ENVIRONMENTAL PROTECTION PLAN FOR THE PROPOSED COLVILLE LAKE WINTER DRILLING AND EVALUATION PROGRAM PARA et al NOGHAP-27, 66°40’LATn1JDE, 125°45’LONGITUDE PARA et al NOGHAC-49, 66°40’ LATITUDE,125°45’ LONGITUDE PARA et al NOGHAM-17, 66°40’ LATrTuDE, 125°45’ LONGITUDE

For Submission to the Sahtu Land and Water Board

Prepared By: Paramount Resources Ltd. 4700 Bankers Hall West 888 - 3 Street S.W. Calgary, AB T2P 5C5

and

Northern EnviroSearch Ltd. 330, 703 - 6 Avenue S.W. Calgary, AB T2P 0T9

Principal Investigators:

iifthy Chidlaw, B.A. Geog., C.Tech. :i $44i7 ‘ t. p —.

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October2001 TABLE OF CONTENTS INTRODUCTION .1

2 METHODOLOGY 1

3 COMMUNICATION

4 PROJECT DESCRIPTION 2

4.1 PROJECT SCOPE 3 4.2 ACCESS AND LEASE CONSTRUCTION 3 4.2.1 P-27Access and Lease 4 4.2.2 C-49 Access and Lease 5 4.2.3 M-l7Access and Lease 7 4.3 CAMPS 8 4.3.1 Construction Camp 8 4.3.2 Drilling Camp 8 4.4 DRILLING, COMPLETION & EVALUATION 9 4.5 CLEANUP/RECLAMATION 10 4.6 DEMOBILIZATION 10 4.7 FUEL STORAGE 10

5 PUBLIC CONSULTATION, PROJECT SCOPE AND CUMULATIVE EFFECTS 11

5.1 PARAMOUNT’S PUBLIC CONSULTATION 11 5.2 TRADITIONAL ENVIRONMENTAL KNOWLEDGE STUDY 12 5.2.1 Colville Lake Traditional Environmental Knowledge Workshop 13 5.2.2 Fort Good Hope Traditional Environmental Knowledge Workshop 14 5.3 CUMULATIVE EFFECTS/PREVIOUS ACTIVITY 15

6 BIOPHYSICAL COMPONENT 16

6.1 PHYSICAL — CHEMICAL ENVIRONMENT 16 6.2 BIOLOGICAL ENVIRONMENT 18 6.3 INTERACTING ENVIRONMENT 21 6.3.1 Colville Lake Trail 22 6.3.2 The Underground River 22 6.3.3 LacdesBois 22 7 CONCLUSION 24

APPENDICES APPENDIX 1 ENVIRONMENTAL PRE-SITE ASSESSMENT INFORMATION FORMS APPENDIX 2 SITE PHOTOGRAPHS I TRADITIONAL ENVIRONMENTAL KNOWLEDGE WORKSHOP AND PUBLIC CONSULTATION PHOTOGRAPHS APPENDIX 3 SOIL SAMPLING PROGRAM LABORATORY ANALYSES REPORTS APPENDIX 4 FIRE HISTORY, ECOLOGICAL DATA MAPS (FISH AND WILDLIFE), CULTURAL AND INFRASTRUCTURE MAP, RECREATIONAL DATA MAP APPENDIX 5 WATER SOURCE SAMPLING PROGRAM LABORATORY ANALYSES REPORTS APPENDIX 6 POTENTIAL WATER SOURCE LEVEL ALTERATION CALCULATIONS APPENDIX 7 TRADITIONAL ENVIRONMENTAL KNOWLEDGE WORKSHOP NOTES, POSTINGS AND PERMISSION LETTERS APPENDIX 8 ARCHAEOLOGICAL RESOURCES INFORMATION 1 Introduction Paramount Resources Ltd. (“Paramount’) is planning to drill and evaluate from one to three exploratory wells located SSE of the community of Colville Lake and southeast of Lac Belot. The P-27 well is approximately 41km from Colville Lake and situated along an existing seismic line (AOOP-COL-12) which was cleared during Paramount’s AOOP COL seismic program in the 2000/200 1 winter season (refer to Welisites and Program Location Map, the Nogha-Colville Lake Composite Map and the Survey Plans in the Application). The C-49 well is located north of the P-27 weilsite along seismic line (AOOP-COL-05),which was cleared during the same program. The M-17 well is located approximately 400 metres east of P-27 along the same cleared line. In accordance with the Mackenzie Valley Resource Management Act (“MVRMA”) and the requirements of the Sahtu Land and Water Board (“SLWB”); Northern EnviroSearch Ltd. (“NESL”) and Paramount examined the effects that this Project may have on the environment and the social, economic and cultural well-being of the nearby residents and communities.

2 Methodology This environmental protection plan (EPP) was initiated on September 18, 2001. It consisted of field assessments, research, traditional environmental knowledge workshops with community members in Colville Lake and Fort Good Hope, and discussions with: • Steve Deschene, Resource Management Officer ifi, Indian and Northern Affairs Canada (INAC) • Colette Langlois, Sahtu Region Special Advisor, Projects (RWED) • Jamie Chambers, Sahtu Region Renewable Resources Officer II (RWED) • Jason Carrie, Sahtu Region Forest Management Technician (RWED) • Melonie Dyck, Sahtu Land Use Planning Board (SLUPB) • Richard Popko, Wildlife Technician, Resources, Wildlife & Economic Development (RWED) • Miki Promislow, Sahtu GIS Project • Arianna Zimmer, Cumulative Effects Biologist (RWED) • John Nagy, Biologist (RWED) • Lade Johanis, Site Office, Canadian Museum of Civilization Concerns associated with the project were discussed during site visits between September 25 - 30, 2001. The site visits included scouting the project area by helicopter, conducting environmental pre-site assessments at each location, obtaining soil samples for textural analysis and permeability testing and taking water samples from nearby water bodies to determine their potential for use as water sources. Details of the environmental pre-site assessments and sampling are discussed in Section 4 of this report. Traditional environmental knowledge workshops were held on September 18, 2001 in Colville Lake and in Fort Good Hope on September 19, 2001. Details of Paramount’s community consultations are provided in Section 5.1 of this report.

1 3 Communication Any communications with respect to this protection plan may be referred to: Shirley Maaskant Wayne Tomm, P.Eng. Regulatory and Community Affairs Senior Drilling & Completions Engineer Coordinator Paramount Resources Ltd. Paramount Resources Ltd. 4700, 888 - 3 Street S.W. 4700, 888 - 3 Street S.W. Calgary, AB Calgary, AB T2P 5C5 T2P 5C5 Phone: (403) 290-3626 Phone: (403) 290-3618 Fax: (403) 266-6032 Fax: (403) 262-9206 Cell: (403) 861-8473 Cell: (403) 860-5014

4 Project Description The Colville Lake drilling and evaluation program (Project) is being proposed by Paramount to assess the hydrocarbon potential in the project area located within a region bordered on the east by 125°45’,on the west by 126°00’,on the south by 66°30’,and on the north by 66°40’ as illustrated by the Wellsites and Program Location Map and the Nogha-Colville Lake Composite Map in the Application. The drilling project includes up to three well locations:

1. PARA et al NOGHA P-27 (66°40’125°45’) 2. PARA et al NOGHA C-49 (66°40’ 125°45’) 3. PARA et al NOGHA M-17 (66°40’125°45’) Paramount will be accessing the proposed drilling sites using winter roads and existing seismic lines, which will be frozen-in using a mobile sleigh construction camp. Movement of the drilling rig and supporting equipment will take place as soon as the winter road has been opened. Each well will take approximately 30 days to drill and the second and third wells may not be drilled immediately following the first depending upon the results of the first well drilled as well as weather/winter road conditions. Equipment will be demobilized to Norman Wells (and if possible on to Alberta) prior to the closure of the winter road. The purpose of this EPP is to identify, address and mitigate the environmental issues associated with the conduct of the drilling project within the above noted area. As part of the EPP, the access and welisite locations were scouted by helicopter on September 29, 2001. The scouting party consisted of: • Wilbert Kochon, Ayoni Keh Land Corporation representative and Colville Lake community member • Gabe Kochon, Fort Good Hope community member, local trapper and hunter • Joe Orlias, Fort Good Hope community member, local trapper and hunter • Bob Raduenz, Paramount construction foreman • Timothy Chidlaw, Environmental project coordinator, NESL

2 Timothy Chidlaw of NESL conducted environmental pre-site assessments and soil sampling programs at all three weilsites between the dates of September 25 and 29, 2001, the results of which are discussed in Section 4.2. Water samples were obtained from five nearby lakes for the purpose of determining potential water sources for the drilling and winter camps. The analytical results and sampling locations are discussed in Section 4.3. 4.1 Project Scope The Project consists of three possible locations, C-49, P-27 and M-17, located approximately 20 kilometres southeast of Lac Belot (see Welisites and Program Location and the Nogha-Colville Lake Composite Map in the Application). One well will be drilled and evaluated with the results determining the second location. Equipment will be trucked to the locations using the winter roads from Wrigley to Norman Wells, Norman Wells to Fort Good Hope, and Fort Good Hope north along the Colville Lake road to the access turn off to an existing access road cleared during Paramount’s Colville, NWT AOOP-COL Seismic Program in 2000/2001. Access using both the winter access road and the existing cleared route will be contingent upon winter freeze-up and the construction of ice roads capable of supporting the heavy equipment. The following timeline is anticipated once the winter road has been opened:

Mobilize (Freezing-in Access) December 2001 First Well Construction December 28 - 31, 2001

Drilling, Completion & Evaluation January 1 - January 30, 2002 Cleanup/Reclamation January 31 - February 4, 2002 Second Well Construction December 31 - January 3, 2002

Drilling, Completion & Evaluation February 1 -. March 1, 2002

Cleanup/Reclamation March 1 - 6, 2002 Demobilize March 6 - 31, 2002 4.2 Access and Lease Construction Construction of the access road from the winter road between Fort Good Hope and Colville Lake to the welisite locations is expected to take approximately one week. The access route will utilize 115 kilometres of existing road that was cleared for use as a winter access for Paramount’s Colville, NWT AOOP-COL Seismic Program during 2000/200 1 (see Welisites and Program Location Map and the Nogha-Colville Lake Composite Map in the Application). Approximately 9200m of water Ikm)(8Om from nearby lakes, 3 streams and tributaries of the Hare Indian River will be required3 to freeze-in the road. The water being obtained will be from numerous water bodies on route to the wellsite locations. As a result, impacts to any singular water body will be negligible and the water will return to the regional watershed during the spring melt.

Construction of each lease is expected to take between 2 to 3 days. After the first lease has been constructed, only one of the additknal leases will be constructed. Berms will be

3 constructed to prevent off-site migration of potential spills (refer to Paramount’s Emergency Response Plan submitted with this Application under separate cover). Each lease will be 120 metres x 120 metres to accommodate the drilling rig and one 60 metre x 40 metre campsite will be located approximately 350 metres to the west of the P-27 wellsite location (see Survey Plan insert provided in the Application for the specific locations of each weilsite and campsite). This camp will be used for the full length of the drilling program and will not be moved to the other locations. This is attainable due to the close proximity of each weilsite and the desire to limit the amount of clearing and residual impacts that additional camps would have on the program area. As a result, the other surveyed campsite located adjacent the C-49 location will not be used. The location for the camp was selected to be adjacent the potential remote sump site. The corners of each lease will be rounded-off, instead of cutting perfect squares, to leave a more natural opening once the drilling has been completed.

4.2.1 P-27 Access and Lease Access to the P-27 location will utilize Paramount’sexisting cleared access road up to the AOOP-COL-12seismic line which leads to the proposed P-27 location. This is east of the turn-off to the C-49 welisite along AOOP-COL-18 (see Welisites and Program Location Map and the Nogha-Colville Lake Composite Map and Survey Plan in the Application). Accessing the site will involve freezing-down the access and will require numerous snow-fills at creek crossings (up to 12 are shown on the Nogha-Colville Lake Composite Map in the Application including tributaries to the Hare Indian River). Since the winter access to the lease is along an existing seismic line from the Paramount winter road, the only additional clearing that may be required is where the seismic line turns sharply, to allow the passing of the drilling rig and other large equipment. During construction, where space permits, standing timber will be left standing. Where possible, the lease will be levelled using snow/ice-fill and ground disturbance will only be conducted to level a drilling pad for the rig. On September 28, 2001, NESL conducted an environmental pre-site assessment scout of the P-27 location to determine and document the pre-disturbance conditions of the site (see Appendix 1 for P-27 environmental pre-site assessment information forms). P-27 is located in a forest fire burn area which burned in 1993 and is situated at the intersection of the AOOP-COL-12and AOOP-COL-07seismic lines (see Appendix 2, Photos 1 - 6). Although there is little live forest cover in the area, the ground vegetative cover is in good health. The vegetation observed consisted mainly of mosses, lichens and grasses with some growth of dwarf birch (Betula glandulosa) and green alder (Alnus crispa). At the surface there are numerous exposures of poorly sorted rock, gravel and sand which appears to be glaciofluvial in nature. The site slopes at approximately 3% toward the southwest with no significant water bodies within 100 metres.

4.2.1.1 Soil Sampling Program at P-27 Weilsite The purpose of collecting samples from this location was to investigate the site’s subsurface stability and potential for an on-site sump location. Soil samples were collected from the P-27 weilsite using a 1.5 metre hand dutch auger with 1-metre exnsions. Test holes were advanced in a 40 metre by 40 metre grid pattern

4 across the proposed welisite to observe the subsurface conditions and to collect representative soil samples. Samples were placed in plastic bags and submitted to an accredited laboratory in Calgary for textural analysis and permeability testing. The following table is a summary of the sample locations, the specific depths sampled, the laboratory analytical results and the observations made during the sampling: P-27 Soil Sampling Program Results Grid Depth Texture Observations (Location) (cm)

1 (Southeast) 0-30 Loam 2 cm topoil, light brown wI rock and gravel 30-? Rock Impenetrable 2 (South) 0-30 Sandy loam 5 cm LFH, 2 cm topsoil, light brown w/ rock and gravel 30-? Rock Impenetrable 3 (Southwest) 0-30 Loam 20 cm LFH, w/ rock and gravel 30-? Rock Impenetrable 4 (West) 0-30 Sandy loam 2 cm LFH, 4 cm topsoil, light brown w/ rock and gravel 30-? Rock Impenetrable 5 (Well Centre) 0-30 Sandy loam 0 cm LFH, 0cm topsoil, light brown w/ rock and gravel 30-? Rock Impenetrable 6 (East) 0-30 Loam 0 cm LFH, 2 cm topsoil, light brown w/ rock and gravel 30-? Rock Impenetrable 7 (Northeast) 0-30 Sandy loam 5 cm LFH, 2 cm topsoil, light brown w/ rock and gravel 30-? Rock Impenetrable 8 (North) 0-30 Sandy loam 0 cm LFH, 0 cm topsoil, light brown w/ rock and gravel 30-? Rock Impenetrable 9 (Northwest) 0-30 Sandy loam 2 cm LFH, 2 cm topsoil, light brown w/ rock and gravel 30-? Rock Impenetrable LFH - Litter, Fungal, Humic Layer It became evident that the subsurface of this location may not be suitable for a sump, even under frozen ground conditions. It appeared to be situated in an area of glaciofluvial deposits consisting of rocks, gravel, pebbles, coarse and fine sands with high permeability. As a result, a remote sump location was chosen at a higher elevation located on top of a hill approximately 350 metres to the west and on the south side of the winter access. A sample was obtained from the remote sump location at a depth of 1 metre and the laboratory results indicate that the shallow subsurface consisted of a sandy loam soil with a hydraulic conductivity value of 0.876 cm/hr (see Appendix 3 for copies of the soil analyses laboratory reports). The surface of the remote sump site contained significantly less gravel and rock than the P-27 location and the subsurface was observed to be more uniform in texture.

4.2.2 C-49 Access and Lease Paramount’s access, constructed last year, will be utilized up to its intersection with the AOOP-COL-12seismic line and follow this line to its intersection with the AOOP-COL-18 line. The access then turns northwest along the AOOP-COL-18to proceed northeast along the AOOP-COL-05line to the proposed location (C-49). This route crosses several creeks (see Nogha-Colville Lake Composite Map in the Application and Appendix 2, Photos 6 and 7). On September 26, 2001, NESL conducted an environmental pre-site assessment scout of the C-49 location to determine and document the pre-disturbance conditions of the site

5 (see Appendix I for C-49 environmental pre-site assessment information forms). The C- 49 location is situated within an area of Arctic boreal forest scattered with peat plateaus and regions of permafrost (see Appendix 2, Photos 8 - 11). The topography of the area is relatively flat (<1% slope toward the south) with a small bog on the northeastern boundary of the location. The predominant vegetative species at the location are white spruce (Picea glauca), black spruce (Picea marciana), tamarack (Larix larciana). The vegetative understory is predominated by mosses, lichens, dwarf birch (Betula glandulosa), green alder (Alnus crispa) and labrador tea (Ledum decumbens). The area of well centre will be located on the existing cleared seismic line (AOOP-COL-05).

4.2.2.1 Soil Sampling Program at C-49 Weilsite The purpose of collecting samples from this location was to investigate the site’s subsurface stability and potential for an on-site sump location. Similar to the P-27 location, test holes were advanced in a 40 metre by 40 metre grid pattern across the weilsite to observe the subsurface conditions and to collect representative soil samples. Samples were placed in plastic bags and submitted to an accredited laboratory in Calgary for textural analysis and permeability testing. The following table is a summary of the sample locations, the specific depths sampled, the laboratory analytical results and the observations made during the sampling: C-49 Soil SampIin Program Results

Grid Depth Texture ‘ Observations (Location) (cm)

1 (Southeast) 0-75 Loam 8cm LFH layer, 5cm topsoil, light brown subsurface 75-175 Sandy loam Light brown w/ rock and ice fragments 175-? Permafrost Frozen ground, impenetrable 2 (South) 0-75 Loam 8cm LFH layer, 5cm topsoil, light brown subsurface 75-175 Sandy loam Light brown w/ rock and ice fragments 175-? Permafrost Frozen ground, impenetrable 3 (Southwest) 0-75 Loam 8cm LFH layer, 8cm topsoil, light brown subsurface 75-100 Loam Light brown w/ rocks and gravel 100-? Sandy Loam High rock content, impenetrable 4 (West) 0-50 Sandy loam 5cm LFH layer, 4cm topsoil, light brown subsurface 50-100 Sandy loam Light brown w/ increasing rocks and gravel 100-? Permafrost Frozen ground, impenetrable 5 (Well Centre) 0-70 Sandy loam 5cm LFH layer, 4cm topsoil, light brown subsurface 75-100 Sandy loam Light brown w/ rock and ice fragments 100-? Permafrost Frozen ground, impenetrable 6 (East) 0-75 Loam 8cm LFH layer, 8cm topsoil, light brown subsurface 75-175 Loam Light brown w/ rock and ice fragments 175-? Permafrost Frozen ground, impenetrable 7 (Northeast) 0-70 Loam 10cmLFH layer, 10cm topsoil, light brown subsurface 75-100 Sandy loam Light brown w/ rock and ice fragments 100-? Permafrost Frozen ground, impenetrable 8 (North) 0-60 Sandy loam 5cm LFH layer, 5cm topsoil, light brown subsurface 60-75 Sandy loam Light brown w/ increasing rock content 75-? Sandy loam Impenetrable ground with high rock content 9 (Northwest) 0-50 Sandy loam 5cm LFH layer, 4cm topsoil, light brown subsurface 50-100 Sandy loam Light brown w/ increasing rocks and gravel 100-? Sandy loam Impenetrable ground with high rocl’ content LFH - Litter, Fungal, Humic Layer

6 The results of the soil sampling program identified the presence of permafrost beneath the site as shallow as 1 metre. In addition, there appears to be a significant rock content in the subsurface where areas of permafrost were not encountered. The results of the soil samples submitted to the laboratory for analysis indicate that the shallow soil subsurface at the site consists mainly of loam and sandy loam with a hydraulic conductivity slightly lower than the P-27 welisite at 0.563 cmlhr (see Appendix 3 for soil analyses laboratory reports).

4.2.3 M-17 Access and Lease Access to the M-17 location will utilize the same route as the P-27 location as it is located approximately 400 metres to the east along the AOOP-COL-12seismic line. There are no significant water body crossings between these locations. The topography is undulating as a result of peat plateaus and shallow permafrost which will likely require snow-fills to permit passage of equipment. Where possible, the lease will be levelled using snow/ice- fill and ground disturbance will only be conducted to level a drilling pad for the rig. On September 26, 2001, NESL conducted an environmental pre-site assessment scout of the M-17 location to determine and document the pre-disturbance conditions of the site (see Appendix 1 for M-17 environmental pre-site assessment information forms). Like P 27, M-17 is located in the same forest fire burn area. Again, there is little live forest cover in the area, but the ground vegetative cover is in good health (see Appendix 2, Photos 12 - 16). The vegetation observed consisted mainly of mosses, lichens and grasses with some growth of dwarf birch (Betula glandulosa) and green alder (Alnus crispa). Unlike the P-27 location, there were less surficial exposures of rock and gravel but the eastern half of the site appeared to be comprised of a significant volume of fine sand. The site slopes at approximately 3% from the eastern side toward well centre. A small bog is located in the northwest corner of the site.

4.2.3.1 Soil Sampling Program at M-17 Weilsite The purpose of collecting samples from this location was to investigate the site’s subsurface stability and potential for an on-site sump location. Similar to the other welisites, test holes were advanced in a 40 metre by 40 metre grid pattern across the proposed wellsite to observe the subsurface conditions and to collect representative soil samples. Samples were placed in plastic bags and submitted to an accredited laboratory in Calgary for textural analysis and permeability testing. The following table is a summary of the sample locations, the specific depths sampled, the laboratory analytical results and the observations made during the sampling: M-17 Soil Sampling Program Results Grid Depth Texj W: ObservJ (Location) (cm) .- 1 (Southeast) 0-30 Loam 5 cm LFH, 2 cm topsoil, light brown loam 30-150 Loam Loam with gravel increasing with depth 150-? Rock Rocks in profile making impenetrable to auger 2 (South) 0-30 Sandy loam 5 cm LFH, 5 cm topsoil, light brown fine sandy loam 30-150 Sandy loam Fine sandy loam with gravel increasing with depth 150-? Rock Rocks in profile making impenetrable to auger

7 3 (Southwest) 0-100 Sandy clay loam 20cm LFH, 5cm topsoil, light brown sandy clay loam 100-200 Sandy loam Fine sandy loam with gravel increasing with depth 200-? Permafrost Frozen ground, impenetrable with auger 4 (West) 0-30 Peat moss 30 centimetres of dry peat 30-? Permafrost Frozen ground, impenetrable with hand auger 5 (Well Centre) 0-30 Loam 10 cm LFH, 5 cm topsoil, light brown moist loam 30-200 Loam Wet - testhole collapses when auger removed 6 (East) 0-200 Sandy loam 2 cm LFH, 2 cm topsoil, light brown 7 (Northeast) 0-200 Sandy loam 0 cm LFH, 0 cm topsoil, light brown 8 (North) 0-30 Sandy loam 5 cm LFH, 5 cm topsoil, light brown fine sandy loam 30-150 Sandy loam Fine sandy loam with gravel increasing with depth 150-? Rock Rocks in profile making impenetrable to auger 9 (Northwest) 0-30 Peat moss 30 centimetres of peat moss 30-? Permafrost - Frozen ground, impenetrable with hand auger LFH - Litter, Fungal, Humic Layer The results of the soil samples submitted to the laboratory for analysis indicate that the shallow subsurface of the M-17 location consists mainly of loam and sandy loam with a hydraulic conductivity of 1.62 cm/hr (see Appendix 3 for soil analyses laboratory reports). This value is slightly higher than either the C-49 location or the proposed remote sump site. Permafrost was most shallow on the west central portion of the location at only 30 cm in depth. Surficial observations showed a concentration of rock and gravel on the eastern side of the location and a peat plateau on the western side.

4.3 Camps

4.3.1 Construction Camp Crews will be housed in a mobile camp along the existing access routes and will be relocated as construction of the winter access road progresses. Campsites will be located at least 100 metres from any waterbody to prevent contamination of water resources. Camp blackwater will be spread for disposal. Camp garbage will be burned in an incinerator and the remaining ash transported with any unburned garbage to Norman Wells for disposal at a registered landfill site. Once the drilling camp location has been prepared, the camp will be moved there.

4.3.2 Drilling Camp The drilling camp will be placed at a location near P-27 as it is easily accessible to all of the leases and will be equipped for 25-30 people. Camp water (non-potable) will come from one of five nearby lakes (labelled Water Source ‘A’to ‘E’on the Recreational Data Map in Appendix 4). Approximately 35m of water per day will be required to supply the camp (approximately 3175m total per well). According to laboratory results of water samples obtained from these lakes (see Appendix 5 for summary results table and laboratory analytical reports), the lake labelled Water Source “D” appears to be a potential source of potable water. The results of the sample obtained from the lake labelled Water Source “D” meet all of the “Aesthetic Objective (AO) or Maximum Allowable Concentrations (MAC)” of the Canadian Drinking Water guidelines for routine and heavy metal concentrations. In addition, the sample did not contain detectable concentrations of coliforms. At this stage, Paramount will be transporting water in for human consumption. However, if additional water is required

8 from lake “D” to be used as a potable water source, the water will be tested on-site for the potential presence of coliforms and will be filtered to remove potential parasites, such as giardia, prior to consumption. A test-pit will be left for a 24-hour period at the camp site to assess water infiltration rates and to ensure that ground conditions are sufficiently impermeable prior to the installation of a sump. if ground conditions are favourable, camp blackwater (sewage) will utilize a sump for disposal which will be fenced to prevent access by wildlife. The sump will be back-filled during clean-up. Otherwise, blackwater will be containerized and transported to Norman Wells for disposal. Camp garbage will be incinerated and the remaining ash transported in bins with any non-combustible garbage to Norman Wells for disposal at a registered landfill. The incinerator stack will be covered in mesh to prevent sparks from escaping. Fuels will be stored in tanks with a secondary containment system (refer to Paramount’s Emergency Response Plan submitted with this Application under separate cover). Special wastes such as used oil and filters will be stored separately and removed to an approved facility.

4.4 Drilling, Completion & Evaluation Drilling is expected to take 30 days per well and completion will follow immediately with the same rig. Water for drilling will be obtained from the five nearby sampled lakes (labelled Water Source ‘A’to ‘E’on the Recreational Data Map in Appendix 4) at the rate of approximately /day70m (approximately 32100m total per well given a consistent volume is used each3 day). The removal of this volume of water combined with the 5m/day required for the camp is anticipated to have an effect on the water levels of the 3water source lakes. For each well drilled, the drop in water level has been estimated given the listed lake be the only source of water for an entire well. The following estimates have been based on the approximate surface area of the lakes (see Appendix 6 for Water Source level alteration calculations). Water Source “A” lake (see Appendix 2, Photo 1) would drop 1.52 m. Water Source “B” lake (see Appendix 2, Photos 17 and 18) would drop 1.14 m. Water Source “C” lake (see Appendix 2, Photo 19) would drop 1.90 m. Water Source “D” lake would drop only 3.6 cm and Water Source “E” lake would

drop only 1 cm. As a result of these estimates, either of Water Sources “D” and “E” will be the main sources of water with only minor volumes removed from Water Sources “A”, “B’ and “C”. This will ensure that the removal of water from the lakes will have little effect on the lake shores and maintain the water levels sufficient for potential fish breeding waters. Water intake hoses will be screened to prevent the uptake of fish during filling. Paramount is proposing to use a fresh water, gel-chem mud with either a sump or sumpless system (using tanks to temporarily store drill cuttings and centrifuges to separate the solids and fluids). A test-pit will be left for a 24-hour period to assess water infiltration and to ensure that ground conditions are sufficiently impermeable prior to the installation of a sump. if a sump is installed, solids from the mud system and cement returns will be deposited there. At the end of the drilling each well, approximately 3800m of fluid from the fresh-water mud system will be disposed in the sump, mixed with approximately 3200m of fresh cuttings, buried and covered, If a sump is not built on

9 lease or at a remote location, the solids and the remnant liquids will be hauled to Norman Wells for disposal. There will be salt mud generated in a closed system (approximately 3300m from drilling through salt-containing formations. The salt-containing fluid will be) centrifuged out and reinjected into a salt bearing formation. The remaining solids, approximately 3200m will be “encapsulated” on-site using zeolite in a separate sump from the freshwater system. Once the salt-containing cuttings and cement have been mixed to immobilize the salts the area will be capped and covered with clay. To prevent the permafrost at the well bore from thawing during drilling, conductor barrel and surface casing strings will be cemented with a permafrost compatible cement which in itself will insulate the well bore from the permafrost. In addition, the rig footprint will be padded to prevent disturbance of the surface frost. The remainder of each location will be frozen-in. Evaluation of each well will take approximately 5 days and will be conducted immediately after drilling. If a drill stem test (DST) is conducted, there may be flaring (burning of produced gas) for up to 12 hours per test. Based on available well information, no sour gas 2S)(H is anticipated at these wells. 4.5 Cleanup/Reclamation All garbage and debris will be disposed of daily during the drilling program and either incinerated or hauled to Norman Wells for disposal at a registered landfill. Paramount will ensure that, upon completion of the project, each access and lease is inspected by a Paramount designated representative, that the clean-up is complete, and that areas requiring reclamation are identified. Snow-fill at creek crossings will be notched to promote drainage. If sumps are used for camps and drilling operations, they will be back- filled. Successful wells will be shut-in. All appropriate signs will be posted at the lease sites. Unsuccessful wells will be properly abandoned and reclamation of the entire lease site and access road will take place immediately, weather permitting. This will include spreading slash, and repairing any areas of ground disturbance for natural encroachment of vegetation. Where bare spots continue to exist, re-seeding with an approved Forestry Canada #1 natural seed mix. 4.6 Demobilization Equipment will be demobilized to Norman Wells following the completion of the 2001 drilling program contingent upon the timing of Spring break-up, the success and timing of the completion of the first well and the condition of the access and winter road to Norman Wells. If the equipment cannot be removed from the site it will be left on-site until the winter of 2002/2003. 4.7 Fuel Storage Bulk fuel will be stored on-lease during drilling. Fuel will be stored in tanks with a secondary containment system and not within 30m of the high water mark of any water bodies. Fuel storage locations will be bermed in accordance with the Hazardous Material

10 Spill Contingency Plan in Paramount’s Emergency Response Plan submitted with this Application under separate cover.

5 Public Consultation, Project Scope and Cumulative Effects

5.1 Paramount’s Public Consultation Paramount has presented and discussed the Colville Lake drilling program with the community members of Colville Lake and Fort Good Hope as well as representatives of their respective land corporations and renewable resource councils. Multiple workshops and telephone calls have provided the opportunity to discuss project components, goods and service requirements and employment opportunities. A traditional environmental knowledge study has been conducted over the project area and the results have been incorporated into this EPP. The following table summarizes, in chronological order, some of the important meetings and discussions which have taken place:

Tracking of Consultation for Paramount’s Colville Lake Drilling Program Date/Location Contact Items Discussed

18/09/01 Colville Community Access, benefits and proposed drilling program location. Colville Lake Ayoni Keh Land Corp. TEK consultation. Meeting notes attached in Appendix 7. 19/09/01 Ft. Good Hope Community Access, benefits and proposed drilling program location. Ft. Good Hope Sahtu Land & Water Board TEK consultation. Meeting notes attached in Appendix 7. Staff Yamoga Land Corp. FGH Metis Land Corp.

25/09/0 1 Resources, Wildlife and Proposed to Melonie Dyck, Colette Langlois, Jamie Norman Wells Economic Development Chambers and Jason Currie the locations of the drilling (RWED) program to determine potential RWED concerns to be addressed in the EPP. Paramount’s Construction Supervisor, Bob Raduenz, and NESL’s Environmental Project Coordinator, Tim Chidlaw, in attendance. 25/09/01 Behdzi Ahda First Nation Organized Colville Lake representative (Wilbert Kochon) Colville Lake helicopter flight to assess the program area for potential via Telephone concerns. Wilbert to act as interpreter for Ft. Good Hope representatives (Gabe Kochon and Joe Orlias). Ask to retain services of Colville Lake member for soil sampling program.

25/09/0 1 Dene First Nation Organized Ft. Good Hope representatives (Gabe Kochon Ft. Good Hope and Joe Orlias) helicopter flight to assess the program area via Telephone for potential concerns as they hunt and trap in the proposed program area. 26/09/01 Behdzi Ahda First Nation Paramount’s Construction Supervisor proposed drilling Colville Lake program area, access and potential community benefits. Retained services of field assistant (Charles Gully) as informed by Wilbert Kochon for soil sampling. NESL’s Environmental Project Coordinator, Tim Chidlaw, in attendance. 27/09/01 RWED Reviewed drilling program with additional RWED Norman Wells representatives, Richard Popko and Arianna Zimmer, to determine potential RWED concerns to be addressed in the EPP. Paramount’s Construction Supervisor, Bob Raduenz and NESL’s Environmental Project Coordinator, Tim Chidlaw, in attendance.

11 Date/Location Contact Items Discussed 27/09/01 Indian and Northern Affairs Reviewed drilling program with Steve Deschene to Norman Wells Canada (INAC) determine potential INAC concerns to be addressed in the EPP. Paramount’s Construction Supervisor and NESL’s Environmental Project Coordinator, Tim Chidlaw, in attendance. INAC representative would like to inspect proposed locations and access via helicopter. 29/09/01 Community representatives: Traditional activities and knowledge of the proposed Colville Lake (Wilbert Kochon, Joe program area and their planned hunting and trapping Ft. Good Hope Belancho Sr. - Colville) activities for the Winter 2001/2002. Conducted helicopter (Gabe Kochon, Joe Orlias - scout of Program area, access and weilsite locations. Ft. Good Hope) Paramount’s Construction Supervisor, Bob Raduenz, and NESLs Environmental Project Coordinator, Tim Chidlaw, in attendance. 4/10/01 1NAC Unable to get time to inspect sites via helicopter. Would Norman Wells appreciate viewing digital photos and brief summary of via Telephone locations prior to providing any recommendations or comments.

4/10/0 1 INAC Summary digital photos sent to INAC office for review. Norman Wells via e-mail 4/10/01 RWED Contacted Mild Promislow, Sahtu GIS to obtain mapping Norman Wells information for fire history, land use sites (recreation and via e-mail tourism), heritage sites, fish and wildlife, and Dene and Metis trails near the Project area. 11/10/01 Canadian Museum of Contacted Lucie Johanis to perform a search of the CMC Ottawa via e- Civilization Sites Database in cooperation with Tom Andrews, mail Territorial Archaeologist with the Prince of Wales Museum in Yellowknife for potential known archaeological sites of concern near the Project area.

11/10/01 RWED Contacted John Nagy to obtain collared tracking movements Inuvik via of the Blue Nose West, Cape Bathurst and Blue Nose East telephone and Caribou herds. e-mail

11/10/01 Behdzi Ahda First Nation Contacted Joseph and Wilbert Kochon to obtain permission Colville Lake Ayoni Keh Land Corp. letters for the release of Dene & Metis Historic Trails data via facsimile and any information from the Sahtu Land Use Planning Board in their “Current Trails” and “Resource Mapping” projects.

5.2 Traditional Environmental Knowledge Study Traditional environmental knowledge workshops were held with the communities of Colville Lake and Fort Good Hope. These were conducted in order to gain an understanding of: . Who uses what areas (individuals/families) • Traditional boundaries • Topography - rough areas, wet/frozen areas, creek/river crossings. • Soils - types and permafrost existence • Vegetation - uses (food/medicines), habitat (wildlife) • Water use - potential impacts if quality or quantity changes. Stream flows - water crossing timin (freeze-up) and spawning areas (timing)

12 • Transportation routes (traplines & access) • Land Uses (hunting/fishing/trapping/tourism) • Burial sites/other significant historic sites • Other sources of information (people/books/stories/letters) This knowledge will assist Paramount in conducting their drilling program with the least impact on the land and the people who utilize this area and their areas of cultural significance.

5.2.1 Colville Lake Traditional Environmental Knowledge Workshop A traditional environmental knowledge workshop was held September 18, 2001 in Colville Lake (see Appendix 7 for workshop notes and Appendix 2 for workshop photographs). Postings notifying the community of the meeting were posted in the Band Office and on its outside doors (see Appendix 7 for copies of the postings). The attendees from the community included the following people: • Dora Duncan, Chief, Behdzi Ahda First Nation • Hayward Simms, Acting Band Manager, Behdzi Ahda First Nation • Wilbert Kochon, Ayoni Keh Land Corporation • James Tutcho, Ayoni Keh Land Corporation • Alexis Blancho, Ayoni Keh Land Corporation • Richard Kochon, Behdzi Ahda Renewable Resources Council • Alvin Orlias, Behdzi Ahda Renewable Resources Council • Sarah Kochon, Behdzi Ahda Renewable Resources Council • Hycienthe Kochon, Colville Lake Elder • Marie Kochon, Colville Lake Elder • John Blancho Sr., Colville Lake Elder • Joe Ouzi, Colville Lake Elder • Phillip Codzie, Colville Lake Elder • Alexis Blancho, Colville Lake Elder • Joseph Kochon, Colville Lake Community Member • Tommy Kochon, Colville Lake Community Member • James Kochon, Colville Lake Community Member • Bernard Blancho, Colville Lake Community Member • Terry Eddybar, Colville Lake Community Member • George Oudzi, Colville Lake Community Member • Lisa Duncan, Colville Lake Community Member • Terrence Kelly, Colville Lake Community Member • Roland Codzie, Colville Lake Community Member • Ryan Kochon, Colville Lake Community Member • Charles Gully, Colville Lake Community Member • Joe Oudzi, Colville Lake Community Member

13 The following information was obtained during the TEK study: • There are numerous burial sites along the Eastern Shore of Lac Belot. • The area where the wells are to be located is good for trapping and hunting as there are lots of marten, beaver and caribou present in the winter months. • The area where the wells are being proposed is within a migration route for the caribou. They move from north to south during the late fall and early winter months. • The Elders in attendance stated that the two people that use the area the most are Gabe Kochon and Joe Orlias, both from Fort Good Hope. They said that they often use the area for hunting and trapping. • The Elders in attendance assisted in identifying the major fish-bearing lakes and rivers so that Paramount is aware is these are to be used as potential water sources. • Two areas along the proposed access route were identified as being potentially difficult to traverse. The first river crossing is a tributary of the Hare Indian River located near N66°40’ and E126°30’ (according to the May 17, 2001 map of the Colville, NWT AOOP-COLSeismic Program). The second is a large hill located in the region of N66°38’ and El26°00. • Some rivers and lakes in the region do not fully freeze or have a good enough ice cover until late December or early January to support the weight of some heavy equipment.

5.2.2 Fort Good Hope Traditional Environmental Knowledge Workshop A traditional environmental knowledge workshop was held September 19, 2001 at Fort Good Hope (see Appendix 7 for workshop notes and Appendix 2 for workshop photographs). A posting notifying the community of the meeting was placed in the Band Office on its notification board (see Appendix 7 for a copy of the posting). Attendees from the community included the following people: • Frank T’Silleie, Chief, FGH Dene Community Council • Beverly Masuzumi, Councillor, FGH Dene Coummunity Council • George Barnaby, Councillor, FGH Dene Community Council • Joe Grandjambe, Councillor, FGH Dene Community Council • Beverly Manuel, Councillor, FGH Dene Community Council • Robert Kelly, Economic Development Officer, FGH Dene Community Council • Len Peat, Sahtu Land and Water Board • Edna Tobac, Sahtu Land and Water Board • Sarah Aho, Sahtu Land and Water Board • Edwin Erutse, President, Yamoga Land Corporation • Lucy Jackson, Vice-President, Yamoga Land Corporation, Interpreter • Sharon Pierrot, Yamoga Land Corporation • Jim Allard, FGH Metis Land Corporation • Gabe Kochon, FGH Elder • Gordon Kelly, FGH Community Member • Lollie Grandjambe, FGH Community Member • Bruno Ritias, FGH Community Member • Michael Jackson, FGH Community Member

14 • Thomas Manuel Sr., FGH Community Member • Danny McNeely, Contractor The following information was obtained during the TEK study: • There are numerous burial sites located along the Eastern Shore of Lac Belot and one located adjacent Gabe Kochon’s southern cabin which is approximately 25 kilometres south of where the program is being proposed. • Gabe Kochon stated that he and Joe Orlias have used the existing access that Paramount is planning to use for trapping and to access his traps. He requested that they be notified prior to the winter access construction so that they can remove any conflicting traps. • The region where the wells are being proposed is located within a caribou migration route during the winter and spring. Occasionally, Musk Ox have also been sighted in the area. • The smaller lakes and water bodies in the vicinity of the proposed wells are not suspected to contain fish. Following the TEK workshops in Colville Lake and Fort Good Hope, Paramount and NESL conducted helicopter scouts of the proposed access and weilsite locations with the two trappers identified as being the most affected by the program, Gabe Kochon and Joe Orlias. A representative from Colville Lake also attended, Wilbert Kochon, to assist in identifying any potential concerns and interpret for the trappers. According to Gabe, Joe and Wilbert, they had no major concerns with any of the locations or access. However, they did stress that they use the area to hunt and trap in the Winter and would like to be notified prior to the commencement of the program so that they can move any of their traps. During the scout, the trappers mentioned that John Belancho Sr. also traps in the region and that he should be consulted. While in the area, the helicopter landed at John Belancho Sr.’s camp and consulted with him (see Appendix 2 for consultation photographs) regarding the proposed program. He stated that he would not be trapping in the area this winter and would likely be northwest of the main winter access road between Fort Good Hope and Colville Lake. He said, however, that he would appreciate being notified of the program’s commencement.

5.3 Cumulative Effects/Previous Activity Previous seismic and drilling activity has taken place as evidenced from the number of existing seismic lines and two leases in the area. The immediate effect of this program will be minimized, since the access route will utilize existing seismic lines and Paramount’s previously used winter access. In addition, the locations of the proposed wells are either bordering or located within a forest fire burn area which occurred in 1993 (see Fire History Map in Appendix 4). The resultant loss of living tree cover is small since most of the standing white and black spruce trees were killed in the fire.

15 6 Biophysical Component The project area falls within the Colville Hills Ecoregion. The mean summer temperature is approximately 6.5°C and the mean winter temperature is —25.5°C. The mean annual precipitation ranges from 200-300 mm and the Ecoregion is classified as having a high subarctic ecoclimate. The ecoregion lies north of the Smith Arm of and encompasses Aubry and Colville Lakes, and Lacs de Bois and Maunoir. The area includes several ridges of carbonate strata that stand above the surrounding plains. Native vegetation consists of very stunted stands of black spruce and tamarack with secondary quantities of white spruce and a ground cover of dwarf birch, willow, ericaceous shrubs, cottongrass, lichen, and moss. Permafrost is continuous with a low to medium ice content. Characteristic wildlife includes caribou, moose, grizzly and black bear, wolf, red fox, snowshoe hare, beaver, muskrat, spruce grouse, raven, osprey, and waterfowl. Land uses include trapping, hunting, fishing, recreation, and tourism. The population of the Ecoregion is approximately 70.’ Potential impacts of this drilling project, and the environmental protection measures to be employed, are summarized in the following subsections.

6.1 Physical — Chemical Environment This section examines the physical-chemical environment with respect to groundwater, surface water, noise, land, non-renewable natural resources, and air/climate/atmosphere and the potential effects of the drilling program and mitigative measures that will be in place. The topography is generally flat to rolling over the project area apart from the drainage crossings on the winter access. There are many small lakes and low, wet areas within the program area. Tweed and Tunago Lakes, N and S of the program area respectively, are fish-bearing lakes as are Lac Belot and Lac des Bois.

The permafrost in the program area is continuous (90 - 100%) with low-medium ice content (10-20%) in the upper l0-20m, of the ground. Minimal soil disturbance will be necessary for the conduct of the program and2 insulated conductor barrel and surface casing strings will be installed in the well which will reduce the potential for impacts on the permafrost regime. Also, the rig footprint will be padded and the remainder of the lease will be frozen in to protect disturbance of the surface frost. Dominant soils in the ecoregion are Organic and Turbic Cryosols and Dystric 3Brunisols.

Environment Canada. Website URL: http://wwwlec.gc.cai-ecozones/default.htm, 1997. 2 National Atlas of Canada 5 Edition. Canada Permafrost Map, 1995. Environment Canada. Website URL: http://wwwl.ec.gc.cal—ecozones/default.htrn, 1997.

16 Physical-Chemical Environment Environmental Potential Impact Proposed Environmental Protection and Mitigative Measures Feature Groundwater Water quality • Fuels will be stored in tanks with a secondary containment changes system. • Paramount has a hazardous material spill contingency plan in place. • Absorbent pads will be utilized during refuelling and vehicle maintenance. • Should a spill occur, RWED’s 24-hour spill line (867) 920- 8130 will be called. . Camp blackwater will utilize sumps, if ground conditions permit. Otherwise, it will be containerized and hauled to Norman Wells for disposal. Surface Water Flow or level • Drinking water for the camp will be brought in from Norman changes Wells. . Non-potable camp water will be drawn from one of five nearby lakes identified (approximately 5m/day). • Water for any ice/snow fills, access,3 and lease construction (9200m and drilling, boiler system and camp non-potable )/well)3(2250m will be taken from a combination of the large 3nearby lakes to ensure that the water levels are not significantly affected. Water quality • Fuel caches will be set-back a minimum of 30m from the high changes water mark of any waterbody. . No materials will be stored on the surface ice of any waterbody — potential for or within 30m of the normal highwater mark. contamination of • Fuels will be stored in tanks with a secondary containment surface water system. • Paramount has a hazardous material spill contingency plan in place. • Absorbent pads will be utilized during refuelling and vehicle maintenance. • Should a spill occur, RWED’s 24-hour spill line (867) 920- 8130 will be called. • Camps will be set-back a minimum of 30m from the high water mark of any waterbody to reduce the potential of infiltration of blackwater. • Water crossings along existing access will utilize clean snow- fill to reduce the potential for sediment to enter the water. Drainage pattern • Although the access road will cross draws and creeks, the changes drainages will be protected with the use of snow-fill. Noise Noise increase • All workers will be restricted to movement along access roads and leases. • Vehicle traffic, drilling and camp operations will increase the noise in the immediate vicinity. However, the noise will be localized and temporary in nature. • The nearest resident is Gabe Kochon. His cabin is on the southeast side of Lac Belot approximately 25km NE of the C 49 location. Rig noise will not affect him at this distance.

17 Envir:::ental Il Impact Proposed En ntalJ4nd Mitigative Measures Land Soil contamination • Fuels will be stored in tanks with a secondary containment system and surrounded with berms. • Paramount has a hazardous material spill contingency plan in place. • Absorbent pads will be utilized during refuelling and vehicle maintenance. • Should a spill occur, RWED’s 24-hour spill line (867) 920- 8130 will be called. Soil compaction • Winter operations during frozen ground conditions greatly reduce the risk ofcompaction. Land Destabilization and • Streams will be crossed at 90 degrees to the banks to minimize erosion disturbance of banks. • Bulldozers will have protective shoes to elevate the blade, leaving some snow cover to protect vegetative mat and, thereby, reduce potential for erosion. • Any felled trees will be windrowed along the existing access. • Slash or cross-ditches will be utilized to control erosion on slopes. . If ground disturbance does occur, it will be recontoured and left for natural encroachment of vegetation. Where bare spots continue to exist, they will be reseeded with an approved Forestry Canada #1 natural seed mix prior to April 2002 (if possible) and inspected within one full growing season. Permafrost regime • Existing lines will be utilized for access to reduce clearing. alteration • Winter access (frozen ground conditions) will mitigate potential damage to surface soils and permafrost. • Cat blades will have protective shoes to elevate the blade, leaving some snow cover to protect vegetative mat and, thereby, reduce potential for erosion and damage to permafrost. • The access will be monitored for melting permafrost from solar exposure and rutting in the unlikely event of warming conditions during Winter operations. • During drilling operations insulated conductor barrel and surface casing strings will be installed to prevent the permafrost from melting. In addition, the rig footprint will be padded and the remainder of the lease frozen-in to prevent the disturbance of the surface frost. Non-Renewable Resource depletion • The drilling project will not in itself deplete local non- Natural renewable natural resources (oil or gas). Depletion will occur resources if the wells are successful and they are brought on-stream. Air / Climate / Greenhouse Gas • The use of gasoline or diesel vehicles and diesel generators Atmosphere Emissions produce greenhouse gases but are necessary to conduct the program. The effects are local and short-term. • There may be some flaring during evaluation of the wells. This will be limited to up to approximately twelve hours per test.

6.2 Biological Environment This section examines the biological environment with respect to vegetation, wildlife, and fish and the potential effects of the drilling project and mitigative measures that will be in place. Appendix 4 contains maps summarizing ecological data that could be obtained in

18 the Project area from the GNWT department of Resources, Wildlife and Economic Development. During the site visit it was noted that the vegetative cover in unburned areas is predominantly black spruce, white spruce, tamarack, dwarf birch, green alder, and willow. Most of the tree cover in Project area was burned in a forest fire in 1993. Richard Popko, Wildlife Technician with Resources, Wildlife and Economic Development (RWED), indicated that the following might be found within the project area:

• Barren-ground • Wolf • Marten Caribou • Beaver • Mink • Black Bear • Fox • Muskrat • Grizzly Bear • Hare • Otter • Moose • Lynx Jamie Chambers stated during a meeting on September 25, 2001 that wolves may use the program area for to travel more easily out of the deep snow and along the frozen-in access. The Committee on the Status of Rare and Endangered Wildlife Species in Canada (COSEWIC) 4list was examined to determine the status of wildlife potentially existing in the project area. Three animal species were listed for the project area with the following risk categories: • Special Concern (A species of special concern because of characteristics that make it is particularly sensitive to human activities or natural events.) - Grizzly Bear and Wolverine • Threatened (A species that is likely to become endangered if limiting factors are not reversed.) - Anatum Peregrine Falcon. Mitigation of impacts on Grizzly bears revolves around the protection of denning sites and potential denning sites. Based on a study conducted in the summer of 1994 in the region, Grizzly dens were found on eskers significantly more often than expected by chance. Dens tended to be on southern slopes, at sites that were significantly steeper, and where there was a relatively high amount of shrub 5cover. While there is very little shrub cover within the program area, care should be taken when crossing eskers. The major cause of decrease in Wolverine populations in Canada is intensive hunting of ungulates. Paramount’s company policy is that no personal firearms are permitted in camp. In the event that monitors are required for worker protection, they may be granted approval to carry firearms. The major cause of decrease in the Peregrine Falcon populations has been the presence of agricultural pesticides and the destruction of breeding sites (cliff ledges, usually near

“Environment Canada. Website URL: http://www.speciesatrisk.g:a/species/en1ishJ. 2001. Environment Canada Species at Risk in Canada website: http://www.soeciesatrisk.2c.ca

19 wetlands). The conduct of this drilling project will not involve disturbance on or near cliff ledges. According to Richard Popko and Arianna Zimmer, Woodland caribou are generally not found in this area (beyond the northern limit of their range). The caribou in this area are predominantly barren-ground caribou. The northern limit of the Boreal Population of Woodland Caribou is near Tulita. Richard Popko indicated that there are no known boreal woodland caribou in the project area and they are unlikely to be found in the burn area. According to the Ecological Data Map (see Appendix 4) regarding the movement of satellite collared Bluenose Caribou, large numbers of barren-ground caribou may winter in the area between January and March, feeding on terrestrial and arboreal lichens. Only certain sections of the winter range may be used in any one-year. Wolves are found throughout the winter range of the caribou. Marten and moose are common to the program area (habitat dominated by extensive spruce forests and numerous small ponds). Lakes are important areas for domestic fishing and swans use some lakes as nesting sites during the summer. There are no plant species on the COSEWIC list for the project area. Biological Environment Envir:nmental

Vegetation Species introduction • Care will be taken to clean all equipment prior to transport into project area to limit the likelihood of introduction of non- native species. Loss of timber along • Existing lines and roads will be utilized for access to reduce the access roads and clearing. lease locations • The drilling locations are primarily within the burned area so there will be little loss of live timber. • Access road widths will be maintained at lOm or less. • Leaners, in areas of larger trees, will be removed to eliminate the potential for future erosion around root balls. Damage to ground • During Winter operations, frozen ground conditions will vegetation and mitigate potential damage to ground vegetation. In addition, permafrost cat blades will have protective shoes to elevate the blade, leaving some snow cover to protect vegetative mat and, thereby, reduce potential for erosion and damage to permafrost. • Any required seeding and/or follow-up inspections will be performed at the direction of INAC’s Resource Management Officer. Increased fire • Although the majority of the project area is in a burn, lOm hazard potential due breaks in windrows will be made every 400m. to windrowing of • The incinerator used to burn camp waste will have screened vegetation stacks to prevent emission of sparks.

20 Environmental ø.oiesztial Impact Propo9nvironmental Protection and Mitigative Measures Feature Wildlife and Fish Fish population • No materials will be stored on the surface ice of any changes waterbody or within 30m of the normal highwater mark. • Fuel caches will be set-back a minimum of 30m from the high water mark of any waterbody. • During refuelling, non-drip nozzles and absorbent pads will be utilized. • Paramount has a hazardous material spill contingency plan in place. • Should a spill occur, RWED’s 24-hour spill line (867) 920- 8130 will be called. • Creek crossings will be constructed of clean snow and ice and will be notched upon completion of the project. • Slash will not be permitted to enter any watercourses. • Water intake hoses will be screened to prevent uptake of fish. • Operations will not be conducted within 30m of any waterbodies not being crossed. • If any deleterious materials fall into a waterbody, it will be removed immediately. Breeding • Winter operations avoid critical periods for wildlife (late disturbances Spring and early Fall). Habitat changes / • No endangered species are likely to be found within the effects project area. • Crews will be restricted to movement along access roads and leases. • Any necessary slash areas will be windrowed with lOm breaks every 400m to allow passage of wildlife. Game species • Due to the occurrence of seismic in the area during the effects previous year, any effects for increasing human and/or wolf predation on moose and/or caribou as a result of facilitating access into the region has already occurred. Any additional effects as a result of the drilling operations this Winter will be minimal. Wildlife and Fish Forestry changes • Most of the project area has been burnt. • Slash will be windrowed with lOm breaks every 400m to allow passage of wildlife. Wildlife may be • Feeding of wildlife will not be permitted. attracted to garbage • Combustible garbage will be incinerated at camp. Ash and or harmed by debris non-combustible garbage will be removed to Norman Wells from operations for disposal at a registered landfill. • If sumps are used, they will be fenced-off. • Food and food waste will be stored in sealed containers indoors. • Survey lath and other debris will be cleaned-up during access removal.

6.3 Interacting Environment This section examines the interacting environment with respect to habitat and communities, social and economic issues, and culture and heritage and the potential effects of the drilling project and mitigative measures that will be in place.

21 Paramount recognizes the opportunity for providing employment and business opportunities to Community Members. There are three families that traditionally use this area: Kochon, Blancho and Oudzi. Tom Andrews, Subarctic Archaeologist with the Prince of Wales Northern Heritage Centre, was contacted to determine if there were any known archaeological sites within the program area. Mr. Andrews forwarded our request to Lucie Johanis at the Sites Office of the Canadian Museum of Civilization in Ottawa. Ms. Johanis’ search found no registered sites within the program area (for correspondence, see Appendix 8). However, the report of the Sahtu Heritage Places and Sites Joint Working Group entitled “Rakekée Gok’é Godi: Places we take care of’ lists three sites of importance in this region: • Colville Lake Trail • The Underground River • Lac des Bois (See Appendix 4 for a map of the Cultural and Infrastructure data.)

6.3.1 Colville Lake Trail The Colville Lake Trail links Fort Good Hope and Colville Lake and was historically used every summer by the people from Colville Lake to walk back to Fort Good Hope. The last family to walk the trail in summer was the Oudzi family in 1965. In 1998 a group of people walked the trail as part of a cultural revival project. Paramount’s drilling program will not conflict with the historical or current trail use due to the winter timing of activity.

6.3.2 The Underground River There is a story from ancient times which describes how the groups from around Colville area became aware of the people who lived further south. The underground river starts at the SW end of Lac Belot. As the story goes, two brothers were sucked into the river at Lac Belot and spilled out at the Hare Indian River. Paramount’s winter drilling program will not affect this site.

6.3.3 Lac des Bois Lac des Bois and vicinity is a major fish lake and trapping area, and is located on a caribou migration route. It has been traditionally used by the Tashin Got’ine regional group (Boucan, Oudzi, Orlias, and Gully families). There are several burial sites along its shores. Paramount’s operational plans include fisheries protection, trapper notification, and habitat protection through the use of existing lines wherever possible. These mitigative measures and the fact that the program will be a minimum of 10 kilometres from the shores of Lac de Bois are intended to limit the potential impact that Paramount’s winter drilling program will have on this site.

22 Interacting Habitat communities Economic Social Heritage Cultural Environmental Feature and and and

Environment Wildlife ecosystem composition Reduction/removal changes endangered of corridor zone. faciLities Increase Removal hazard Human quality Impair Increased Quality changes sites on Effects aboriginal Potential keystone archaeological the of health on of habitat or in or of the pressure life Impact aesthetic buffer lifestyle urban services or species wildlife land / • • • • • • • • • • • • • • • • Proposed Lake Improved Caribou area. disturbance area. passage constructed reducing be reseeded, access The possible. Slash Local high Fuel sewage disposal. water No Garbage or program possible. more Local Access Rather landfill. Heritage be There project If Civilization. program, for the If Trapping windrow Trappers existing a aware any within rounded materials instructions. Prince camp suspected water caches and Paramount will natural personnel mark personnel and are existing 23 than Environmental will into area of winter the seismic area will Fort of sites 30m if local to it will be sewage occurs no wildlife. freezing mark of of to in necessary, the off will be will leaving the allow potential according windrowed appearing will known either Wales to Good the the will any be of site habitat containerized access trails during potential area and Norman not be of and plans lines the in notified be area vegetative sump access waterbody. is not any it set-back be this unnatural be Hope Northern businesses will archaeological stored discovered businesses normal are in for through will clearing has be following burned of to to disturbed Protection waterbody. open to will general crossed, with for Wells be conduct surface across the disturbed. the of residents been support improve on improved. hunters a be Paramount’s high mat rig and area. Canadian I square minimum Heritage on the the and Om located for will identified will area. the during which the water by and erosion. a hauled site the area surface and the breaks gap disposal construction accessibility If who sites trails. be leaving in be clean leases, the or program the Brush heavy the will mark. employed will Museum Mitigative will at Centre employed the removed of hunt to Land within sump activities. least within every ice up. A area. 30m conduct Norman assist be be at some lease clearing small equipment and of a recontoured with will left Use Workers 30m is the registered from 400m to any into of the Colville wherever from trap wherever snow not corners MeaurâJJ in leave pad be Office immediate minimal of Wells from program waterbody the the along the feasible, contacted the in to the will on should while area. a this allow high the will and for the and be 7 community Good mitigated in impacts

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