point (south end): Ells River Extension Pipeline SE 22-96-11 W4M Delivery Control Point (north end): Calumet River Sales Meter Station SW 6-97-10 W4M Calumet River No. 2 Sales Meter Station

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2.3.2 Routing Considerations In addition to the control and tie-in points, NGTL considers the following general routing factors in establishing the preferred route for a project:  paralleling existing linear disturbances to: . reduce the potential fragmentation of wildlife habitat;

. maximize the amount of TWS located on existing ROW or other existing disturbances; and

. reduce the amount of new (non-parallel) ROW required.  reduce the development of new access into remote areas;  avoiding or reducing effects on identified environmentally sensitive areas (e.g., wetlands);  avoiding or minimizing routing through areas of unstable terrain;  avoiding lands of designated status such as parks, cemeteries, reserves under the Indian Act, and known historic sites;  input from Aboriginal communities, stakeholders and landowners;  ensuring the facilities are economical to construct and operate;  consulting with regulatory agencies to understand issues that may need to be addressed in the routing process;  avoiding routing near residences;  reducing the number of road crossings, particularly of highways and paved roads;  ensuring construction feasibility of watercourse and road crossings along the selected route;  using the shortest route practical; and  optimally locating the pipeline corridor within producing areas to maximize potential for future connections. 2.3.3 Route Alternatives NOVA Gas Transmission Limited evaluated whether an alternative route could meet the Project need and purpose. The choice of the preferred route and corresponding tie-in locations were chosen based on the criteria in Section 2.3.2 (i.e., shortest length of new pipe and least potential effect on the environment by paralleling an existing linear disturbance). Alternatives for pipe size and tie-in location were reviewed and a decision made to best meet the Project objectives. 2.3.4 Pipeline Route Selection Considerations and Rationale The routing strategy for the Project was to install the pipeline parallel to existing linear disturbances to the extent feasible. The Project start and end points were determined in consideration of: customer demand, the locations of valve installations on an existing TransCanada pipeline, minimizing the length of new construction, and minimizing environmental effects. The route selection process for the Project involved a desktop review of

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the area including high resolution digital imagery, in addition to helicopter reconnaissance, ground verification and field surveys, and engineering, geotechnical and environmental field studies.

The NEB considers a “new right-of-way”, as defined in the Regulations Designating Physical Activities (Government of Canada 2012) of the Canadian Environmental Assessment Act, 2012 (CEAA 2012), to be land that is subject to a new right-of-way that is proposed to be developed for an electrical transmission line, an oil or gas pipeline, a railway line or an all-season public highway and that is not alongside and contiguous to an existing right-of-way. To minimize the development of new ROW, the Project has been aligned with (i.e., is contiguous to) existing ROWs, including NGTL and third-party ROWs, for 5.6 km (71%) of its length. For the remaining 2.3 km (29%) of its length, the Project does not follow existing linear disturbances. 2.4 Project Components The pipeline, meter stations and two valve sites are the only planned permanent facilities for the Project. Associated operational components will include in-line inspection launcher and receiver facilities, a cathodic protection system provided by existing NGTL facilities, and integration of the existing NGTL Supervisory Control and Data Acquisition (SCADA) system.

Temporary facilities include TWS for construction activities and temporary infrastructure (e.g., pipe storage yard). 2.4.1 Pipeline The Project consists of 7.9 km of new of 508 mm (NPS 20), steel, epoxy coated, buried pipeline. The Project will extend from the Ells River Extension pipeline located in SE 22-96-11 W4M to the new Calumet River Sales meter stations located in SW 6-97-11 W4M. Approximately 5.6 km of the Project will parallel the proposed Northern Courier Pipeline Project ROW. Access to the pipeline ROW and meter stations during construction will be primarily by existing roads, including Highway 63, other existing access roads, industry access roads and the Project ROW. No new temporary or permanent access is planned to support the Project.

The Project is located on Crown land and crosses forested uplands, wetlands, the Lower Athabasca sub-basin of the Athabasca River basin and the Athabasca River.

Technical details for the Project are presented in Table 2.4-1. The Project footprint required for construction of the pipeline consists of both permanent ROW and TWS. The Project will require an approximately 27 m wide new permanent ROW for approximately 1.9 km between KP 0.0 and KP 2.1, and a 20 m wide new permanent ROW for approximately 6 km between KP 2.1 and KP 7.9. In addition to the Project ROW, site-specific TWS will be required at highway, road, pipeline and watercourse crossings, log deck sites, truck turnarounds, and other locations to accommodate safe pipeline construction activities (e.g., grading). The construction ROW outside the permanent ROW will be reclaimed after construction, and the permanent ROW will be maintained for pipeline operation.

The pipeline crosses one watercourse, the Athabasca River, which is approximately 737 m wide (bankfull width) and the valley approximately 35 m deep at the planned crossing location. The watercourse crossing is planned to be constructed by horizontal direction drilling (HDD) as other typical crossing methods (e.g., isolated open-cut) are not considered feasible due to the width and depth of the watercourse. A geotechnical feasibility study (Worley Parsons 2008) was conducted to assess the subsurface conditions at the Athabasca River crossing, in support of the HDD design. In the event an alternate method is required, an open-cut contingency crossing design has been prepared.

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Table 2.4-1: Technical Details of the Project Feature Description Length Approximately 7.9 km Length contiguous to existing right-of-way (ROW) 5.6 km (71%) Source: Ells River Extension Pipeline (LSD 8 of 22-96-11 W4M) Tie-in locations Delivery: Calumet River Sales and Calumet River No. 2 Sales Meter Stations (LSD 6 of 6-97-10 W4M) Pipe size 508 mm Outside Diameter (OD) (NPS 20) steel pipe Pipe material types, categories, and grades Will meet Canadian Standards Association (CSA) Z245.1 Maximum operating pressure (MOP) 9,930 kilopascals (kPa) Product Sweet natural gas Width: From 20 m to 27 m of new ROW is required depending on existing New permanent ROW width and total area dispositions Total area: 16.8 hectares (ha) Temporary workspace (TWS) Up to 9.0 ha of TWS will be required at crossings, side bends and for grading Approximately 24.6 ha (including ROW, TWS and meter station site [0.7 ha]). The Project footprint pipeline footprint (ROW and TWS) required will vary depending on existing adjacent dispositions. Typical trench width Approximately 1.2 m Minimum depth of cover 0.9 m for forested lands; 45 m from river bottom at the Athabasca River crossing Hydrostatic test medium Water Pipeline construction schedule Scheduled to begin September 2015 In-service date April 2016 Expected life of the pipeline More than 50 years

The locations and areas of Project ROW and TWS are shown on the Environmental Alignment Sheets (Appendix B). Additional details regarding the meter stations are provided in Section 2.4.2.

Project construction, operation and maintenance activities will follow the requirements of all applicable codes, standards and regulations, including the latest version of Canadian Standards Association Standard Z662, Oil and Gas Pipeline Systems (CSA Z662). TransCanada has material specifications for all pipeline components, which outline the engineering requirements for these commodities, including any certification or testing requirements. Materials are only purchased from suppliers that have been qualified by NGTL, and critical engineering components require third-party inspection to verify that the product meets NGTL’s requirements. 2.4.2 Meter Stations The Project will include the construction and operation of two new sales meter stations (Calumet River Sales Meter Station and Calumet River No. 2 Sales Meter Station). Both meter stations will be located in an existing Department Miscellaneous Lease (DML) in SE 22-96-11 W4M at the terminal end of the proposed pipeline. The Calumet River Sales Meter Station will connect the McDermott Extension pipeline to a proposed Fort Hills pipeline. The Calumet River No. 2 Sales Meter Station will connect the proposed pipeline to the Northern Courier tank terminal located immediately north of the meter station. The meter stations and the associated facilities (i.e., facility piping, yard piping, valves, instrumentation, controls, communication devices and pipeline appurtenances) will be contained within a single fenced site approximately 0.7 ha in size.

The Calumet River Sales Meter Station will consist of a new meter station, as well as a skid mounted 9.7 m by 2.7 m NPS 8 meter run building, adjacent skid mounted 6.0 m by 2.7 m NPS 8 meter run building, an 11.5 m by

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3.7 m separator skid, and a skid mounted 5.5 m by 3.6 m instrumentation building, each of which will be installed on steel piles. The Calumet River No. 2 Sales Meter Station will consist of the installation of a new meter station, a skid mounted 6.0 m by 2.6 m NPS 2 meter run building, and a skid mounted 1.8 m by 1.8 m instrumentation building, each of which will be installed on steel piles. The meter stations will be designed to operate at an operating pressure of 4,250 kilopascals (kPA) and a maximum operating pressure of 9,930 kPa.

The Calumet River Sales Meter Station will connect the McDermott Extension pipeline to a proposed Fort Hills pipeline by approximately 70 m of NPS 12 (273.1 mm OD) yard piping. Approximately 70 m of pre-fabricated and pre-tested NPS 2 (60.3 mm OD) yard piping will be installed from the Calumet River No. 2 Sales Meter Station to the Northern Courier tank terminal. The minimum depth of cover over the yard piping will be 0.9 m. Each field weld will be non-destructively inspected using radiographic methods before being field coated with epoxy. Meter station piping will be cathodically protected using existing facilities in the area.

All new above-ground facilities will be located within a fenced area. Site access will be from an existing gravel pad (Department Pipeline Installation lease [DPI] held by Northern Courier and Fort Hills Energy Limited Partnership [FHELP]), located directly north of the Project footprint.

TransCanada has material specifications for all facility components, which outline the engineering requirements for these commodities, including any certification or testing requirements. Materials are purchased from suppliers that have been qualified by TransCanada, and critical engineering components require third-party inspection to verify that the products meet TransCanada’s requirements.

The specifications for the meter stations and yard piping are provided in the NEB section 58 Application. 2.4.3 Associated Facilities Other components associated with the pipeline include the following:  In-line Inspection Facilities – Launcher and receiver facilities for in-line inspection will be installed at the time of construction. Launcher facilities will be installed along the pipeline ROW within SE-22-96-11 W4M. Receiving facilities will be installed at the downstream terminus of the pipeline within SW-6-97-10 W4M.  Cathodic Protection – A cathodic protection system will be provided by existing NGTL facilities. Cathodic protection test stations will also be installed at all third-party pipeline crossings where requested by the third-party operator, and approximately every 3 to 5 km. Facilities could also include new, or upgrades to, existing anode beds, rectifiers, and associated facilities. The scope and location of the cathodic protection system will be addressed during detailed design.  SCADA System – The Project will include modifications to the existing SCADA system, to allow for the remote monitoring and operation of Project facilities. The Project SCADA system will be integrated into TransCanada’s Operations Control Centre (OCC) located in Calgary, Alberta. The OCC is staffed 24 hours per day. The Project will also include modifications to the existing local SCADA system to allow local monitoring and operation of the facility. 2.4.4 Temporary Facilities The following temporary facilities will require temporary use of lands during Project construction:  TWS – for crossings, side bends, and grading during pipeline construction; and

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 staging areas – for equipment, material and fuel storage, and muster points. All temporary facility sites will be reviewed from an environmental perspective by NGTL prior to use, and reclaimed as part of the post-construction reclamation activities. The amount of TWS will be limited to the extent practical and existing clearings will be used to the extent available. A construction camp will not be required for the Project as existing camps will be used to accommodate all individuals working on the Project. 2.5 Construction The following sections describe the Project construction activities, workforce and schedule. 2.5.1 Pipeline Construction Activities The standard activities associated with pipeline construction are described in Table 2.5-1.

Table 2.5-1: Activities Associated with Pipeline Construction Pipeline Description of Activity Construction Phase The Project will follow the requirements of the latest version of CSA Z662-11 and will comply with the latest version Engineering Design of the NEB OPR. Line-of-sight clearing with chain saws (as required), flagging, and staking of the proposed ROW, any TWS, and Surveying marking of the trench line and any utilities. Surveying also involves marking of any sensitive areas to be avoided during construction such as listed plants or habitat, and historic resources. Removal of trees, shrubs, and other obstacles from the construction footprint. Merchantable timber will be harvested and made available according to commercial use agreements. Other salvageable timber will be made available Clearing according to agreements with individual lease holders. Equipment used for clearing activities includes chain saws, rotary grinders, feller-bunchers, hydro-axes, mulchers or other tree-clearing equipment, as well as skidders, dozers, and backhoes. Strippings will be salvaged at areas where grading is necessary. The area stripped is to correspond to the area to be Stripping / Salvage graded. Equipment used during strippings handling activities includes dozers, graders, and backhoes. Grading may be required at some locations to establish a level and safe working surface. Grading follows strippings Grading salvage and uses backhoes and dozers. The trench for the pipeline will provide a minimum cover of 0.9 m to top of pipe and a typical trench width of Trenching approximately 1.2 m. Excavated subsoil material will be stored adjacent to the trench, on the spoil side of the ROW. Trenches will be excavated with tracked excavators and wheel ditchers. Sections of pipe will be transported to the ROW by trucks directly from the coating mill, located close to the Project. Stringing and The pipe will then be field bent, lined-up, welded, joint-coated, and inspected, prior to being lowered into the trench. Welding Equipment used includes pipe trucks, booms, bending machines, welding equipment, pick-up trucks, and x-ray or ultrasonic inspection equipment mounted on pick-up trucks or skids. Welded pipe sections will be lowered into the trench by sideboom tractors or backhoes. Trench dewatering may be Pipe Lowering required prior to lowering-in the welded pipe. Weights or screw anchors may be installed with the pipe in wetland areas or areas with a high water table, where applicable. After the pipe has been lowered, the trench will be filled with the previously excavated subsoil and crowned over the Backfilling trench. Equipment used will consist of backhoes, graders, dozers or specialized backfilling equipment. One watercourse is crossed by the Project. A horizontal directional drilling (HDD) crossing method will be used Watercourse during watercourse construction, as other typical crossing methods (e.g., isolated open-cut) are not feasible due to Crossings the width and depth of the watercourse. An open-cut contingency crossing design has been prepared for use, if required. Final clean-up and reclamation procedures will be initiated following pipeline installation using bulldozers, backhoes, and graders. The ROW contours will be returned to a stable and maintenance free condition. The topsoil will be Clean-up and replaced, with cross ditches and diversion berms installed on moderate to steep slopes to reduce the risk of erosion. Reclamation Erosion prone areas will be seeded with an appropriate native seed mix and appropriate reclamation measures will be applied, where warranted. The anticipated Project wastes are typical pipeline construction wastes such as scrap materials, used lubricants, welding rods, and domestic garbage. Project operations are also expected to produce used lubricants, oily rags, and Waste Disposal chemical containers. All waste will be disposed of at an approved site or, in the case of the chemical containers, returned to the supplier. The contractor, in accordance with TransCanada’s Waste Management Plan, will handle waste management and disposal during the Project.

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Table 2.5-1: Activities Associated with Pipeline Construction Pipeline Description of Activity Construction Phase Pipeline Integrity NGTL will validate the integrity of the new pipeline through CSA and/or NEB approved methods prior to Validation and commissioning the pipeline. This will be accomplished using non-destructive examination and hydrostatic tests when Testing the pipeline is filled with water to a pressure beyond normal daily operating pressures. NGTL will have an emergency response plan for the Project that meets or exceeds regulatory requirements. NGTL and Emergency TransCanada currently have operations in the area and will adapt their response plans to include the Project. NGTL Response Plan and TransCanada will communicate with emergency response personnel in the area and work co-operatively to link company emergency plans appropriately into plans maintained by other affected agencies.

2.5.2 Meter Stations Standard techniques will be used for construction of the two meter stations and connections to the Northern Courier tank terminal, the McDermott Extension and a proposed Fort Hills pipeline. Activities associated with the construction of the two meter stations are typical of those for facilities on forested lands in the Green Area of Alberta and are described in Table 2.5-2.

Table 2.5-2: Activities Associated with Meter Station Construction Project Description of Activity Construction Phase The Project will be constructed in accordance with the latest version of the OPR, and will be compliant with Engineering Design requirements of the latest version of the CSA Z662-2011. The site will be surveyed to identify proposed site boundaries and facility locations and existing underground facilities. Line-of-sight clearing will be conducted (as required) with chain saws and the proposed facility locations Surveying will be marked with flagging and staking. Surveying also involves marking of environmentally sensitive areas within the site, if any, to be avoided during construction. Trees, shrubs and any snow will be removed from the construction footprint. Merchantable timber will be harvested and made available according to commercial use agreements. Other salvageable wood will be made available Clearing according to use agreements. Equipment used for clearing activities includes chain saws, rotary grinders, feller-bunchers, hydro-axes, mulchers or other tree-clearing equipment, as well as skidders, dozers and backhoes. Strippings and subsoil will be salvaged from within the construction footprint and placed within the site boundary for Stripping / Salvage storage until required for use during site clean-up and reclamation. Equipment used during soil handling activities includes dozers, graders and backhoes. Grading may be required at some locations to establish a level and safe working surface. Where required, grading Grading will be completed using backhoes and dozers. Foundation Existing below-ground utilities at the site will be exposed by hydrovacing. Pile driving and foundation construction Construction will occur during frozen conditions. Foundation piles will be installed to TransCanada standard specifications. Buildings, equipment and other infrastructure will be transported and assembled using semi-trailers, trucks and Infrastructure cranes. Yard piping will be welded and assembled on-site. Flange connections will be used to tie-in to the existing Installation flange connections at the mainline. A fence will be constructed surrounding the site. Site clean-up and reclamation procedures will be initiated on the site following construction for areas not required for Clean-up and ongoing operations, once soil conditions permit, using bulldozers, backhoes and graders. A gravel surface will be Reclamation placed over areas of the site where all-season access will be required during Project operation. All waste will be handled in accordance with the Waste Management Plan developed for the Project.

2.5.3 Inspection NGTL will retain the services of qualified environmental inspectors for the duration of Project construction. The environmental inspectors will monitor construction activities and confirm the implementation of protection

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measures outlined in NGTL’s documentation, including the EPP (Appendix A of this ESA), Environmental Alignment Sheets (Appendix B) and any permit specific requirements. 2.5.4 Workforce Requirements The total construction workforce is expected to be a maximum of 120 persons, including supervisors and inspectors, over the course of the Project construction. During pipeline operation and maintenance, there will be no increase in the workforce as operation and maintenance activities associated with the Project will be performed by existing NGTL personnel or contractors. 2.6 Operations and Maintenance The Project is expected to be commissioned, operational, and in-service by April 2016. NGTL operates the Alberta System pursuant to TransCanada policies and in accordance with other federally-regulated pipelines. For the Project, NGTL will develop and implement a Post-construction Monitoring (PCM) program to assess the effectiveness of mitigation and reclamation measures on soils, vegetation and watercourses disturbed during construction of the pipeline. NGTL will conduct monitoring and prepare maintenance plans to address any identified potential adverse environmental effects. 2.6.1 Project Operation and Integrity Management Project operation will follow the requirements of all applicable codes, standards and regulations, permit conditions and other approvals, including the NEB OPR and the latest version of CSA Z662-11. TransCanada has an Operations and Procedures Manual that describes how its facilities are operated and maintained. The Operations and Procedures Manual provides detailed information on procedures for ROW and lease maintenance, including information on ROW and site monitoring, road use, pipeline and facility signage, brush and weed control. This manual will be expanded to include work completed for the Project, as appropriate. The TransCanada Operations Control Centre (OCC) in Calgary will monitor and control the operation of the pipeline and meter stations.

NGTL has systems in place to manage the safe operation and integrity of its existing facilities. These systems will be applied to the Project. The new pipeline and meter stations will be covered by integrity management plans ensuring that the ongoing requirements of this pipeline and facilities are met throughout their respective service lives. TransCanada’s comprehensive Facility Integrity and Reliability Management (FIRM) Program will be implemented to monitor and ensure the integrity of the Project. This process uses advanced inspection and mitigation techniques applied within a comprehensive risk-based methodology. Risk assessment is used to identify potential integrity threats and initiate inspection and mitigation activities, while results from advanced inspections for known or suspected integrity threats are used to develop specific integrity maintenance activities. The integrity management plan will be used during operation to:  reduce adverse environmental effects;  protect the installed pipelines and facilities;  maintain reliability; and  ensure the safety of the public and employees. Internal inspection of the pipeline is an integral part of TransCanada’s Integrity Management Program and the proposed in-line inspection facilities will be designed to allow passage of various types of in-line inspection tools including cleaning tools and high and low resolution in-line inspections tools.

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2.6.2 System Protection and Controls The Project facilities will be monitored and controlled from TransCanada’s OCC as part of the Alberta System. The OCC is staffed 24 hours per day.

TransCanada’s OCC SCADA system monitors pipeline flows, pressures, temperatures and equipment status on a continuous basis. The SCADA system alerts the OCC operator of operational changes in the pipeline system to enable appropriate actions to be taken. 2.6.3 Maintenance TransCanada’s standard preventative maintenance programs, including the following, will be incorporated in the operation of the Project facilities:  aerial patrols;  in-line inspections;  cathodic protection monitoring;  pipeline markers at roads and pipeline watercourse crossings;  vegetation management;  SCADA monitoring; and  planned maintenance activities. 2.7 Schedule The Project schedule has been developed based on receipt of all required regulatory permits and approvals to construct and operate the pipeline and associated meter stations with an in-service date in April 2016. Engineering design and planning activities are ongoing and are expected to continue, including the procurement of materials, until construction commences. Estimated dates for the construction and operation and maintenance activities of the pipeline and meter stations are provided in Table 2.7-1. Subject to NEB and other regulatory approvals, the proposed start of the Project HDD watercourse crossing construction is September 2015 and the proposed start of the Project pipeline and facility construction is November 2015.

Opportunities to optimize the infrastructure, pipeline and facility construction schedule will be pursued through the Project development and regulatory review process. Environmental timing windows will be considered during detailed construction planning to the extent possible. Additional mitigation may be necessary to accommodate construction during environmentally sensitive periods in specific locations. Ongoing consultation with regulators will be maintained to manage necessary work activities during these periods.

Winter construction of the pipeline and meter stations(proposed to start in November 2015) provides the most suitable conditions in the terrain crossed and avoids the most sensitive timing periods for wildlife. Approximately 7.4 km (94%) of the Project is located in a Key Wildlife Biodiversity Zone (KWBZ) (refer to Section 5.8.3 – Wildlife Areas and Acts). It is anticipated that some activities will be necessary during the Restricted Activity Period (RAP), January 15 to April 30, for the KWBZ. A KWBZ Protection Plan to address this potential occurrence was developed in consultation with and submitted to ESRD, and will be finalized prior to construction. NGTL will initiate clearing activities in the KWBZ as early as possible and will work expeditiously to

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limit winter activities in the KWBZ. Ongoing consultation with ESRD will be maintained to manage any necessary work activities in the KWBZ.

Table 2.7-1: Proposed Construction and Operation Schedule Pipeline Construction Phase / Activity Proposed Schedule (Start Date and Duration) Engineering Design and August 2013 to October 2014 (14 months) Environmental Planning Surveying October 2015 (2 weeks) Pipeline Construction September 2015 to January 2016 (5 months) HDD construction September 2015 (22 weeks) Pipeline construction November to December 2015 (5 weeks) Clearing / mowing November 2015 (1 week) Grading (where required) November 2015 (1 week) Stringing and welding November to December 2016 (3 weeks) Trenching November to December 2015 (2 weeks) Pipe lowering November to December 2015 (2 weeks) Backfilling December 2016 (2 weeks) Machine clean-up December 2016 (1 week) Pipeline integrity validation and testing March 2016 (1 week) Final clean-up and reclamation December 2016 to January 2017 (6 weeks) Meter Station Construction November 2015 to January 2016 (5 months) In-service April 2016 Operation and Maintenance Through the life of the pipeline May 2017 to September 2019 (during the first and second complete growing seasons following Post-construction monitoring construction) Line patrols Approximately every six months, or twice per year, by helicopter or fixed winged aircraft In-line inspection Launcher and receiver facilities will be installed to facilitate future in-line inspections. Vegetation and weed management As required As required; excavation only conducted following detection of pipeline issue by ILI, or suspected Maintenance integrity digs contact by a third-party Facility Inspections Valves are inspected every 12 to 18 months; cathodic protection test readings are taken yearly The Project is expected to operate for at least 50 years. Decommissioning and abandonment Decommissioning, Abandonment, and activities will comply with all applicable federal and provincial regulatory requirements in force at Reclamation the time

2.8 Public Awareness NGTL will follow TransCanada’s Public Awareness Program to educate key stakeholders about living and working safely near pipelines. The program is holistic in nature and is designed to inform the affected public, contractors, emergency officials, and local public officials of facility locations and operational activities to:  protect the public from injury;  prevent or reduce adverse effects on the environment;  protect the facilities from damage by the public; and  provide an opportunity for ongoing public awareness.

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The Public Awareness Program provides safety messaging on leak recognition and response, and damage prevention awareness including the message to ‘call before you dig’.

The consultation and engagement program established for the Project is described in Section 3.0. 2.9 Decommissioning and Abandonment The Project has been designed to operate for 50 years or more. Project decommissioning and abandonment requires that the proponent submit an application for abandonment under section 74 of the NEB Act. Under the Onshore Pipeline Regulations (OPR), decommission means to permanently stop operating a pipeline such that the cessation does not result in the discontinuance of service (i.e., an alternative way or route remains to transport the product between the control points) and abandon means to permanently stop operating a pipeline such that the cessation results in the discontinuance of service (i.e., not replace it with another option for shipping the product between the control points) (Government of Canada 1999).

The NEB established principles for pipeline abandonment in 2009 through its Land Matters Consultation Initiative process (NEB 2011). In adhering to the principles, NGTL will develop an abandonment plan in consultation with stakeholders directly affected by the decommissioning and abandonment of the pipeline and metering facilities. The abandonment plan will focus on reducing the risk to public safety, property and the environment to a level that is acceptable in the public interest, and returning the pipeline ROW and meter station sites to equivalent land capability with that of the existing surrounding environment.

In accordance with the NEB principles, pipeline abandonment methods will be determined based on category of land, and reclamation will be conducted where pipe is removed. It is anticipated that any of the following three scenarios may occur during pipeline decommissioning or abandonment: pipeline removal, abandonment-in- place, or a combination of pipeline removal and abandonment-in-place. It is expected that most of the pipeline would be left in place after decommissioning or at abandonment; however, circumstances at the time of decommissioning or abandonment may lead to sections of the pipeline being removed. The physical activities associated with decommissioning or abandonment would include: purging and cleaning the pipeline with pigs pushed by compressed air; physically separating the pipeline from any in-service piping, and cutting, capping, and sealing it below grade; and, reclaiming any land disturbed as a result of these activities. Any land disturbance activities related to the removal of pipeline would be reclaimed to the appropriate land use capability at that time.

Similarly, the method of facility abandonment is categorized by type (e.g., meter station) and size. All aboveground facilities will be removed and the sites reclaimed. Methods to decommission or abandon the meter stations will be developed in light of conditions prevailing at the time of decommissioning or abandonment. Further, NGTL will adhere to the regulatory framework for reclamation in place at the time of Project abandonment.

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3.0 PROJECT ENGAGEMENT PROGRAM 3.1 Principles and Goals The engagement program for the Project has been designed and conducted, in accordance with the principles of TransCanada’s Aboriginal Relations Policy, Stakeholder Engagement Framework (TransCanada 2012), community relations best practices, and guidance provided in the NEB Filing Manual (NEB 2014a), including the Draft Expectations for Public Involvement Programs (NEB 2009).

The principles and goals of the engagement program are to:  build and maintain positive, long-term relationships with Aboriginal communities and stakeholders potentially affected by the Project by encouraging Aboriginal communities, and stakeholders to:

. learn about Project activities;

. engage in the consultation process; and

. be involved in addressing potential issues or concerns that might be identified through the engagement process;  gather, understand, consider and integrate Aboriginal communities, and stakeholder issues and concerns into Project design and execution as appropriate; and  provide feedback to Aboriginal communities, and stakeholders on how their input was integrated into the ESA or on the rationale for not integrating it. 3.2 Engagement Methods A number of methods used throughout the various phases of engagement to inform Aboriginal communities and stakeholders, obtain feedback, and identify topics of interest related to the Project, include the following:  Project-specific targeted and bulk mail-outs and email messages containing: . Project-specific brochures and maps;

. Project-specific and TransCanada fact sheets; and

. NEB brochures, including Information for Proposed Pipeline or Power Line Projects that Involve a Hearing (NEB 2013a);  presentations;  face-to-face meetings;  telephone calls;  newspaper advertisements;  community meetings;  generic Project emails;

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 news releases (e.g., local radio and newspapers);  Community Knowledge Keeper information management system; and  participation by Aboriginal communities in biophysical field surveys. The engagement program for the Project is implemented in phases, using open communication and participatory community involvement practices. The engagement phases are:  Identification of Aboriginal Communities and stakeholder for engagement;  Project Information (Project notification package);  Aboriginal Community and stakeholder Engagement;  Section 58 Application Notice; and  Future engagement and follow-up. Details of these phases for both the Aboriginal communities and stakeholder engagement program can be found in the relevant sections of the NEB section 58 Application document. 3.2.1 Aboriginal Communities The following First Nations communities have been engaged on the Project:  Athabasca Chipewyan First Nation (ACFN);  Chipewyan Prairie Dene First Nation (CPDFN);  Fort McKay First Nation (FMFN);  Fort McMurray First Nation #468 (FMFN 468); and  Mikisew Cree First Nation (MCFN). The following First Nations organization has been informed about the Project:  Christina River Dene Nation Council (CRDNC). The following Métis communities have been engaged on the Project:  Fort Chipewyan Métis Local #125 (FCML 125);  Fort McKay Métis Local #63 (FMML 63);  Fort McMurray Métis Local #1935 (FMML 1935); and  Willow Lake Métis Local #780 (WLML 780). The following Métis organizations were also informed about the Project:  the Métis Nation of Alberta (MNA); and  the Métis Nation of Alberta Region 1 (MNA-Region 1).

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A summary of engagement with the Aboriginal communities to date, including meeting, flyovers and field survey participation is provided in the Aboriginal Engagement Summary of the NEB section 58 Application. 3.2.2 Stakeholders NGTL has consulted and communicated with a broad range of stakeholders, including:  municipal leaders and representatives (elected officials and staff of regional and local municipalities);  government agencies and representatives;  lease holders;  land users (e.g., recreational and outdoor organizations); and  other interested stakeholders. 3.3 Engagement Outcomes Information gathered during the engagement program has been considered and incorporated in the ESA where relevant, including the effects assessment, and mitigation and enhancement measures. With this information, NGTL identified issues and concerns and responded to questions raised by Aboriginal communities or organizations and stakeholders. Engagement has also provided communities and regulators with an understanding of the Project. Project-specific concerns raised to date have been addressed.

To date, two Aboriginal communities have raised general concerns with the Athabasca River crossing. Information regarding environmental considerations and HDD at the Athabasca River crossing was provided to these communities. A summary report of potential issues, concerns and interests is provided in the Aboriginal Engagement Summary of the NEB section 58 Application. To date, no other stakeholders have raised any issues relating to the Project. Any issues, concerns or interests raised will be addressed during ongoing Project planning.

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4.0 ENVIRONMENTAL AND SOCIO-ECONOMIC EFFECTS ASSESSMENT METHODOLOGY This section describes the approach and methods used to carry out the assessment of environmental and socio-economic effects for the Project. The Project is described in Section 2 of the ESA and Section 2 of the Application. The methodology was developed based on the NEB Filing Manual, Release 2014-01 (NEB 2014a) using Guide A – Facilities Applications (NEB Act Section 58), Section A.2 (Environmental and Socio-Economic Assessment).

The methodology for this ESA involves the following steps:  determine the environmental and socio-economic valued components (VC) and associated key indicators that may interact with the Project;  describe and study the existing environmental and socio-economic setting (i.e., baseline conditions) in which the Project will be constructed and operated;  conduct a preliminary identification of potential Project-environment interactions;  determine the temporal and spatial boundaries of interactions between the Project and the VC;  assess the Project-specific effects, including identification of potential Project effects, recommended mitigation measures, evaluation of residual Project effects, and determination of their significance;  conduct the cumulative effects assessment for the Project in combination with existing activities and reasonably foreseeable projects and activities; and  identify any follow-up and monitoring programs that will be undertaken post-construction to evaluate effectiveness of planned mitigation and address environmental issues identified during Project operation. 4.1 Identifying Valued Components and Key Indicators The assessment of effects on the environment focuses on the environmental and socio-economic elements prescribed to be considered in the NEB Filing Manual (NEB 2014a). All elements, referred to as VC in this ESA, considered relevant to this ESA are described in Section 5; however, only those identified as having possible interactions with the Project were scoped into the assessment and described in further detail in Section 6.

To focus the effects analysis for each VC, one or more key indicators were selected. A key indicator represents a primary issue related to the VC that has the potential to change as a result of the Project, and can be described as an aspect or characteristic of the VC that, if changed as a result of the Project, may result in an effect on the VC.

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The assessment is focused on key indicators that have environmental or socio-economic importance as identified by the Project team through a variety of means, including the following:  Aboriginal engagement;  stakeholder engagement;  discussion with regulators;  literature and database review;  information from previous environmental assessments for projects proposed under similar environmental conditions; and  the experience of TransCanada personnel and their consultants. The identified biophysical and socio-economic issues or concerns regarding the Project are represented by key indicators which have the potential to be affected by the proposed Project. A number of factors, including the following, influenced the selection of key indicators:  the sensitivity or vulnerability of the key indicator;  the uniqueness or rarity of the key indicator;  the sustainability of the key indicator;  the value attributed to the key indicator by stakeholders;  recognition of the importance of a key indicator by a statute, policy, regulation, or court;  risks to the health, safety or well-being of people; and  the likelihood of an indirect effect on an associated key indicator (i.e., a link exists between the affected key indicator and another key indicator, such as water quality affecting fish habitat).

The VCs and key indicators selected to address the issues identified in relation to this Project, the rationale for their selection, and associated expressions of change are presented in Table 4.1-1.

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Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale Valued Component Key Indicator Expression of Change Rationale Biophysical . Change in the morphology of unique physical . The Project may affect, or be constrained by, the Geology and physiography features (such as physiography, bedrock, morphology of physical features (such as physiography, permafrost, topography, geology or other local bedrock, permafrost, topography, geology or other local conditions). conditions). . Potential for natural hazards to affect pipeline and facility Physical and Meteorological Natural hazards . Change in natural hazards. integrity. Environment . The Project may be affected by natural hazards. . The Project may be affected by meteorological conditions or extremes. Meteorology . Change in meteorological conditions or extremes. . Changing meteorological conditions may affect the Project over the lifetime of the Project.

. Change in terrain contour. . Potential for altered terrain or terrain instability to affect pipe Terrain integrity, or land use and other components . Change in terrain stability. (e.g., vegetation, surface water, wetlands). . Regulatory requirement to maintain land capability; reclamation suitability (Environmental Protection and Enhancement Act). . Ecosystem conservation concern; importance to ecosystem diversity and interrelation with other components Soil and Soil Productivity (e.g., groundwater, vegetation). . Change in areal extent of productive soil units. Soil . Importance of maintaining productive capacity of soil for . Change in soil capability or soil quality. current or equivalent land use (e.g., maintaining forest capability). . Possible deterioration of soil quality due to soil disturbance including soil admixing. . Potential for loss of soil due to wind or water erosion. . Potential for soil compaction causing reduced soil quality.

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Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale Valued Component Key Indicator Expression of Change Rationale . Potential implications to wildlife habitat potential, species . Change in area of native vegetation diversity, and use of plants for traditional purposes. community types important to wildlife and traditional use. . Regulatory requirement (e.g., Alberta Environment and Vegetation community type Sustainable Resource Development [ESRD]). . Regulatory requirement to control noxious weeds and . Introduction of or increase in prohibited eliminate prohibited noxious weeds (Alberta Weed Control noxious or noxious weed species. Act). . Regulatory requirement: potential adverse effect on federally listed (COSEWIC 2014; Species at Risk Act (SARA) 2012) or provincially listed (Alberta Wildlife Act . Change in known occurrences of listed plant (2013), General Status of Alberta Wild Species (ASRD Vegetation Listed plant species species. 2011)), or plant species of conservation concern (Alberta Change in total area of suitable habitat with Conservation Information Management System (ACIMS high potential to support listed plants. 2014); . Potential implications to species and community level biodiversity. . Provincial regulatory concern as ecological communities are tracked by ACIMS (2014). Listed ecological communities . Change in (loss or alteration of) area of vegetation communities. . Potential implications to wildlife habitat potential, species and community level biodiversity.

Timber resources . Change in areal extent of timber available to . Potential conflict (economic concern) with local forest harvest. management agreement (FMA) holder. . Maintain natural local / regional drainage patterns. . Response to alteration may include erosion and instability. Natural flow patterns . Change of natural drainage patterns. . Consideration of regional users and potential public concern. . Regulatory requirements (Alberta Water Act). Lateral and vertical stability of Water quantity . Scour or lateral migration of watercourse. . Possibility of adverse effects associated with an exposed Surface Water the watercourse and quality in-service pipeline. . Regulatory requirements: - Alberta Water Act; - Navigation Protection Act; and Surface water quantity . Change from natural watercourse flow rates. - Fisheries Act - section 35. . Consideration of regional users and potential public concern.

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Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale Valued Component Key Indicator Expression of Change Rationale . Regional users, regulatory (e.g., Environmental Protection Surface Water Surface water quality and Enhancement Act) and general public concern. (continued) . Change in water quality. . Maintain water quality for the protection of aquatic life. . Regulatory (Alberta Water Act) and potential public concern. Water quantity . Change in groundwater supply important to Groundwater quantity and quality wildlife, domestic animals, humans and plant . Effects on surface water levels or baseflow could occur if (continued) species. groundwater dewatering occurs in close proximity to Groundwater surface water. . Regulatory (Alberta Water Act) and potential public . Change in groundwater quality (such as pH or concern. Groundwater quality salinity) important to wildlife, domestic animals, humans and plant species. . Effects on surface water quality and aquatic life could occur if affected groundwater discharges to surface water. . Regulatory requirement; potential to adversely affect fish Fish habitat . Change in habitat quality or quantity. habitat under the federal Fisheries Act. . Consideration of ecosystem conservation concerns; importance to ecosystem diversity and inter-relation to other environmental components (e.g., wildlife). Fish and Fish Habitat . Consideration of regional users (i.e., sport and recreational Fish populations including fishery) and potential Aboriginal and public concern. species at risk . Change in abundance of fish populations. . Conservation concerns for fish species of commercial, recreational and Aboriginal (CRA) use. . Regulatory requirement to avoid causing serious harm to fish. . Regulatory requirement regarding no net loss of wetland habitat (Government of Canada 1991) and Alberta Water . Change in area of wetlands (mineral and Act Code of Practice requirements. organic [fen and bog]). Wetlands Wetland habitat . Potential implications to wildlife habitat potential, and use of . Change in function (i.e., hydrological function plants for traditional purposes. and water quality). . Potential implications to species and community level biodiversity.

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Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale Valued Component Key Indicator Expression of Change Rationale . Economic importance (i.e., traditional and non-traditional hunting licenses), recreational importance, ecological . Change in suitable habitat. importance (primary prey species), ease of monitoring, Moose . Change in movement patterns. traditional importance. . . Change in wildlife abundance. Abundant information. . Key Wildlife and Biodiversity Zone (KWBZ) present Provincial status – ‘Secure’ (ASRD 2011). . Ecological importance (carnivore, predator/prey relationship), traditional and economic importance (fur . Change in suitable habitat. harvest). Furbearers / carnivores (Canada lynx, fisher) . Change in movement patterns. . Representative carnivores found in old growth forested . Change in wildlife abundance. habitats (Canada lynx and fisher). . Provincial status (Canada lynx and fisher) – ‘Sensitive’ (ASRD 2011). . Species identified are indicator species for passerines and representative of old growth forests. Wildlife and Wildlife Habitat Old growth forest birds . Change in suitable habitat. . Provincial status (bay-breasted warbler, cape may warbler, (bay-breasted warbler, cape Canada warbler, black-throated green warbler) – ‘Sensitive’ . Change in movement patterns. may warbler, Canada warbler, (ASRD 2011). black-throated green warbler) . Change in wildlife abundance. . Federal status (bay-breasted warbler, cape may warbler, Canada warbler, black-throated green warbler) – ‘Sensitive’ (Species at Risk Act [SARA] 2012). . Representative of open spruce and tamarack muskeg, bog . Change in suitable habitat. and swamp habitat. Olive-sided flycatcher . Change in movement patterns. . Riparian indicator species for passerines. . Change in wildlife abundance. . Federal status – 'Threatened' (SARA 2012). . Change in suitable habitat. . Representative of marshbirds. Yellow rail . Change in movement patterns. . Federal status – Schedule 1: 'Special Concern' (SARA . Change in population. 2012). . Change in suitable habitat. . Provincial status –‘May be At Risk’ (ASRD 2011). Canadian toad . Change in movement patterns. . Representative of boreal forest region and river valleys with . Change in population. sandy margins, and riparian indicator species. Species at Risk or Species of Included as part of Vegetation, Fish and Fish Habitat, Wildlife and Wildlife Habitat Valued Components (above) Special Status

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Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale Valued Component Key Indicator Expression of Change Rationale

. Change in ambient concentration of CAC, . Regulatory requirement (ESRD) to comply with Alberta Criteria Air Contaminant (CAC) including oxides of nitrogen, sulphur dioxide, Ambient Air Quality Objectives (AAAQOs). emissions carbon monoxide, PM10, PM2.5 and . Potential human health implications and nuisance effects. Air Emissions suspended particulate matter (SPM). . Regulatory requirement (ESRD) to comply with Alberta Greenhouse gas (GHG) Specified Gas Reporting program. emissions . Change in GHG emissions. . Contributor to climate change. . Construction and operation and maintenance activities have the potential to affect existing noise levels. . Change in noise level during construction. Acoustic Environment Noise level . Regulatory requirement: NEB Filing Manual and Alberta . Change in noise levels during operation and Energy Regulator (AER) Directive 038: Noise Control maintenance. (Directive 038) (EUB 2007). . Potential public concern. Socio-economic Human . Population could be affected by the Project, reflected by Population . Change in population. Occupancy competition for housing, jobs, and social services. Parks, protected areas and . Disruption of recreational land use in parks, . Potential disturbance to the land use opportunities of parks, recreation areas protected areas and recreation areas. protected areas and recreation areas. . Potential disruption of non-renewable resource use Non-renewable resource use . Disruption of non-renewable resource use. (i.e., mining, rail and transportation, transmission).

Forestry . Change in forestry land base and forestry . Potential disturbance of the existing forestry activities in Human Occupancy resources due to clearing. close proximity to the Project footprint. and Resource Use Land and Hunting, trapping, and fishing . Disruption of trapping, hunting and fishing . Potential for current trapping, hunting, and fishing activities Resource Use activities activities. to be disrupted by Project construction activities. . Potential temporary reduction in the amount of water Water use . Change in water quantity available to users. available in the Socio-economic Study Area.

Visual aesthetics . Alteration of viewscapes and visual . The construction of the Project could alter the existing aesthetics. viewscape. . Project activities may not be compatible with current land Land use plans . Change in designated areas. use plans, designations and zoning.

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Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale Valued Component Key Indicator Expression of Change Rationale . Concern about potential disruption of navigable waters . Change in access to navigable water bodies. when the water is flowing (i.e., not seasonally frozen). Navigation and Navigation Safety Navigable water bodies . Change in navigation safety on navigable . Regulatory requirement to consider application of the water bodies encountered by the Project. Navigation Protection Act. . Number of historic resource sites lost or . Regulatory requirement (Alberta Historical Resources Act). Heritage damaged. Heritage . The potential to disrupt or destroy historic resource sites is (Historic) Historic resource site Resources . Number of historic resource sites where a concern due to its potential effect on our ability to Resources information recovery is completed prior to understand the prehistory/history of the region. Project construction. . Consideration of Aboriginal and public concern. . Change in abundance of moose and . Traditional hunting or trapping may be affected by changes Opportunity to harvest wildlife furbearers. in the abundance of large game or furbearers, and access . Change in access to wildlife harvesting areas. to wildlife harvesting areas. . Change in abundance of vegetation for Opportunity to harvest harvesting. . Traditional plant harvesting may be affected by changes in vegetation the abundance of plants, or access to plant harvesting . Change in access to vegetation harvesting areas. Traditional Land and Resource Use areas. . Change in abundance of fish. Opportunity to harvest fish . Traditional fishing may be affected by changes in the . Change in access to fishing areas. abundance of fish, or access to fishing areas. . Loss or disturbance of culturally important Opportunity to use culturally sites or areas. . Project activities may affect traditional-use cabins or other important areas culturally important sites such as historical resources or . Change in access to culturally important spiritual sites, or access to the areas. areas. . The interaction of a temporary workforce population Temporary workforce . Change in quality of life due to introduction of (i.e., out-of-region workers) with local residents may alter population temporary population during construction. community life and draw on local services and infrastructure. . Change in quality of life due to increase in . Traffic and/or traffic accidents could affect quality of life of Social and Cultural Traffic and associated noise Quality of Life traffic and associated noise. people near the Project. Well-being . Change in quality of life due to reduction (or . Potential public concern that Project activities could reduce Water quantity and quality perceived reduction) in water quantity and the existing water quantity and water quality in the socio- quality. economic study area.

Air quality . Change in quality of life due to increase in . Potential public concern that Project activities could result fugitive emissions and dust. in dust and other emissions.

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Table 4.1-1: Valued Components, Key Indicators, Associated Expression of Change and Rationale Valued Component Key Indicator Expression of Change Rationale

Air quality . Change in mental or physical health due to . Potential concern to area residents, regional users, and the change (or perceived change) in air quality. general public. Human Health and . Potential concern to area residents, regional users, and the Human Health Surface water quality . Change in water quality. Aesthetics general public. . Traffic and/or traffic accidents could affect the mental or Traffic accidents . Change in potential for traffic accidents . physical health of regional users, and the general public. . The Project could increase the existing levels of traffic on Transportation and traffic . Change in traffic levels. local highways and roads. . The Project could place further demand on waste flow and Waste flow management . Change in waste flow management level. water management in the Socio-economic study area (SSA).

Emergency and protective . The Project could increase demand for emergency and Infrastructure and Services services . Change in level of use of emergency services. protective services (i.e., fire, emergency medical services [EMS], and police). . The Project could increase demand for available Commercial accommodation . Change in availability of commercial commercial accommodations in the SSA due to the and housing accommodation. Project’s labour force accommodation requirements. Recreational, educational and . Change in level of use of recreational, . The Project could increase demand for recreational, health services educational and health services. educational, and health services. . The Project could increase employment opportunities and Labour force activity . Change in local employment opportunities. benefits in the regional economic context. Employment and Economy . Potential for revenue for the Regional Municipality of Wood Taxes and revenue . Change in taxes and revenue. Buffalo from Project development.

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4.2 Describing the Existing Environment The existing environment includes all the environmental or socio-economic elements that were considered when determining potential effects that could occur as a result of the Project. The environmental baseline, describing the existing environment and socio-economic elements as they are at the time of the assessment, is the basis for determining the potential change and likely environmental and socio-economic effects associated with the Project.

The study methods and the existing environmental and socio-economic setting in which the Project will be constructed and operated are described in Section 5. 4.2.1 Baseline Data Collection Information from the following sources was reviewed and used to describe the existing environment:  publicly available topographic and resource maps, aerial imagery, databases, scientific papers, technical reports, government websites, interactive websites, information letters, and fact sheets;  Project-specific field investigations;  environmental applications prepared for other projects in the area; and  communication with Aboriginal communities, local land users, representatives from local and regional governments, local, provincial and federal regulators, and the general public.

In addition, Ecological Land Classification (ELC) was used to describe the vegetation, soils, landscape features, and wildlife habitat at the local level, and field surveys were conducted for specific resources. The results of environmental field surveys conducted for the Project have been included in this ESA report. 4.3 Identifying Project and Environment Interactions A preliminary identification of potential Project-environment interactions was undertaken to focus the assessment on the issues of key importance. All relevant Project works or activities were analyzed individually to determine if there was a plausible mechanism for an effect on each VC during normal Project conditions. The analyses were based on professional judgement and experience of the ESA team with regard to the physical and operational features of the Project and their potential for interaction with the environment.

The results were summarized in a matrix illustrating where the Project could interact with each VC and when adverse environmental or socio-economic effects are likely or possible (Table 4.3-1). The interactions identified in the matrix were used to focus the description of the existing environment (Section 5) and the assessment and mitigation of potential effects (Section 6).

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Table 4.3-1: Project Interactions with Environmental and Socio-economic Valued Components Project Phase Construction Decommissioning Operation (pipeline right-of-way and Abandonment Environmental and Socio-economic [ROW] and site preparation, (pipeline and meter station (pipeline and meter Valued Component pipeline and meter station operation and station decommissioning installation, and interim maintenance activities) and reclamation activities) reclamation activities) Pipeline Meter Station Pipeline Meter Station Pipeline Meter Station Physical Environment(a) ● ● — — ● ● Meteorological Environment(b) — — — — — — Soil and Soil Productivity ● ● ● ● ● ● Vegetation ● ● ● ● ● ● Surface Water ● ● ● — — — Groundwater ● — — — ● — Fish and Fish Habitat — — — — — — Wetlands ● — ● — ● — Wildlife and Wildlife Habitat ● ● ● ● ● ● Species at Risk or Species of Special ● ● ● ● ● ● Status and Related Habitat Air Emissions ● ● ● ● ● ● Greenhouse Gas Emissions ● ● ● ● ● ● Acoustic Environment ● ● ● ● ● ● Human Occupancy and Resource Use ● ● ● ● ● ● Heritage Resources ● ● ● ● ● ● Traditional Land and Resource Use ● ● ● ● ● ● Social and Cultural Well-being ● ● ● ● — — Human Health and Aesthetics ● ● ● ● ● ● Infrastructure and Services ● ● ● ● ● ● Navigation and Navigation Safety ● — — — — — Employment and Economy ● ● ● ● ● ● (a) Physical Environment is described in the baseline setting (Section 5.1) and is considered in the effects assessment in relation to terrain, which is identified as a key indicator for Soil and Soil Productivity (Section 6.1), in Groundwater (Section 6.4), and Effects of the Environment on the Project (Section 6.22). (b) Meteorological Environment is described in the baseline setting (Section 5.1) and is considered in the effects assessment in Air Emissions (Section 6.9), Greenhouse Gas Emissions (Section 6.10), Acoustic Environment (Section 6.11), and Effects of the Environment on the Project (Section 6.21). ● = A potential Project-environment interaction could result in an environmental or socio-economic effect. — = No plausible interactions were identified.

The rationale for VCs or key indicators that are predicted not to interact with the Project is provided in Table 4.3-2. In accordance with Guide A.2.5 of the NEB Filing Manual (NEB 2014a), no further analysis beyond baseline setting description is necessary for elements where interactions between the Project component and an environmental or socio-economic element are not predicted. These VC are, therefore, addressed in Section 5 (Existing Environmental and Socio-economic Setting) and are not carried forward in the effects assessment. These VC may be addressed in Section 6 only to remind the reader that a Project-environment interaction has not been identified. The unlikely release of a deleterious substance (i.e., drilling fluid) into the watercourse during the HDD crossing of the Athabasca River is assessed in Section 6.19 (Accidents and Malfunctions).

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Table 4.3-2: Valued Components Not Interacting with the Project Valued Component Rationale (VC) / Key Indicator Surface Water / The Project is not expected to interact with these VCs based on the planned use of a trenchless watercourse Lateral and vertical crossing (i.e., HDD). The use of HDD avoids the potential direct effects of riparian zone disturbance and potential for stability of sedimentation associated with a trenching method. watercourse Surface Water / An HDD implementation plan will be prepared and implemented. Development of the plan will be based on best Water quality management practices as described in Planning Horizontal Directional Drilling for Pipeline Construction (CAPP 2004) and the former Operational Statement for High-Pressure Directional Drilling (DFO 2007), and DFO Measures to Avoid Causing Harm to Fish and Fish Habitat (DFO 2013a) will be applied.

The HDD crossing will incorporate the following design specifications to avoid the potential for interaction with the Athabasca River: . entry and exit sites will be located far enough from the watercourse to provide for containment of sediments and other deleterious substances above the high watermark; . vegetation removal for the entry and exit sites will be limited to the approved construction ROW and temporary workspace; Fish and Fish Habitat . water with a high sediment load will not be discharged into the Athabasca River, if dewatering is necessary; . sediment load will be removed (e.g., filtered or discharged into a vegetated area) before discharge water is allowed to enter any watercourse; . a water quality monitoring plan will be developed that includes monitoring for TSS and/or turbidity, where warranted, with input from an aquatics specialist; and . an inert, non-toxic, bentonitic clay-based material will be used as drilling mud. An emergency response plan will be developed and will be implemented in the event of sediment releases or spills of deleterious substances during the construction of the HDD crossing.

4.4 Temporal and Spatial Boundaries 4.4.1 Temporal Boundaries The temporal boundaries establish the time period(s) for which Project-specific and potential cumulative environmental effects were considered in this ESA. The following temporal boundaries are used for the assessment of the Project:  construction, which encompasses the ROW and site preparation and construction;  operation, which encompasses operation and maintenance activities throughout the life of the Project; and  decommissioning and abandonment, which encompasses facility decommissioning, abandonment and reclamation activities.

A detailed Project schedule is presented in Table 2.7-1, Section 2.7. The construction phase is scheduled to begin in November 2015, and the Project facilities are scheduled to be operational by April 1, 2016. The Project has been designed to operate for approximately 50 years. Decommissioning and abandonment of the pipeline and meter station may commence once they have reached the end of their useful life. Decommissioning and abandonment activities will comply with all applicable federal and provincial regulatory requirements, and relevant approvals will be applied for at the time of decommissioning planning. The decommissioning and abandonment phase is assessed, as warranted, in this assessment.

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4.4.2 Spatial Boundaries Spatial boundaries define the geographic extents within which the potential environmental or socio-economic effects of the Project will be considered. As such, these spatial boundaries define the study areas for the ESA. The description of environmental setting and assessment of potential Project effects on the VCs considers one or more of the following study areas:  Project footprint;  Local study area (LSA);  Regional study area (RSA); and  Socio-economic study area (SSA). These study areas were used to capture the potential direct and indirect effects of the Project on each VC and its associated key indicator, as well as to understand the context within which the effects can occur. The LSAs and RSAs used in the effects assessment vary by environmental and socio-economic element. The LSAs were established to assess the potential, largely direct effects of the Project on the local environment. Each VC and baseline setting component is considered in defining the LSAs. The RSAs were established to assess the potential, largely indirect effects of the Project within the broader, regional context.

The study areas used for biophysical, heritage resources and resource use are summarized in Table 4.4-1 and shown in Figure 4.4-1, and the SSA is described in more detail in Section 4.4.2.1 and shown in Figure 4.4-2.

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Table 4.4-1: Study Areas Used in the Environmental and Socio-economic Setting and Effects Assessment Area Valued Component Study Area Description / Rationale [ha] Physical area required for Project construction, operation and eventual decommissioning and abandonment All Project footprint 24.59 (i.e., pipeline ROW minus the distance of the trenchless crossing, plus meter stations, plus the additional work areas required during construction [i.e., TWS]). Local Study Area Equivalent to the Project footprint. 24.59 (LSA) Direct effects on terrain and soil quality may occur within the Project footprint. Soil (i.e., Soil and Soil Equivalent to the terrestrial LSA described below. Productivity) Regional Study Area 2,275.92 The soil RSA extends 1,000 m from the Project footprint. This scale is sufficient to document the soils that occur in the (RSA) area, and is suitable for assessing potential effects on land uses that rely on soil productivity, such as forestry. The LSA for terrestrial environmental components (vegetation, wetlands, wildlife and wildlife habitat) extends 1,000 m from the Project footprint. LSA 2,275.92 The purpose of the terrestrial LSA is to assess the potential direct Project effects and small-scale indirect Project effects on all terrestrial environmental components. Terrestrial The RSA for terrestrial environmental components (vegetation, wetlands, wildlife and wildlife habitat) extends 7,000 m (i.e., Vegetation, from the Project footprint. Wetlands and Wildlife The RSA boundary was defined based on vegetation classification boundaries and the provincially designated Key and Wildlife Habitat) Wildlife and Biodiversity Zones. RSA 28,101.60 The RSA encompasses the home range of a white-tailed deer which has an average home range of 8.5 km2 (Lesage et al. 2000) and the home range of one moose which has an annual home range of 70 km2 in Alberta (Bohm et al. 2013). The purpose of the terrestrial RSA is to assess the contribution of the Project effects on all terrestrial environmental components within the broader regional context. Centered on the Athabasca River at the crossing location and extends 250 m from each bank (to account for potential disturbance to the riparian zones). Includes average bankfull widths at the proposed crossing. Aquatic (i.e., Surface LSA 487.48 Water Quantity and Upstream extent is 1,000 m from the pipeline centreline at the watercourse crossing Quality, Fish and Fish Downstream extent is 3,000 m from the pipeline centreline at the watercourse crossing (to account for potential effects Habitat) from sediment transport during construction) Fully encompasses the LSA and the Athabasca River from the LSA upstream to the confluence with the Firebag River RSA 9,424.74 (with a 100 m wide buffer from each bank of the Athabasca River over that section). The groundwater LSA extends 1,000 m from the Project footprint. The LSA was sized to encompass the extent of LSA 2,275.92 anticipated Project-related effects. Groundwater A separate RSA was not considered necessary since potential groundwater effects are expected to be local (within RSA not identified Not applicable 1,000 m of the Project footprint).

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Table 4.4-1: Study Areas Used in the Environmental and Socio-economic Setting and Effects Assessment Area Valued Component Study Area Description / Rationale [ha] The area within 5,000 m of the Project footprint, based on the guidance provided by Alberta Environment (ESRD 2013) LSA 17,076.38 for air assessments in Alberta. Air Emissions A separate RSA was not considered necessary as the LSA is sized such that predicted concentrations at the study RSA not defined Not applicable area boundary are essentially the same with or without the Project emissions (i.e., project-related effects on air quality are not expected to extend beyond the LSA boundary). Greenhouse Gas LSA and RSA not Not applicable Spatial boundaries are not defined since GHG emissions are, by nature, considered at the global scale. Emissions defined The acoustic LSA extends 1,500 m from the Project footprint based on the guidance provided by the Alberta Energy LSA 3,611.61 Regulator (AER) Directive 038: Noise Control (Directive 038) for noise assessments for energy resource facilities in Alberta. Acoustic Environment The acoustic RSA extends 5,000 m from the Project footprint. As noise levels attenuate with distance from a source, RSA 17,076.38 this definition of the acoustic RSA is believed to include the area over which direct or cumulative effects from the Project could potentially be detected. Socio-economic Valued Socio-economic 6,647,632.17 Regional Municipality of Wood Buffalo Components (as Study Area (SSA) described in Table 4.1- Land and Resource 2,275.92 Equivalent to the terrestrial LSA described above 1; i.e., Human Use LSA Occupancy, Land and Resource Use, Quality of Life, Infrastructure Land and Resource 28,101.60 Equivalent to the terrestrial RSA described above and Services, Use RSA Employment and Economy) LSA 487.48 Equivalent to the aquatic LSA; centered on the Athabasca River at the crossing location Navigation and A separate RSA was not considered necessary for navigation and navigation safety since any Project effects on Navigation Safety RSA not defined Not applicable navigation will be local. Project footprint LSA 24.59 Any direct or indirect Project effects on historic resources would result from ground and soil disturbance. Heritage (Historic) Resources The RSA needs to cover a large enough area to determine the type, amount, and significance of historic resource sites RSA 37,957.99 in a specific region. As a result the RSA consists of the following four townships: Twp 97 Rge 11 W4M, Twp 97 Rge 10 W4M, Twp 96 Rge 11 W4, Twp 96 Rge 10 W4M.

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Table 4.4-1: Study Areas Used in the Environmental and Socio-economic Setting and Effects Assessment Area Valued Component Study Area Description / Rationale [ha] The TLU LSA is the same as the terrestrial and the resource use LSA, which encompass the lands and resources (vegetation, wetlands, wildlife and wildlife habitat) used by traditional land users. LSA 2,275.92 The TLU LSA encompasses the Project footprint and extends 1,000 m from the Project footprint. The purpose of the TLU LSA is to assess the potential direct Project effects and small-scale indirect Project effects on Traditional Land and all terrestrial environmental components upon which local traditional land use activities depend. Resource Use (TLU) The TLU RSA is the same as the terrestrial and the resource use RSA, which encompass the lands and resources (vegetation, wetlands, wildlife and wildlife habitat) used by traditional land users. The TLU RSA extends 7,000 m from RSA 28,101.60 the Project footprint. The purpose of the TLU RSA is to assess the contribution of the Project effects on all terrestrial environmental components upon which regional TLU activities depend.

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Rg.9 Rg.8 Tp.101 Rg.6 Rg.14 Rg.13 Rg.12 Rg.11 Rg.7 Rg.10 W4M M AR GU ER IT E R IV ER Project Location ^_ F !( IR !( E Fort McMurray R B Peace River E A V G Tp.100 I R R IV E Alberta A R C S A Edmonton B !( A H T A ³

!(Calgary

Tp.99

E T M U N D S O N

C R E E K Tp.98 PIERRE RIVER MCCLELLAND LAKE CA LU ME T R IV ER

Proposed Calumet River Sales and Tp.97 Calumet River No. 2 Sales Meter Stations

TA R FORT R IV E # R MCKAY 174C JO S LY N ER C V R RI E G EK KE US M Tp.96

R E IV R G E K Tp.95 S ER U RIV M ELLS

FORT MCKAY INDIAN RESERVE NO. 174D FORT MCKAY

FORT MCKAY (!

ER V FÃ ORT MCKAY 174 RI Ä R Tp.94 VE DO 63

V I

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(! N d x TAR (! m . ISLAND S 7 T E

2 E P (! POPULATED PLACE 0 IVER B Tp.92 AY R A 1 MCK N K 4 R PRIMARY HIGHWAY 1 IV

0 E R 2 LOCAL ROAD _ s a

e WATERCOURSE r K EE A R E C y H AC INDIAN RESERVE d C W Tp.91 u OO t D CR WATERBODY S EE

\ K l a r e n e

G LEGEND \ 20 0 20 D STUDY ROUTE*, HISTORIC RESOURCES RSA X

M HISTORIC RESOURCES \ TERRESTRIAL LSA, TRADITIONAL g AND SOIL LSA** n i LAND AND RESOURCE USE LSA, SCALE 1:500,000 KILOMETRES p p # PROPOSED FACILITY SOIL RSA, GROUNDWATER LSA a PROJECT M \ ACOUSTIC ENVIRONMENT LSA TERRESTRIAL RSA, TRADITIONAL McDERMOTT EXTENSION, 6

5 LAND AND RESOURCE USE RSA

0 AIR QUALITY LSA, CALUMET RIVER SALES AND 0 - ACOUSTIC ENVIRONMENT RSA

4 CALUMET RIVER No. 2 SALES 3

3 AQUATIC LSA, NAVIGATION AND METER STATIONS PROJECT 1

- TITLE

3 NAVIGATION SAFETY LSA 1 \

A AQUATIC RSA D BIOPHYSICAL AND A N A

C HISTORIC RESOURCES STUDY AREAS

S NOTES N

A * McDERMOTT EXTENSION PROJECT DITCHLINE 2014-08-25 PROJECT NO. 13-1334-0056 FILE No. R ** HISTORIC RESOURCES AND SOIL LSA DEFINED BY PROJECT FOOTPRINT T

\ DESIGN CL 26 Sep. 2014 SCALE AS SHOWN REV. 0 S

T REFERENCES GIS JE 30 Oct. 2014 N

E PRIMARY HIGHWAYS AND LOCAL ROADS OBTAINED FROM GEOBASE®. POPULATED I CHECK CS 30 Oct. 2014 L PLACES, HYDROLOGY AND INDIAN RESERVES OBTAINED FROM IHS ENERGY INC. FIGURE: 4.4-1 C

\ REVIEW KM 30 Oct. 2014 : DATUM: NAD83 PROJECTION: UTM ZONE 12 I Northwest Territories

FITZGERALD

Project ^_ Location _ ^!( !( Fort McMurray Peace River

Alberta Edmonton !( ³ I.D. NO. Calgary !( 24 (WOOD LAKE ATHABASCA BUFFALO)

PEACE RIVER SANDY POINT 221

GARDEN DEVIL'S GATE 220

CREEK ALLISON BAY 219 Ã MACKENZÄ IE COUNTY ^_ ^_ FORT CHIPEWYAN ROCKY LANE 58 JOHN D'OR ER IV R LAKE CHIPEWYAN 201A PRAIRIE E BOYER AC CLAIRE ^_ ^_ E FOX LAKE ^_ P ^_ ^_FORT CHIPEWYAN 201 VERMILION ^_ ^_ LITTLE RED RIVER ADAMS LANDING CHIPEWYAN 201E UV697 ^_ OLD FORT 217 ^_ Alberta Saskatchewan

CHIPEWYAN 201F

REGIONAL CHIPEWYAN 201G MUNICIPALITY OF R E Rg.12 A V C I INSET MAP WOOD BUFFALO S R A Tp.98 Rg.9 PIERRE RIVER Rg.11 R Rg.10 B E A A W4M IV H C Rg.12 T R

S A A

B CALUMET RIVER

H Proposed Ã T Ä NAMUR RIVER 174A A Calumet River and Proposed Calumet River and Calumet River No. 2 Tp.97 Sales Meter Stations 88 Calumet River No. 2 # T AR R # Sales Meter Stations IVER BISON LAKE NAMUR LAKE 174B FORT FORT MCKAY 174C MCKAY ^_ FORT MCKAY 174C INDIAN RESERVE Tp.96 NO. 174D ^_ R FORT MCKAY E FORT IV R G

MCKAY 174 K

NORTHERN FORT MCKAY R FORT MCKAY 174 S RIVE Ã U LS Ä CHIPEWYAN LAKE _ EL M Tp.95 MILDRED LAKE^ FORT MCKAY INDIAN SUNRISE _ RESERVE NO. 174D 63 ^_ ^ TAR ISLAND COUNTY SCALE: 1:1,000,000 FORT MCKAY

PEERLESS LAKE FORT MCMURRAY ^_ DRAPER LOON LAKE RED EARTH CLEARWATER 175 CREEK ^_ ^_ ^_^_ ^_SAPRAE CREEK ^_ UV986 ^_TROUT LAKE MUNICIPAL GREGOIRE LAKE 176B d ^_ GREGOIRE ANZAC x ^_ LUBICON LAKE DISTRICT OF m LAKE 176A . KINOSIS L OPPORTUNITY NO. 17 A GREGOIRE ^_ CHEECHAM

N HOUSE RIVER ^_

I LAKE 176

F INDIAN

_ a CEMETERY 178 Ã e Ä QUIGLEY r 750 ^_ GIFT A UV WABASCA - DESMARAIS 881 y 63 LAKE ATIKAMEG UV d DESMARAIS u ^_ t ^_ ^_UTIKUMA JANVIER 194 S ^_ LAKE PINGLE COWPER _

c PELICAN ^_ LAKE 194A i SANDY LAKE PORTAGE m _ ^_CHARD o ^ ^_ LEISMER n 754 LAC LA o UV ^_ c 813 WINEFRED E UV BICHE o i CONKLIN LAKE 194B c COUNTY ^_ o MUNICIPAL DISTRICT OF

S LESSER \ GLOVER LAKE L SLAVE LAKE LESSER SLAVE ^_

A ^_ ^_ DEVENISH

N RIVER NO. 124 I ^_ ^_^_^_ ^_ MARGIE

F ^_ LESSER SLAVE

\ ^_ l FAUST RIVER a r e ^_ n ^_^_ ^_ ^_ e LEGEND ^_ ^_ G \ STUDY ROUTE* RAILWAY 100 0 100 D X

M PROPOSED FACILITY WATERCOURSE \ # g n i RESOURCE USE LOCAL STUDY AREA CITY SCALE 1:2,750,000 KILOMETRES p p a INDIAN RESERVE RESOURCE USE REGIONAL STUDY AREA PROJECT M \ McDERMOTT EXTENSION, 6 SOCIO-ECONOMIC STUDY AREA MÉTIS SETTLEMENT 5

0 CALUMET RIVER SALES AND

0 MUNICIPAL DISTRICT

- HAMLET / SUMMER VILLAGE / 4 ^_ CALUMET RIVER No. 2 SALES 3 UNINCORPORATED MUNICIPALITY PROVINCIAL BOUNDARY 3 METER STATIONS PROJECT 1

- PRIMARY HIGHWAY TITLE

3 PROVINCIAL PARK / 1 \ SECONDARY HIGHWAY PROTECTED AREA A

D WATERBODY SOCIO-ECONOMIC AND A N A

C RESOURCE USE STUDY AREAS

S NOTES N

A * McDERMOTT EXTENSION PROJECT DITCHLINE 2014-08-25 PROJECT NO. 13-1334-0056 FILE No. R T \ REFERENCES DESIGN DW 26 Aug. 2014 SCALE AS SHOWN REV. 0 S

\ REVIEW KM 30 Oct. 2014 : DATUM: NAD83 PROJECTION: UTM ZONE 12 I MCDERMOTT EXTENSION, CALUMET RIVER SALES AND CALUMET RIVER NO. 2 SALES METER STATIONS PROJECT

4.4.3 Socio-economic Study Area The boundary of the SSA corresponds to the area in which it can be reasonably expected that socio-economic effects may occur as a result of the Project (Table 4.4-2). The Project’s SSA boundary corresponds to the boundary of the Regional Municipality of Wood Buffalo (RMWB) in which the Project falls, and in which it can be reasonably expected that socioeconomic effects may occur. The SSA includes the communities within the RMWB (Figure 4.4-2, Table 4.4-2), as economic, infrastructure, service and population effects have the potential to affect the entire administrative unit of the regional municipality. The VCs considered in the SSA are Human Occupancy and Resource Use, Quality of Life, Human Health, Infrastructure and Services, and Employment and Economy.

Table 4.4-2: Communities Considered in the Socio-economic Study Area

(a) Distance from the Project Population Community Rationale for Inclusion in the Socio-economic Assessment (km) (2012) Regional Municipality of (b) n/a 116,407 The Project is located within the RMWB Wood Buffalo (RMWB) The largest community closest to the Project where it is expected Fort McMurray(c) 70 72,944 that some of the Project workforce and goods and services will be obtained. Aboriginal community in the SSA which may experience some Fort McKay IR 174 10 n/a Project effects Aboriginal community in the SSA which may experience some Fort McKay IR 174c 11 n/a Project effects Aboriginal community in the SSA which may experience some Fort McKay IR 174d 14 n/a Project effects Community in the SSA which may experience some Project Fort MacKay 20 59 effects Draper 78 197 Community in the SSA Saprae Creek 80 925 Community in the SSA Anzac >100 714 Community in the SSA Gregoire Lake Estates >100 275 Community in the SSA Hamlet of Janvier >100 171 Community in the SSA Hamlet of Conklin >100 318 Community in the SSA Fort Chipewyan >100 1,008 Community in the SSA Fort Fitzgerald >200 n/a Community in the SSA (a) Communities identified are those large enough that a population is recorded in the Statistics Canada census. For confidentiality, the population and census characteristics of smaller communities are not published. Rural communities are captured by the census in the presentation of regional (i.e., RMWB) data. (b) Total population for the RMWB includes the population of rural service areas (i.e., Fort McMurray and the urban shadow population), rural communities, and Project accommodations. (c) Includes the shadow population residing in urban campgrounds, hotels and rental accommodations. n/a = Not available. Source: RMWB 2012a.

The Project is located approximately 20 km north of Fort MacKay and approximately 70 km northwest of Fort McMurray. Given the remote location of the Project and the short construction schedule (i.e., 5 months), the potential for communities to experience socio-economic effects is limited by geography and duration of effect. Communities that are more than 50 km from the Project are not expected to be affected by the Project except for potential noticeable changes in traffic. All Project traffic entering the SSA from Edmonton will do so by Highway 63. Traffic between Fort McMurray and the Project will also use Highway 63, particularly the portion of

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the highway between Fort McMurray and Fort MacKay. Because the Project is remote, changes in traffic are the most likely effects for the rural communities in the RMWB.

The study areas for the land and resource use baseline and effects assessment (i.e., resource use study areas) are equivalent to the terrestrial (vegetation, wetlands, wildlife and wildlife habitat) study areas, as described in Section 4.4.2 and shown in Figure 4.4-1, as effects on land and resource use are closely linked to terrestrial resources.

The Fort McKay Indian Reserves (IRs) 174, 174c and 174d are the only IRs near the Project that may experience socio-economic effects. Other IRs are not expected to experience Project related effects to the socio- economic VCs given their distance from the Project, and the unlikelihood of Project personnel and traffic travelling to or beyond them.

Only regional level data on labour force, income, and educational levels are available and reported here. Data for land and resource use, population and traffic is available for smaller units, closer to the Project (i.e., the resource use LSA and RSA, which are equivalent to the terrestrial LSA and RSA) and described in Section 5.12. 4.5 Project Effects Assessment The Project-specific effects assessment evaluates the environmental and socio-economic effects of the construction, operation, and decommissioning and abandonment phases of the Project. A step-wise process is used to assess the environmental effects of the Project in a systematic and transparent manner once the relevant Project works and activities, assessment boundaries, and relevant environmental and socio-economic VCs are identified. The assessment method includes the following steps:  identify potential environmental and socio-economic effects;  develop technically and economically feasible mitigation;  predict likely residual effects following implementation of mitigation; and  evaluate (i.e., describe and determine the significance of) the predicted residual effects. 4.5.1 Identification of Potential Effects The effects assessment considers the potential interactions between the Project infrastructure components and activities and the VC, within the identified spatial and temporal boundaries. Project interactions may be direct (i.e., as a result of a Project infrastructure component or activity affecting a VC), or indirect (i.e., as a result of a change to one VC affecting another VC). Potential effects of the Project on the key indicators are determined by comparing the baseline conditions to those which are expected to result from the introduction of the Project. In addition to assessing the potential Project effects on a VC, the assessment considers effects of the environment on the Project (e.g., severe weather, wildfires). 4.5.2 Identification of Mitigation Development of mitigation to reduce or avoid potential effects on key indicators begins with the engineering design phase, and continues throughout the route selection, planning, assessment, and consultation and engagement activities for the Project. Refinements are made as specifics are identified and the Project and cumulative effects assessment is conducted. Mitigation is outlined in the effects assessment (Section 6) with

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reference to the Project EPP (Appendix A), including Environmental Contingency and Management Plans (Annexes E and F of the EPP), and other industry standard practices and regulatory requirements. Site specific mitigation is indicated on the environmental alignment sheets (Appendix B). 4.5.3 Prediction of Residual Effects An effect is considered to occur where anticipated future conditions resulting from the Project differ from the conditions otherwise expected from natural change. In some situations, the recommended mitigation will eliminate a potential adverse effect while in another situation the mitigation will lessen, but not eliminate, the effect. Any adverse effect that will be eliminated, or is considered unlikely after mitigation, is not identified as a residual effect and is not considered further. Any adverse effect that may remain after the application of feasible mitigation is identified as a residual effect. 4.5.4 Assessment of Predicted Residual Effects 4.5.4.1 Description of Residual Effects Predicted residual effects, where identified, are described in terms of the following effect description criteria:  direction;  magnitude;  geographic extent;  duration / reversibility;  frequency; and  probability of occurrence. Ecological context may also be relevant when describing an adverse effect on biological and some socio- economic VCs. Ecological context relates to the potential for Project effects to cause disruption of ecological functions in relation to the receiving environment, which may be ecologically fragile with little resilience to imposed stresses or may be already adversely affected by human activities. Where relevant, a statement regarding ecological context will be included in the description of residual effects.

The definition of effect levels comparable to each criterion can vary from one key indicator to another, recognizing that the units and range of measurement are distinct for each. The criteria used to describe a predicted residual effect are defined in Table 4.5-1. These criteria were considered in combination by the assessment team to assess the importance of an adverse residual effect on a key indicator.

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Table 4.5-1: Definition of Criteria Used to Describe Predicted Residual Effects for Key Indicators Criteria Definition Environmental Description Socio-economic Description . Positive – net gain or benefit; effect is . Positive – an improvement over baseline desirable. values or conditions. Direction relates to the “value” of the effect Direction . Neutral – no change compared with baseline . Neutral – no change compared with baseline in relation to the environment conditions and trends. conditions and trends. . Negative – net loss or adverse effect; effect is . Negative – a less favourable change relative to undesirable. baseline values or conditions. . Negligible – no detectable change is expected from baseline values. . Low – effect occurs that might be detectable, . Negligible – no detectable change is expected but is expected to be within the range of from baseline values. baseline or guideline values, or within the . Low – the change has no effect on the socio- range of natural variability. economic setting beyond that of a nuisance Magnitude is the intensity of the effect, or a (annoyance) value. Magnitude measure of the degree of change from . Moderate – effect is expected to be at or to existing (baseline) conditions slightly exceed the limits of baseline or . Moderate – the change modifies the socio- guideline values – clearly an effect but unlikely economic setting, but there is no change in the to be a management concern(a). system. . High – effect is expected to exceed the limits of . High – the change is large enough to result in a baseline or guideline values – the effect can change of the socio-economic system. pose a serious risk and represents a management concern(a). . Local – the effect is confined to the LSA. . Local – the effect is confined to the LSA. Geographic Geographic extent refers to the spatial . Regional – the effect extends beyond the LSA . Regional – the effect extends to communities Extent extent over which a Project effect will occur boundary, but confined within the RSA. within the SSA. . Beyond regional – the effect extends beyond . Beyond regional – the effect extends beyond the RSA boundary. the SSA.

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Table 4.5-1: Definition of Criteria Used to Describe Predicted Residual Effects for Key Indicators Criteria Definition Environmental Description Socio-economic Description Duration is the period of time over which the environmental or socio-economic effect will be present. The amount of time between the start and end of a Project activity or stressor (which relates to Project . Short-term – the effect occurs during development phases), plus the time construction or operations as a result of . Short-term – the effect occurs during required for the effect to be reversed. maintenance activities, and is reversible before construction and is reversible during operation. Duration and reversibility are functions of or during operation. the length of time VC / key indicator are . Medium-term – the effect occurs during . Medium-term – the effect occurs during Duration / exposed to Project activities. construction or operation and is reversible at construction or operation and is reversible at reversibility abandonment. Reversibility is an indication of the potential abandonment. (Duration) for recovery of the VC / key indicator from . Long-term – the effect occurs beyond the . Long-term – the effect occurs during the Project effect. Reversible implies that operational life of the Project, but is reversible. the effect will not result in a permanent construction or operation and persists beyond . Permanent – the effect occurs during change of state of the VC / key indicator abandonment, but is reversible. construction or operation and is irreversible. compared to “similar” environments not . Permanent – the effect occurs during influenced by the Project (similar being an construction or operation and is irreversible. environment of the same type, region and time period). For effects that are permanent, the effect is determined to be irreversible. Frequency refers to the occurrence . Infrequent – the effect is expected to occur . Infrequent – the effect is expected to occur regularity of the effect over the duration of rarely. rarely. the Project. Frequency . Frequent – the effect is expected to occur . Frequent – the effect is expected to occur Discussions on seasonal considerations are intermittently. intermittently. made when they are important in the . Continuous – the effect is expected to occur . Continuous – the effect is expected to occur evaluation of the effect. continually. continually . . Unlikely – the effect is not likely to occur. . Unlikely – the effect is not likely to occur. Probability of occurrence is a measure of . Possible – the effect may occur, but is not . Possible – the effect may occur, but is not Probability the likelihood that a Project activity will likely. likely. result in an effect. . Probable – the effect is likely to occur. . Probable – the effect is likely to occur. . Certain – the effect will occur . . Certain – the effect will occur. (a) Effects that pose a management concern can require actions such as research, monitoring or recovery initiatives.

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4.5.4.2 Assess Importance of Predicted Residual Effects The assessed importance of the predicted residual effect for each key indicator is primarily based on the combination of magnitude, geographic extent, and duration of the effect. The frequency of an effect is often implicit in the definition of effect magnitude or duration. The probability of occurrence is considered primarily in the case of assessing risk, such as in the case of accidents and malfunctions.

The combination of criteria used to describe a predicted residual effect, and to assess the level of importance of the residual effect on a key indicator are provided in Table 4.5-2.

The assessed levels of importance of the residual effects are defined in Table 4.5-3. The predicted residual effects for each key indicator are assessed using a combination of criteria, professional judgement and these definitions as guidelines.

Table 4.5-2: Main Criteria for Assessing the Importance of Predicted Residual Effects Criteria Assessed Importance Magnitude Geographic Extent Duration / Reversibility Short-term Local Medium-term Negligible Regional Negligible Long-term Beyond Regional Permanent Short-term Negligible Medium-term Low Local Long-term Low Permanent Moderate Short-term Low Medium-term Moderate Low Regional Long-term Moderate Permanent High Short-term Low Medium-term Moderate Beyond Regional Long-term Moderate Permanent High Short-term Low Medium-term Moderate Local Long-term Moderate Permanent High Short-term Moderate Medium-term Moderate Moderate Regional Long-term High Permanent High Short-term Moderate Medium-term High Beyond Regional Long-term High Permanent High

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Table 4.5-2: Main Criteria for Assessing the Importance of Predicted Residual Effects Criteria Assessed Importance Magnitude Geographic Extent Duration / Reversibility Short-term Moderate Medium-term Moderate Local Long-term High Permanent High Short-term Moderate Medium-term High High Regional Long-term High Permanent High Short-term High Medium-term High Beyond Regional Long-term High Permanent High

Table 4.5-3: Definitions of the Assessed Levels of Importance of Predicted Residual Effects Level Definition Negligible The residual effect may result in a change in the key indicator, but is not detectable or measurable. The residual effect may result in a detectable change in the key indicator, but is expected to be within the range of natural Low variability. The residual effect is predicted to result in a detectable change in the key indicator beyond the range of natural variability, but Moderate is not expected to threaten its status or integrity. The residual effect is predicted to result in a detectable change that could threaten the status or integrity of the key indicator High and should be considered a management concern requiring management actions such as research, monitoring or recovery initiatives should be implemented.

4.5.5 Determination of Significance The determination of significance of adverse residual effects generally followed the guidelines and principles of the NEB Filing Manual (NEB 2014a), the Federal Environmental Assessment Review Office (1994), and the Cumulative Effects Assessment Practitioners Guide (Hegmann et al. 1999). These agencies identify several possible methods for the determination of whether residual adverse effects are significant, including the use of established environmental standards, guidelines or objectives in relation to potential residual effects, as well as quantitative and qualitative assessment of the residual effects.

The determination of significance of adverse residual effects applies to each VC, considering the following:  combined assessed levels of importance of the residual effects on key indicators using ecological and socio-economic principles;  sustainable development objectives; and  professional judgement and experienced opinion. Maintaining the integrity of ecological and socio-economic systems and protecting biological and social resources is based on an understanding of the functioning of natural and social systems. Ecological and socio-

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economic principles such as natural cycles, interdependence and networks, and diversity and resilience are considered throughout the effects assessment and specifically in assessing the significance of an identified effect on a biological or socio-economic resource.

Sustainable development (i.e., satisfying the needs of present generations without compromising the ability of future generations to meet their own needs [World Commission on Environment and Development (1987)]) in the context of this ESA is based on established public objectives (e.g., land use plan or policy; government commitment on the use and conservation of resources; legislation, regulation or guideline) to preserve environmental integrity, improve social equity, and improve economic feasibility.

The evaluation of significance involves the professional judgment of experienced specialists. The ESA team is comprised of technical specialists with experience collecting data and assessing environmental and socio-economic effects for numerous projects in Alberta and across Canada. The team understands the Project scope, the landscape, environmental sensitivities, communities and types of environmental and socio-economic issues commonly encountered across northern Alberta, and those specific to this Project during construction, operation and site decommissioning.

Based on the application of the significance criteria, a significance conclusion is made for each VC. The possible significance conclusions are defined in Table 4.5-4.

Table 4.5-4: Definitions of the Significance Determination of Predicted Residual Effects Significance Definition Biophysical The effect might be detectable, but is not predicted to result in a change that will alter the sustainability of the valued Not significant component (VC) beyond an acceptable level. The effect is measureable, and is predicted to result in a change to the VC that will alter its sustainability beyond an Significant acceptable level. Socio-economic The effect is measurable at the individual, family, or community level, and strong enough to be detectable at the population Not significant level, but is not expected to result in substantial change in the well-being of defined populations and communities. The effect is clearly distinguishable and can result in strong interest or concern, or results in substantial change in the Significant well-being of defined populations and communities.

4.6 Cumulative Effects Assessment In addition to the assessment of environmental or socio-economic effects of the Project by itself, the assessment also considers the environmental effects of the Project in combination with those of other projects and activities that have been, or will be, carried out and which may interact with the effects of the Project.

The Canadian Environmental Assessment Agency (CEA Agency) defines cumulative effects as the sum of residual effects from all past, current and reasonably foreseeable projects or activities on the physical, biological, cultural and socio-economic components of the environment (Hegmann et al. 1999). The CEA Agency recognizes that while each single land-use change may result in a relatively negligible effect, the accumulation of these changes over time and space could cause a significant effect. The CEA Agency aims to determine the interaction of these individual developments to determine how a given project will influence not only the project site or area, but the entire region over time.

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The steps used to consider cumulative effects are based on the CEA Agency’s Cumulative Effects Practitioners Guide (Hegmann et al. 1999) and Operational Policy Statement, Assessing Cumulative Environmental Effects under the Canadian Environmental Assessment Act, 2012 (CEA Agency 2013), and include the following:  identify adverse residual Project effects;  define spatial and temporal boundaries for each VC where adverse residual Project effects have been identified;  identify other physical activities that have been, or will be, carried out that have similar effects on a VC that are likely to overlap the predicted residual Project effects;  identify potential spatial and temporal interactions between the Project effect on a VC and the effects on the VC of other physical activities that have been, or will be, carried out;  develop additional mitigation, if warranted, and predict likely combined (cumulative) effects; and  evaluate and determine the significance of the likely cumulative effects. The NEB Filing Manual (NEB 2014a) describes the other physical facilities or activities to be included in a cumulative effects assessment. Consideration of other physical facilities or activities that have been or will be carried out within the defined spatial and temporal boundaries must, at a minimum, include the following:  existing projects and activities;  those physical facilities or activities for which formal plans or applications have been made or are likely to occur; and  other related project or activity development assumptions that support and are consistent with the long-term economic or financial assumptions and engineering assumptions made in the application, even if formal plans or applications have not yet been made.

Regarding future projects and activities, emphasis is focused on those that are certain to proceed (e.g., approved) or are reasonably foreseeable, as well as related future development assumptions.

If residual Project effects on a key indicator are predicted, the VC that it represents is carried forward into the cumulative effects assessment. For a VC where no residual Project effects are predicted, the VC is not carried forward for further analysis.

For a VC where residual effects were identified, it is necessary to determine if the effects from the Project interact temporally or spatially with the effects from one or more additional developments or activities. When Project activities or disturbances interact spatially and temporally, their combined effects may differ in nature or extent from the effects of individual Project activities. Cumulative effects also include natural influences on biophysical and socio-economic components prior to, during and after development of the Project (e.g., extreme rainfall events, periodic harsh and mild winters, economic changes that are independent of the Project). It is the goal of the cumulative effects assessment to estimate the contribution of these types of effects, in addition to Project specific (incremental) effects, to the amount of change in the key indicator and therefore the VC.

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Typically, the potential effects of malfunctions and accidents are not included in the cumulative effects assessment because these events are hypothetical and have a low probability of occurrence. This is consistent with the CEA Agency’s Cumulative Effects Practitioners Guide (Hegmann et al. 1999), which acknowledges that such events are ‘rare’ and should be assessed as ‘unique scenarios’, as their potential effects are too extreme to be assessed together with those caused by normal Project activities.

In this ESA, cumulative effects are identified, analyzed and assessed in Section 7. The method of cumulative effects assessment follows the same general approach used for the Project effects assessment and determination of significance outlined in Section 4.5. 4.7 Prediction of Confidence in the Effects Assessment Prediction of confidence refers to the degree of certainty of the residual effects prediction and associated evaluation of environmental significance. The environmental assessment process deals with predictions of future circumstances, and predicts interactions of the Project and other developments or activities with complex biophysical and socio-economic environments. Therefore, the effect predictions can vary in their level of certainty, which is influenced by factors such as:  availability of data relevant to the environment in the study area;  natural variability and resiliency of the environment and society;  degree of scientific understanding of Project and VC interactions, and VC interrelationships; and  factors beyond the control of the assessment team. The level of certainty was considered during the Project effects assessment and cumulative effects assessment. Where there was a high degree of uncertainty, conservatism was built into the assessment so that the predicted effect would not be underestimated. 4.8 Inspection and Monitoring TransCanada’s inspection and monitoring requirements during Project construction and operation are designed such that the Project is developed in an environmentally responsible manner through the assessment of environmental issues, the planning and implementation of mitigation and contingency plans to address those issues, and the establishment of compliance initiatives such as environmental orientation and environmental inspection. Environmental Inspectors familiar with pipeline construction will be retained during Project construction. TransCanada is committed to achieving reclamation objectives through post-construction monitoring. Post-construction monitoring is initiated immediately following final clean-up.

Environmental compliance is facilitated through sharing of information between TransCanada, contractors and consultants; providing orientation and training; hiring qualified staff; and, providing onsite inspection of activities through a proactive and adaptive inspection program as described in the EPP for the Project (Appendix A of this ESA). The EPP also describes the mitigation to be implemented to reduce or avoid the potential adverse environmental effects of the Project. The EPP includes mitigation, including Environmental Contingency and Management plans, as well as other industry standard practices and regulatory requirements. Contingency plans are included in the EPP to deal with unforeseen Project effects (e.g., accidental spills, discovery of unknown heritage resources). Inspection and monitoring (as described in Section 8 of this ESA) will be carried out through the duration of the Project to guide the implementation of the mitigation, and to monitor its effectiveness.

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The inspection and monitoring will:  identify unanticipated potentially adverse effects, including possible accidents and malfunctions;  evaluate the effectiveness of mitigation and modify or enhance measures as necessary;  verify the accuracy of the assessment of the predicted residual effects; and  contribute to continual improvement.

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