Toby Creek and Treatment

CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

CONTENTS

1.0 INTRODUCTION ...... 3 1.1 Corix - Panorama Mountain Resort Overview...... 3 1.2 Approvals Sought ...... 6 1.3 Groundwater Source Development Program – Work Completed to Date ...... 7 1.4 Overview of Proposed Work and Timelines ...... 12 1.5 Estimated Project Rate Impact ...... 12 1.6 Customer Communications ...... 13 1.7 Communications ...... 13

2.0 APPLICANT ...... 14 2.1 Name, Address and Nature of Business ...... 14 2.2 Financial and Technical Capacity of the Applicant ...... 14

3.0 PROJECT DESCRIPTION ...... 17 3.1 Determination of Maximum Day Demand ...... 17 3.2 Project Components ...... 18 3.3 Land Acquisitions and Statutory Rights-of-Way ...... 23 3.4 Project Cost ...... 23

4.0 PROJECT JUSTIFICATION ...... 25

5.0 EVALUATION OF ALTERNATIVES...... 26 5.1 Surface Water Supply from Taynton Creek and Treatment ...... 26 5.2 Surface Water Supply from Toby Creek and Treatment ...... 27 5.3 Groundwater Source Proximate to Existing Reservoir ...... 27 5.4 Groundwater Source Proximate to Wolf Lake ...... 27 5.5 Connection to Existing Treated Water Supplier ...... 28

6.0 ESTIMATED IMPACT ON CUSTOMER BILLING ...... 29 6.1 Approach and Key Assumptions ...... 29 6.2 Customer Rate ...... 30 6.3 Determination of Water Rates ...... 31

7.0 PROJECT RISKS AND RISK MANAGEMENT ...... 33 7.1 Public Health ...... 33 7.2 Safety ...... 33 7.3 Cost ...... 33 7.4 Financing ...... 33 7.5 Schedule ...... 34 7.6 Environment ...... 34

…continued

28 November 2016 Page | 1 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

CONTENTS (continued)

8.0 CUSTOMER COMMUNICATIONS ...... 35

9.0 OTHER PROJECT APPROVALS ...... 36 9.1 Interior Health Authority ...... 36 9.2 Regional District of East Kootenay ...... 36 9.3 BC Ministry of Transportation and Infrastructure ...... 36 9.4 BC Ministry of Forests, Lands and Natural Resource Operations ...... 36 9.5 BC Ministry of Environment ...... 36

APPENDICES

A Panorama Groundwater Source Development – Preliminary Report (WSP / MMM Group)

B Groundwater Source Development Program – Phase 2 (Western Water Associates Ltd)

28 November 2016 Page | 2 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

1. INTRODUCTION

Corix Multi-Utility Services Inc. (“Corix”) owns and operates the water distribution utility serving the residents of Panorama Mountain Village. The utility is regulated by the British Columbia Comptroller of Water Rights which reviews and approves the rates that customers are charged for water service. The utility’s existing surface water supply system is subject to seasonal turbidity that results in boil water advisories and is also at risk of damage from potential debris torrents during high mountain stream events.

To address these issues, beginning in 2014 Corix began the process for identifying an alternative water supply. This application for approval to proceed with the Groundwater Source Development Program is the next step in that process.

Through this application, Corix is applying to the Comptroller of Water Rights for approval to proceed with detailed design and construction for the Groundwater Source Development Program for the Panorama Mountain Resort community water system. Corix proposes to finance this project through a combination of debt and equity and to recover these costs and a resonable return on the invested capital through customer rates. A portion of the cost of this project would be offset using the funds currently available in the utility’s Replacement Reserve Trust Fund. Corix believes that the project as outlined in this application is both necessary and is in the public interest.

The Groundwater Source Development Program is necessary for Corix to meet the requirements of Interior Health Authority’s Drinking Water Quality Improvement Program, replace aging infrastructure and ensure the long-term security of a safe drinking water source for the utility and its customers. The purpose of this program is to develop a new drinking water source for the Panorama Mountain Resort community so that customers consistently and reliably receive drinking water that meets Interior Health Authority’s water quality requirements and Health Canada’s Guidelines for Canadian Drinking Water Quality. Associated with the implementation of a new drinking water source is the construction of infrastructure for the transportation of raw water from the well source to a new reservoir and improvements to associated infrastructure.

1.1. CORIX – PANORAMA MOUNTAIN RESORT OVERVIEW

Corix is a privately held corporation with head offices located in Vancouver, BC. Corix has extensive experience and expertise with utility operations in seven Canadian provinces and 27 US states.

Corix designs, supplies, builds, installs, finances, and operates local utility infrastructure on behalf of municipal, institutional, military, and private-sector customers. Corix is recognized as a community-focused provider of essential utility products and services necessary to ensure the long-term viability of the communities and customers we serve.

The water utility at Panorama was formerly Toby Creek Utilities Co., part of a ski development at Panorama. The utility commenced local operations in 1973 when the first Certificate of Public Convenience and Necessity (CPCN) was issued for Panorama. The Comptroller’s office approved sale of the utility to Terasen Multi-Utility Services Inc. in September 2003. In July 2006 the utility changed its name to Corix Multi-Utility Services Inc.

28 November 2016 Page | 3 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

The utility is regulated under the Water Utility Act and the Utilities Commission Act by the Comptroller of Water Rights, assisted by staff in the Utility Regulation Section of the BC Ministry of Forests, Lands and Natural Resource Operations.

The Comptroller of Water Rights regulates all private water utilities in British Columbia to protect the public interest. The Comptroller is responsible to ensure that adequate and safe water service is provided at a fair and reasonable price.

In addition to the regulations under which the Comptroller of Water Rights acts, the local health authority also enforces requirements for the construction and operation of all public and private water utilities under the Drinking Water Protection Act and Drinking Water Protection Regulation on behalf of the BC Ministry of Health.

The Drinking Water Protection Act sets out certain requirements for water utilities to ensure the provision of safe drinking water to their customers. In the Kootenay Region, the Interior Health Authority administers the Drinking Water Protection Act. Under the Drinking Water Quality Improvement Program Interior Health Authority has identified five objectives (referred to as 4-3-2-1-0) for providing water that is safe for consumption.

4-3-2-1-0 refers to levels of removal of viruses and pathogens, two treatment methods, level of turbidity and absence of E.coli with objectives represented as follows:  4 log (99.99%) reduction in viruses  3 log (99.9%) reduction in pathogens  2 methods of treatment  1 nephelometric turbidity unit (NTU) (a measure of cloudiness)  0 coliforms

Corix currently provides drinking water to approximately 382 residential and commercial customers within the Panorama Mountain Resort community (note that each condo-hotel is considered one customer, as is Toby/Horsethief N83 Strata. These buildings represent approximately 604 accommodation units). Figure 1 illustrates the Panorama community and the potential limit of service area boundary for Corix at Panorama. This boundary represents the likely limits of future expansion of the utility.

Corix obtains its water supply through a Provincial license to divert 373,796 m³ of water per year from Taynton Creek. The intake at Taynton Creek consists of a diversion weir and two timber weirs that control the water level to the infiltration gallery, located in a side channel. The capacity of the raw water intake pipeline exceeds requirements for ultimate development at Panorama Mountain Resort. This water source is not considered viable for the long term in light of Interior Health Authority’s new drinking water treatment objectives and the real potential for a storm event to impact the intake in such a manner that would eliminate Panorama’s water source. The water system is subject to a seasonal Boil Water Notice which typically runs from mid-June through the summer as a result of turbidity.

28 November 2016 Page | 4 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

Corix – Panorama Mountain Resort – Potential Service Area Figure 1

28 November 2016 Page | 5 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

Should Corix continue to obtain water from the Taynton Creek source, it would be necessary to filter this water source to meet the requirements of Interior Health Authority’s drinking water treatment objectives. In addition to the requirement for filtration, Corix is concerned about the long-term viability of this source due to the potential for a debris torrent in Taynton Creek and resulting damage to the infiltration gallery and potential long-term disruption of water supply. Corix does not currently have a back-up water supply source at Panorama.

Corix has embarked on a program to provide a safe and secure drinking water source for the community as well as for limited future development. A water source with production capabilities of 17.7L/s (280 USgpm) is being sought to meet these requirements.

1.2. APPROVALS SOUGHT

Corix has filed this Groundwater Source Development Program application with the Comptroller of Water Rights, pursuant to the requirements of the Water Utility Act and the Utilities Commission Act, for an Order to:

a) Approve Corix’s proposal to proceed with detailed design and construction of the Groundwater Source Development Program as described in Section 3.2 of this application;

b) Determine that the Groundwater Source Development Program is in the public interest;

c) Approve the future recovery of Corix’s costs (including Corix’s internal costs, consultant costs, financing costs and other prudent costs) and a return on the utility’s investment associated with completing the detailed design and construction of the Groundwater Source Development Program; and,

d) Approve a capital structure consisting of 42.5% equity and 57.5% debt with a return on equity of 75 basis points above the benchmark low risk utility and a deemed debt rate as determined by the BC Utilities Commission.

The costs associated with completing the detailed design and construction of the Groundwater Source Development Program are to be accounted for firstly from Corix’s Replacement Reserve Trust Fund (“RRTF”) and Deferred Capacity Trust Fund (“DCTF”). Once these reserve funds are utilized, Corix will finance the remainder of the project through a combination of debt and equity with a capital structure and interest rates similar to those approved by the British Columbia Utilities Commission (“BCUC”) for small thermal energy utility projects.

Corix and its consultant team have prepared a preliminary design for the Groundwater Source Development Program based on an assessment of various options for provision of drinking water. The preferred option has been selected by Corix based on meeting Interior Health Authority conditions, regulatory requirements for drinking water quality, safety, reliability, construction feasibility and cost/rate impacts on the utility’s customers.

This application provides background on the considerable amount of work completed to date by Corix and its consultant team. Corix submit that the proposed conceptual design for the Groundwater Source Development Program represents the best alternative for customers and will ensure that Corix meets all of its operating permit requirements and as such, is in the public interest and should be approved to proceed.

28 November 2016 Page | 6 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

1.3. GROUNDWATER SOURCE DEVELOPMENT PROGRAM – WORK COMPLETED TO DATE

Corix’s Groundwater Source Development Program has evolved as a suitable water source has been determined based on various project criteria. The development of a drinking water well in Panorama has been complicated by the local geology and the high mountain environment in which the community is located.

Corix engaged Groundwater Exploration and Research Ltd. (GERL) in 2012 to evaluate the potential to secure a reliable source of groundwater at Panorama. GERL postulated that in order to secure the volume of water required potential sites would be limited to (a) alluvial fans associated with the mouths of tributaries; (b) springs; (c) buried channels in the Toby Creek valley; or, (d) fractured bedrock. GERL concluded, after field reconnaissance, review of limited information available and discussions with individuals associated with Panorama that:

a) There are no alluvial fans associated with the confluence of Toby Creek and Springs Creek, Taynton Creek or Hopeful Creek;

b) A major natural spring is associated with the Wolf Lake area. The lake appears to be fed by a combination of gravel seams and shallow fractured bedrock. The lake is shallow, but does have a rapid recovery response in water level following golf course irrigation;

c) Preliminary soils and surficial geology mapping does indicate the presence of glacio-fluvial deposits adjacent to Toby Creek. In addition, a drilling program in the Lake Lillian / Paddy Ryan Lakes area, on the Toby Creek bench, did encounter overburden deposits to a depth of 120 plus metres. Current information suggests that there could be a thick quaternary section of sediments adjacent to and beneath Toby Creek;

d) Locating a major fractured bedrock aquifer is difficult using lineament analysis, given the large scale photographs available for the Panorama area, and the extent of development. The need to ground truth any proposed drill location based on lineament analysis would prove to be challenging.

GERL concluded that consideration should be given to the drilling of two exploratory test wells to evaluate glacio-fluvial valley in-fill deposits adjacent to Toby Creek and fractured bedrock. The proposed test drilling site for the glacio-fluvial valley in-fill deposits adjacent to Toby Creek is located adjacent to the employee housing site. The proposed site for the fractured bedrock is near Wolf Lake.

Based on this report, Corix engaged Owen’s Drilling to drill two test wells adjacent to Toby Creek. The first drill site is on the north side of Toby Creek adjacent to the employee housing as recommended by GERL. The second drill site was located on the south side of Toby Creek and was explored as an alternate location as it is closer to the existing reservoir and does not require construction of works under Toby Creek as is required with a well on the north side of Toby Creek. Owen’s Drilling drilled the two 150mm test wells in October 2014. The test well on the south side of Toby Creek did not prove out and was abandoned. The well adjacent to the employee housing site was successful and further testing of this well was undertaken. Owen’s Drilling completed a stepped pumping test on 29 October 2014. Pumping rates of 20, 40, 60 and 80 USGPM were completed. A continuous pump test was completed on 31 October 2014 at a rate of 80 USGPM for a period of 24 hours. While neither of these tests pumped to the volumes that will be required for the utility’s use, they demonstrated a volume of water is available. Owen’s Drilling also obtained an analytical report for this test well. The results of

28 November 2016 Page | 7 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

this analysis demonstrated that the water is suitable for use as drinking water (subject to proper chlorination and UV treatment), however, more detailed analysis of the water and the potential for GARP and GWUDI must be understood.

Due to the distance from the Wolf Lake site identified by GERL to the existing reservoir and the site’s proximity to the golf course, the Wolf Lake site was not tested (see Section 5.3).

Based on the results obtained by Owen’s Drilling, Corix made the decision to actively pursue a new groundwater source for Panorama. To facilitate this work, Corix engaged Haworth Development Consulting (HDC) in January 2015 to act as project manager and to facilitate the approval process for the works. Corix then engaged Western Water Associates Ltd. (WWAL) in March 2015 to determine the feasibility of developing a groundwater source with low risk of surface water influence and low risk of exposure to pathogens. WWAL undertook preliminary studies of the area and reviewed work completed for Corix, including assessment of the GERL report and the wells drilled by Owen’s Drilling.

WWAL completed their assessment in two stages. Phase 1 of the program evaluated water quantity and quality from the test well drilled in 2014 by Owen’s Drilling (WPN47784) and evaluated the general location of that test well as a possible resort well field site. WWAL determined that WPN47784 is completed in a deep, confined or semi-confined aquifer system, overlain by a till deposit and underlain by bedrock. Yield testing of the well and analysis of aquifer properties suggests that the aquifer in the area can support wells with individual yields in the 200 USgpm (12.6 L/s) range. As such, more than one well would be required to supply PMR peak day demand. WWAL determined that development of a well field in this area appears feasible.

Water quality from the deep aquifer in which WPN47784 is completed was assessed and found to be of good quality. The raw water has no exceedences of health-based Guidelines for Canadian Drinking Water Quality, and is considered potable. Manganese in a June 2015 sample was slightly elevated above its aesthetic objective and the water is considered very hard, both of which are common issues in groundwater supplies in the area. Bacteriologically, the water quality is also very good. Nitrate and other parameters associated with impacts from wastewater disposal to ground were slightly elevated in the deep aquifer, suggesting some influence on the deeper aquifer from nearby wastewater disposal.

To help assess future water treatment requirements, a Stage 1 screening was completed for the well’s potential to be considered Groundwater at Risk of Containing Pathogens (GARP) or Under the Direct Influence of Surface Water (GUDI). The screening level assessment suggests that WPN47784 and similarly sited and completed wells would be considered GARP and require primary disinfection. It is unlikely wells would be considered GUDI, meaning that large diameter pathogens found in surface water are not likely to be present in groundwater. Turbidity spikes in properly designed and constructed wells are not expected, and filtration should not be required as part of the water treatment system.

Based on the results obtained by WWAL (as outlined above), Corix commenced Phase 2 of a hydrological investigation to confirm WWAL’s preliminary findings. Phase 2 of the program involved the development of two additional 250mm (10 inch) test wells and testing for water quality and quantity parameters.

The new test wells (15-01 and 15-02) were drilled using the dual-rotary method by JR Drilling in November 2015. Drilling of both wells was initiated by installing a temporary 305 mm (12 inch) diameter surface casing to a depth of 5.5 m (18 ft). Formation samples were collected at approximately 1.5 m (5 ft) regular intervals

28 November 2016 Page | 8 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

from the surface until water-bearing lithology was encountered. Aquifer materials were described as loose, poorly sorted sands and gravels typically with a sub-angular texture.

JR Drilling Ltd. was retained to complete a pumping test program in December 2015. The test pump intake was installed at a depth of approximately 1 m above the screen assembly in each well. During the testing, water levels were measured in Well 15-01, 15-02, WPN47784, MW1 (a WWTP monitoring well) and Toby Creek. Flows were controlled with a gate valve on the discharge head and measured using a digital flow meter. Test programs for wells 15-01 and 15-02 consisted of:

. A variable rate step test followed by measurement of water level recovery; . A 72 hour constant rate test; . Monitoring water levels, and . Monitoring of water level recovery following the constant rate test for several days to weeks.

The drawdown during the step testing program was characterized by water levels that responded quickly to changes in flow rate but did not stabilize. After the initial rapid response water levels continued to drawdown but at a significantly slower rate.

During the 72 hr constant rate test conducted on Well 15-01 in December 2015, the majority of drawdown occurred in the first 90 minutes when pumped at a rate of 15.75 L/s (250 US gpm). Following the first 90 minutes, water levels slowly decreased at an approximate rate of 1 cm/hr and did not stabilize for the duration of the test. At the end of the 72 hour testing program, after the well had been pumping at 15.75 L/s (250 US

JR Drilling installing well 15-01 on November 7, 2015

28 November 2016 Page | 9 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

gpm), 66% of the available drawdown in the well had been used. Analysis of a semi-logarithmic drawdown plot for well 15-01 shows a consistent slope indicating that the radius of drawdown influence during the pumping test did not reach any positive or negative aquifer flow boundaries.

The drawdown during the step testing program for Well 15-02 was characterized by water levels that responded quickly to changes in flow rate but did not completely stabilize. Specific capacity of the well decreased slightly for each flow increase, which is to be expected. During the constant rate test, the majority of drawdown occurred during the first 90 minutes when pumped at a rate of 20.48 L/s (325 US gpm). Following 90 minutes, the rate of drawdown slowed but water levels did not completely stabilize for the duration of the test. Analysis of a semi- logarithmic drawdown plot for well 15-02 shows a break in slope at approximately 400 minutes. Prior to the boundary, the change in drawdown over one log-cycle of time was approximately 0.6 m and after the break it increased to approximately 1.2 m/log cycle. The change in slope indicates that the radius of influence from the constant rate pumping test intercepted a single negative aquifer boundary, which WWAL infer to be the northwestern edge of the aquifer. This boundary is likely formed by the effective no flow boundary formed by bedrock. At the end of the 72 hour testing program, after the well had been pumping at 20.48 L/s (325 US gpm), 62% of the available drawdown in the well had been used.

Water quality samples were collected several times during each of the tests. Near the end of each test, a full suite of samples were collected for Interior Health Authority’s list of parameters for evaluating new groundwater sources. At other times during the testing, samples were collected for anions and total metals to assess possible changes in water quality as pumping proceeded. All water testing was completed by CARO Analytical Services, a CALA accredited laboratory.

Water quality from well 15-01 meets all Guidelines for Canadian Drinking Water Quality for health-based Maximum Allowable Concentrations (MACs) both chemical and bacteriological. The groundwater is considered very hard, which is typical in the BC Interior but is less mineralized than some sources owing to the mountain location of the well site. Samples collected early during the pumping test contained iron concentrations in excess of Aesthetic Objectives (AOs) and aluminum concentrations were in excess of Operational Guidelines. Elevated metals parameters are common during early samples from recently drilled wells and are typically a result of fine sediment remaining in the discharge water while final development is occurring with the pump. A slight decrease in mineralization is observed with pumping time and the concentrations of aluminum, iron and manganese decrease to near or below detection limits. The decreased mineralization suggests fine particulate matter was removed from the well following the first sample and potentially that surface water recharge to the aquifer was induced.

The Langelier Index is a measure of the saturation of calcium carbonate in water. Negative values for this parameter indicate corrosive water, while values greater than zero indicate a potential for calcium carbonate deposition. The value calculated from the test well is positive and near neutral, indicating only a minor potential for encrustation. Corrosive ground waters are typically characterized by high or low pH values and elevated iron concentrations. The local groundwater pH is somewhat basic but there is a low concentration of iron in the water. The Aggressiveness Index (AI), calculated using the parameters pH, total alkalinity and calcium hardness, is a general indicator of the tendency for corrosion to occur. AI values greater than 12, indicate a low tendency for corrosion, while values of 10 to 11.9 indicate moderately aggressive water. With an AI value of 11.9 it again appears that there is only a minor potential for corrosion to occur. The AI for well 15-01 was calculated to 12.8, indicating a low potential for corrosion.

28 November 2016 Page | 10 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

Water quality from well 15-02 meets all Guidelines for Canadian Drinking Water Quality, both health based Maximum Allowable Concentrations (MACs) and Aesthetic Objectives (AOs). Iron concentrations were consistently below its detection limit of 0.1 mg/L, and manganese was measured at concentrations approximately 10 times lower than its AO of 0.05 mg/L.

The groundwater is considered very hard. Testing results were consistent with well test results from 15-01.

The Langelier and Aggressiveness indices calculated for well 15-02 were similar to those for well 15-01 at 0.6 and 12.9, respectively. These values indicate a low potential for encrustation and corrosion.

Results of the work completed by WWAL can be summarized as follows:

. Sustainable well yields have been calculated for both wells using the CPCN methodology. Sustainable yields calculated for well 15-01 and 15-02, if operated independently are 15.3 L/s (243 US gpm) and 17.8 L/s (283 US gpm), respectively. Operated together, and factoring in well interference effects, it is WWAL’s opinion that the two wells can be operated together and sustainably provide in excess of 25.2 L/s (400 US gpm). It is WWAL’s opinion that with additional development the sustainable yield from well 15-01 could be significantly increased, to the point where a sustainable yield in excess of 25.2 L/s (400 US gpm) or more would be possible from well 15-01 alone.

. Water quality of both wells was assessed and found to be of good quality. All health-based and aesthetic objective Guidelines for Canadian Drinking Water Quality are met by the raw groundwater in both wells. Bacteriologically, water quality is good. The wells produce water with low turbidity and common aesthetic constituents of groundwater supplies such as iron and manganese are present at low concentrations.

. An updated GARP/GUDI screening was completed for Phase 2 and confirms WWAL’s original conclusion that the well sources should be considered potentially GARP due to an unlikely, yet possible, pathogen risk associated with the nearby disposal of wastewater to ground. As such Interior Health Authority requirements for two barriers of treatment for GARP sources are likely applicable.

. WWAL’s conceptual model for the aquifer at that the site is that the aquifer is semi-confined and receives the majority of its recharge via infiltration of Toby Creek water through the semi-confining layer above the aquifer. Analysis of pumping test data indicate an aquifer transmissivity on the order of 400 m2/day. Monitoring of water level recovery following the pumping test program indicates that full recovery occurs following the cessation of pumping.

. A preliminary aquifer budget analysis suggest that ambient aquifer discharge is on the order of 22 L/s. This is approximately 3 times the peak month Average Day Demand at the PMR of 7.0 L/s. This preliminary aquifer budget does not account for pumping induced recharge into the aquifer, which is inferred to occur based on the results of the testing program.

28 November 2016 Page | 11 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

1.4. OVERVIEW OF PROPOSED WORK AND TIMELINES

Future phases of the Groundwater Source Development Program build upon the work completed to date by the consultant team (described in Section 2.2.4). Throughout all phases of the program the following key components have guided decision making:

a) Provision of water to meet the requirements of Interior Health Authority’s Drinking Water Quality Improvement Program;

b) Provision of water from a source that is not subject to seasonal fluctuations in water quality nor subject to catastrophic failure due to natural hazards (flooding, debris torrent, etc);

c) Cost effective solutions that serve the needs of the existing customer base;

d) A modest amount of new capacity to accommodate new users.

Corix believes that the location identified by WWAL for new groundwater source wells meet these four requirements.

The Groundwater Source Development Program will include five primary components:

a) Production Wells;

b) Raw Water Supply Line;

c) Reservoir;

d) Treatment of Water with Chlorination and UV; and,

e) Decommissioning and Remediation of Redundant Infrastructure.

Each of these components will be outlined in detail in Section 3.2 of this application.

1.5. ESTIMATED PROJECT RATE IMPACT

Corix recognizes that the Groundwater Source Development Program proposed herein is a significant undertaking for its customers. Corix has provided a preliminary estimate of the impact of the Groundwater Source Development Program on customer’s rates in Section 6 of this application based on the total project cost of approximately $4,485,000. The estimated rate impacts are set out in Corix’s analysis and described in Section 6. Corix plans to file a new Rate Application to the Comptroller when construction of the new system (as outlined above) is underway and costs are known – likely in the summer or fall of 2017.

Table 1.5.1 below illustrates the estimated rate increase for a typical single family residential customer. Rates for other customers are expected to increase by an equivalent percentage and are outlined in detail in Section 6 of this application. The average home in Panorama is the equivalent of ten bed units and historically has consumed on average approximately 115m³of water per year (which is considerably less than the provincial

28 November 2016 Page | 12 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

average water consumption of 300m³ and reflects the second-home nature of the resort-community). Utilizing these figures, the average water bill for single family home at Panorama is $545.00 per year.

Based on current cost estimates for the project, residential units at Panorama would have an increase of $3.65 per bed unit per month in the base rate for water service to $6.50 per bed unit per month as a result of undertaking this groundwater program and associated infrastructure as outlined herein. The final rate increases as a result of this program will be determined after approval of this program when detailed engineering is undertaken. Any adjustment of the cost to provide service will be reflected in the rate application submitted by Corix at a future date.

Estimated Rate Increase Table 1.5.1 Current Rate Estimated Rate $2.85 / bed unit / month $6.50 / bed unit / month Residential Rate + 1.77 per m³ + 1.77 per m³ $2.85 / bed unit / month $6.50 / bed unit / month Commercial Rate + 1.77 per m³ + 1.77 per m³ Availability of Service (Rent) Charge $45 / bed unit / year TBD, typically 70% of residential charge

1.6. CUSTOMER COMMUNICATIONS

Corix is proposing to initiate consultation with its customers immediately upon acceptance of this application by the Comptroller of Water Rights. This will include an open house to be held at Panorama Mountain Resort to review the proposed program, cost to customers and timelines.

Further communication with customers will be completed at key steps in the Groundwater Source Development Program.

1.7. COMMUNICATIONS

All notices and communications with respect to this application should be addressed to the Applicant as follows:

Corix Multi-Utility Services Ltd. PO Box 20217 Kelowna, BC V1Y 9H2

Attn: Rick Franzen Manager, East Kootenay Region

Tel: 250-341-8102 Email: [email protected]

28 November 2016 Page | 13 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

2. APPLICANT

2.1. NAME, ADDRESS AND NATURE OF BUSINESS

Corix is a corporation registered in the Province of British Columbia under the Business Corporations Act.

Corix’s Panorama Mountain Resort water system serves a permanent and resort population with a customer base of approximately 382 customers. The utility currently has 348 residential connections and 34 commercial connections. These customers represent 2438 residential bed units and 2061 commercial bed units with an additional 400 stand-by (availability of service) units.

2.2. FINANCIAL AND TECHNICAL CAPACITY OF THE APPLICANT

2.2.1. Background

Corix is a privately held corporation owned by the British Columbia Investment Management Corporation (bcIMC). bcIMC is one of the largest institutional investors in Canada, with gross assets under management of more than $114.0 billion. In addition to core holdings such as Corix, bcIMC has an active direct infrastructure investment program including water utilities, electric and gas utilities, energy and power companies, liquids transportation pipelines, and rapid transit infrastructure. bcIMC is a corporation owned by the Province of British Columbia and is not rated by credit rating agencies.

Corix currently has 2,088 employees and in 2014 recorded revenues of $695.2 million and has $1,668.8 million in assets. Corix has borrowing capacity of $250 million through a $150 million revolving credit facility and a $100 million accordion to its credit facility. This capacity can be used to provide interim financing for projects. Additionally, Corix can also access interim financing from its shareholders and external partners. Corix’s core business is the long-term investment of equity in capital infrastructure related businesses and projects. Corix have extensive experience in making equity investments.

2.2.2. Financial Capacity – Reserve Funds

Corix is regulated under the Water Utility Act and the Utilities Commission Act by the Comptroller of Water Rights, assisted by staff in the Utility Regulation Section of the BC Ministry of Forests, Lands and Natural Resource Operations. All financial matters of the utility are regulated by the Comptroller. All borrowing and expenditures for capital projects (such as this Groundwater Source Development Program) must be approved by the Comptroller. Additional detail regarding these funds, including the current value of the reserve trust accounts is provided in Section 6.1.3.

The Comptroller currently requires Corix to maintain trust accounts for funding various types of work. The trust funds are funded from customer contributions as ordered by the Comptroller.

a) Deferred Capacity Trust Fund (DCTF) – The DCTF accumulates one-time charges for applicants for service from outside the boundaries of the utility or from subdivision of existing lots. The amount provided in the tariff and accumulated interest is available to pay for future expansion of water system's capacity. Funds may only be released by authority of the Comptroller.

28 November 2016 Page | 14 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

b) Replacement Reserve Trust Fund (RRTF) – The RRTF provides funds collected from customers to pay for replacement of water system components when required. Interest earned is retained in the fund. Funds may only be released by authority of the Comptroller, upon receipt of evidence of replacement.

Trust funds are held as Guaranteed Investment Certificates (GICs) issued by a Canadian chartered bank. GICs do not exceed a term of one year.

Corix is proposing to utilize all of the funds from the DCTF and RRTF for this program. Going forward, the utility would fund all capital improvements for the system, including the proposed groundwater project, subject to application and approval by the Water Comptroller.

2.2.3. Financial Capacity – Program Funding

Corix will provide funds for completion of this Groundwater Source Development Program beyond the amounts currently held in reserve funds.

Corix proposes to finance the project based on a capital structure and interest rates similar to those approved by the BCUC for community based thermal energy projects. The required capital will be split into debt and equity components, with 57.5% debt land 42.5% equity. The interest rate on debt financing will be determined using the credit spread between BBB and BBB (low) rated debt and the 10 year Government of Canada bond yield, consistent with the approach approved by the BCUC for small thermal energy utilities. The debt rate will apply for a 10 year period. The equity rate will be set at the benchmark low risk utility allowed equity rate as determined by the BCUC from time to time plus a risk premium of 75 basis points.

2.2.4. Technical Capacity

Corix helps communities build, manage, and operate water, wastewater, and sustainable energy systems as well as provide field metering services. Corix’s clients include municipalities, universities, resort properties and developers. Corix delivers comprehensive, flexible, and innovative solutions to meet our customers’ most complex utility infrastructure challenges,

Corix brings experience, stability, and a cost-effective approach to operating and maintaining utility infrastructure. Corix’s expertise is integrating traditional and non-traditional infrastructure systems, incorporating technological advancements, and providing a highly skilled team to deliver the best solution. Corix has widespread experience designing, constructing, operating, and owning water, wastewater, and energy systems.

The primary consultant team for this project includes the following:

. Project Management / Utility Management – Haworth Development Consulting Ltd. (HDCL); HDCL is a land use planning and project management firm located in Invermere, BC. The firm has over 20 years of experience in this region and has been involved with the development of Panorama Mountain Resort since 1994. HDCL provide project management services for this program including permitting and approvals; facilitation of financing; consultant and contractor management; customer relations; etc.

28 November 2016 Page | 15 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

. Civil Engineering – WSP Canada Inc. (WSP), operating as MMM Group Limited, have provided civil engineering services for the water and wastewater utilities at Panorama since 1998, preceding Corix’s acquisition of the utility. WSP bring a strong background in utility design and construction as well as familiarity with the permitting process in Eastern BC. WSP provide services for this program related to all aspects of civil works for the program including design and construction of pumping systems, water lines, reservoir and other ancillary works. In addition, WSP will assist with permitting for technical aspects of the program.

. Groundwater Consultant – Western Water Associates Ltd. (WWAL); WWAL has extensive experience with groundwater development. From individual domestic wells to large diameter production wells, WWAL effectively evaluate site specific geological conditions and guide a development program from evaluation to production. WWAL provide services for this program related to the location, design and construction of the proposed new drinking water well.

Additional consultants will provide specialized services for the Groundwater Source Development Program when the construction phase of the program is approved:

. Environmental Consultant – TBD. The environmental consultant will oversee environmental permitting for the project (primarily related to discharge of water from well testing to adjacent lands and waterbodies).

. Geotechnical Engineer - Groundtech Engineering Ltd. (Groundtech) are providing geotechnical engineering services for this project.

. Construction Surveying – Mtech Surveying Ltd. (MTech).

. Legal Surveying – Garrett Winkel Land Surveying Ltd. (GWLS)

The consultant team outlined above bring substantial depth and knowledge to Corix’s Groundwater Source Development Program with wide ranging experience and expertise in water utility management, operations, maintenance and safety among other things. The consultant team has experience with similar projects across British Columbia and Alberta.

28 November 2016 Page | 16 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

3. PROJECT DESCRIPTION

The Groundwater Source Development Program is comprised of four elements: (1) the drilling of new wells; (2) the transmission of water from the wells to a reservoir; (3) the construction of a new reservoir; and, (4) the treatment of water to Interior Health Authority parameters.

Key to the design of the system is a determination of the Maximum Day Demand for the community and future development. This is outlined in Section 3.1.

Final design of the proposed system will not be completed until after approval to borrow funds has been obtained from the Comptroller of Water Rights. Section 3.2 outlines the water system as proposed at this time.

3.1. DETERMINATION OF MAXIMUM DAY DEMAND

Waterworks supply systems are sized to be capable of supplying the maximum day demand (“MDD”) of a utility’s service area including not only existing user demand but also an allowance for future growth. MDD criteria have been established for the Panorama Mountain Resort service area based on a combination of residential and commercial customers and day use skiers.

On the basis of the above criteria and the Certificates of Public Convenience and Necessity (“CPCN”) issued to-date to Corix for Panorama Mountain Resort community by the Comptroller of Water Rights, the existing MDD for Panorama is approximately 260,000 Igpd (1,178 m³/d).

Waterworks supply systems are sized to be capable of supplying MDD for the utility’s existing CPCN approved service plus an allowance to accommodate future growth. For the Panorama area, Corix is aware of a number of potential future developments to which it would provide service upon application by the developer(s), receipt of DCTF contributions from the developer(s) and CPCN approval by the Comptroller. Additionally, beyond these known developments, Corix believe it is prudent to include an allowance for additional future development. Corix has allotted additional capacity to supply approximately 30% greater capacity than current capacity. The cost to include this additional capacity is negligible and does not affect the overall project costing.

Based on these known requirements and assumptions, a MDD of 1550 m³/d has been identified for the new well system. This MDD equates to 17.7 L/s (280 USgpm) and is the design parameter applied to sizing the pumps, supply line, chlorination and UV disinfection, and storage facilities.

28 November 2016 Page | 17 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

3.2. PROJECT COMPONENTS

3.2.1. Wells

As outlined in Section 1.3, WWAL have confirmed that adequate groundwater supply is available based on the test well results from Phase 2 of the Groundwater Source Development Program.

Corix is therefore proposing to proceed with converting these 250mm test wells to production wells and the drilling of one additional production well at the same location. Each well will have a 25 HP Simmons 2 stage submersible turbine pump assembly each capable of pumping 22l/s (350 USGPM) at 56m (184 feet) Total Dynamic Head (TDH). A building will be constructed near the wells to house the electrical and controls associated with the wells.

Operation of the overall water supply system will be initiated by the water levels in the reservoir which are, in turn, dictated by user demands. As the main well pumps are called to supply water, they will start pumping and trigger the operation of the booster pumps. Water flow into the reservoir will bring the chlorination and UV systems into operation. A SCADA system is proposed to provide supervisory control and data acquisition from each of the control packages located at the pump stations and reservoir. A radio transmission system is proposed to transmit operating signals between the pump stations, reservoir and the SCADA computer software location. The SCADA system will provide data logging and operator call outs for alarms in addition to initiating overall control of the systems operation.

28 November 2016 Page | 18 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

3.2.2. Transmission

A 150mm diameter PVC watermain will be installed from the well electrical/controls building 320 meters up to a new booster pump station / treatment building located on Trappers Way. This will involve an augured highway crossing and a directional drilled crossing of Toby Creek.

The 150mm PVC supply line will continue from the booster pump station to a new reservoir, a distance of approximately 1200 meters.

Figure 2-1 and Figure 2-2 illustrate the proposed alignment of the water main from the proposed wells to the proposed reservoir.

3.2.3. Reservoir

A new reservoir has been proposed, due to poor condition of the existing reservoir, at a higher elevation than the current reservoir to help service the future needs of Panorama Mountain Resort. The proposed reservoir would be a 4000 cubic metre steel bolted reservoir with a base elevation of approximately 1362m.

28 November 2016 Page | 19 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

Overall Context Plan - Proposed Water Main Alignment from Well Site to Reservoir Figure 2-1

Proposed waterline alignment from well to reservoir showing north portion from well to booster station.

28 November 2016 Page | 20 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

Overall Context Plan - Proposed Water Main Alignment from Well Site to Reservoir Figure 2-2

Proposed waterline alignment from well to reservoir showing south portion from south of booster station to reservoir.

28 November 2016 Page | 21 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

3.2.4. Booster Pump Station / Treatment

The new booster station has been located along Trappers Way. This is a public road maintained year-round by the MOTI. This location will permit daily access to the building for maintenance and operation of the utility. Currently, access to the booster station/treatment facility is limited in winter months due to heavy snow cover and lack of road access, thereby limiting Corix’s ability to respond to potential issues at this building in a timely and efficient manner.

28 November 2016 Page | 22 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

3.2.5. Decommissioning and Remediation of Redundant Infrastructure

Following completion of the Groundwater Source Development Program, decommissioning and remediation of redundant infrastructure will be required. This will include decommissioning of infrastructure not required for the new program including: . water infiltration gallery in Taynton Creek; . reservoir; . booster station; . raw water supply line from infiltration gallery to booster station/treatment building; . treated water supply line from booster station/treatment building to reservoir.

3.3. LAND ACQUISITION AND STATUTORY RIGHTS-OF-WAY

Implementation of the Groundwater Source Development Program as outlined herein will require the acquisition of land by Corix and provision of statutory rights-of-way (“SRW”) in favour of the utility.

Corix proposes to acquire three sites at Panorama Mountain Resort through the establishment of SRWs. These SRW’s will be for (1) the well site, (2) the booster pump station and (3) the alignment of the waterline from the well to the reservoir. Corix will return those lands to Panorama Mountain Resort that are currently used for the existing booster station/treatment building and reservoir.

Portions of the transmission line located within road right-of-way will be permitted in accordance with the requirements of the BC Ministry of Transportation and Infrastructure (“MOTI”).

The proposed new reservoir location is located on Crown lands within Panorama’s Controller Recreation Area. An application to the Province will be required to obtain tenure for the proposed reservoir site.

3.4. PROJECT COST

Cost estimates prepared to date by the consultant team have determined a project capital cost of approximately $4,485,000. This cost includes engineering design, construction, engineering review during construction, land acquisition, project management and other incidental costs including a contingency allowance to deliver the works as outlined herein. Project costs do not include any allowance for operational costs.

The project budget has been determined as summarized in Table 3.4.1.

28 November 2016 Page | 23 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

Preliminary Project Budget Summary Table 3.4.1 Contractor Professional

Estimate Fees Professional Fees $ 698,000

Contractor / Infrastructure Well Development and Pumps $ 359,000 Watermain – Well to Booster Station $ 184,900 Treatment / Booster Station $ 706,500 Watermain – Booster Station to Reservoir $ 278,000 Reservoir $ 1,464,550 Decommissioning and Rehabilitation $ 130,000 Miscellaneous Works $ 110,000

Land Acquisition / Tenure $ 40,000

Legal $ 12,500

Incidentals and Contingency (12.5%) $ 405,000 $ 94,000

TOTAL BUDGET $ 4,485,000

Project operational costs will be budgeted at a later date at such time as pump specifications and other technical factors are determined. This data is required to complete an accurate estimate of electricity costs from BC Hydro (one of the utility’s largest monthly costs). Additional data is also required to determine the extent of SCADA system that will be implemented. A more complex SCADA system will reduce operational oversight costs. An assessment of operational costs will be completed prior to any application to the Comptroller for an increase in user rates and will form a part of such application.

28 November 2016 Page | 24 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

4. PROJECT JUSTIFICATION

The Groundwater Source Development Program outlined herein is a major undertaking for Corix at Panorama Mountain Resort from both a logistical and financial viewpoint. The utility has considered many options for the delivery of drinking water to the community and firmly believes that the option described in this application is the most prudent technically and financially.

This program was undertaken in response to Provincial changes to the Drinking Water Protection Act. The Drinking Water Protection Act sets out certain requirements for water utilities to ensure the provision of safe drinking water to their customers. Under the Drinking Water Quality Improvement Program Interior Health Authority has identified five objectives (referred to as 4-3-2-1-0) for providing water that is safe for consumption.

The 4-3-2-1-0 objectives represent the following: . 4 log (99.99%) reduction in viruses . 3 log (99.9%) reduction in pathogens . 2 methods of treatment . 1 nephelometric turbidity unit (NTU) (a measure of cloudiness) . 0 coliforms

Compounding the need for upgrades to the water supply is the potential for a debris torrent or other storm event to cause significant damage to the Taynton Creek intake. A new water intake that is not susceptible to catastrophic events is required for the utility.

Based on these two factors as outlined above, as a prudent utility service provider, Corix is proposing the development of a new groundwater source to ensure a reliable, safe and secure water supply. Maintaining the status quo is not a viable option for Corix or its customers.

28 November 2016 Page | 25 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

5. EVALUATION OF ALTERNATIVES

In order to select the best alternative for the delivery of a long-term secure and safe drinking water source for the utility and its customers, Corix considered various alternative sources. Coirix’s evaluation of the various options demonstrates that the utility has selected the best option based on meeting the water quality objectives with the lowest life-cycle cost.

A total of three alternate options for delivery of drinking water were considered by Corix. These are:

. Surface Water Supply from Taynton Creek and/or Toby Creek and Treatment;

. Groundwater Source Proximate to Existing Reservoir;

. Groundwater Source Proximate to Wolf Lake; and,

. Connection to an existing treated water supplier.

Following is a review of each of these alternative options:

5.1. SURFACE WATER SUPPLY FROM TAYNTON CREEK & TREATMENT

Corix assessed the potential for construction of a filtration facility sourcing water from Taynton Creek. However, this option was discarded prior to undertaking any detailed design or costing due to significant operational factors could render the treatment facility inoperable.

The reasons for this option to be discarded are as follows:

a) The current water intake on Taynton Creek is in danger of being affected by a catastrophic storm event thereby rendering the supply unusable. The expenditure of funds for construction of a filtration facility that would rely on this intake is not financially or operationally prudent for the utility.

b) The current water intake on Taynton Creek suffers from very high turbidity throughout much of the summer season. Operationally, this is not cost effective for the utility when other water sources are available that are not subjected annually to high turbidity events.

c) The location of the current intake on Taynton Creek would require that the filtration facility be located at a site some distance from the intake due to topographic and winter access constraints. This would require the construction of new waterline to the filtration facility and then pumping to a storage reservoir.

d) The high operational costs of a filtration facility are not justified based on the poor water quality, continued requirement for water pumping and insecure water supply.

Based on the preceding, Corix contend that this option is not viable for the long-term supply of a secure and safe drinking water source for the utility and its customers due to ongoing operational costs and high capital costs.

28 November 2016 Page | 26 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

5.2. SURFACE WATER SUPPLY FROM TOBY CREEK & TREATMENT

Corix assessed the potential for construction of a filtration facility sourcing water from Toby Creek. However, this option was discarded prior to undertaking any detailed design or costing due to significant operational factors that could render the treatment facility inoperable.

The reasons for this option to be discarded are as follows:

a) A water intake on Toby Creek would be impacted by high turbidity throughout much of the summer season. Operationally, this is not cost effective for the utility when other water sources are available that are not subjected annually to high turbidity events.

b) A filtration facility utilizing water from Toby Creek would be located at a low elevation adjacent to the creek. This facility would require a new waterline from the filtration facility to the reservoir and associated pumping facilities.

c) The high operational costs of a filtration facility are not justified based on the poor water quality, continued requirement for water pumping and insecure water supply.

5.3. GROUNDWATER SOURCE PROXIMATE TO EXISTING RESERVOIR

Corix has briefly explored the potential for development of a groundwater source more proximate to the existing reservoir in an effort to reduce capital costs for construction of the water supply line and operational costs for additional pumping requirements due to a lower elevation in the valley (and therefore higher head requirement to reach the reservoir). However, this option was abandoned due to the following factors:

a) There is no indication that an adequate water supply could be located at this site due to its high elevation relative to the valley bottom.

b) The depth to groundwater, should any be available, would be extreme and would not be operationally efficient.

c) Location of the facility would not permit winter access as required for daily operation and maintenance activities.

5.4. GROUNDWATER SOURCE PROXIMATE TO WOLF LAKE

Corix engaged Groundwater Exploration and Research Ltd. (GERL) in 2012 to evaluate the potential to secure a reliable source of groundwater at Panorama (see also Section 1.3). As part of that assessment, GERL determined that Wolf Lake at Greywolf Golf Course could be spring fed and could be a potential water source. Corix has discounted this option for the following reasons.

28 November 2016 Page | 27 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

a) Any water obtained from this source would be considered GUDI and GARP due to its surface location. This would require higher levels of treatment than a groundwater source would require.

b) The potential for nutrient loading from golf course operations could result in additional treatment requirements thereby raising operational costs.

c) Due to the design of the golf course, suitable lands for the construction of a pump house and other required facilities at the Wolf Lake site would be difficult to locate.

d) The Wolf Lake location would require locating the water supply line either within the road ROW or across the golf course to access the reservoir location. Construction of this waterline would be expensive and disruptive to resort operations.

Note that should other options for groundwater not prove out as outlined within this application, Corix may reassess the Wolf Lake location as a possible water source.

5.5. CONNECTION TO EXISTING TREATED WATER SUPPLIER

Corix reviewed the potential for connection to an existing water provider that currently meets or could readily meet Interior Health Authority requirements for drinking water requirements. Unfortunately, there are no providers within a realistic distance of Panorama that meet this requirement. The closest provider meeting Interior Health Authority requirements with sufficient capacity to provide Panorama’s water demand is Windermere Water and Sewer / Parr Utilities. Located approximately 24.5km from Panorama, this option is cost prohibitive due to the capital infrastructure costs and ongoing pumping requirements.

Based on the preceding, Corix contend that this option is not viable for the long-term supply of a secure and safe drinking water source for the utility and its customers.

28 November 2016 Page | 28 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

6. ESTIMATED IMPACT ON CUSTOMER BILLING

6.1. APPROACH AND KEY ASSUMPTIONS

Based on an estimated project cost of $4,485,000, Corix estimates that the Groundwater Source Development Program will result in an increase of approximately $3.65 per month per bed unit. The rate impact estimates associated with the Groundwater Source Development Program have been prepared to provide an indicative impact on the monthly residential water bill. Following commencement of construction of the required infrastructure, Corix plans to file a revenue requirements and rate application to the Comptroller of Water Rights for an amendment to the utility tariff, including an adjustment to water rates. The applied for rates will include updated cost estimates and funding requirements.

Timeline for Construction and Commissioning – The program will be constructed in one phase at a total estimated capital cost of $4,485,000. All works will be financed through a combination of utility reserve funds and financing based on a capital structure and interest rates similar to those approved by the BCUC for community based thermal energy projects.

Capital works are scheduled to commence in summer 2017 and commissioning of the new works is anticipated to occur in summer 2018.

6.1.1. Timeline for Tariff Application – Corix anticipate that a new tariff including customer rates to reflect this well program will be submitted to the Comptroller of Water Rights in Fall 2017. This tariff is proposed to continue to utilize a flat rate structure to provide consistency for customers and to permit the utility a test-period to ensure that the rate structure has been correctly determined.

6.1.2. Uniform Rate Increase – The estimated increases to customer rates would be applied uniformly to ensure consistency across all customers.

6.1.3. Existing Reserve Funds – The monies accumulated in the existing reserve funds would be used to offset a portion of the costs required to develop the proposed groundwater supply system. There are currently two trust accounts held by the utility:

6.1.3.1. Deferred Capacity Trust Fund (DCTF) – The DCTF accumulates one-time charges for applicants for service from outside the boundaries of the utility or from subdivision of existing lots. The amount provided in the tariff and accumulated interest is available to pay for future expansion of water system's capacity.

All applicants for new connections to the utility currently contribute a rate of $1,300 per bed unit. These funds are received by Corix and deposited to the DCTF. Approval for connection to the system cannot be granted until all required funds are contributed to the DCTF and proof of contribution is provided to the Comptroller.

At June 15, 2016 the value of this fund was $488,316.

28 November 2016 Page | 29 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

6.1.3.2. Replacement Reserve Trust Fund (RRTF) – The RRTF provides funds collected from customers to pay for replacement of water system components when required. Interest earned is retained in the fund.

Corix currently contribute $100,000 annually from all customer rates to the RRTF.

At June 15, 2016 the value of this fund was $436,766. Corix will be requesting a withdrawal from this fund in the amount of approximately $193,000 related to costs incurred for the current work being undertaken for the Groundwater Source Development Program (ie. consultant and application costs). These funds will be deducted from the current total fund value indicated above. Corix makes a contribution of $8,333.33 at the end of each month to the fund. This contribution to the fund will increase the value of the fund to approximately $450,000 by June 1, 2017 when construction work is proposed to commence.

6.1.4. Future Utility Infrastructure Funding

Corix is proposing to utilize all monies from the DCTF and RRTF for this program. On a go forward basis, all water system infrastructure would be funded by the utility, subject to approval by the Water Comptroller, under a rate of return methodology as is common to investor owned utilities in the province. This will ensure adequate funding for all future infrastructure requirements.

6.2. CUSTOMER RATE

Corix bills for water use in accordance with the tariff approved by the Comptroller of Water Rights. The most recent tariff was approved effective 28 June 2010.

Current rates for all Panorama Mountain Resort customers are as illustrated in Table 6.2.2:

Panorama Mountain Resort Water Rates Current Customer Rates (June 2016) Table 6.2.2 Type of Connection Rate

Residential $ 2.85 per bed unit per month $ 1.77 per bed unit per month

Commercial $ 2.85 per bed unit per month $ 1.77 per bed unit per month

Stand-by (Rent) Charge $ 45.00 per bed unit per year RRTF Contribution $ 100,000.00 per year Deferred Capacity Trust Fund $ 1,300.00 per bed unit

28 November 2016 Page | 30 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

6.3. DETERMINATION OF WATER RATES

The establishment of water rates should embrace the concepts of fairness, equity, and cost causation. These concepts are applicable to both the utility's customers and to the utility itself. First, water rates should be structured so that each class of customer is paying their appropriate share of the cost incurred by the utility in providing service to those customers. Also, the utility should try to avoid situations in which one customer class is unnecessarily subsidizing another. Second, the total revenue that is collected by the water utility should be reflective of the cost of operating the utility. To meet this objective, a utility should only collect revenues sufficient to meet its revenue requirements. In addition, stable rate revenue over the long run enhances a utility's overall financial integrity.

6.3.1. Revenue Requirements

Revenue requirements for the utility have been determined based on standard rate of return for an investor owned utility: operation and maintenance cost, depreciation, return on invested capital, and tax.

As outlined in Section 2.2.2, Corix proposes to finance the project based on a capital structure and interest rates similar to those approved by the BCUC for community based thermal energy projects. The required capital will be split into debt and equity components, with 57.5% debt land 42.5% equity. The interest rate on debt financing will be determined using the credit spread between BBB and BBB (low) rated debt and the 10 year Government of Canada bond yield, consistent with the approach approved by the BCUC for small thermal energy utilities. The debt rate will apply for a 10 year period. The equity rate will be set at the benchmark low risk utility allowed equity rate as determined by the BCUC from time to time plus a risk premium of 75 basis points. Using this approach, the current debt rate is approximately 4% and the allowed equity rate is 9.5%.

Summary of Financing and Tax for Proposed Works Debt / Capital 57.5% Equity / Capital 42.5% Interest rate 4.00% Return on equity 9.50% Income tax rate 26.0% Weighted average cost of capital 6.3% Depreciation - wells 2.5% Depreciation - plant 4.0% Depreciation – supply mains 1.3% Depreciation - reservoir 1.3% CCA - buildings 4.0% CCA - all other 8.0%

Note that depreciation rates shown are preliminary based on current project parameters and may be adjusted based on actual construction (ie. different construction materials are depreciated at different rates based on their expected life cycle).

As outlined in Section 3.4 the project cost for the Groundwater Source Development Program is established as $4,485,000.

Section 6.1.3 illustrates the reserve funds available for this project of approximately $885,000 (as of June 1, 2017). Corix is proposing to utilize this amount and to offset a portion of the capital cost of the project.

28 November 2016 Page | 31 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

Based on the project value of $4,485,000 and a reserve fund contribution of $885,000 the total value of the project that must be funded is approximately $3,600,000. Approximately $2,070,000 of this amount will be financed as debt and the remaining $1,530,000 will be contributed as equity by Corix.

6.3.2. Impact on Residential Rate

Corix invoice residential customers on a consumption basis based on monthly meter readings. The rate is comprised of a base monthly rate of $2.85 per bed unit (with a standard single family home comprising 10 bed units) and usage billed at $1.77 per cubic meter. Rates will increase to pay for the cost of the Groundwater Source Development Program. The monthly base rate is proposed to increase to $6.50 per bed unit. Water consumption charges remain at $1.77 per cubic meter. Note that at this time, Corix has applied the full amount of the increase to the base rate, however, the final rate structure will be determined by Corix when all project costs are known and the rate application is submitted to the Comptroller.

6.3.3. Impact on Commercial Rate

Corix bills commercial customers on a consumption basis based on monthly meter readings. The rate is comprised of a base monthly rate of $2.85 per bed unit and usage billed at $1.77 per cubic meter. Rates will increase to pay for the cost of the Groundwater Source Development Program. The monthly base rate is proposed to increase to $6.50 per bed unit. Water consumption charges remain at $1.77 per cubic meter. Note that at this time, Corix have applied the full amount of the increase to the base rate, however, the final rate structure will be determined by Corix when all project costs are known and the rate application is submitted to the Comptroller.

6.3.4. Impact on Availability of Service (Stand-by) Rate

The current availability of service (stand-by) rate is $45 per bed unit (with each vacant residential building lot assessed as 10 bed units). This rate is to increase accordingly with the new rate structure. The actual rate has not been determined. However, the rate will likely equate to approximately 70% of the rate for in-service customers.

6.3.5. Extension Test for New Development

To ensure that utility customers are not burdened with the costs associated with future developments, the utility will institute an Extension Test whereby the costs of future water infrastructure costs associated with additional customers attaching to the water system net of the forecast revenues from those new customers attaching to the system are paid for by the developer as a contribution in aid of construction. The Extension Test will replace the Deferred Capacity Trust Fund.

28 November 2016 Page | 32 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

7. PROJECT RISKS AND RISK MANAGEMENT

Any complex construction project carries potential risks. Corix has identified and assessed the following risks that may impact the Groundwater Source Development Program: . Public Health; . Safety; . Cost: . Schedule; and, . Environment.

7.1. Public Health

Corix currently experiences Water Quality Advisories and Boil Water Notices during the spring and summer as a result of turbidity levels that exceed Interior Health Authority parameters for drinking water. During these times the drinking water is not suitable for the very young and people with health issues.

The purpose of this program is to ensure that drinking water in Panorama is suitable for consumption by all users year-round without concern.

All water parameters are required to meet and/or exceed the standards established for Canadian drinking water and meet with Interior Health Authority’s Drinking Water Quality Improvement Program requirements. All new works will be constructed in accordance with American Water Works Association standards.

7.2. Safety

Safety is a prime concern in the day-to-day operation of the utility. This includes the safety of the general public as well as all Corix contractors and consultants.

Corix will ensure that all aspects of the Groundwater Source Development Program will meet with Worksafe BC requirements and widely accepted industry standards for safety.

7.3. Cost

Corix has prepared preliminary construction estimates based on costing from consultants, suppliers and contractors and includes a contingency of 12.5%. Corix is confident in the budgets contained herein. However, as with any construction project there is a risk that costs may vary from budget due to unforeseen conditions, contractual issues, currency fluctuations or changes in the overall economy. To minimize the risk of cost overages Corix will obtain firm quotes for all materials and per meter or lump sum pricing for work as reasonable and prudent by the utility.

7.4. Financing

Corix has extensive experience in financing utility investments and foresees no issues with procuring the necessary funds to proceed with this project.

28 November 2016 Page | 33 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

7.5. Schedule

Corix has established a schedule for completion of this Groundwater Source Development Program that sees the system being commissioned in 2018. However, this schedule is not firm and is subject to delay without any financial consequence to the utility. As such, Corix is proceeding in a manner that will allow work to be completed in a timely and efficient manner that is cost-effective.

Corix requires approval from the Comptroller of Water Rights prior to commencement of detailed design and tendering of any construction works. Program timing is wholly dependent on the timing for this approval to commence work.

Corix will employ an engineering consultant and project manager to ensure that any contractual or design issues are addressed in a timely manner and do not impact the overall project schedule.

7.6. Environment

All contractors undertaking work for the Groundwater Source Development Program will ensure that environmental impacts are limited to the greatest extent feasible.

The primary environmental factors identified to date are:

Potential impact to Toby Creek from pump testing operations | The primary environmental concern during completion of the Groundwater Source Development Program is for disposal of water from pumping operations. The primary pumping operations have been successfully completed as a component of the Phase 2 work already undertaken. Additional pumping required as part of the construction phase will be undertaken in the same manner and is not anticipated to have any environmental impact.

Potential impact to Toby Creek from installation of waterline | The waterline from the wells to the booster station will pass under Toby Creek. Corix is planning to install this waterline via horizontal boring to reduce potential impact to the creek. However, installation of the waterline could, in rare circumstances, result in the discharge of small amounts of drilling mud into the creek if the substrate through which the drilling occurs in not stable.

Potential impact to Cox Creek, including debris deflection berm, from installation of waterline | The waterline from the booster station to the reservoir will pass under Cox Creek and the debris deflection berm constructed along the west edge of this creek. Corix is planning to install this waterline via horizontal boring to reduce potential impact to the creek. However, installation of the waterline could, in rare circumstances, result in the discharge of small amounts of drilling mud into the creek if the substrate through which the drilling occurs in not stable.

Remediation of infiltration gallery in Taynton Creek | Corix will be removing the existing water infiltration gallery in Taynton Creek as part of the Groundwater Source Development Program. Work within the creek will be required to remove this infrastructure. Care will be taken to avoid damage to the creek during these operations.

28 November 2016 Page | 34 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

8. CUSTOMER COMMUNICATIONS

Corix intend to hold a public open house in Fall/Winter 2016/2017 to outline the current program, including proposed costing and effect on customer rates.

Corix will also include application materials and updates on the Corix – Panorama Mountain Resort website to provide timely updates to all customers on the progress of the well program.

28 November 2016 Page | 35 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

9. OTHER PROJECT APPROVALS

In addition to the approvals that Corix is seeking from the Comptroller of Water Rights herein, Corix requires approvals and permits from other agencies prior to proceeding with the Groundwater Source Development Program. Each of these approvals is outlined below:

9.1. Interior Health Authority

In accordance with Section 7 of the Drinking Water Protection Act, Corix is required to obtain a construction permit prior to commencement of construction of any elements of a new water system. Corix will seek approval for commencement of construction of the new works following approval as requested herein from the Comptroller of Water Rights.

9.2. Regional District of East Kootenay (RDEK)

Corix is required to obtain Building Permits from the Regional District of East Kootenay prior to commencement of construction of any buildings associated with the proposed Groundwater Source Development Program. At this time, it is foreseen that a building will be constructed at the well site to house pumping equipment and another building will be constructed for the booster station / treatment facility along Trappers Way.

9.3. BC Ministry of Transportation and Infrastructure (MOTI)

The transmission line will traverse over public and private lands from the well site to the reservoir site, a distance of approximately 1.4km. The majority of this waterline will be located on private property (primarily owned by Panorama Mountain Village Inc.). However, the waterline will pass under Trappers Way (road) and approval from MOTI will be required for these works. Corix will be required to obtain construction permits for all work to occur within the road ROW from the MOTI.

9.4. BC Ministry of Forests, Lands and Natural Resource Operations (MFLNRO)

Notification and/or permits are required from MFLNRO for discharge of water from pump testing. The volume of water and time of year for discharge determine if permits are required or simply notification. Corix has obtained the required approval for previous stages of the program and will obtain the required approvals prior to any discharge associated with future phases of the Groundwater Source Development Program.

9.5. BC Ministry of Environment (MOE)

Permits will be required from MOE to allow pipelines to cross Toby Creek. While it is Corix’s intention to bore/directional drill under Toby Creek (which does not require a permit), a permit will be obtained in the event that boring is not successful and an open cut is required. Corix will be applying for these permits immediately to ensure that issuance does not hold up construction of the works.

28 November 2016 Page | 36 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

APPENDIX A Panorama Groundwater Source Development Preliminary Report (WSP / MMM Group)

28 November 2016 Page | 37 MMM Group Limited

Panorama Groundwater Source Development and Reservoir Final Report Project No. 5215081-000

Prepared for: Corix Multi-Utilities

COMMUNITIES

TRANSPORTATION

BUILDINGS

INFRASTRUCTURE August 2016 EXECUTIVE SUMMARY

The following report produced by MMM Group Limited will discuss the prelimary findings of moving the current municipal water source for Pamorama Mountain Resort from an intake on Taynton Creek to two wells located nearby the employee housing next to Toby Creek. This change in source water is driven by the high levels of turbidiy currently experienced during freshet. Moving the source water intake will require additional infrastructure such as; two new wells, a well electrical / controls building, 1400m of 150mm PVC watermain complete with a highway and river crossing, a new booster pump station / treatment building and possibly a new reservoir

Western Water Associates Ltd. undertook the drilling and testing of two new wells. They have reported that the well water quality meets all requirements of Candian Drinking Water Quality and they have adequate water for the current and future needs of Panorama Mountain Resort.

The proposed water disinfection systems of chlorine injection and ultraviolet treatment will meet or excede all requirements laid out by the Drinking Water Protection Act. The well water tested had low levels of turbidity therefore significatly improving on the current water quality.

The proposed infrastrucutre (piping, pumps, controls, electrical and disinfection systems, etc.) was sized with the current and future needs of the Panorama Mountain Resort in mind.

The total capital cost for this project using the existing reservoir is estimated to be $2,486,400, plus taxes while the total capital cost for the project using the new reservoir is estimated to be $4,788,840, plus taxes.

Final Report | Panorama Groundwater Source Development i MMM Group Limited | August 2016 | 5215081-000

TABLE OF CONTENTS

1.0 INTRODUCTION ...... 1

2.0 WATER SYSTEM DESIGN CRITERIA ...... 2

3.0 WATER DEMANDS ...... 3

4.0 WELL SUPPLY ...... 4

4.1 Available Capacity ...... 4

4.2 Water Quality ...... 4

5.0 TREATMENT REQUIREMENTS ...... 6

5.1 Requirements ...... 6

5.2 Recommended Components ...... 6

6.0 PROPOSED WATER SYSTEM IMPROVEMENTS ...... 7

6.1 Well System ...... 7

6.2 Supply Line to Treatment / Pump Station ...... 7

6.3 Treatment / Pump Station ...... 7

6.4 Supply Line to Reservoir ...... 8

6.5 New Reservoir ...... 8

7.0 ELECTRICAL CONTROLS AND OPERATION ...... 9

7.1 Control Panel/PLC ...... 9 7.1.1 PLC Programming ...... 9 7.2 Treatment System Operation ...... 9 7.2.1 Alarms ...... 9

8.0 COST ESTIMATES ...... 11

8.1 Capital Cost Estimates ...... 11

9.0 CONCLUSIONS AND RECOMMENDATIONS ...... 12

Final Report | Panorama Groundwater Source Development ii MMM Group Limited | August 2016 | 5215081-000

APPENDIX A – Water Demand Information APPENDIX B – Well Supply Report APPENDIX C – Pump Curves • Well Pump Curves • Distribution Pump Curves APPENDIX D – Cost Estimates

The information contained in this document is the intellectual property of MMM Group Limited (MMM). It is intended solely for use during the evaluation of this proposal by Corix Multi-Utilities. Reproduction of portions of this document for use by the Client during the proposal evaluation is permitted. Reproduction of any portion of this document or use of the intellectual ideas contained within it for any other purpose is prohibited unless MMM Group Limited is subsequently retained by the Client for the work described within this proposal.

Final Report | Panorama Groundwater Source Development iii MMM Group Limited | August 2016 | 5215081-000

1.0 INTRODUCTION

MMM Group Limited (MMM) was retained by Haworth Development Consulting (Haworth) on behalf of Corix Multi-Utilities (Corix) to create a conceptual design to replace the existing potable water intake for Panorama Mountain Resort from Taynton Creek with a new groundwater source system to improve water quality. This includes new groundwater wells, a new booster pump station (BPS) complete with water disinfection and metering, and a new water system to supply the existing reservoir and possibly a new water reservoir.

Panorama Mountain Resort (PMR) is a year round community with a ski hill and golf course located in the Purcell Mountains approximately 20 kilometres west of Invermere within the Regional District of East Kootenay.

The current municipal water system consists of an intake along Taynton Creek feeding a booster pump station, complete with chlorine disinfection, to pump up to a reservoir before entering the distribution system to supply PMR. This surface water source results in several months every year, around freshet, where PMR requires a boil water notice due to elevated turbidity levels.

Moving to a groundwater source will improve the year round water quality and help meet Interior Health’s Water Quality Improvement Program. Western Water Associates Limited (WWAL) has been retained to investigate and drill test wells to determine their viability to be the PMR primary water source suitable for current and future water demands. WWAL performed a pumping test and water quality sampling program that showed positive results and can be seen in their attached report (Appendix B). Interior Instrument Tech Service Ltd. (IITS) was tasked with electrical controls and operation for the new groundwater wells and BPS. MMM was responsible for conceptual design of the new groundwater wells and pumps, water system from the wells to the new BPS, design of the BPS complete with water disinfection and metering, the water system from the new BPS to the existing or new reservoir.

The scope of this report will discuss the water system design criteria, water demands, well supply, water treatment requirements, proposed water system improvements, proposed reservoir, electrical controls and operation, cost estimates and finally conclusions and recommendations.

The appendices will include water demand information, well supply report, pump curves for the wells and new booster pump station and conceptual cost estimates.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0001 1

2.0 WATER SYSTEM DESIGN CRITERIA

The well pumps, water supply system and BPS are all sized based on the Maximum Day Demand (MDD) requirements for PMR and allow for future growth of the resort while the proposed reservoir capacity matches that of the existing reservoir. The treatment system is based on the Drinking Water Protection Act and Interior Health Authority (IHA) objectives. Water treatment is proposed to have a primary disinfection system (chlorine injection) and a secondary disinfection (UV treatment) system.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0002 2

3.0 WATER DEMANDS

The water demands are calculated from the Certificate of Public Convenience and Necessity (CPCN) table (Appendix A). For a comparison, the historical water consumption demand supplied by Corix Utilities (Appendix A) was multiplied by a peaking factor of 2.5 as outlined in the Rural Water Supply Guide (Appendix A) for populations under 5000 people. A summary of both calculations can be seen in the tables below.

CPCN Flowrate Summary

Stage Maximum Day Demand

Current 1,178 m3/d 13.6 l/s 215 USGPM

Additional 30% 17.7 l/s 280 USGPM

Ultimate 1,887 m3/d 21.8 l/s 350 USGPM

Historical Consumption Summary

Year Average Day Demand Peaking factor Maximum Day Demand

2014 4.67 l/s 2.5 11.7 l/s

The theoretical water demand (CPCN) matches reasonably well with the actual historical consumption as can be seen above. The entire water system has been sized based on the CPCN ultimate development demand. This means that some components may be oversized for now but will have capacity to grow as the PMR demand grows. The pumps could be sized smaller for the time being but would ultimately need to be upgraded as demand increases. The majority of the components will not need to be upgraded as can be seen in the following list of items sized properly for current and ultimate demand.

• Wells and casings

• 150mm diameter PVC water supply line

• Booster Pump Station wet well and building

• UV disinfection system

• Chlorine disinfection system

• Electrical and controls

• Power service and backup generators

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0003 3

4.0 WELL SUPPLY

WWAL oversaw the drilling of two 250mm (10 inch) diameter test/production wells performed by J.R. Drilling in November of 2015. Both wells are located nearby the employee housing, next to Toby Creek, have been sealed and are in compliance with B.C. Groundwater Protection Regulations.

4.1 Available Capacity

J.R. Drilling Ltd. was retained by WWAL to perform a pumping test program on both wells in December 2015. The test program for the wells consisted of:

• Variable rate test followed by measurement of water level recovery

• 72 hour constant rate test

• Monitoring water levels as indicated above

• Monitoring water level recovery following the constant rate test for several days to weeks.

The detailed results of these tests can be found in the attached WWAL report (Appendix B). Both wells performed well and are rated conservatively at 15.1 l/s (240 USGPM) and 17.7 l/s (280 USGM). The pumping test program has shown that both wells are capable of pumping higher rates than those calculated by the CPCN method. WWAL noted that if well 15-01 receives some additional development it has the potential to increase its yield to 28.4 l/s (450+ USGM). Recommendations on how to do this are included in the WWAL report (Appendix B). With both wells operating together WWAL believes their sustainable combined output is in excess of 25.2 l/s (400 USGPM).

4.2 Water Quality

Water quality samples were collected during the testing of the wells and were tested to compare with Interior Health’s list of parameters for evaluating new groundwater sources. The detailed results of these tests can be seen in WWAL report (Appendix B).

Both wells meet all the Guidelines for Canadian Drinking Water Quality for health-based Maximum Allowable Concentrations (MAC’s) both chemical and bacteriological. Their water is considered very hard but that is typical for the B.C. interior. Specific parameters (nitrate, sodium, chloride) typically associated with wastewater disposal to ground were detected, due to the proximity to a ground disposal system located approximately 150m away, but were within guidelines. The wastewater is treated with UV disinfection prior to discharge into the fields thereby significantly reducing the risk of fecal coliform or E.coli being discharged into the ground. A test to determine the potential of disinfection by-products (DBP’s) to form if the well water is chlorinated was completed with the result being a low DBP formation potential. Additional tests to determine potential for calcium-carbonate deposits and corrosion were undertaken with results being minor and low respectively. Turbidity levels have all come back as low.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0004 4

WWAL has determined the groundwater from the wells are unlikely to be considered to be under the direct influence of surface water (GUDI) due to the semi-confined nature of the aquifer but should be considered at risk of containing pathogens (GARP) due to the wells proximity with the wastewater ground disposal plant nearby. The well water will be treated prior to consumption which is in accordance with Interior Health’s treatment objectives for GARP sources.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0005 5

5.0 TREATMENT REQUIREMENTS

Water systems in British Columbia must meet the Drinking Water Protection Act governed by the Ministry of Health and regulated by the district health authority. PMR is located within the Interior Health Authority (IHA) jurisdiction. Along with the Drinking Water Protection Act, the Interior Health Authority has developed guidelines for small drinking water sources that assist in improving drinking water quality,

5.1 Requirements

Due to the source water being considered groundwater at risk of containing pathogens (GARP) but not considered under the direct influence of surface water (GUDI) certain processes are required.

Inactivation of viruses and bacteria can easily be achieved through the use of free chlorine. It is proposed that a chlorine disinfection system be implemented at PMR. The proposed chlorine disinfection system uses sodium hypochlorite injection that, when mixed with raw well water creates free chlorine and is injected into the water supply prior to entering the reservoir.

As viruses and pathogens can be more resistant to some treatment forms than others, effective treatment by a single treatment barrier may not be possible. Having two treatment barriers reduces the potential risk of microbial or health threats to the drinking water source. By proposing the addition of UV disinfection the PMR water system would provide two levels of treatment.

Turbidity is a measurement of the degree to which water loses its transparency due to suspended solids. As virus and bacteria may attach to suspend solids, maintaining low turbidity is vital in reducing the risks associated with viruses and bacteria that may be present in the water source. The source water turbidity levels have been tested and the results have all came back low as expected because, in general, wells typically produce low turbidity water.

The Drinking Water Protection Act requires that all water tested yield results with zero E.coli bacteria. Fecal Coliform bacteria can be controlled with chlorine. With the use of injected chlorine and UV disinfection, E. coli. and fecal bacteria can easily be removed through the water treatment process.

5.2 Recommended Components

A chlorine injection system is recommended as the primary disinfection for the PMR water system. Due to the water source being considered GARP secondary disinfection is required therefore, a UV disinfection system is proposed.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0006 6

6.0 PROPOSED WATER SYSTEM IMPROVEMENTS

6.1 Well System

The two 250mm (10 inch) diameter wells drilled for testing will be used as production wells. They have screens and casings installed and are sealed at the surface to be compliant with the B.C. Groundwater Protection Regulation. Each well will have a 25 HP Simmons 2 stage submersible turbine pump assembly each capable of pumping 22l/s (350 USGPM) at 56m (184 feet) Total Dynamic Head (TDH). A building will be constructed near the wells to house the electrical and controls associated with the wells. A backup generator will be installed or if there is sufficient capacity in the existing standby generator for The Cabins lift station that could be used.

Drawing C101 show the location of the wells and the preliminary location for the electrical/controls building and Section 1 of the Budget Estimate (Appendix D) shows a detailed list of all required components.

6.2 Supply Line to Treatment / Pump Station

A 150mm diameter PVC watermain will be installed from the wells 420m to the new booster pump station (BPS) / treatment building located on Trappers Way. This will involve an augured highway crossing and a directional drilled crossing of Toby Creek.

Drawings C101, C201 and C202 show the preliminary alignment of this supply line and Section 2 of the Budget Estimate (Appendix D) shows a detailed list of all required items.

6.3 Treatment / Pump Station

A booster pump station (BPS) / treatment building will be built on Trappers Way beside the Silver Platter chairlift. This building will treat the well water with UV disinfection and chlorine injection prior to being pumped up to the existing or proposed reservoir. The BPS will include two UV disinfection units, one ProMinent chlorine injection system, and two 75hp Simmons 11 stage vertical line shaft turbine pump assemblies each capable of pumping 22l/s (350 USGPM) at 160m (525 feet) Total Dynamic Head (TDH) to the existing reservoir. The BPS will also include a flow meter, radio telemetry and SCADA programming. The existing BPS (to be abandoned) has a standby generator that has sufficient capacity to operate one of the UV units, one pump and the heat and lights in the building could be relocated to the new BPS as long as it is in useable condition.

Drawings M101 – M203 show the preliminary location and design for the BPS and Section 3 of the Budget Estimate (Appendix D) shows a detailed list of the BPS required components.

If the new, higher elevation, reservoir is built the pumps will need to be two 85hp 4 stage vertical line shaft turbine pump assemblies each capable of pumping 22l/s (350 USGPM) at 216.5m (710 feet) Total Dynamic Head (TDH). All other BPS components will remain the same.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0007 7

6.4 Supply Line to Reservoir

A 150mm diameter PVC watermain will be installed from the BPS 1080m to the existing reservoir or 1225m to the new reservoir. The preliminary alignment follows the Silver Platter chairlift up the hill to the Discovery Quad chairlift. The watermain will follow the Discover Quad chairlift up to the existing 3,803 cubic metre reservoir or to the proposed 4000 cubic metre reservoir.

Drawings C101, C102, and C202-C206 show the preliminary alignment of the supply line, the location of the existing and proposed reservoirs and section 4 of the Budget Estimate (appendix D) shows a detailed list of required items.

6.5 New Reservoir

A new reservoir has been proposed, due to poor condition of the existing reservoir, at a higher elevation than the current one to help service the future needs of PMR and. The proposed reservoir would be a 4000 cubic metre steel bolted reservoir with a base elevation of approximately 1362m. The new reservoir would require approximately 200m of additional 150mm watermain from the BPS past the existing reservoir and an additional 200m of 400mm watermain to connect back to the existing distribution watermain located at the existing reservoir. As discussed previously, the BPS will require slightly larger pumps to propel water to the higher elevation of the proposed reservoir. Once the new reservoir is constructed and operational the existing BPS and reservoir will need to be decommissioned.

Drawings C301-C303 show the approximate location of the proposed reservoir and Section 5 of the Budget Estimate (appendix D) shows a detailed list of required items.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0008 8

7.0 ELECTRICAL CONTROLS AND OPERATION

7.1 Control Panel/PLC

A control panel will house a Programmable Logic Controller (PLC) to which instruments and equipment signals are connected. Input signals include signals from pumps, pressure transmitter, chlorinator, chlorine residual analyser, flow meter, reservoir level transducer and a thermostat. Status signals for each component, including running status and fault (where applicable), will be connected to the PLC. Outputs from the PLC will include run contact for each component and a general alarm strobe located on the outside of the pump house building. The information from the signals wired into the PLC will be displayed on the computer, using Lookout SCADA (Supervisory Control and Data Acquisition) software.

7.1.1 PLC Programming

The operation of the well pumps will be reservoir level controlled. The pumps will be controlled based on high and low level thresholds. The operation of the distribution pumps within the BPS will also be reservoir level controlled.

7.2 Treatment System Operation

The treatment system has two major components that must be operable, in order for the system to operate automatically: the pumps and the chlorinator. The automatic operation is based on the reservoir level, where the well pump and chlorinator starts and stops according to the reservoir level set-points selected.

If the reservoir falls to below the start set-point and there is not an existing alarm preventing start-up, the water supply system is called for operation. The alarms that may keep the system from starting are:

► Low Chlorine Residual ► Well Pump not in Auto (OFF Position)

► High Station Discharge Pressure ► Well Pump Fault

► Low Station Discharge Pressure ► Well Pump Low Flow

► High Reservoir Level ► Well Pump Fail To Start

► Chlorinator Major Alarm

7.2.1 Alarms

A series of alarms will be programmed for the water supply system. The alarms are created by comparing the threshold values set by the user to the signals from the analog instruments. These alarms include:

► High and Low Chlorine Residual ► Pump not in Auto (OFF Position)

► High Station Discharge Pressure ► Pump Fault

► Low Station Discharge Pressure ► Pump Low Flow

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-0009 9

► High and Low Reservoir Level ► Pump Fail to Start

► High and Low Room Temperature ► Chlorinator Major Alarm

► Power Failure ► High and Low Distribution pressure

► Flow Meter Failure

Chlorine residual warning and alarm thresholds and delays are user selectable through the HMI. All alarms will be time delayed to filter noise. All alarms will be displayed on the HMI and will activate an alarm strobe located outside the pump house building. The strobe light will not shut off until the reset button at the control panel is pressed.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-00010 10

8.0 COST ESTIMATES

8.1 Capital Cost Estimates

Appendix D includes a detailed preliminary budget estimate. Below is a summary of the estimate.

Budget Estimate Summary

Section Title Amount

1 Well Development and Pumps $319,000.00

2 Watermain - Wells to Treatment / Booster Pump Station $273,500.00

3 Treatment / Booster Pump Station $706,500.00

4 Watermain - Treatment / Booster Pump Station to Reservoir $477,000.00

Subtotal $1,776,000.00

5 Reservoir $1,644,600.00

Subtotal $3,420,600.00

Contingency Allowance (25%) $855,150.00

Consulting services allowance (15%) $513,090.00

Total $4,788,840.00

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-00011 11

9.0 CONCLUSIONS AND RECOMMENDATIONS

Based on the findings of this report, we offer the following conclusions and recommendations:

• The 2 test/production wells drilled and tested by WWAL have water quality meeting all requirements of the Guidelines for Canadian Drinking Water Quality and have adequate water supply for the current and ultimate needs of Panorama Mountain Resort. Turbidity levels in the tested well water were low which is a significant improvement over the current water quality.

• The proposed alignment and pipe sizing for the water supply system is adequate for current and ultimate needs of Panorama Mountain Resort.

• The proposed Booster Pump Station and treatment building is required to convey water up to the current or proposed reservoir and to disinfect/treat all water as required by the Drinking Water Protection Act.

• A proposed 4000 cubic metre steel bolted reservoir can be built at a higher elevation than the existing reservoir to service the future needs of Panorama Mountain Resort.

• The total capital cost for this project using the existing reservoir is estimated to be $2,486,400, plus taxes while the total capital cost for the project using the new reservoir is estimated to be $4,788,840, plus taxes.

We recommend these next steps:

• Corix to accept the finalized report. • Obtain approval from the Water Comptroller responsible for approving private water utilities. • Proceed with detailed design.

Preliminary Report | Panorama Groundwater Source Development MMM Group Limited | August 2016 | 5215081-00012 12

APPENDIX A – Water Demand InformationA – Water APPENDIX

08/04/2016

TABLE 2.0 PANORAMA MOUNTAIN VILLAGE WATER AND WASTEWATER FLOW PROJECTIONS WITH WATER CONSERVATION IN TOBY/HORSETHIEF AND FUTURE DEVELOPMENT (Reduce From 310 to 250 Litres/Bed Unit/Day At Year 2001)

3 3 Proposed Development Schedule Sewage Generation (m /d) Water Demand (m /d) Year Dwelling Units Pillow Usage (1) Day Skiers Base Sewage from Dwelling Units Contribution from Total Sewage Peak PeakTotal Water Consumption (2) Balancing Fire Flow Emergency Required Condo/Hotel SF/TH Bed Units Peak SeasonAverage Peak Day Flow Average Day Peak Day Skiers using facilities Flow (Peak Season) Factor Flow AveragePeak Storage Storage Storage Storage Total Added Total Added Total Added Average Peak Day (Infiltration) cu.m/day cu.m/day Average Peak Day AveragePeak Day (lps) Day (cu.m.) (cu.m.) (cu.m.) (cu.m.) Existing Dev. 361 - 77 - 1,425 670 1,283 1,141 2,852 50 258 448 29 71 286 519 2.0 12 261 494 123 1,035 290 1,448 1998 438 77 147 70 1,947 522 915 1,752 1,193 2,981 50 334 593 30 75 363 668 (3) 2.0 15 338 643 161 2,145 576 2,882 1999 518 80 189 42 2,351 404 1,105 2,116 1,244 3,111 50 393 706 31 78 424 784 2.0 18 399 759 190 2,145 584 2,918 2000 581 63 220 31 2,660 309 1,250 2,394 1,296 3,241 50 438 792 32 81 470 873 2.0 20 445 848 212 2,145 589 2,946 2001 616 35 236 16 2,818 158 1,324 2,536 1,348 3,370 50 456 828 34 84 490 912 (4) 2.0 21 465 887 222 2,145 592 2,958 2002 616 - 278 42 3,024 206 1,421 2,722 1,400 3,500 30 (12) 460 854 35 88 495 942 2.0 22 490 937 234 2,145 595 2,974 2003 663 47 406 128 3,332 308 1,566 2,999 1,459 3,648 30 497 923 36 91 533 1,015 2.0 23 528 1,010 252 2,145 599 2,997 2004 687 24 416 10 3,476 144 1,634 3,128 1,511 3,778 30 513 956 38 94 551 1,050 2.0 24 546 1,045 261 2,145 602 3,008 2005 705 18 416 - 3,548 72 1,668 3,193 1,563 3,907 30 522 972 39 98 561 1,070 (5) 2.0 25 556 1,065 266 2,145 603 3,014 2006 705 - 416 - 3,548 - 1,668 3,193 1,615 4,037 30 522 972 40 101 562 1,073 2.0 25 557 1,068 267 2,145 603 3,015 2007 705 - 416 - 3,548 - 1,668 3,193 1,667 4,167 30 522 972 42 104 564 1,076 2.0 25 559 1,071 (7) 268 2,145 603 3,016 2008 705 - 416 - 3,548 - 1,668 3,193 1,719 4,296 30 522 972 43 107 565 1,079 2.0 25 560 1,074 269 2,145 603 3,017 2009 705 - 416 - 3,548 - 1,668 3,193 1,770 4,426 30 522 972 44 111 566 1,083 2.0 25 561 1,078 269 2,145 604 3,018 2010 705 - 416 - 3,548 - 1,668 3,193 1,830 4,574 30 522 972 46 114 568 1,086 2.0 25 563 1,081 270 2,145 604 3,019 2011 705 - 416 - 3,548 - 1,668 3,193 1,881 4,704 30 522 972 47 118 569 1,090 2.0 25 564 1,085 271 2,145 604 3,020 2012 705 - 416 3,548 1,668 3,193 1,933 4,833 30 522 972 48 121 570 1,093 2.0 25 565 1,088 272 2,145 604 3,021 2013 705 - 437 21 3,674 126 1,727 3,307 1,985 4,963 30 537 1000 50 124 586 1,124 2.0 26 581 1,158 (13) 289 2,145 609 3,043 2014 705 - 437 - 3,674 - 1,727 3,307 1,985 4,963 30 537 1000 50 124 586 1,124 2.0 26 581 1,158 (13) 289 2,146 609 3,044 2015 705 - 442 5 3,704 30 1,741 3,334 1,985 4,963 30 540 1007 50 124 590 1,131 2.0 26 585 1,178 (13) 295 2,145 610 3,049 Future 988 283 1,035 593 7,084 3,380 3,329 6,376 1,985 4,963 30 937 1768 50 124 987 1,892 3.0 66 982 1,887 (6)(8) 472 2,145 654 3,271 Ultimate Development 988 1,035 7,084 3,329 6,376 1,985 4,963 30 937 1768 50 124 987 1,892 (11) 2.0 66 982 1,887 (9) 472 2,145 654 3,271 (10) Ultimate Development w/o Water Conservation 1,112 2,131 1,107 2,126

Flow Reduction Attributable to Water Conservation 131 351 131 351

Notes:

1. Assumes 100 % (private) and 80 % (public) pillow usage on peak days, and 50 % average usage on average days. Pillow usage includes 144 pillows for employee housing. Pillow usage includes PSOA. 2. Assumes 310 litres/day/bed unit to year 2000 and 250 litres/day/bed unit from 2001 and on, plus 25 lpcd for day users. 3. Weeping tile field exceeds capacity stated by BC MOE (589 cu.m./day). However does not exceed design capacity as stated in O&M Manual (982 cu.m/day) or licensed capacity (1,090 cu.m./day). 4. Exceeds maximum capacity of sewage treatment plant (880 cu.m./day). Must upgrade plant and increase licensed capacity. 5. Exceeds sewage treatment plant licensed capacity (1090 cu.m/day) 6. Exceeds current license capacity of Taynton Creek (1,823 cu.m./day). 7. Exceeds raw water pumping capacity, with 100% standby (1,309 cu.m./day). Must upgrade pumps. 8. Does not exceed hydrologic assessment of Taynton Creek 1:25 year low flow. 9. Does not exceed capacity of raw water pipeline (4,579 cu.m/day). 10. Does not exceed capacity of treated water reservoir (4,545 cu.m.). 11. Does not exceed capacity of sewage lift station (4,580 m3/d)). 12. Repair program was implemented to reduce infiltration into sewer system. 13. Includes Water Loss and Irrigation Demands from MDD calculations

Tables-1&2-updated 15-03-25.xlsx, Table 2.0 MMM Group Limited Panorama Water System April 8, 2016 Historical Water Demand

Water Demand - Historical data from Corix

Year Total usage (m³) Average daily demand (m³/d) Average daily demand (L/s) Peak month Peak Month Average Day Demand (L/s) 2015 138,614 380 4.40 September 5.9 2014 147,201 403 4.67 August 6.8 2013 94,885 260 3.01 July 5.2 2012 87,509 240 2.77 August 4.4 2011 94,966 260 3.01 July 5.2 2010 130,916 359 4.15 August 7.0

Sanitary Demand - Historical data from Corix

Year Total usage (m³) Average daily demand (m³/d) Average daily demand (L/s) Peak month Peak Month Average Dayy Demand (L/s) 2015 77,960 214 2.47 September 3.8 2014 87,866 241 2.79 August 4.0 2013 71,626 196 2.27 July 4.1 2012 64,845 178 2.06 August 3.4 2011 74,585 204 2.37 July 4.1 2010 74,151 (partial year) 270 3.13 August 5.4

Peak historical average day demand = 4.67 L/s Peaking factor = 2.5 Maximum design flow = 11.7 L/s

Maximum water treatment capacity required from 2004 report = 27.6 L/s Intrawest licensed diversion = 1,823 m³/day = 21 L/s Well and booster pump station pumps spec'd at 22 L/s

APPENDIX B – Well Supply ReportSupply B – Well APPENDIX

APPENDIX C – Pump Curves– Pump C APPENDIX

Pump Data Sheet - Simmons Pump

Company: Mearls Machine Works Name: Panorama Water c/o MMM Group Date: 12/7/2015

Pump: Search Criteria: Size: SP7L (2 stage) Flow: 350 US gpm Head: 182 ft Type: VERTTURBINE Speed: 3450 rpm Fluid: Synch speed: 3600 rpm Dia: 5.57 in Water Temperature: 60 °F Curve: Impeller: SG: 1 Vapor pressure: 0.2563 psi a Specific Speeds: Ns: 2533 Viscosity: 1.105 cP Atm pressure: 14.7 psi a Nss: 10561 NPSHa: --- Dimensions: Suction: 6 in Discharge: 5 in Motor: Vertical Turbine: Bowl size: 7 in Standard: NEMA Size: 25 hp Max lateral: 0.562 in Enclosure: TEFC Speed: 3600 Thrust K factor: --- Frame: 284TS Sizing criteria: Max Power on Design Curve Pump Limits: Temperature: --- Power: --- Pressure: --- Eye area: 7.79 in² Sphere size: 0.531 in

---- Data Point ---- Flow: 350 US gpm 5.72 in Head: 183 ft 250 5.57 in 68 Eff: 79.8% 73 76 Power: 20.2 hp 78 NPSHr: 14.7 ft 80 200 ---- Design Curve ---- 80 78 Shutoff head: 242 ft 76 Shutoff dP: 105 psi 150 4.625 in 73 Min flow: --- 80 BEP: 80% @ 356 US gpm 68 Head - ft NOL power: 68 22 hp @ 470 US gpm 100 -- Max Curve -- 10 hp Max power: 25 hp 68 20 hp 25 hp @ 500 US gpm 15 hp 50

0 50 100 150 200 250 300 350 400 450 500 550 600 40

NPSHr - ft 50 100 150 200 250 300 350 400 450 500 550 600 US gpm Discharge size also available in 6".

Performance Evaluation: Flow Speed Head Efficiency Power NPSHr US gpm rpm ft % hp ft 420 3450 158 77.9 21.6 16.9 350 3450 183 79.8 20.2 14.7 280 3450 201 77.2 18.4 12.8 210 3450 216 68.2 16.8 11.2 140 3450 ------

Selected from catalog: simmons pump.60 Vers: 1 Pump Data Sheet - Simmons Pump

Company: Mearls Machine Works Name: Panorama Water c/o MMM Group Date: 12/7/2015

Pump: Search Criteria: Size: SM9M (11 stage) Flow: 350 US gpm Head: 568 ft Type: VERTTURBINE Speed: 1770 rpm Fluid: Synch speed: 1800 rpm Dia: 7.58 in Water Temperature: 60 °F Curve: Impeller: SG: 1 Vapor pressure: 0.2563 psi a Specific Speeds: Ns: 1607 Viscosity: 1.105 cP Atm pressure: 14.7 psi a Nss: 7275 NPSHa: --- Dimensions: Suction: 6 in Discharge: 6 in Motor: Vertical Turbine: Bowl size: 10 in Standard: NEMA Size: 75 hp Max lateral: 0.75 in Enclosure: TEFC Speed: 1800 Thrust K factor: --- Frame: 365T Sizing criteria: Max Power on Design Curve Pump Limits: Temperature: --- Power: --- Pressure: --- Eye area: 9.74 in² Sphere size: 0.531 in

7.703 in ---- Data Point ---- 75 80 650 83 85 Flow: 350 US gpm 7.58 in 86 Head: 568 ft 600 86 Eff: 86% 86 Power: 58.3 hp 85 NPSHr: 7.59 ft 550 6.875 in ---- Design Curve ---- 83 Shutoff head: 637 ft 500 75 Shutoff dP: 276 psi 4080 hp 80 Min flow: --- 450 BEP: 86% @ 340 US gpm

NOL power: Head - ft 400 65.8 hp @ 519 US gpm 75 80 -- Max Curve -- 350 Max power: 75 hp 69 hp @ 477 US gpm 300 75 60 hp

250 50 hp

200 50 100 150 200 250 300 350 400 450 500 550 20

0 NPSHr - ft 50 100 150 200 250 300 350 400 450 500 550 US gpm

Performance Evaluation: Flow Speed Head Efficiency Power NPSHr US gpm rpm ft % hp ft 420 1770 496 83.1 63.3 9.17 350 1770 568 86 58.3 7.59 280 1770 611 83.9 51.5 6.05 210 1770 625 76 43.6 4.8 140 1770 ------

Selected from catalog: simmons pump.60 Vers: 1 Pump Performance Curve

Pump and bowl (dashed) performance. Bowl adjusted for construction and viscosity. Pump further adjusted for friction and power losses of lineshaft and thrust bearings. Pump is not adjusted for any static lift. The duty point represents the pump performance head. 120

90 Power

60 Power - hp - Power 30

0 400 100 MCSF Bowl performance 360 Pump performance 90

320 7.38 in 80

280 70 6.69 in 240 Efficiency 60

200 50 6.25 in Head - m - Head

160 40 % - Efficiency

120 30

80 20

40 10

0 0 50 NPSHr 25 NPSHr - ft - NPSHr 0 0 5 10 15 20 25 30 35 40 45 50 55 60 Flow - l/s Customer : Pump Type : 10XKL Quote number : 360130 Address : , , # of Stages : 4 Customer PO # : Location : Quantity : 1 CO # : Project : Default Flow : 22.00 l/s Item # : 001 Tag : Head : 216.5 m JOL # : Bowl/Pump : Speed : 3550 rpm Serial # : Eff (bowl / pump) : 77.41 / 76.16 % Fluid Density : 1.000 / 1.000 SG Drawing # : Power (bowl / pump) : 80.95 / 82.13 hp Viscosity : 1.00 cP Drawn By : NPSH required : 12.89 ft Impeller Trim : 6.69 in Last Modified : 06 Jul 2016 3:32 PM The head and power may be different than that shown in accordance with Hydraulic Institute / API 610 Standards Copyright © Weir Floway, Inc. All Rights Reserved Additional Notes:

APPENDIX D – Cost Estimates D APPENDIX

PAGE 1 OF 6

Panorama Mountain Resort Groundwater Source Development Program

Conceptual Budget Estimate 15-Jul-16

Summary Sheet

Section Title Amount

1 Well Development and Pumps $319,000.00

2 Watermain - Wells to Treatment / Booster Pump Station $273,500.00

3 Treatment / Booster Pump Station $706,500.00

4 Watermain - Treatment / Booster Pump Station to Reservoir $477,000.00

Subtotal $1,776,000.00

5 Reservoir $1,644,600.00

Subtotal $3,420,600.00

Contingency Allowance (25%) $855,150.00

Consulting services allowance (15%) $513,090.00

Total $4,788,840.00

This is an estimate of probable costs established at the conceptual design stage Pricing is in 2016 dollars and does not include taxes.

Refer to Drawings C100 to M203 that were prepared for the conceptual design PAGE 2 OF 6

Item # Payment Section Para Item Description Unit Quantity Unit Price Amount

WELL DEVELOPMENT AND PUMPS

1 General Requirements

1.1 01 53 01 Mobilization / De-Mobilization l.s. 1 $5,000.00 $5,000.00

1.2 01 53 01 General Requirements, Bonding and Insurance l.s. 1 $5,000.00 $5,000.00

1.3 01 33 01 Survey Layout and Project Record Documents l.s. 1 $1,000.00 $1,000.00

1.4 01 55 00 Traffic Control, Vehicle Access and Parking l.s. 1 $1,000.00 $1,000.00

1.5 01 57 01 Erosion and Sediment Control l.s. 1 $1,000.00 $1,000.00

Sub-Total Division 1 $13,000.00

2 Wells and Pumps

2.1 Well work l.s. 1 $10,000.00 $10,000.00 Simmons Model SP7L 2 Stage Submersible Turbine Pump 2.2 ea. 2 $26,000.00 $52,000.00 Assemblies 2.3 Electrical / Controls Building l.s. 1 $40,000.00 $40,000.00

2.4 Electrical and Controls

2.4.1 MCC including starters and distribution l.s. 1 $40,000.00 $40,000.00

2.4.2 Control Panel l.s. 1 $15,000.00 $15,000.00

2.4.3 Telemetry (radio, mast and antenna) l.s. 1 $6,000.00 $6,000.00

Instrumentation (well level monitors and pressure 2.4.4 l.s. 1 $12,500.00 $12,500.00 tranmitters, room temperature, intrusion and flood)

2.4.5 Building electrical - Heat, lights, fans l.s. 1 $7,500.00 $7,500.00

2.4.6 Electrical installation - labour, wire, conduits l.s. 1 $40,000.00 $40,000.00

2.4.7 Electrical Permit l.s. 1 $3,000.00 $3,000.00

2.4.8 Programming and commissioning l.s. 1 $10,000.00 $10,000.00

2.4.9 Utility charges for power service l.s. 1 $10,000.00 $10,000.00

2.5 Piping and pressure transmitter l.s. 1 $10,000.00 $10,000.00

2.6 Standby power generator l.s. 1 $50,000.00 $50,000.00

Sub-Total Division 2 $306,000.00 PAGE 3 OF 6

Item # Payment Section Para Item Description Unit Quantity Unit Price Amount

WATERMAIN - WELLS TO TREATMENT / BOOSTER PUMP STATION

1 General Requirements

1.1 01 53 01 Mobilization / De-Mobilization l.s. 1 $5,000.00 $5,000.00

1.2 01 53 01 General Requirements, Bonding and Insurance l.s. 1 $10,000.00 $10,000.00

1.3 01 33 01 Survey Layout and Project Record Documents l.s. 1 $5,000.00 $5,000.00

1.4 01 55 00 Traffic Control, Vehicle Access and Parking l.s. 1 $1,000.00 $1,000.00

1.5 01 57 01 Erosion and Sediment Control l.s. 1 $5,000.00 $5,000.00

Sub-Total Division 1 $26,000.00

2 Watermain

2.1 33 11 01 150mm diameter PVC C900 Watermain l.m. 320 $300.00 $96,000.00

2.2 33 11 01 150mm Fitting ea. 15 $800.00 $12,000.00

2.3 33 11 01 150mm Gate Valve ea. 2 $3,000.00 $6,000.00

2.4 33 11 01 Air Release Valve Assembly as per MMCD Detail ea. 1 $10,000.00 $10,000.00

2.5 33 11 01 Pipe Anchor Blocks as per MMCD Detail LS 1 $3,500.00 $3,500.00

2.6 33 11 01 River Crossing LS 1 $95,000.00 $95,000.00

2.7 33 11 01 MOT Highway Augered Crossing LS 1 $25,000.00 $25,000.00

Sub-Total Division 2 $247,500.00 PAGE 4 OF 6

Item # Payment Section Para Item Description Unit Quantity Unit Price Amount

TREATMENT / BOOSTER PUMP STATION

1 General Requirements

1.1 01 53 01 Mobilization / De-Mobilization l.s. 1 $5,000.00 $5,000.00

1.2 01 53 01 General Requirements, Bonding and Insurance l.s. 1 $5,000.00 $5,000.00

1.3 01 33 01 Survey Layout and Project Record Documents l.s. 1 $5,000.00 $5,000.00

1.4 01 55 00 Traffic Control, Vehicle Access and Parking l.s. 1 $1,000.00 $1,000.00

1.5 01 57 01 Erosion and Sediment Control l.s. 1 $1,000.00 $1,000.00

Sub-Total Division 1 $17,000.00

2 Treatment / Booster Pump Station

2.1 Site Grading/Civil Works l.s. 1 $25,000.00 $25,000.00

2.2 Concrete Wetwell Substructure l.s. 1 $130,000.00 $130,000.00

2.3 Building superstructure l.s. 1 $70,000.00 $70,000.00

2.4 Wet Well Overflow and Drain to Manhole/Outlet l.s. 1 $10,000.00 $10,000.00

2.5 Wet Well Supply Piping l.s. 1 $5,000.00 $5,000.00 Simmons SM9M 11 Stage Vertical Lineshaft Turbine Pump 2.6 ea. 2 $40,000.00 $80,000.00 Assembly - supply only

2.7 Chlorine Injection System - supply only l.s. 1 $10,000.00 $10,000.00

2.8 UV Disinfection system - supply only l.s. 1 $30,000.00 $30,000.00

2.9 Flow Meter - supply only l.s. 1 $10,000.00 $10,000.00

2.10 Interior Piping, Valves, Fittings - supply only l.s. 1 $15,000.00 $15,000.00

2.11 Chlorine analyser - supply only l.s. 1 $5,000.00 $5,000.00

2.12 UVT transmitter - supply only l.s. 1 $5,000.00 $5,000.00

2.13 Electrical / Controls

2.13.1 MCC including starters and distribution l.s. 1 $67,500.00 $67,500.00

2.13.2 Control Panel l.s. 1 $22,000.00 $22,000.00

2.13.3 Telemetry (radio, mast and antenna) l.s. 1 $6,000.00 $6,000.00 Instrumentation (clearwell levels, flow meter, pressure 2.13.4 l.s. 1 $12,000.00 $12,000.00 tranmitters, room temperature, intrusion and flood)

2.13.5 UV electrical (transformer, distribution) l.s. 1 $3,000.00 $3,000.00

2.13.6 Building electrical - Heat, lights, fans l.s. 1 $8,500.00 $8,500.00

2.13.7 Electrical installation - labour, wire, conduits l.s. 1 $60,000.00 $60,000.00

2.13.8 Electrical Permit l.s. 1 $3,000.00 $3,000.00

2.13.9 Programming and commissioning l.s. 1 $15,000.00 $15,000.00

2.13.10 Service wiring l.s. 1 $20,000.00 $20,000.00

2.13.11 Allowance for radio telemetry l.s. 1 $12,500.00 $12,500.00

2.13.12 Allowance for SCADA programming l.s. 1 $5,000.00 $5,000.00

2.14 Operator training l.s. 1 $10,000.00 $10,000.00

2.15 Standby power generator l.s. 1 $50,000.00 $50,000.00

Sub-Total Division 2 $689,500.00 PAGE 5 OF 6

Item # Payment Section Para Item Description Unit Quantity Unit Price Amount

WATERMAIN - TREATMENT / BOOSTER PUMP STATION TO RESERVOIR

1 General Requirements

1.1 01 53 01 Mobilization / De-Mobilization l.s. 1 $5,000.00 $5,000.00

1.2 01 53 01 General Requirements, Bonding and Insurance l.s. 1 $10,000.00 $10,000.00

1.3 01 33 01 Survey Layout and Project Record Documents l.s. 1 $5,000.00 $5,000.00

1.4 01 55 00 Traffic Control, Vehicle Access and Parking l.s. 1 $1,000.00 $1,000.00

1.5 01 57 01 Erosion and Sediment Control l.s. 1 $5,000.00 $5,000.00

Sub-Total Division 1 $26,000.00

2 Watermain

2.1 33 11 01 150mm diameter PVC C900 Watermain l.m. 540 $300.00 $162,000.00

2.2 33 11 01 150mm diameter Ductile Iron Watermain l.m. 540 $350.00 $189,000.00

2.3 33 11 01 150mm fitting ea. 15 $800.00 $12,000.00

2.4 33 11 01 150mm gate valve ea. 3 $3,000.00 $9,000.00

2.5 33 11 01 Pipe Anchor Blocks as per MMCD Detail LS 1 $54,000.00 $54,000.00

2.6 33 11 01 Connect to Existing Reservoir LS 1 $25,000.00 $25,000.00

Sub-Total Division 2 $451,000.00 PAGE 6 OF 6

Item # Payment Section Para Item Description Unit Quantity Unit Price Amount

Reservoir

1 General Requirements

1.1 01 53 01 Mobilization / De-Mobilization l.s. 1 $5,000.00 $5,000.00

1.2 01 53 01 General Requirements, Bonding and Insurance l.s. 1 $5,000.00 $5,000.00

1.3 01 33 01 Survey Layout and Project Record Documents l.s. 1 $5,000.00 $5,000.00

1.4 01 55 00 Traffic Control, Vehicle Access and Parking l.s. 1 $1,000.00 $1,000.00

1.5 01 57 01 Erosion and Sediment Control l.s. 1 $5,000.00 $5,000.00

Sub-Total Division 1 $21,000.00

2 Watermain

2.1 33 11 01 400mm diameter PVC C900 Watermain l.m. 200 $450.00 $90,000.00

2.2 33 11 01 400mm fitting ea. 4 $1,500.00 $6,000.00

2.3 33 11 01 400mm gate valve ea. 1 $5,000.00 $5,000.00

2.4 33 11 01 150mm diameter PVC C900 Watermain l.m. 250 $300.00 $75,000.00

2.5 33 11 01 150mm fitting ea. 2 $800.00 $1,600.00

2.6 33 11 01 150mm gate valve ea. 3 $3,000.00 $9,000.00

2.7 33 11 01 Pipe Anchor Blocks as per MMCD Detail LS 1 $2,000.00 $2,000.00

2.8 33 11 01 Air / Vacuum valve LS 1 $10,000.00 $10,000.00

2.9 33 11 01 Connect to Reservoir LS 1 $25,000.00 $25,000.00

Sub-Total Division 2 $223,600.00

3 Reservoir

3.1 Steel bolted reservoir - 4032m3 LS 1 $1,050,000.00 $1,050,000.00

3.2 Reservoir site prep LS 1 $200,000.00 $200,000.00

3.3 Control / Communication components LS 1 $25,000.00 $25,000.00

3.4 Decommission old reservoir LS 1 $100,000.00 $100,000.00

3.5 Decommission old BPS LS 1 $25,000.00 $25,000.00

Sub-Total Division 3 $1,400,000.00 CORIX MULTI-UTILITY SERVICES INC. - PANORAMA MOUNTAIN RESORT Groundwater Source Development Program – Project Application

APPENDIX B Groundwater Source Development Program Phase 2 (Western Water Associates Ltd)

28 November 2016 Page | 38

Panorama Mountain Resort Groundwater Development Program: Phase 2

Prepared for:

Corix Multi-Utilities 1164 Windermere Loop Road Invermere, B.C. V0A 1K3

PO Box 223, Suite 203, 926 – 7th Avenue, Invermere, B.C. V0A 1K0

Prepared by:

February 2016 Western Water Associates Ltd. #106-5145 26th Street Project: 15-032-02 Vernon, B.C. V4V 1P6

February 22, 2016

Corix Multi-Utilities c/o Haworth Development Consulting 1164 Windemere Loop Road Invermere B.C. V0A 1K3

Attn: Richard Haworth

Re: Panorama Mountain Resort Phase 2 Groundwater Development Program.

Western Water Associates Ltd. (WWAL) is pleased to provide this completion report for Phase 2 of the Panorama groundwater development program.

Two test-production wells (informally referred to as wells 15-01 and 15-02) were drilled, developed and tested under WWAL’s supervision over the course of November and December, 2016. The wells are 10- inch diameter (250 mm) and completed with custom-ordered stainless steel screens in a semi-confined sand and gravel aquifer. The following report documents the well drilling and testing program, assesses the short and long-term yield of the wells on an individual and combined basis and provides the results of water quality sampling.

We trust that the professional opinions and advice presented in this document are sufficient for your current requirements. Should you have any questions, or if we can be of further assistance in this matter, please contact the undersigned.

WESTERN WATER ASSOCIATES LTD.

Report by:

Warren Grafton P.Geo Ryan Rhodes, P.Geo., P. Geol Hydrogeologist Hydrogeologist

Reviewed by:

Douglas Geller, M.Sc., P.Geo. Senior Hydrogeologist February 2016 i Panorama Phase 2 Groundwater Development 15-032-02

TABLE OF CONTENTS

1. INTRODUCTION ...... 4 1.1 PROJECT BACKGROUND ...... 4 1.2 WATER SYSTEM CAPACITY REQUIREMENTS ...... 4 1.3 SCOPE OF SERVICES ...... 6 2. SITE DESCRIPTION ...... 6 2.1 PHYSIOGRAPHY AND SURROUNDING LAND USE ...... 6 2.2 GEOLOGIC SETTING ...... 7 2.3 HYDROGEOLOGIC SETTING ...... 7 2.3.1 SUMMARY OF HYDROGEOLOGICAL INVESTIGATIONS COMPLETED AT THE WWTP SITE . 8 2.4 HYDROLOGY OF TOBY CREEK ...... 9 3. WELL CONSTRUCTION ...... 10 3.1 WELL DRILLING AND COMPLETION ...... 10 3.2 WELL DEVELOPMENT ...... 12 4. WELL TESTING METHODS ...... 12 5. WELL TESTING RESULTS ...... 13 5.1.1 WELL 15-01 ...... 13 5.1.2 WELL 15-02 ...... 13 5.2 TOBY CREEK AND SHALLOW AQUIFER WATER LEVELS DURING TESTING PROGRAM ...... 14 5.3 WATER LEVEL RECOVERY ...... 15 5.4 SEASONAL WATER LEVEL FLUCTUATIONS ...... 16 5.5 WELL CAPACITY EVALUATION ...... 17 5.6 WELL INTERFERENCE AND COMBINED WELL OPERATION ...... 18 5.7 AQUIFER PARAMETERS ...... 18 6. WATER QUALITY ...... 19 6.1 WATER QUALITY WELL 15-01(WPN42707) ...... 19 6.2 WATER QUALITY WELL 15-02 ...... 22 7. UPDATED GARP / GUDI ASSESSMENT ...... 24 8. CONCLUSIONS ...... 26 9. RECOMMENDATIONS ...... 28

List of Figures Figure 1.1 Monthly water usage for PMR for years 2010-2015……………………………….…………2 Figure 2.4 Discharge Hydrograph for Toby Creek Station 08NA012 near Athalmer …………………10 Figure 5.1 Toby Creek and MW1 water variation during testing programs……………………………16 Figure 5.2 Water level hydrograph for WPN47784……………………………..………………………17

February 2016 ii Panorama Phase 2 Groundwater Development 15-032-02

List of Tables Table 1.1 PMR 2010 – 2015 Water Demand Summary ...... 5 Table 2.1 Selected Surface Water Licenses for Toby Creek...... 10 Table 3.1 PMR Well Construction Details ...... 11 Table 5.1 Specific Capacity Summary Well 15-01 ...... 13 Table 5.2 Specific Capacity Summary Well 15-02 Step Test ...... 14 Table 5.3 CPCN Sustainable Yield Calculation Summary ...... 17 Table 5.4 Well interference observed during constant rate pumping tests...... 18 Table 5.5 Summary of calculated aquifer transmissivity and storativity ...... 19 Table 6.1 Water Quality Summary Well 15-01...... 21 Table 6.2 Water Quality Summary Well 15-02 ...... 23 Table 7.1 Stage 1 GARP/GUDI screening table...... 25

List of Appendices Appendix A Figures Appendix B Well Drillers Logs Appendix C Well Completion Schematics Appendix D Pumping Test Data and Graphs Appendix E Water Quality Reports Appendix F Field Sieve Analyses Appendix G Aqtesolv Pumping Test Analysis

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 iii Panorama Phase 2 Groundwater Development 15-032-02

List of Acronyms AI Aggressiveness Index ADD Average Day Demand AO Aesthetic Objectives Bgs Below ground surface Btoc Below top of casing GARP Groundwater at Risk of Containing Pathogens GCDWQ Guidelines for Canadian Drinking Water Quality GSC Geological Survey of Canada GUDI Groundwater Under the Direct Influence of surface water HAA Haloacetic Acids MAC Maximum Allowable Concentration Masl Metres above sea level MDD Maximum Day Demand MFLNRO Ministry of Forests, Lands and Natural Resource Operations MOE Ministry of the Environment MPA Microparticulate Analysis MYA million years ago ORP Oxygen Reduction Potential PMR Panorama Mountain Resort THM Trihalomethanes VOC Volatile Organic Compounds WPN Well Plate Number WTN Well Tag Number WWAL Western Water Associates Ltd. WWTP Wastewater Treatment Plant

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 4 Panorama Phase 2 Groundwater Development 15-032-02

1. INTRODUCTION At the request of Haworth Development Consulting (Haworth) and on behalf of Corix Multi-Utilities (Corix), Western Water Associates Ltd. (WWAL) has undertaken Phase 2 of a Groundwater Development Program for Panorama Mountain Resort. This report provides the methods and results of the Phase 2 work program, and provides recommendations for moving forward with the transition to a groundwater-based water system.

1.1 Project Background At present, the Panorama Mountain Resort (PMR) obtains all of its municipal water supply from an intake on Taynton Creek. The water utility is owned and operated by Corix (who also owns and operates the community wastewater utility for PMR). For several months of the year around freshet, the PMR is on a boil water notice due to elevated turbidity in the surface water source, which has the potential to limit the effectiveness of the UV disinfection system currently used.

In order for Corix and the PMR to meet the requirements of Interior Health’s Water Quality Improvement Program and to ensure a safe, long-term drinking water source is available, transitioning to a groundwater source is an attractive option. If a suitable groundwater source could be developed, the PMR would transition to using solely groundwater as its domestic source. The intake and rights to the diversion on Taynton Creek would likely be retained as an emergency back-up source. In 2014, Corix began investigating the option of developing groundwater and completed a test well at the northeastern end of PMR (WPN47784) that intercepted a fairly productive aquifer system between 30 m and 35 m depth. In early 2015, WWAL was engaged to evaluate the well and aquifer for its potential to serve as a primary water source for PMR.

WWAL oversaw a pumping test and water quality sampling program on WPN47784, the results of which were presented in our Phase 1 Groundwater Development Report (WWAL 2015). Groundwater development sufficient for PMR Maximum Day Demand (assumed to be on the order of 25.2 L/s or 400 US gpm for the Phase 1 Assessment) appeared feasible from two or three production wells. Groundwater quality was assessed and found potable (no exceedances of health-based Guidelines for Canadian Drinking Water Quality), with only manganese exceeding its Aesthetic Objective (AO). A preliminary GARP/GUDI assessment was completed for WPN47784 as part of the Phase 1 study and found that WPN47784, and any similar wells in the vicinity, would be considered potentially GARP due to the well(s) location downgradient of the PMR wastewater treatment plant and disposal field.

WWAL recommended proceeding with two test-production wells near the test well site, followed by extended pumping tests and water quality sampling. This report documents the construction, testing and sampling of two new 250 mm (10 inch) diameter test production wells which were completed in late 2015.

1.2 Water System Capacity Requirements MMM Group has been retained as part of the groundwater feasibility study to confirm and update civil engineering aspects of a transition to a groundwater source. MMM Group reviewed monthly water use data at the resort for 2010 to 2015. From this review, MMM Group ascertained that Average Day Demand

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 5 Panorama Phase 2 Groundwater Development 15-032-02

(ADD) during the peak month at PMR is 7.0 L/s (111 US gpm). Maximum Day Demand (MDD) was estimated by applying a 3.0 multiplier to ADD, resulting in a MDD of 21 L/s (333 US gpm).

Table 1.1 presents the historical water demand data compiled by MMM Group. Figure 1.1 below depicts monthly water consumption at the PMR from 2010-2015 illustrating the pattern of water use over the course of a year. Peak demand in the PMR water system occurs in July, August or September. Water demand is relatively consistent throughout the year, with reduced demand in the spring and fall shoulder seasons.

Table 1.1 PMR 2010 – 2015 Water Demand Summary Year Total Usage ADD (m3/d) ADD (L/s) Peak Month Peak Month ADD (L/s) 2015 138614 380 4.4 September 5.9 2014 147201 403 4.67 August 6.8 2013 94885 260 3.01 July 5.2 2012 87509 240 2.77 August 4.4 2011 94966 260 3.01 July 5.2 2010 130916 359 4.15 August 7.0

Figure 1.1 Monthly water usage for PMR for years 2010-2015.

20000

18000

16000 ) 3 14000 2015

12000 2014

10000 2013

8000 2012

6000 2011 Monthly Monthly Water Demand (m

4000

2000

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 6 Panorama Phase 2 Groundwater Development 15-032-02

1.3 Scope of Services In crafting our scope of work for Phase 2, we reviewed comments on the Phase 1 program and anticipated information requirements for Phase 2 that were provided via email on October 28, 2015 by the B.C. MFLRO Regional Hydrogeologist Skye Thomson, P.Geo.

WWAL provided the following services as part of the Phase 2 program:

1) Reviewed conceptual site plans for water system improvements and provided input into the location of two test-production wells. 2) Provided field supervision of a well drilling contractor during drilling, installation and development of two test production wells. 3) Designed, implemented and oversaw a well testing program that included monitoring water levels in three non-pumping monitoring wells and Toby Creek. 4) Assessed options for pumping test water discharge, and obtained approval to discharge water near Toby Creek during the testing program. Monitored the water discharge site and Toby Creek water quality during the pumping test program to ensure compliance with B.C. environmental management regulations. 5) Collected water samples multiple times during each pumping test to evaluate the groundwater quality and changes in groundwater quality as pumping proceeded. Evaluated the results against the Guidelines for Canadian Drinking Water Quality. 6) Compiled and analyzed pumping test data. 7) Developed a conceptual model for groundwater flow and recharge. 8) Initiated discussions with Interior Health related to source approval for the new well sources. 9) Prepared this completion report including recommendations for well operation, maintenance and monitoring.

Note that a detailed groundwater source protection plan (source water assessment) is not part of the current assignment. Such an assessment would be conducted and reported on separate from this completion report. However, general source protection recommendations are provided near the end of this report.

2. SITE DESCRIPTION

2.1 Physiography and Surrounding Land Use The PMR occupies the Toby Creek valley of the Purcell Mountains, located approximately 15 km southwest of the District of Invermere, B.C. Elevation at the test well site is approximately 1,133 m asl, and local relief to the north and south is approximately 1,100 m with the highest peaks reaching elevations of 2,250 m asl. Site location maps are included in Appendix A.

The Site is located at the northeastern extent of PMR, downslope and downstream of the developed part of the resort (Figure A1). Figure A2 depicts landuse near the well site which includes the PMR employee housing complex, the Corix WWTP buildings and disposal fields, and the PMR firehall. The well site itself is located in an undeveloped forested area. The well site is located on a relatively flat bench on the

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 7 Panorama Phase 2 Groundwater Development 15-032-02

northwest side of Toby Creek. The bench area is approximately 70 m in north-south direction and 120 m in an east west direction. Near Toby Creek, the bench drops away steeply to the creek approximately 7 m below.

Two sizeable tributaries flow into Toby Creek near the well site. The Springs Creek confluence is located approximately 75 m north of the test well site and the Taynton Creek Confluence is located approximately 100 m to the southeast. Both Springs and Taynton Creeks reportedly flow year-round.

2.2 Geologic Setting Surficial geology in the Toby Creek valley near the site is dominated by glacial and fluvial deposits. Detailed surficial geologic mapping has not been completed at PMR, but can be inferred based on exposures along road cuts and from well logs in the area.

At the well field site, up to 140 ft (42.7m) of unconsolidated deposits were observed above bedrock. Surficial deposits consisted of an upper layer of poorly sorted clay/silt/sand with gravel to a depth of 27 m (90 ft). The uppermost ~10 m of this deposit was noted by the well driller to contain large boulders. The presence and amount of gravel to boulders varied, and zones of this upper deposit were largely clay and silt. This upper deposit ranged from dry to wet, with no productive water bearing zones noted during drilling. This upper deposit is interpreted to be glacial till, with the uppermost, bouldery 10 m or so potentially colluvial in origin.

Beneath this upper deposit was a relatively thick and uniform sequence of sand and gravel that acts as a productive aquifer. The gravels were angular to sub-angular suggesting a depositional environment close to the source, typical of mountain settings. The sand and gravel deposit rests directly on regolith and competent bedrock, which was encountered at depths between 36 and 44 m (118 ft and 145 ft). The sand and gravel deposit is interpreted to be erosional in origin and considering its location directly above bedrock, likely glaciofluvial in origin.

More recent fluvial and/or alluvial deposits are also present near present drainage courses such as Springs Creek, which are discussed further in the following sections.

The bedrock geology in the PMR area is dominated by sedimentary rocks of the Horsethief Formation (slate, conglomerate and limestone) as well as the Toby Conglomerate (Schofield et al., 1926). Faulting in the area is common, with faults trending northwest to southeast.

2.3 Hydrogeological Setting No Provincially-mapped aquifer systems are present in the vicinity of the PMR, but it is clear that aquifers are present in the area. It is possible that in some areas, there is a deep bedrock aquifer system present. To date, this deep bedrock aquifer does not appear to have been used. Bedrock was penetrated in 2014 by test well WPN47783 (Figure A1) but no water bearing fractures were reported.

In the vicinity of the well field, there are two distinct and separate aquifer systems present. The first is a relatively shallow, unconfined aquifer system hosted by recent alluvial deposits of Springs Creek and/or fluvial deposits associated with Toby Creek. At the site of the WWTP disposal fields, several shallow monitoring wells have been installed into this shallow aquifer for groundwater monitoring purposes (Figure

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 8 Panorama Phase 2 Groundwater Development 15-032-02

A2). A great deal of hydrogeological work has been completed at the WWTP site, and because of its relevance to this project, is summarized in the following section.

This shallow unconfined aquifer system appears to have eroded into and replaced glacial till deposits at the site. Beneath these glacial till deposits, is a deeper, semi-confined aquifer system which is located directly on bedrock. This deeper semi-confined aquifer, which is that sourced by the test production wells, appears to be hosted by a remnant erosional deposit, likely glaciofluvial in origin considering it scoured down to the bedrock surface. This older aquifer may predate the last glacial event in the valley, as it is buried by what is interpreted to be till. This deeper aquifer may be present at other locations in the Toby Creek valley near the PMR. A conceptual cross-section through the aquifer is presented in Figure A3.

In terms of groundwater use in the PMR area, there appears to be no current use. Figure A1 depicts the location of all known and reported wells in the PMR area. Wells confirmed to be present only include the 2015 test-production wells (WPN42070 and WPN42071) and the 2014 test well (WPN47784). WPN47783 was an unsuccessful 2014 test well and was properly abandoned by Owen’s Drilling shortly after being drilled.

WPN95590 is located within the developed portion of PMR, was drilled in 2000, and is the only well on record in the PMR area based on a February 2016 search of the B.C. Water Resources Atlas (MFLNRO 2016). The PMR indicated that this well was completed as a test well to investigate groundwater as a possible source of snow making water. Proper closure of this well could not be confirmed at the time of report writing. The status of this well will be further investigated, and if not already properly abandoned, will be as part of a future phase of the project.

2.3.1 Summary of Hydrogeological Investigations Completed at the WWTP site In 2000-2001, a series of detailed hydrogeological investigations were completed at and near the WWTP disposal field site, which is located approximately 150 m southwest of the proposed well field. The objectives of the investigations were to 1) evaluate the capacity of the two tile field disposal system against buildout wastewater design flows, which at that time were estimated to be 1,796 m3/day; and 2) to identify possible back-up areas for effluent disposal to ground.

A report by Bel-MK Engineering Ltd. (2001a) documents the first and most thorough investigation completed. In December 2000, a controlled loading test on each tile field was completed sequentially. Tile Field 1 was loaded at a rate of 950 m3/day for 15 days, followed by Tile Field 2 being loaded at 950 m3/day for 11 days. During this loading test, water levels were monitored in onsite monitoring wells to assess mounding. A dye tracer test was also completed by injecting a dye into the water loaded into the fields. Following the testing program, water levels were contoured to determine the direction and gradient of groundwater flow. Key results from the investigation include:

1. Both tile fields adequately infiltrated the tested flows. Surficial deposits below the tile fields are highly permeable gravelly sands. As such, the tile fields essentially function as rapid infiltration basins. It should be noted that this testing was completed in December, when Toby Creek levels are lower than spring and summer freshet levels. 2. The effluent infiltrated into the tile fields migrates fairly rapidly through the shallow aquifer system and discharges into Toby Creek. Dye tracer tests indicated that after being discharged through

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 9 Panorama Phase 2 Groundwater Development 15-032-02

the tile fields, effluent discharges into Toby Creek between 28 hours in the case of Tile Field 1 and 7 days for Tile Field 2. 3. The hydraulic gradient of the monitored shallow aquifer was measured to be 0.023. 4. The direction of groundwater flow in at the tile fields was measured to be to the southeast. As part of WWAL Phase 1 work program, water levels were measured in all monitoring wells that could be located near the WWTP site. In June 2015, when Toby Creek water levels were likely higher than in December 2000, the direction of groundwater flow was measured to be southwards or south-southeastwards near the tile fields. The groundwater contouring completed is presented in Figure 2 of our Phase 1 report.

In May 2001, apparently at the request of the B.C. Ministry of Environment, a back-up area for effluent disposal was investigated at the site currently occupied by the Panorama Firehall (Bel-MK 2001b). This investigation determined that gravelly sandy soils were present in the area and the depth to water was more than that at the tile fields closer to Toby Creek. The May 2001 letter report, and subsequent clarification letter (Bel-MK 2001c) indicated that effluent disposal at the location investigated was feasible, and preliminary sizing requirements for both Rapid Infiltration Basins and tile fields was provided.

2.4 Hydrology of Toby Creek One Water Survey of Canada monitoring station (08NA012) was located on Toby Creek from 1912 to 1984 approximately 15 km downstream from PMR near Invermere. Statistical data for the 72 years show base flow occurring from November to April and freshet occurring from May to June, and baseflow recession commencing usually in August or September. Minimum and maximum flows for the period of record are depicted in Figure 2.1 below.

Figure 2.1 Discharge Hydrograph for Toby Creek Station 08NA012 near Athalmer.

Data Source: Water Survey of Canada Website, accessed January 2016.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 10 Panorama Phase 2 Groundwater Development 15-032-02

In 1985 the Ministry of Environment evaluated conditions of multiple tributaries to the Columbia River including Toby Creek (MOE 1985). The report provides a 1 in 10 year monthly low flow for Toby Creek at Panorama of 1.3 m3/s. With respect to water quality, headwaters for Toby Creek were identified as being relatively hard and turbid. Few metals samples were collected for the study; however levels of Cu, Fe, Pb and Zn were considered low. The parameters sampled for were selected to assess the impacts of former mining operations within the Toby Creek Watershed

A search of the Ministry of Environment Water Resource Atlas (MFLNRO 2016) identified four current and one abandoned surface water license for Toby Creek. The water licenses are reported as for domestic, irrigation and snow making purposes as shown in Table 2.1. There are three water licenses (2 active and one discontinued) for the purpose of snowmaking located at the PMR approximately 200 m upstream of the well field as shown on Figure A2. The remaining two water licenses are located downstream near Invermere.

Table 2.1 Selected Surface Water Licenses for Toby Creek. Water Licence Licensee Quantity Licence Water Body Status Water Use (m3/day) Panorama Mountain C128914 Toby Creek Current Village Inc. Snow making 338 CC066007 Toby Creek Abandoned I W Resorts Ltd. Snow making 625 Panorama Mountain C118016 Toby Creek Current Village Inc. Snow making 997 C116543 Toby Creek Current Stefan Eylert Domestic 2.3 C055367 Toby Creek Current Annelies Heiz-Zaugg Irrigation 296

3. WELL CONSTRUCTION The following sections document the drilling and development of the two new test/production wells. Driller logs and completion schematics are provided in Appendices B and C of this report. The test wells are referred to as wells 15-01 and 15-02 henceforth in this report.

3.1 Well Drilling and Completion Wells 15-01 and 15-02 were drilled using the dual-rotary method by J.R. Drilling of Cranbrook, B.C. (Registered Well Driller #07091901) in November 2015.

Well drilling was overseen by WWAL hydrogeologist Ryan Rhodes, P.Geo, who was onsite during the entire drilling program. Drilling of both wells was initiated by installing a temporary 305 mm (12 inch) diameter surface casing to a depth of 5.5 m (18 ft). The surface casing was left in place while 250 mm (10 inch) diameter casing was overlapped and advanced to depth.

Formation samples were collected at approximately 1.5 m (5 ft) regular intervals from the surface until water-bearing lithology was encountered. The deeper portion of the aquifer was logged in greater detail and samples were selected for sieve analysis. Aquifer materials were described as loose, poorly sorted sands and gravels typically with a sub-angular texture. Sieve analyses of the aquifer material consistently indicated a 40% retained grain size of approximately 0.19” (190 slot) with the occasional zones of finer

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 11 Panorama Phase 2 Groundwater Development 15-032-02

material (100 slot). Well completion details for each well are included in Table 3.1 and completion diagrams including generalized lithology in Appendix C.

Based on sieve results, VaripermTM stainless steel, wire-wrapped screens were custom ordered and delivered to the Site in one piece. 100 slot screens were utilized to conservatively match the observed lithology. Both screens included 0.6 m 0 slot tight-wind sumps and a 0.9 m riser with figure “K” packers.

In November 2015 under the supervision of Warren Grafton P.Geo. the 250 mm (10 inch) telescopic screen assemblies were lowered and held in place using a drill rig operated by J.R. Drilling. The 250 mm production casing was then retracted exposing the screen to the formation at depths specified by WWAL.

Screen installation began with well 15-01, and required multiple attempts to install the screen at WWAL’s specified depth. Aquifer materials were relatively loose, and apparent heaving conditions resulted in the screen being installed at shallower than planned depths on the first two attempts. Finally, J.R. Drilling removed the screen assembly and re-advanced the 250 mm production casing to a depth of 44 m (145 ft) into more competent bedrock. This alleviated the apparent heaving issue and the screen was successfully installed and exposed. Screen installation and exposure proceeded smoothly at well 15-02 where heaving was not encountered and the screen was successfully installed on the first attempt.

Following screen exposure, the annulus between the 300 mm diameter surface casing and the 250 mm diameter production casing was filled with hydrated bentonite chips and the surface casing was removed to form a surface seal. Surface seals in both wells are compliant with the requirements of the B.C Groundwater Protection Regulation.

Table 3.1 PMR Well Construction Details Well ID Well 15-01 Well 15-02 TW1 WPN42070 WPN42071 (WPN47784) 2014 Test Well Date Drilled Nov. 2015 Nov. 2015 2014 Drilling Company JR Drilling JR Drilling Owens Drilling Casing/screen diameter (mm) 10” (250 mm) 10” (250 mm) 6” (150 mm) Total Depth (ft/m bgs) 138 ft (42.1 m) 106.5 ft (32.5 m) 117 ft (35.7 m) Screen Assembly length (ft/m) 20 ft (6.1 m) 17 ft (5.2 m) 8 ft (2.4 m) Top of Screen Assembly (ft/m) 118 ft (36.0 m) 89.5 ft (27.3 m) 109 ft (33.2 m) Slot size 100 slot 100 slot 50 slot (thousandths of an inch) Surveyed Elevations 1133.87 m 1138.05 1136.80 (metres above seal level) (ground elevation) (ground elevation) (top of casing elevation)

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 12 Panorama Phase 2 Groundwater Development 15-032-02

3.2 Well Development Following screen installation, well 15-02 was developed using a cable-tool drilling rig with the surge and bail technique for 17 hours. During surging, a temporary submersible pump was installed in the well and operated at a rate of approximately 80 US gpm to remove suspended sediment from the water column and fine sand drawn in through the screen. Sediment laden water was discharged near the well site and infiltrated to ground. Specific capacity during the development was estimated at ~18 US gpm/ft at the estimated pumping rate of 80 US gpm.

Well 15-01 was developed with compressed air surging and lifting using the dual rotary drilling rig. Compressed air development was completed for five hours during which the bottom of the drill stem (through which the compressed air is discharged) was raised and lowered in the well screen assembly. Discharge water was monitored by collecting samples in a bucket and visually noting the amount of sand being produced. After five hours of compressed air development, little or no sand was being produced along with discharge water. As discussed in later sections of the report, compressed air development of 15-01 was less effective than the surge and bail development completed on well 15-02.

4. WELL TESTING METHODS J.R. Drilling Ltd. was retained to complete a pumping test program in December 2015. Section 5 of the report presents the results and interpretations of the pumping tests.

Prior to the December 2015 testing, J.R. chlorinated the wells to >200 ppm 24 hours prior to test pump installations. For the pumping tests, a submersible test pump was used and powered with a portable generator. The test pump intake was installed at a depth of approximately 1 m above the screen assembly in each well. A dedicated sounding tube was installed and water level measurements were collected with an electric well sounder to the nearest millimetre. During the testing, water levels were measured in Well 15-01, 15-02, WPN47784, MW1 (a WWTP monitoring well) and Toby Creek. Flows were controlled with a gate valve on the discharge head and measured using a digital flow meter.

Test programs for wells 15-01 and 15-02 consisted of:

 A variable rate step test followed by measurement of water level recovery;  A 72 hour constant rate test;  Monitoring water levels as indicated above, and  Monitoring of water level recovery following the constant rate test for several days to weeks.

Pumping test data, graphs of water level drawdown and recovery and interpretations are presented in Appendix D. During the pumping tests, water was discharged onto large boulders in an empty side channel of Toby Creek. Monitoring of temperature and turbidity was conducted above and below the discharge points before and during the testing program. Turbidity in Toby Creek at the upstream and downstream monitoring locations remained less than 1 NTU during the entire testing program, and no significant differences in water temperature were noted between the two locations.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 13 Panorama Phase 2 Groundwater Development 15-032-02

5. WELL TESTING RESULTS To interpret the test pumping results, we processed raw pumping test data into a series of graphs and analyzed the data. The analysis included well and aquifer hydraulics, in order to estimate aquifer properties and to determine whether the aquifer’s productivity is sufficient for the intended use. Tables D1-D4 (Appendix D) provide raw data collected during the pumping tests, and Figure D1-D6 visually present the water level responses to pumping.

5.1.1 Well 15-01 The drawdown during the step testing program was characterized by water levels that responded quickly to changes in flow rate but did not stabilize. After the initial rapid response water levels continued to drawdown but at a significantly slower rate. Table 5.1 summarizes the pumping rates, drawdowns and specific capacities observed during the December 9-12, 2015 pumping test program. Specific capacity values for well 15-01 are in the order of 4.5 USgpm/ft at higher rates.

Table 5.1 Specific Capacity Summary Well 15-01 % Available Flow Rate Duration Drawdown Specific Capacity Drawdown Used L/sec US gpm minutes metres feet L/s/m US gpm/ft Step Test 9.45 150 50 5.88 19.3 1.61 7.78 22% 15.75 250 45 15.94 52.3 0.99 4.78 61% 18.9 300 7 21.96 72.0 0.86 4.16 84% Constant Rate Test 15.75 250 4,320 17.20 56.4 0.92 4.43 66% Note: % available drawdown defined as top of screen assembly - SWL on December 8, 2015. Equals 26 m available drawdown.

During the 72 hr constant rate test conducted December 9-12, 2015, the majority of drawdown occurred in the first 90 minutes when pumped at a rate of 15.75 L/s (250 US gpm). Following the first 90 minutes, water levels slowly decreased at an approximate rate of 1 cm/hr and did not stabilize for the duration of the test. At the end of the 72 hour testing program, after the well had been pumping at 15.75 L/s (250 US gpm), 66% of the available drawdown in the well had been used.

Analysis of a semi-logarithmic drawdown plot for well 15-01 (Figure D3) shows a consistent slope indicating that the radius of drawdown influence during the pumping test did not reach any positive or negative aquifer flow boundaries.

5.1.2 Well 15-02 The drawdown during the step testing program was characterized by water levels that responded quickly to changes in flow rate but did not completely stabilize. Specific capacity of the well decreased slightly for each flow increase, which is to be expected. Table 5.2 summarizes the pumping rates, drawdowns and specific capacities observed during the December, 15-19 pumping test program. Specific capacities at all rates were significantly higher than those calculated for well 15-01 suggesting that the surge and bail development completed on well 15-02 was more effective than the compressed air development completed at well 15-01. Locally more productive aquifer materials may also be present at 15-02.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 14 Panorama Phase 2 Groundwater Development 15-032-02

During the constant rate test, the majority of drawdown occurred during the first 90 minutes when pumped at a rate of 20.48 L/s (325 US gpm). Following 90 minutes, the rate of drawdown slowed but water levels did not completely stabilize for the duration of the test. Analysis of a semi-logarithmic drawdown plot for well 15-02 (Figure D6) shows a break in slope at approximately 400 minutes. Prior to the boundary, the change in drawdown over one log-cycle of time was approximately 0.6 m and after the break it increased to approximately 1.2 m/log cycle. The change in slope indicates that the radius of influence from the constant rate pumping test intercepted a single negative aquifer boundary, which we infer to be the northwestern edge of the aquifer. This boundary is likely formed by the effective no flow boundary formed by bedrock. At the end of the 72 hour testing program, after the well had been pumping at 20.48 L/s (325 US gpm), 62% of the available drawdown in the well had been used.

Table 5.2 Specific Capacity Summary Well 15-02 Step Test Flow Step/Test % Available Drawdown Specific Capacity Rate Duration Drawdown Used L/sec US gpm minutes metres feet L/s/m US gpm/ft Step Test 6.3 100 30 1.49 4.89 4.23 20.5 12% 9.45 150 30 2.28 7.48 4.14 20.1 18% 12.6 200 30 3.33 10.93 3.78 18.3 26% 15.75 250 30 4.4 14.44 3.58 17.3 35% 18.9 300 30 5.51 18.08 3.43 16.6 43% 22.08 350 30 6.69 21.95 1.98 16 53% 23.34 370 30 7.17 23.52 1.95 15.8 57% Constant Rate Test 20.48 325 4320 8.22 26.97 2.49 12.1 62% Note: % available drawdown defined as top of screen assembly - SWL on December 14, 2015. Equals 12.69 m available drawdown.

5.2 Toby Creek and Shallow Aquifer Water Levels During Testing Program During the pumping tests water levels were measured in a monitoring well at the wastewater infiltration field (MW1) and in Toby Creek near the WWTP site where a temporary staff gauge was installed in the stream. Figure 5.1 depicts water levels in Toby Creek and MW1 prior to and during the testing program. Relative water level variations (change from initial measurement over time) in Toby Creek and MW1 were on the order of 0.11 m and 0.40 m respectively. Water levels in the creek and MW1 moved in unison, corroborating our assumption that the shallow aquifer system near the WWTP disposal field and Toby Creek have a relatively strong hydraulic connection. Water levels in MW1 showed more variation and may be a result of the loading schedule in the WWTP disposal field. There were not any discernible water level responses from the extended pumping tests on the test-production wells.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 15 Panorama Phase 2 Groundwater Development 15-032-02

Figure 5.1 Toby Creek and MW1 water variation during testing programs.

5.3 Water Level Recovery Following pump shut off, initial recovery in the pumping wells was rapid before decreasing in rate, which is the typical pattern observed in semi-confined aquifer systems.

Well 15-01 recovered rapidly for approximately 10 minutes before recovery rates decreased. Within 1 minute of pump shutdown the well had recovered approximately 64% and continued to 87% recovery after 10 minutes. 90% recovery was reached after 2 hours. 97% was reached approximately 1.7 days after pump shutoff, before the test pump was removed.

Following the pumping test on Well 15-02 90% recovery was reached approximately 20 hours following pump shutdown. Well 15-02 reached full recovery approximately 9 days following pump shutoff and groundwater levels rose above the static water level measured at the start of the testing program.

Following the testing program, transducers were left in all wells at the site for several weeks (and continue to record water levels). Figure 5.2 presents a hydrograph of barometrically corrected water levels in WPN47784 prior to, during and following the pumping test program. The hydrograph shows that full recovery in the aquifer occurred 9 days after the end of the pumping test program, and after 9 days, water levels continued to rise above antecedent levels before beginning a slow decline in early January that likely continues through the winter.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 16 Panorama Phase 2 Groundwater Development 15-032-02

Figure 5.2 Water level hydrograph for WPN47784

5.4 Seasonal Water Level Fluctuations Seasonal water level fluctuations, where severe enough, can affect the availability of a well to supply the desired yield. Seasonal water level effects are particularly important in shallow dug wells and wells directly recharged by seasonal water sources, where static water levels can decline significantly in the absence of recharge.

Water levels in the subject aquifer are inferred to be controlled by seasonal changes in the discharge and water level in Toby Creek. Interpretation of lithology during drilling and the analysis of pumping test data suggest the aquifer at the site is semi-confined. Nearby surface waters recharge the aquifer through the leaky overlying till deposit, and static water levels are likely governed by the water level in Toby Creek. When Creek levels are higher, additional pressure is applied to the aquifer and results in higher water levels. Toby Creek levels are not gauged at Panorama, but Toby Creek levels likely fluctuate by about 2 – 3 m from lows likely observed in February to freshet peaks which occur in June. Dedicated water level transducers were purchased for this project and continue to record water levels in monitoring wells at the site. A more detailed analysis of seasonal changes in aquifer levels can be completed later in 2016.

Testing completed in December of 2015 was done during a time when aquifer water levels were likely near their seasonal lows. We expect that ambient aquifer levels could decline an additional 1.0 m during late winter when Toby Creek levels are at their lowest. Static water levels in WPN47784 in June of 2015 were measured at 10.85 m below top of casing, and in December 2015 were measured at 12.86 m below top of casing, a decline of 2.01 m. A seasonal water level fluctuation of up to 3 m is adequately accounted

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 17 Panorama Phase 2 Groundwater Development 15-032-02

for by the 30% safety factor applied in the CPCN sustainable yield calculations discussed in the following section.

5.5 Well Capacity Evaluation The CPCN method for estimating long-term well capacity assumes that well would be pumped for 100 days in the absence of recharge. The method involves extrapolating drawdown data from a pumping test to a theoretical 100 days of continuous pumping, and available drawdown and a 30% safety factor are applied in a formula to determine the sustainable well yield. In cases where the sustainable yield calculated exceeds the pumping rate, the pumping rate used for the test is taken to be sustainable yield. Equation 1 presents the CPCN yield calculation from Appendix 9 of the CPCN Application Guideline (MOE 2007).

Equation 1: Q = 0.7 x Available drawdown x (pumping rate / 100 day projected drawdown)

In applying Equation 1 to the Panorama wells, available drawdown was defined as the difference between the static water level at the time of testing and the recommend pump intake depth 0.3 m above the top of the well screen. Table 5.4 presents the variables used in and the results of the CPCN yield calculation, and present sustainable yields for each well operated individually. As mentioned previously, the pumping test program was completed during expected low water level conditions. An additional 1.0 m of aquifer level decline is considered possible, and is more than adequately accounted for in the 30% safety factor applied.

Table 5.3 CPCN Sustainable Yield Calculation Summary 100 Day Available Pumping projected Well Drawdown (m) Rate drawdown Sustainable Yield 250 US gpm Well 15-01 26 (15.8 L/s) 18.8 m 15.3 L/s (243 US gpm) 325 US gpm Well 15-02 12.69 (20.5 L/s) 10.2 m 17.8 L/s (283 US gpm)

Based on the above, we conservatively rate Well 15-01 at 240 US gpm and 15-02 at 280 US gpm. The 15-01 rating is provisional and could increase following additional well development (see Recommendations below). The pumping test program demonstrated that operational pumping rates higher than those calculated by the CPCN method are possible from both wells, in particular well 15-02 even though it has less available drawdown. Well 15-02 was pumped at 20.5 L/ (325 US gpm) continuously for 72 hours and projection of the drawdown trend suggests 100 days of continuous pumping at this rate is feasible. The rate used for the pumping test was limited by the output of the test pump and friction losses in the discharge line, and based on the well’s specific capacity, the well can likely be pumped at rates up to 25.2 L/s (400 US gpm) for several weeks or more.

As mentioned previously, we believe that additional development of well 15-01 has the potential to significantly increase the yield (and capacity rating) of that well. If the specific capacity of well 15-01 could be increased to levels near those achieved at well 15-02, well 15-01 would likely be capable of producing 28.3 L/s+ (450+ US gpm) for extended durations. Refer to the recommendations section of this report

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 18 Panorama Phase 2 Groundwater Development 15-032-02

for more details in this regard. For more information on overall aquifer capacity, please refer to Section 8 for a preliminary water budget analysis for the local aquifer.

5.6 Well Interference and Combined Well Operation To assess the potential for well interference between multiple pumping wells, each test well was monitored at regular intervals during constant rate pumping.

The effects of each pumping test on nearby wells are included in Table 5.4. Drawdown curves showing water level interference during each test are presented in Figures D2 and D5 (Appendix D). Well interference is moderate, and significant enough to be a consideration in the event that both wells were to be pumped simultaneously. The hydrogeological theory behind well interference (known as superposition) is that well interference should be cumulative, but in reality, combined well operation often results in slightly higher than estimated interference effects in bounded aquifers like the one at PMR. Based on the observed well interference, it is our opinion that both wells can be operated together (as they currently exist) to sustainably provide in excess of 25.2 L/s (400 US gpm). If well 15-01 were further developed, the combined output of the wells would be higher.

Table 5.4 Well interference observed during constant rate pumping tests. Distance From Well Drawdown (m) Pumping Well (m)* Well 15-01 72 hr Constant Rate Test (250 US GPM) Well 15-01 (pumping) 17.20 Well 15-02 2.35 60 WPN47784 3.80 22 Well 15-02 72 hr Constant Rate Test (325 US GPM) Well 15-02 (pumping) 8.20 Well 15-01 3.16 60 WPN47784 3.70 30 *Distances are approximate.

5.7 Aquifer Parameters Aquifer properties were derived from analysis completed on the 2015 constant rate tests. Analysis was completed using AqtesolvTM, a commercially available hydrogeologic analysis program using the Cooper- Jacob (1946) method for the time in the pumping tests when radial flow towards the well was occurring (i.e. when the first-order derivative of drawdown was stable near 1.0). The transmissivity calculated from drawdown data collected at each well during the pumping tests are included in Table 5.5.

With the exception of data from pumping well 15-01, aquifer transmissivity was calculated in the range of 400 m2/day and is considered a moderate transmissivity. Analyzing data from pumping wells tend to result in lower transmissivity due to inefficient flow of water into the pumping well and observation wells are considered more appropriate for estimating aquifer properties (Driscoll 1986). Transmissivity calculated from drawdown data collected at 15-01 while that well was pumping was 172.7 m2/day and is likely a result of poor development of the well. Storativity values were calculated from the monitoring well data and are also presented in Table 5.5. Monitoring well data during the pumping test on well 15-02 provided the best fit for the Cooper-Jacob analysis and resulted in storativity values between 1.0 and 1.9 x 10-4, which are

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 19 Panorama Phase 2 Groundwater Development 15-032-02

in the range of typical values for confined aquifer systems (Todd 1980). Appendix G includes the AqtesolvTM output, and outlines the assumptions used in the analysis.

Table 5.5 Summary of calculated aquifer transmissivity and storativity Well Test and Phase of Testing Transmissivity (m2/day) Storativity (dimensionless) 15-01 Pumping Test 15-01(pumping well) 175 - 15-02 445 3.8 x 10-4 WPN47784 442 5.9 x 10-6 15-02 Pumping test 15-02 (pumping well) 353 - 15-01 405 1.0 x 10-4 WPN47784 395 1.9 x 10-4

6. WATER QUALITY Water quality samples were collected several times during each of the tests. Near the end of each test, a full suite of samples were collected for Interior Health’s list of parameters for evaluating new groundwater sources and caffeine (the latter used as a tracer for treated effluent). At other times during the testing, samples were collected for anions and total metals to assess possible changes in water quality as pumping proceeded. All water testing was completed by CARO Analytical Services, a CALA accredited laboratory. Tables 6.1 and 6.2 summarize the water quality testing results, and complete laboratory reports are provided in Appendix E.

6.1 Water Quality Well 15-01 Water quality from well 15-01 meets all Guidelines for Canadian Drinking Water Quality for health-based Maximum Allowable Concentrations (MACs) both chemical and bacteriological. The groundwater is considered very hard, which is typical in the B.C. Interior but is less mineralized than some sources owing to the mountain location of the well site

Samples collected early during the pumping test contained iron concentrations in excess of Aesthetic Objectives (AOs) and aluminum concentrations were in excess of Operational Guidelines (OGs, which in the case of aluminum applies to water treatment plants utilizing a form of aluminum as a flocculant). Elevated metals parameters are common during early samples from recently drilled wells and are typically a result of fine sediment remaining in the discharge water while final development is occurring with the pump. A slight decrease in mineralization is observed with pumping time and the concentrations of aluminum, iron and manganese decrease to near or below detection limits. The decreased mineralization suggests fine particulate matter was removed from the well following the first sample and potentially that surface water recharge to the aquifer was induced.

Although within guidelines, specific parameters (nitrate, sodium, chloride) associated with wastewater disposal to ground were elevated in well 15-01 relative to concentrations in background monitoring wells in the area. This is indicative of the effluent disposal system located approximately 150 m up-gradient.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 20 Panorama Phase 2 Groundwater Development 15-032-02

Samples were also collected to determine the potential for disinfection by-products (DBPs) to form if the well water is chlorinated, with the result being a low DBP formation potential. Total organic carbon was measured at <0.5 mg/L. Total Trihalomethanes from a sample dosed with chlorine from the well sample were reported as 0.007 mg/L, well below the MAC for THMs of 0.1 mg/L. Total Haloacetic Acids (HAA) results from a dosed sample were 0.02 mg/L, again below the MAC value of 0.08 mg/L.

Corrosive groundwaters are typically characterized by high or low pH values and elevated iron concentrations. The local groundwater pH is somewhat basic but there is a low concentration of iron in the water. The Aggressiveness Index (AI), calculated using the parameters pH, total alkalinity and calcium hardness, is a general indicator of the tendency for corrosion to occur. AI values greater than 12, indicate a low tendency for corrosion, while values of 10 to 11.9 indicate moderately aggressive water. With an AI value of 11.9 it again appears that there is only a minor potential for corrosion to occur. The AI for well 15-01 was calculated to 12.8, indicating a low potential for corrosion.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 21 Panorama Phase 2 Groundwater Development 15-032-02

Table 6.1 Water Quality Summary Well 15-01. Date Samples Collected Dec-09-2015 Dec-10-2015 Dec-11-2015 Dec-12-2015 Elapsed Pumping Time (hours) 3 26 45.5 70 Parameter Units GCDWQ pH pH units 8.2 7.9 7.9 7.9 AO = 6.5 - 8.5 Conductivity us/cm 590 359 359 359 ORP mV 58 111 111 11

UV Transmittance %@254nm 98.7 98.7 Turbidity NTU 0.63 0.6 0.6 0.36 varies Temperature celsius 8.1 8 8 7.9 Caffeine mg/L <0.02 General Parameters and Nutrients Total Dissolved Solids mg/L 383 AO < 500 hardness mg/L 353 338 343 336 Alkalinity (total) mg/L 247 Fluoride mg/L <0.10 <0.10 <0.10 <0.10 MAC = 1.5 Nitrate, N mg/L 3.19 4.84 3.41 2.66 MAC =10 Nitrite, N mg/L <0.010 <0.010 <0.10 <0.010 MAC = 1 Chloride mg/L 21.3 21.3 20.4 19.7 AO < 250 Sulfate mg/L 66.2 66.8 68 66.9 AO < 500 Selected Ions and Metals (Total) Aluminum mg/L 0.35 <0.0050 <0.0050 0.09 OG < 0.1 Arsenic mg/L <0.005 <0.0050 <0.0050 <0.0050 MAC = 0.01 Barium mg/L 0.08 0.07 0.07 0.072 MAC = 1 Boron mg/L 0.05 0.04 0.04 0.04 MAC = 5 Copper mg/L 0.004 <0.002 <0.002 0.0018 AO < 1 Iron mg/L 1.48 <0.10 <0.10 0.04 AO < 0.30 Lead mg/L 0.003 <0.0010 <0.0010 0.0002 MAC = 0.01 Manganese mg/L 0.042 0.006 0.004 0.0027 AO < 0.05 Sodium mg/L 21.1 21.7 21.7 20.6 AO < 200 Uranium mg/L 0.0011 0.0009 0.0009 0.00101 MAC = 0.02 Zinc mg/L <0.040 0.07 <0.040 0.019 AO < 5 Microbiological Parameters Total Coliforms CFU/100mL <1 MAC < 1 E. Coli CFU/100mL <1 MAC < 1 Iron Related Bacteria CFU/100mL 550 Sulphur Reducing Bacteria CFU/100mL <8 Disinfection Data Chlorine Demand mg/L 0.68 Total HAAs mg/L 0.02 MAC = 0.1 Total THMs mg/L 0.007 MAC = 0.1 Notes: MAC = Maximum Allowable Concentration AO = Aesthetic Objective OG= Operational Guideline

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 22 Panorama Phase 2 Groundwater Development 15-032-02

6.2 Water Quality Well 15-02 Water quality from well 15-02 meets all Guidelines for Canadian Drinking Water Quality, both health- based Maximum Allowable Concentrations (MACs) and Aesthetic Objectives (AOs). Iron concentrations were consistently below its detection limit of 0.1 mg/L, and manganese was measured at concentrations approximately 10 times lower than its AO of 0.05 mg/L.

The groundwater is considered very hard and turbidity remained low throughout the pumping test. Samples were also collected to determine the potential for DBPs to form with the overall result being low DBP formation potential. Total organic carbon was measured at <0.5 mg/L. Total Trihalomethanes from a sample dosed with chlorine from the well 15-02 sample were reported as 0.008 mg/L, well below the MAC for THMs of 0.1 mg/L. Total Haloacetic Acids (HAA) results from a dosed sample were 0.02 mg/L, again below the MAC value of 0.08 mg/L. These results were consistent with well test results from 15-01.

Lower concentrations of wastewater indicators such as nitrate and chloride were observed in well 15-02 compared to well 15-01. Well 15-02 is at a location that is more cross-gradient with respect to the wastewater treatment area than is 15-01, which is the likely explanation for the difference in water quality between the two wells. We note that concentrations of nitrate and chloride, although much lower than in Well 15-02 increased slightly with pumping duration, whereas the higher nitrate and chloride concentrations in 15-01 actually decreased over the last two days of the pumping test. Monitoring for these parameters during well operations will help determine longer term trends, although at this time, there is little indication to suggest that guideline levels will be exceeded.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 23 Panorama Phase 2 Groundwater Development 15-032-02

Table 6.2 Water Quality Summary Well 15-02 Date Samples Collected Dec-16-2015 Dec-17-2015 Dec-18-2015 Elapsed Pumping Time (hours) 24 48 70 Parameter Units GCDWQ pH pH units 8.0 7.6 8.1 AO = 6.5 - 8.5 Conductivity us/cm 470 300 483 ORP mV 130 130

UV Transmittance %@254nm 99.5 Turbidity NTU 0.24 0.06 0.1 varies Temperature celsius 6.2 5.8 6 Caffeine <0.02 General Parameters and Nutrients Total Dissolved Solids mg/L 266 AO < 500 hardness mg/L 278 274 266 Alkalinity (total) mg/L 217 Fluoride mg/L <0.10 <0.10 <0.10 MAC = 1.5 Nitrate, N mg/L 0.425 0.582 0.656 MAC =10 Nitrite, N mg/L <0.010 <0.010 <0.10 MAC = 1 Chloride mg/L 5.8 6.22 6.60 AO < 250 Sulfate mg/L 37 37.3 38.2 AO < 500 Selected Ions and Metals (Total) Aluminum mg/L <0.0050 <0.0050 <0.0050 OG < 0.1 Arsenic mg/L <0.0005 <0.0005 <0.0005 MAC = 0.01 Barium mg/L 0.085 0.083 0.084 MAC = 1 Boron mg/L 0.015 0.013 0.019 MAC = 5 Copper mg/L 0.0008 0.0012 0.0014 AO < 1 Iron mg/L <0.01 <0.01 <0.01 AO < 0.30 Lead mg/L 0.0015 0.0028 0.0006 MAC = 0.01 Manganese mg/L 0.0057 0.0056 0.0051 AO < 0.05 Sodium mg/L 8.35 8.24 7.98 AO < 200 Uranium mg/L 0.00086 0.00086 0.00085 MAC = 0.02 Zinc mg/L 0.018 0.014 0.012 AO < 5 Microbiological Parameters Total Coliforms CFU/100mL <1 MAC < 1 E. Coli CFU/100mL <1 MAC < 1 Iron Related Bacteria CFU/100mL 8820 Sulphur Reducing Bacteria CFU/100mL <8 Disinfection Data Chlorine Demand mg/L 0.6 Total HAAs mg/L 0.02 MAC = 0.1 Total THMs mg/L 0.008 MAC = 0.1 Notes: MAC = Maximum Allowable Concentration AO = Aesthetic Objective OG= Operational Guideline

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 24 Panorama Phase 2 Groundwater Development 15-032-02

7. UPDATED GARP / GUDI ASSESSMENT As part of our Phase 1 Groundwater Assessment for PMR (WWAL 2015), WWAL completed a Stage 1 GARP/GUDI screening level assessment based on the information collected for test well WPN47784. That screening concluded that the test well, and similarly completed wells in the area, would be considered at risk of containing pathogens (GARP) due to the well(s) location down gradient of the PMR WWTP disposal fields. GARP sources typically require two forms of treatment/disinfection, in this case likely primary and residual disinfection, as turbidity is not expected to be an issue. We concluded that it was unlikely that the wells would be considered under the direct influence of surface water (GUDI) as the semi-confined nature of the aquifer would likely preclude the migration of large diameter surface water pathogens like giardia or Cryptosporidium from migrating into the aquifer.

Following the current Stage 2 program the additional information acquired has been applied to update the GARP/GUDI screening table (Table 7.1). Essentially, the conclusions from our initial screening remain valid. Key conclusions include:

 Additional bacteriological samples have been collected from the well field. Four samples have been collected for total coliform bacteria and E.Coli, all of which have been negative. Three caffeine samples have been collected to date, all of which have been below the method detection limit of 0.020 g/L.  Repeated turbidity measurements collected during extended pumping tests confirm that turbidity is consistently low in the wells and exhibit minimal variability with pumping duration.  The upgradient wastewater disposal system poses a potential pathogen risk to the wells, but we note that effluent from the WWTP is disinfected with UV. Routine sampling indicates that UV disinfection is effective with no fecal coliform or E.Coli detected in the 2014 treated effluent sampling data reviewed by WWAL (these samples are from effluent prior to ground discharge). Disinfection of the effluent represents a significant reduction to the pathogen risk at the proposed well field, and in effect, represents a barrier with respect to protecting drinking water quality in the aquifer.  Analysis of pumping test data and water quality results suggests that prolonged pumping could induces some surface water recharge to the aquifer, but the hydraulic communication occurs across a confining unit (aquitard) and so the wells are not classified as GUDI.

In summary, we conclude that the proposed PMR wells should be considered potentially GARP due to the possibility of pathogen presence from treated wastewater disposed of to-ground nearby. It is our understanding that disinfection of the groundwater sources is planned, which is consistent with Interior Health’s water treatment objectives for GARP sources.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 25 Panorama Phase 2 Groundwater Development 15-032-02

Table 7.1 Stage 1 GARP/GUDI screening table.

Stage 1 Screening Criteria PMR Wellfield Sources (15‐01, 15‐02 and WPN47784) Water Quality Water System or well bacteriological sampling shows recurring presence of confirmed total coliform, fecal No. Four samples collected from the three test wells have indicated excellent coliform or E.Coli. bacteriological quality. No. Turbidity testing completed during 72 hour pump tests on wells 15‐01 and 15‐02 indicate low turbidity levels typically less than 0.5 NTU. Turbidity measurements from Water system has historical turbidity associated with WPN47748 were made during freshet when nearby creek levels were at or near source water. seasonal turbidity peaks and were also considered low. Is groundwater more consistent with a secure groundwater source or more similar to nearby surface Groundwater quality is consistent with a true groundwater source. However, elevated water? Does water quality data indicate impacts from chloride and nitrate concentrations in the well water suggests some susceptibility to surface‐based sources? surface‐based impacts related to nearby effluent disposal to ground. Well Location

Well located inside the setback distances of the HHR from potential contamination sources? No.

Well Intake <15 m below ground and located in a No. The wells are not located in a flood prone area. The intake of the well is more than floodplain or flood prone area? 15 m below ground.

Well located < 100 m outside high water mark of nearby surface water with intake less than 15 m below high No. The well are located less than 100 m from Toby Creek, but the intake of the wells water level? are greater than 25 m below the high water level. Well Construction

Yes. The wells have a surface seal meeting the requirements of the B.C. Groundwater Does the well have surface seal? Protection Regulation. Does the well have an adequate wellhead seal? Yes. The wells have an adequate cap.

Is the well adequately flood‐proofed? Yes. The wells are adequately flood‐proofed.

Is the wellhead completion adequate to prohibit ponding near the well and water entering the well casing? Yes. The well head completions are adequate.

Aquifer Type and Setting

Is the well completed in an unconfined sand and gravel aquifer or fractured bedrock Aquifer with an intake less No. Based on reported lithology and static water level, the wells appear to be than 15 m below ground? completed in a semi‐confined aquifer system. Pumping test data does not indicate stabilizing water levels or a particularly strong connection to recharging surface water. However, freshening of water with prolonged Does well response to pumping indicate a strong pumping and complete recharge following pumping tests indicates some recharge connection to a nearby surface water recharge source? from freshwater sources. Is the well completed in a Karst bedrock aquifer? No. Comparison of static water levels in the upper shallow aquifer to that of the deeper confined aquifer suggests a downward hydraulic gradient, and water quality in the Other deep aquifer suggests impacts from nearby wastewater disposal to ground.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 26 Panorama Phase 2 Groundwater Development 15-032-02

8. PRELIMINARY WATER BUDGET ANALYSIS

Using the information available, we have completed a preliminary, high level water budget analysis for the aquifer considered for use at PMR. The following key information was used in our analysis:

Aquifer geometry. Figure A3 provides a conceptual cross section through the aquifer at PMR. The full extent and geometry of the aquifer is not known, particularly to the east of Toby Creek, but for the purposes of this analysis we assume an aquifer with a width of 350 m and an average thickness of 15 m. This results in an aquifer cross-sectional area of 5,250 m2.

Aquifer Properties. Aquifer transmissivity was consistently calculated to be in the range 400 m2/day based on drawdown data in observation wells during pumping tests. Assuming an average aquifer thickness of 15 m, a hydraulic conductivity value of 26.7 m/day is calculated. Aquifer hydraulic gradient is also not well constrained as the only wells completed in the aquifer are all oriented more or less perpendicular to the direction of groundwater flow. Aquifer hydraulic gradient was therefore estimated based on the average slope of the Toby Creek valley for a distance 2 km upstream and downstream of the well site (i = 0.013).

Using the above noted parameters, a form of Darcy’s Law can be applied to estimate ambient aquifer discharge:

Equation 2: Q = k x i x A

Where: Q = aquifer discharge in m3/day K = hydraulic conductivity in m/day i = aquifer slope (dimensionless) A = Aquifer cross-sectional area in m2

Q = (27.6 m/day) x (0.013) x (5,250 m2) = 1,884 m3/day or 21.8 L/s or 346 US gpm

The results of the preliminary water budget suggest that ambient aquifer discharge is more than three times the peak month ADD calculated for the resort of 7.0 L/s. We caution that this preliminary water balance is intended to provide an order of magnitude comparison of aquifer discharge and anticipated water use. The water balance represents an estimation of natural groundwater discharge in the absence of pumping, and does not account for pumping induced recharge into the aquifer, which is inferred to occur based on the results of the testing program.

If we assume that with extended pumping the aquifer takes complete recharge from the creek in winter, a high level comparison of groundwater withdrawal compared to Toby Creek flow can be made. Consider the following key parameters which address the worst case scenario of low creek flows, high domestic water demand and Toby Creek use for snow making, all of which occur in the winter:

 1 in 10 year low flows in Toby Creek at PMR are estimated to be 1.3 m3/s or 112,320 m3/day (MOE 1985);  Panorama snow making licenses are for a combined 1,335 m3/day;

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 27 Panorama Phase 2 Groundwater Development 15-032-02

 Actual average peak month ADD based on consumption data from 2010-2015 is 497 m3/day (note that peak month demand for 2010 to 2015 actually occurred in the summer, but is being used for the purposes of this high level comparison).  Based on a review of 2010-2015 WWTP flow data (which essentially returns water to the Toby Creek system via ground discharge to an aquifer that discharges to Toby Creek), an average of 69% of domestic water consumption is returned via the WWTP. This is equivalent to a return to Toby Creek of 343 m3/day.

If the above values are summed, the combined domestic groundwater use and snow making withdrawal from Toby Creek less flow returned by the WWTP equates to 1.3% of the 1 in 10 year Toby Creek low flow.

9. CONCLUSIONS

C1 The Phase 2 Groundwater Development Program at PMR was successful in constructing two new, high capacity groundwater sources suitable for the resort water supply. Two new 250 mm (10 inch) diameter production test wells have been completed for possible connection to the PMR

water supply system. The wells were drilled using a dual rotary rig and developed using a combination of air and cable tool surging. Construction details and as-built diagrams are provided in this report.

C2 Sustainable well yields have been calculated for both wells using the CPCN methodology. Sustainable yields calculated for well 15-01 and 15-02, if operated independently are 15.3 L/s (243 US gpm) and 17.8 US gpm (283 L/s), respectively. Operated together, and factoring in well interference effects, it is our opinion that the two wells can be operated together and sustainably provide in excess of 25.2 L/s (400 US gpm). It is our opinion that with additional development the sustainable yield from well 15-01 could be significantly increased, to the point where a sustainable yield in excess of 25.2 L/s (400 US gpm) or more would be possible from well 15-01 alone.

C3 Water quality of both wells was assessed and found to be of good quality. All health-based and aesthetic objective Guidelines for Canadian Drinking Water Quality are met by the raw groundwater in both wells. Bacteriologically, water quality is good. The wells produce water with low turbidity and common aesthetic constituents of groundwater supplies such as iron and

manganese are present at low concentrations.

C4 An updated GARP/GUDI screening was completed for Phase 2 and confirms our original conclusion that the well sources should be considered potentially GARP due to a possible pathogen risk associated with the nearby disposal of wastewater to ground. As such Interior Health requirements for two barriers of treatment for GARP sources are likely applicable, and we understand that primary disinfection with chlorine and UV disinfection are being planned for.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca |

February 2016 28 Panorama Phase 2 Groundwater Development 15-032-02

C5 Our conceptual model for the aquifer at that the site is that the aquifer is semi-confined and receives the majority of its recharge via infiltration of Toby Creek water through the semi- confining layer above the aquifer. Analysis of pumping test data indicate an aquifer transmissivity on the order of 400 m2/day. Monitoring of water level recovery following the pumping test program indicates that full recovery occurs following the cessation of pumping.

C6 A preliminary aquifer budget analysis suggest that ambient aquifer discharge is on the order of 22 L/s. This is approximately 3 times the peak month Average Day Demand at the PMR of 7.0 L/s. This preliminary aquifer budget does not account for pumping induced recharge into the aquifer, which is inferred to occur based on the results of the testing program.

10. RECOMMENDATIONS R1 We recommend that further development be completed on well 15-01 so that the individual yield of that well can be increased. The well should be developed with the use of a cable tool with simultaneous surging and pumping to remove suspended sediment for approximately 36 hours. Following this supplementary development of the well should be subjected to additional test pumping to confirm its long term well capacity per the CPCN guidelines.

R2 We suggest that a typical operating rate for well 15-02 of up to 22 L/s (350 US gpm) is appropriate. Assuming no further well development, a typical operating rate of no more than 15.8 L/s (250 US gpm) is recommended for well 15-01. Should additional development be completed, we will provide updated operational recommendations in a technical memo.

R3 In terms of normal water system operation, we recommend that typical operation see each well operated individually on an alternating basis. Permanent pumps should be installed so that the base of the submersible pump motor is located 0.3 m above the top of the well screen. Well completions should include two, 50 mm diameter sounding tubes installed to the depth of the top of the submersible pump. One tube can house a submersible water level transducer, and the other can be retained for future manual water level measurements. The pump control building should be equipped with a digital display that reads water levels in each well, and combined with flow rate data, can be used to assess ongoing well performance.

R4 Operating water levels in Wells 15-01 and 15-02 should be monitored closely for the first few months of operation to ensure the recommended operating parameters are appropriate. Strongly consider having a hydrogeologist from WWAL review operational data collected during the first few months of operation.

R5 Consideration should be given to installing a monitoring well in the same aquifer as the production wells between the well field and the Panorama wastewater disposal field and monitored for influence from future pumping. The well will provide for better characterization of aquifer parameters and can serve as a sentry well between the WWTP and well field should it be needed in the future. WPN47784 should be retained for use as a monitoring well for at least the near term.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 29 Panorama Phase 2 Groundwater Development 15-032-02

R6 Interior Health will require ongoing water quality monitoring in compliance with the water system operating permit. In addition to routine distribution system bacteriological sampling, sampling should include periodic bacteriological and chemical samples directly from the well heads. We recommend this be completed quarterly during the first year of well field operation, and the frequency of sampling be reassessed following a review of year one results.

R7 Virtually all water wells including high capacity production wells require maintenance to help ensure long term productivity, and routine maintenance should be budgeted for in water system operating budgets. Monitoring of well performance over the first couple of years of operation will provide more direction as to the frequency of redevelopment that may be required. A good rule of thumb for production wells like those at PMR is to plan for redevelopment works every 5 years. Cable tool development has proved to be effective at the site.

R8 Work with IH and a hydrogeologist to develop the terms of reference for a source protection strategy for the wells and the local aquifer. Include in this strategy an assessment of Modules 1, 2, 7 and 8 of the Ministry of Health’s Source to Tap Guidelines.

R9 Protect well heads and pump houses from potential vandalism by providing secure areas that are accessible only to authorized personnel, with appropriate signage.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca | February 2016 30 Panorama Phase 2 Groundwater Development 15-032-02

REFERENCES Allen, D., A. Badry, B. Ingimundson, G. Wendling, B. Worobets, and N. Morrison. 1999. Evaluating long-term well capacity for a Certificate of Public Convenience and Necessity. Water Management Branch, B.C. Ministry of Environment, Land and Parks. Victoria.

Bel-MK Engineering Ltd. 2001a. Enhanced Ground Disposal System Evaluation, Panorama Wastewater Treatment Plant, Panorama Mountain Village, Panorama, B.C. Prepared for Toby Creek Utilities Ltd., February 2001.

Bel-MK Engineering Ltd. 2001b. Letter Report: Panorama Mountain Resort – Additional Investigations for Back-up Ground Disposal Siting. May 30, 2001.

Bel-MK Engineering Ltd. 2001c. Letter Report: Panorama Mountain Resort – Siting for Proposed Back-up Tile Field. July 13, 2001.

Cooper, H.H. and C.E. Jacob, 1946. A generalized graphical method for evaluating formation constants and summarizing well field history, Am. Geophys. Union Trans., vol. 27, pp. 526-534.

Driscolll, F. G, 1986. Groundwater and Wells Second Edition. Well Hydraulics. Johnson Filtration Systems pp. 249- 268

Health Canada 2012. Guidelines for Canadian Drinking Water Quality. http://www.hc-sc.gc.ca/ewh-semt/pubs/water-eau/sum_guide-res_recom/index-eng.php

Ministry of Forests, Lands and Natural Resource Operations (MFLNRO). 2015. Water Resources Atlas accessed on- line at: http://www.env.gov.bc.ca/wsd/data_searches/wrbc/

Ministry of Environment (MOE). 1985 Upper Columbia River: Toby Creek, Sinclair Creek the Columbia River from Toby Creek to Edgewater, and Spillimacheen River. Water Quality Assessment.

Ministry of Environment (MOE). 2007. Guide to Applying for A Certificate of Public Convenience and Necessity (CPCN).

Schofield, S.J., Bancroft, M.F., and Walker, J.F. 1926. Scanned geology map, Windermere Kootenay District, issued 1926 by the Geological Survey of Canada.

Western Water Associates Ltd. (WWAL) 2015. Panorama Mountain Resort Groundwater Development Program: Phase 1. August 2015.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca |

Western Water Associates Ltd. Standard Report Limitations

1. This Document has been prepared for the particular purpose outlined in the work scope that has been mutually agreed to with the Client. 2. The scope and the period of service provided by Western Water Associates Ltd are subject to restrictions and limitations outlined in subsequent numbered limitations. 3. A complete assessment of all possible conditions or circumstances that may exist at the Site or within the Study Area referenced, has not been undertaken. Therefore, if a service is not expressly indicated, it has not been provided and if a matter is not addressed, no determination has been made by Western Water Associates Ltd. in regards to it. 4. Conditions may exist which were undetectable given the limited nature of the enquiry that Western Water Associates Ltd. was retained to undertake with respect to the assignment. Variations in conditions may occur between investigatory locations, and there may be special conditions pertaining to the Site, or Study Area, which have not been revealed by the investigation and which have not therefore been taken into account in the Document. Accordingly, additional studies and actions may be required. 5. In addition, it is recognised that the passage of time affects the information and assessment provided in this Document. Western Water Associates Ltd’s opinions are based upon information that existed at the time of the production of the Document. It is understood that the Services provided allowed Western Water Associates Ltd to form no more than an opinion of the actual conditions of the Site, or Study Area, at the time the site was visited and cannot be used to assess the effect of any subsequent changes in the quality of the Site, or Study Area, nor the surroundings, or any laws or regulations. 6. Any assessments made in this Document are based on the conditions indicated from published sources and the investigation described. No warranty is included, either expressed or implied, that the actual conditions will conform exactly to the assessments contained in this Document. 7. Where data supplied by the Client or other external sources, including previous site investigation data, have been used, it has been assumed that the information is correct unless otherwise stated. 8. No responsibility is accepted by Western Water Associates Ltd for incomplete or inaccurate data supplied by others. 9. The Client acknowledges that Western Water Associates Ltd may have retained sub-consultants affiliated to provide Services. Western Water Associates Ltd will be fully responsible to the Client for the Services and work done by all of its sub-consultants and subcontractors. The Client agrees that it will only assert claims against and seek to recover losses, damages or other liabilities from Western Water Associates Ltd. 10. This Document is provided for sole use by the Client and is confidential to it and its professional advisers. No responsibility whatsoever for the contents of this Document will be accepted to any person other than the Client. Any use which a third party makes of this Document, or any reliance on or decisions to be made based on it, is the responsibility of such third parties. Western Water Associates Ltd. accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this Document.

| #106 – 5145 26th Street, Vernon, BC, Canada, V1T 8G4 | P:1.250.541.1030 | www.westernwater.ca |

Appendix A Figures

WWAL Project 15-032-02 Panorama Mountain Resort Groundwater Development Program: Phase 2 February 2016 1

S Road ! p reek E r in y C British ! g b s To Columbia C re Well Field ek ! ! Site

S ! p r in g s C ! Alberta re 0 ek 0 Panorama, BC. Corix Ro 7 ad WPN42071 T 0 1

0 a Subject Site ! ! 9 A y 0 0 WWTP Site ! 1 WPN42070 0 0 ! A ! @ n 8 ? 6 ! WPN47784 1 1 t ! o 0 ! n ! 0 ! ! 5 ! C ! 1 ! ! ! ! ide r !! s e ! ! !! ! k t ! !!! ! ! ! ! !! ! e n e ! ! 0 U.S.A. e e 0 r sc k ! 4 C re 1 WPN47783 C !! ?@ ive Tra

00 r pp y

3 D ers Wa 1 e

e a c v a

ri m D ra Pl o

a n 1 a

a 4 m

P 0 a Dr m 1 t 0 r i iv ek m e a 3 re o r C 0

y n m ob o 0 T u n a a 0 S P 20 P 1 N o !% n e Panorama A! WTN99590 Mountain

Village C o x

k C e r e e e v i r r e C D k d f l a l o o u R f k w ee y e r e C r p y G b o o T C H

G s

r id o e v e

C le t M a w r ie w rV a e t ew er Br C r ee k 0 0 2 1

Ho pe ful Greywolf Cr eek Golf Course

1900 WPN = Well Plate Number WTN = Well Tag Number 1 1

0 7 8

1 0 0 4 0 0 0 00 0 0 0 0 (database ID) 0 2 0 4 0

5 6 1 1

LEGEND Data Sources and Disclaimers ! A WTN Figure A1: Location Map Date: Feb 15 2016 Map Created By: Geo Earth Mapping ?@ WPN Map Reviewed By: R.R. Groundwater Feasiblity Study Project #: 15-032-02 A! TW File: 15-032-02-FigA1.mxd Coordinate System: NAD 83 UTM Zone 11N Controlled Recreation Area Panorama, BC !% Ski Village Private Lands Source data provided by DataBC and Geogratis. Golf Course 0.20.1 0 0.2 0.4 0.6 0.8 1 The data used in these maps does not originate Lakes and Rivers from legally recorded surveys. It is part of a GIS database system which may contain errors and/ Creeks and Streams Kilometers or omissions and is subject to change, therefore accuracy cannot be quaranteed. Elevation Contours (100m) A' hedata used in these maps does not originate from legally recorded surveys. Itis part ofa GIS databasesystem which maycontain errors and/ or omissions and is subject to change, therefore accuracy cannot be quaranteed. Source data providedby DataBC andGeogratis. T Date:February2016 12 EarthCreatedMap Geo By: Mapping ReviewedMap R.R. By: #: Project 15-032-02 15-032-02-FigA2.mxdFile: 83Coordinate NAD Zone UTM System: 11N Data Sources Data and Disclaimers

Metres

0 5 7

13 1

1 1 5 6

ellLocations and 1

Nearby Features 1 12.5 0 W

30 6

1 1 25 0 25 50 75 100 1 1

5 TPW15-01 (WPN42070) ! ?

1 5 5

Figure A2: TestProduction 1 3

1 1

e 1

n 0

i 5 t

3 1

L e

c 3

1 s 1

e 1

l 1 t

i n

WPN47784 (2014test well) e

f d

c s

o s

! ? e r r

C C

Water body Water Private Lands Parking Area Field Tile Exitingstructures Newstructures P Housing

d Employee Panorama

a d

5 i o

2 s R k

1 e

k 1 e

r 0

! ? C

3 TPW15-02 (WPN42071) C

1 ! ?

y 1 b o

T 5

LEGEND 3 11

0 Fence Elev. Contours (5m)Elev. Bridge Shore Elevations or Production Wells Test WWTPMWs Pts.of Diversion 4

11 5 ! ( ! ! ? ! ?

A 4 0 [

1126.995 1

! ? 1

1 1

Parking 5

MW1

! (

5 1

0 [ 1

6 [

1 [

5 [ [ 6

1 [

k 1

MW2 (deep) [

e ! (

[ e

MW8 [ r

! ( [

0 0 MW6 MW2

! (

7 4

[

1 1 (shallow) Parking

T 1128.61 ! ?

d a o MW3 R ! ( k e e r Fire Hall

C MW5 s ! (

g C118016 in r C128914

p ! ( ! WWTP Bldg.WWTP A

S MW7 A

5 4

1129.392 1

! ? C066007 1 Area (Approx.)

1140 WWTPTile Field

1 1 1

MW4

! (

1 1

1 3 1

7 1 1

1 1

7 1 1

1 1

0 1

1 2

E 1 1

2 1 A A’ 1190 1190

1180 1180

1170 Toby Creek Road 1170

1160 1160

MW8 Poorly sorted clay/silt/sand with gravel to boulders 1150 1150 Toby Creek 15-02 (WPN42071) 1140 TW1 1140 (WPN47784) 15-01 (WPN42070)

1130 Poorly sorted clay/silt/sand 1130 with gravel. Layers of predominantly silt and clay. ?

Elevation (m asl) (m Elevation 1120 1120

1110 1110

1000 1000

0 50m 100m Regolith Aquifer, sand and gravel 990 (broken bedrock) 990

980 Bedrock 980

970 970

Figure A3 - Cross-section through Aquifer at Panorama Mountain Resort

Date: January 2016 Cross-Section Trace from Figure A2 WWAL Project: 15-032-02

Drawn by: RR Checked by: DG Client: Haworth / Corix

Appendix B Well Driller’s Logs

WWAL Project 15-032-02 Panorama Mountain Resort Groundwater Development Program: Phase 2 February 2016

Appendix C Well Completion Schematics

WWAL Project 15-032-02 Panorama Mountain Resort Groundwater Development Program: Phase 2 February 2016 Well Plate Number:47020 Drilling Method: Dual-rotary Development method: Air Lifting Driller: JR Drilling Ltd. Casing Diameter: 250 mm / 10 inch Informal Well Name: 15-01 Construction Date: November 2015 Screen Diameter: 10-inch TS

All measurement from below ground Casing extends approximately 3 ft above grade. Generalized Lithology

10 Sand and gravel, with boulders

20 ft

60 Poorly sorted brown CLAY to GRAVEL

250 mm diameter steel well casing (10 Inch)

Depth (feet below grade)

95 ft

100

110

Casing to 121 ft “K”-packer ~118 ft Sand and gravel 0 slot 120 2 ft of 0 slot +1ft solid riser

121 ft 100 slot 130

136 ft

140 bottom of screen 138 ft 140 ft 0 slot Broken bedrock

150

Figure 1: Panorama 15-01 Completion and Lithology

Date: Nov 17, 2015 Project: 15-032-02 Drawn by: WG Checked by: RR Well Plate Number: 47071 Drilling Method: Dual-rotary Development method: Cable tool Driller: JR Drilling Ltd. Casing Diameter: 250 mm / 10 inch Informal Well Name:15-02 Construction Date: November 2015 Screen Diameter: 10-inch TS

All measurement from below ground Casing extends approximately 2.6 ft above grade. Generalized Lithology

10 Brown silty sand and gravel with boulders

20 20 ft

Poorly sorted brown clay to gravel

250 mm diameter steel 80 well casing (10 Inch)

~85 ft

Depth (feet below grade) Casing bottom 90 at 92 ft “K”-packer 89.5 ft 0 slot 2 ft of 0 slot at the top top of screen 92.5 ft 100 slot 100 Coarse sand and gravel 104.5 ft

0 slot bottom of screen 106.5 ft

110 110 ft Cemented grey SAND (low production) Note: Regolith not encountered during drilling but assumedproximal

120

130

140

Figure 1: Panorama 15-02 Completion and Lithology

Date: Nov 17, 2015 Project: 15-032-02 Drawn by: WG Checked by: RR

Appendix D Pumping Test Data and Grpahs

WWAL Project 15-032-02 Panorama Mountain Resort Groundwater Development Program: Phase 2 February 2016 Project No: 15-032-02, Table D1 - Panorama 15-01 (WPN42070) Constant Rate Test, November 09-12, 2015.

Well depth = 41.8 m Well diameter = 10 in Measurement method = Flow meter Pump Depth = 34 m

Project No: 15-032-02 Date: January 2015 0

Static Water Level 9.66 m (31.7 ft)

10 Step 1: 150 USgpm Q/s 7.84 US gpm/ft

20 Step 1: 250 USgpm Q/s 4.78 US gpm/ft

Step 1: 300 USgpm Q/s 4.16 US gpm/ft

Depth to water (m)water to Depth 30

Pump Intake 34 m (111.5 ft)

50 0 20 40 60 80 100 120 140

Elapsed Time [minutes]

Panorama 15-01 TITLE WPN42070 Figure D1 - Variable Rate Step Test Hydrograph

DRAWN JOB NO. WG TEST DATE Dec 9, 2015 15-32-02 CHECKED RR SCALE na DWG. NO. na REVIEWED DRAWING DATE Jan, 2016 FIGURE NO. Project No: 15-032-02, Table D2 - Panorama 15-01 (WPN42070) Constant Rate Test, November 09-12, 2015.

Well depth = 41.8 m Well diameter = 10 in Measurement method = Flow meter Pump Depth = 34 m

Time since Specific Capacity Water level Water level Pumping pump Water level Drawdown Drawdown Pumping Rate Comments Real Time measurement measurement Rate started, t changes (m) (ft) (m) (l/s) (btoc) (m) (btoc) (ft) (USgpm) (minutes) L/s/m Usgpm/ft STATIC 15:00 0.00 9.66 31.78 -- 0.00 0.00 0.00 0 -- -- 1 17.01 55.95 7.35 24.11 7.35 15.75 250 2.143 10.367 2 18.78 61.78 1.77 29.92 9.12 15.75 250 1.727 8.355 3 19.65 64.64 0.87 32.78 9.99 15.75 250 1.577 7.628 4 20.11 66.15 0.46 34.28 10.45 15.75 250 1.507 7.292 6 20.70 68.09 0.59 36.22 11.04 15.75 250 1.427 6.902 7 21.18 69.67 0.48 37.80 11.52 15.75 250 1.367 6.615 8 21.55 70.89 0.37 39.01 11.89 15.75 250 1.325 6.409 9 22.18 72.96 0.63 41.08 12.52 15.75 250 1.258 6.086 10 22.47 73.91 0.29 42.03 12.81 15.75 250 1.230 5.948 12 22.87 75.23 0.40 43.34 13.21 15.75 250 1.192 5.768 14 23.10 75.99 0.23 44.09 13.44 15.75 250 1.172 5.670 16 23.21 76.35 0.11 44.46 13.55 15.75 250 1.162 5.624 18 23.35 76.81 0.14 44.91 13.69 15.75 250 1.150 5.566 20 23.48 77.24 0.13 45.34 13.82 15.75 250 1.140 5.514 25 23.72 78.03 0.24 46.13 14.06 15.75 250 1.120 5.420 30 24.06 79.14 0.34 47.24 14.40 15.75 250 1.094 5.292 35 24.07 79.18 0.01 47.28 14.41 15.75 250 1.093 5.288 40 24.11 79.31 0.04 47.41 14.45 15.75 250 1.090 5.273 50 24.41 80.30 0.30 48.39 14.75 15.75 250 1.068 5.166 60 24.50 80.59 0.09 48.69 14.84 15.75 250 1.061 5.135 70 24.63 81.02 0.13 49.11 14.97 15.75 250 1.052 5.090 80 24.67 81.15 0.04 49.25 15.01 15.75 250 1.049 5.077 90 24.70 81.25 0.03 49.34 15.04 15.75 250 1.047 5.066 100 24.72 81.32 0.02 49.41 15.06 15.75 250 1.046 5.060 110 24.76 81.45 0.04 49.54 15.10 15.75 250 1.043 5.046 120 24.77 81.48 0.01 49.57 15.11 15.75 250 1.042 5.043 140 24.86 81.78 0.09 49.87 15.20 15.75 250 1.036 5.013 160 25.27 83.13 0.41 51.21 15.61 15.75 250 1.009 4.881 180 25.30 83.22 0.03 51.31 15.64 15.75 250 1.007 4.872 210 25.31 83.24 0.00 51.33 15.65 15.75 250 1.007 4.871 240 25.32 83.29 0.02 51.38 15.66 15.75 250 1.006 4.866 270 25.38 83.49 0.06 51.57 15.72 15.75 250 1.002 4.847 300 25.41 83.59 0.03 51.67 15.75 15.75 250 1.000 4.838 330 25.48 83.82 0.07 51.90 15.82 15.75 250 0.996 4.817 360 25.51 83.91 0.03 52.00 15.85 15.75 250 0.994 4.808 420 25.56 84.08 0.05 52.17 15.90 15.75 250 0.991 4.792 480 25.61 84.24 0.05 52.33 15.95 15.75 250 0.987 4.777 540 25.63 84.31 0.02 52.40 15.97 15.75 250 0.986 4.771 600 25.83 84.97 0.20 53.05 16.17 15.75 250 0.974 4.712 660 25.93 85.30 0.10 53.38 16.27 15.75 250 0.968 4.683 720 25.97 85.43 0.04 53.51 16.31 15.75 250 0.966 4.672 780 26.08 85.79 0.11 53.87 16.42 15.75 250 0.959 4.641 840 26.14 85.99 0.06 54.07 16.48 15.75 250 0.956 4.624 900 26.18 86.12 0.04 54.20 16.52 15.75 250 0.953 4.613 960 26.19 86.15 0.01 54.23 16.53 15.75 250 0.953 4.610 1020 26.21 86.22 0.02 54.30 16.55 15.75 250 0.952 4.604 1080 26.235 86.30 0.02 54.38 16.575 15.75 250 0.950 4.597 1140 26.26 86.38 0.03 54.46 16.6 15.75 250 0.949 4.590 1200 26.28 86.45 0.02 54.53 16.62 15.75 250 0.948 4.585 1260 26.3 86.51 0.02 54.59 16.64 15.75 250 0.947 4.579 1320 26.31 86.55 0.01 54.63 16.65 15.75 250 0.946 4.577 1380 26.355 86.69 0.05 54.77 16.695 15.75 250 0.943 4.564 1440 26.375 86.76 0.02 54.84 16.715 15.75 250 0.942 4.559 1500 26.38 86.78 0.00 54.86 16.72 15.75 250 0.942 4.557 1560 26.40 86.84 0.02 54.92 16.74 15.75 250 0.941 4.552 1620 26.42 86.89 0.02 54.97 16.76 15.75 250 0.940 4.548 1680 26.43 86.94 0.02 55.02 16.77 15.75 250 0.939 4.544 1740 26.43 86.94 0.00 55.02 16.77 15.75 250 0.939 4.544 1800 26.43 86.94 0.00 55.02 16.77 15.75 250 0.939 4.544 1860 26.43 86.94 0.00 55.02 16.77 15.75 250 0.939 4.544 1920 26.43 86.94 0.00 55.02 16.77 15.75 250 0.939 4.544 1980 26.43 86.94 0.00 55.02 16.77 15.75 250 0.939 4.544 2040 26.48 87.11 0.05 55.18 16.82 15.75 250 0.936 4.530 2100 26.48 87.11 0.00 55.18 16.82 15.75 250 0.936 4.530 2160 26.48 87.11 0.00 55.18 16.82 15.75 250 0.936 4.530 2220 26.51 87.20 0.03 55.28 16.85 15.75 250 0.935 4.522 2280 26.51 87.20 0.00 55.28 16.85 15.75 250 0.935 4.522 2340 26.51 87.20 0.00 55.28 16.85 15.75 250 0.935 4.522 2400 26.52 87.24 0.01 55.31 16.86 15.75 250 0.934 4.520 2460 26.53 87.27 0.01 55.35 16.87 15.75 250 0.934 4.517 2520 26.54 87.30 0.01 55.38 16.88 15.75 250 0.933 4.514 2580 26.58 87.43 0.04 55.51 16.92 15.75 250 0.931 4.504 2640 26.60 87.48 0.02 55.56 16.94 15.75 250 0.930 4.50 2700 26.60 87.48 0.00 55.56 16.94 15.75 250 0.930 4.50 2760 26.61 87.53 0.02 55.61 16.95 15.75 250 0.929 4.50 2820 26.64 87.63 0.03 55.71 16.98 15.75 250 0.928 4.49 2880 26.65 87.66 0.01 55.74 16.99 15.75 250 0.927 4.48 2940 26.67 87.71 0.02 55.79 17.01 15.75 250 0.926 4.48 3000 26.69 87.78 0.02 55.86 17.03 15.75 250 0.925 4.48 3060 26.69 87.78 0.00 55.86 17.03 15.75 250 0.925 4.48 3120 26.71 87.86 0.03 55.94 17.05 15.75 250 0.924 4.47 3180 26.72 87.89 0.01 55.97 17.06 15.75 250 0.923 4.47 3240 26.72 87.89 0.00 55.97 17.06 15.75 250 0.923 4.47 3300 26.73 87.93 0.01 56.00 17.07 15.75 250 0.923 4.46 3360 26.74 87.96 0.01 56.04 17.08 15.75 250 0.922 4.46 3420 26.73 87.93 -0.01 56.00 17.07 15.75 250 0.923 4.46 3480 26.74 87.96 0.01 56.04 17.08 15.75 250 0.922 4.46 3540 26.74 87.96 0.00 56.04 17.08 15.75 250 0.922 4.46 3600 26.74 87.96 0.00 56.04 17.08 15.75 250 0.922 4.46 3660 26.74 87.96 0.00 56.04 17.08 15.75 250 0.922 4.46 3720 26.75 87.99 0.01 56.07 17.09 15.75 250 0.922 4.46 3780 26.75 87.99 0.00 56.07 17.09 15.75 250 0.922 4.46 3840 26.76 88.01 0.00 56.09 17.10 15.75 250 0.921 4.46 3900 26.76 88.01 0.00 56.09 17.10 15.75 250 0.921 4.46 3960 26.76 88.01 0.00 56.09 17.10 15.75 250 0.921 4.46 4020 26.76 88.01 0.00 56.09 17.10 15.75 250 0.921 4.46 4080 26.82 88.21 0.06 56.28 17.16 15.75 250 0.918 4.44 4140 26.83 88.24 0.01 56.32 17.17 15.75 250 0.918 4.44 4200 26.84 88.27 0.01 56.35 17.18 15.75 250 0.917 4.44 4260 26.84 88.29 0.00 56.36 17.18 15.75 250 0.917 4.44 4320 26.86 88.34 0.02 56.41 17.20 15.75 250 0.916 4.43 Recovery 4321 15.7 51.64 -11.16 19.82 6.04 0.00 0 0.000 0 4322 13.32 43.82 -2.38 12.01 3.66 0.00 0 0.000 0 4323 12.22 40.20 -1.10 8.40 2.56 0.00 0 0.000 0 4324 12.19 40.10 -0.03 8.30 2.53 0.00 0 0.000 0 4325 12.1 39.80 -0.09 8.01 2.44 0.00 0 0.000 0 4326 12.03 39.57 -0.07 7.78 2.37 0.00 0 0.000 0 4327 11.985 39.42 -0.04 7.63 2.325 0.00 0 0.000 0 4328 11.97 39.38 -0.01 7.58 2.31 0.00 0 0.000 0 4329 11.905 39.16 -0.07 7.37 2.245 0.00 0 0.000 0 4330 11.88 39.08 -0.02 7.28 2.22 0.00 0 0.000 0 4332 11.84 38.95 -0.04 7.15 2.18 0.00 0 0.000 0 4334 11.815 38.87 -0.03 7.07 2.155 0.00 0 0.000 0 4336 11.785 38.77 -0.03 6.97 2.125 0.00 0 0.000 0 4338 11.76 38.68 -0.03 6.89 2.1 0.00 0 0.000 0 4340 11.75 38.65 -0.01 6.86 2.09 0.00 0 0.000 0 4345 11.71 38.52 -0.04 6.73 2.05 0.00 0 0.000 0 4350 11.705 38.50 -0.01 6.71 2.045 0.00 0 0.000 0 4355 11.64 38.29 -0.06 6.50 1.98 0.00 0 0.000 0 4360 11.63 38.26 -0.01 6.46 1.97 0.00 0 0.000 0 4365 11.6 38.16 -0.03 6.36 1.94 0.00 0 0.000 0 4370 11.57 38.06 -0.03 6.27 1.91 0.00 0 0.000 0 4375 11.55 37.99 -0.02 6.20 1.89 0.00 0 0.000 0 4380 11.53 37.93 -0.02 6.14 1.87 0.00 0 0.000 0

Project No: 15-032-02 Date: January 2015 ‐5.00

0.00

5.00 Removal of test pump

TW15‐02 10.00 Well47784 WWTP MW1

level) 15‐01 transducer

test 15.00

(m) TW15‐01 manual

step ‐ pre

from 20.00 End of drawdown test Drawdown

(drawdown 25.00

top of screen assembly at 25.8 (drawdown equivalent)

30.00 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000

Elapsed Time [minutes]

Panorama TW15‐01 TITLE WPN42070 Figure D2 ‐ Constant Rate Test Hydrograph, 15.8 L/s (250 US gpm)

DRAWN WG DATE Dec 9-12, 2015JOB NO. 15-032-02 CHECKED RR SCALE na DWG. NO. na REVIEWED FILE NO. FIGURE NO. 0.00

100 days 10.00 Static Water Levell 9.66m (31.7 ft)

20.00

30.00 Sustainable Yield Calculation - 250 US gpm Parameters (ft btoc) Static water level = 9.66 m (31.7 ft) Total well depth = 42.1 m (138 ft); Top of screen assembly = 36 m (118 ft) Suggested pump intake depth = 35.7 m (117 ft) Suggested Pump Intake = 35.7 m

Depth to Water (m btoc) Water to Depth Available drawdown = 35.7 - 9.66 = 26.0 m (85.4 ft) 40.00 100-day drawdown projection = 18.8 m (61.8 ft) Q = 0.7 x available drawdown x (pumping rate/ 100 -day drawdown) Q = 0.7 x 26 m x (250 / 18.8) Q = 242 USgpm

50.00 1 10 100 1,000 10,000 100,000 1,000,000

Elapsed Time [minutes]

Panorama 15-01 TITLE Figure D3 - Semi Log Plot - 72 hour Constant Rate Pumping Test at 15.75 L/s (250 US gpm) WPN42070

DRAWN WG DATE Dec 9-12, 2015 JOB NO. 15-032-02 CHECKED RR SCALE na DWG. NO. na REVIEWED FILE NO. FIGURE NO. Project No: 15-32-02, Table D3 -Panorama Step Test, December 14, 2015.

Well depth = 32.3 m (106ft) Well diameter = 10 in Measurement method = Flow Meter Pump Depth = 85 ft

Time since Specific Capacity Water level Water level pump Water level Drawdown Drawdown Pumping Rate Pumping Rate Comments Real Time measurement measurement started, t changes (m) (ft) (m) (l/s) (USgpm) (btoc) (m) (btoc) (ft) (minutes) L/s/m Usgpm/ft STATIC 13:10 0.00 13.73 45.16 -- 0.00 0.00 0.00 0.00 -- -- 1 14.72 48.42 0.99 3.25 0.99 6.30 100 6.36 30.79 2 14.83 48.78 0.11 3.61 1.10 6.30 100 5.73 27.71 3 14.91 49.05 0.08 3.87 1.18 6.30 100 5.34 25.83 4 14.98 49.28 0.07 4.10 1.25 6.30 100 5.04 24.38 5 15.01 49.38 0.03 4.20 1.28 6.30 100 4.92 23.81 6 15.04 49.47 0.03 4.30 1.31 6.30 100 4.81 23.27 7 15.07 49.57 0.03 4.40 1.34 6.30 100 4.70 22.75 8 15.09 49.64 0.02 4.46 1.36 6.30 100 4.63 22.41 9 15.10 49.67 0.01 4.49 1.37 6.30 100 4.60 22.25 10 15.13 49.77 0.03 4.59 1.40 6.30 100 4.50 21.77 12 15.13 49.77 0.00 4.59 1.40 6.30 100 4.50 21.77 14 15.14 49.80 0.01 4.63 1.41 6.30 100 4.47 21.62 16 15.16 49.87 0.02 4.69 1.43 6.30 100 4.41 21.31 20 15.18 49.93 0.02 4.76 1.45 6.30 100 4.34 21.02 25 15.20 50.00 0.02 4.82 1.47 6.30 100 4.29 20.73 30 15.22 50.07 0.02 4.89 1.49 6.30 100 4.23 20.46 30.5 15.53 51.09 0.31 5.91 1.80 9.45 150 5.25 25.40 31 15.65 51.48 0.12 6.30 1.92 9.45 150 4.92 23.81 32 15.73 51.74 0.08 6.56 2.00 9.45 150 4.73 22.86 33 15.78 51.91 0.05 6.73 2.05 9.45 150 4.61 22.30 34 15.82 52.04 0.04 6.86 2.09 9.45 150 4.52 21.88 35 15.85 52.14 0.03 6.96 2.12 9.45 150 4.46 21.57 30 15.86 52.17 0.01 6.99 2.13 9.45 150 4.44 21.46 37 15.87 52.20 0.01 7.02 2.14 9.45 150 4.42 21.36 38 15.88 52.24 0.01 7.05 2.15 9.45 150 4.40 21.27 39 15.89 52.27 0.01 7.09 2.16 9.45 150 4.38 21.17 40 15.90 52.30 0.01 7.12 2.17 9.45 150 4.35 21.07 42 15.91 52.34 0.01 7.15 2.18 9.45 150 4.33 20.97 44 15.91 52.34 0.00 7.15 2.18 9.45 150 4.33 20.97 46 15.92 52.35 0.00 7.17 2.19 9.45 150 4.32 20.92 48 15.93 52.40 0.02 7.22 2.20 9.45 150 4.30 20.78 50 15.94 52.43 0.01 7.25 2.21 9.45 150 4.28 20.69 55 15.96 52.50 0.02 7.32 2.23 9.45 150 4.24 20.50 60 16.01 52.66 0.05 7.48 2.28 9.45 150 4.14 20.05 60.5 16.50 54.28 0.49 9.09 2.77 12.60 200 4.55 22.01 61 16.67 54.84 0.17 9.65 2.94 12.60 200 4.29 20.73 62 16.76 55.13 0.09 9.94 3.03 12.60 200 4.16 20.12 63 16.82 55.33 0.06 10.14 3.09 12.60 200 4.08 19.73 64 16.87 55.49 0.05 10.30 3.14 12.60 200 4.01 19.41 65 16.90 55.59 0.03 10.40 3.17 12.60 200 3.97 19.23 66 16.97 55.82 0.07 10.63 3.24 12.60 200 3.89 18.81 67 16.935 55.71 -0.04 10.52 3.205 12.60 200 3.93 19.02 68 16.96 55.79 0.03 10.60 3.23 12.60 200 3.90 18.87 69 16.97 55.82 0.01 10.63 3.24 12.60 200 3.89 18.81 70 16.975 55.84 0.01 10.65 3.245 12.60 200 3.88 18.79 72 16.99 55.89 0.01 10.70 3.26 12.60 200 3.87 18.70 74 17.01 55.95 0.02 10.76 3.28 12.60 200 3.84 18.59 76 17.02 55.99 0.01 10.79 3.29 12.60 200 3.83 18.53 78 17.04 56.05 0.02 10.86 3.31 12.60 200 3.81 18.42 80 17.04 56.05 0.00 10.86 3.31 12.60 200 3.81 18.42 85 17.06 56.12 0.02 10.93 3.33 12.60 200 3.78 18.31 91 17.63 57.99 0.57 12.80 3.9 15.75 250 4.04 19.54 92 17.75 58.39 0.12 13.19 4.02 15.75 250 3.92 18.96 93 17.825 58.63 0.07 13.44 4.095 15.75 250 3.85 18.61 94 17.88 58.82 0.05 13.62 4.15 15.75 250 3.80 18.36 95 17.90 58.88 0.02 13.68 4.17 15.75 250 3.78 18.27 96 17.93 58.98 0.03 13.78 4.20 15.75 250 3.75 18.14 97 17.96 59.06 0.02 13.86 4.23 15.75 250 3.73 18.04 98 17.97 59.11 0.02 13.91 4.24 15.75 250 3.71 17.97 99 17.98 59.14 0.01 13.94 4.25 15.75 250 3.71 17.93 100 17.99 59.18 0.01 13.98 4.26 15.75 250 3.70 17.89 102 18.01 59.23 0.02 14.03 4.28 15.75 250 3.68 17.82 104 18.04 59.33 0.03 14.12 4.31 15.75 250 3.66 17.70 106 18.05 59.36 0.01 14.16 4.32 15.75 250 3.65 17.66 108 18.06 59.41 0.01 14.21 4.33 15.75 250 3.64 17.60 110 18.07 59.44 0.01 14.24 4.34 15.75 250 3.63 17.56 115 18.10 59.54 0.03 14.34 4.37 15.75 250 3.60 17.44 120 18.13 59.64 0.03 14.44 4.40 15.75 250 3.58 17.32 120.5 18.65 61.35 0.52 16.14 4.92 18.90 300 3.84 18.59 121 18.76 61.71 0.11 16.50 5.03 18.90 300 3.76 18.18 122 18.88 62.11 0.12 16.90 5.15 18.90 300 3.67 17.76 123 18.92 62.24 0.04 17.03 5.19 18.90 300 3.64 17.62 1224 18.98 62.42 0.05 17.21 5.25 18.90 300 3.60 17.43 125 19.00 62.50 0.02 17.29 5.27 18.90 300 3.59 17.35 126 19.03 62.60 0.03 17.39 5.30 18.90 300 3.57 17.25 127 19.05 62.66 0.02 17.45 5.32 18.90 300 3.55 17.19 128 19.07 62.73 0.02 17.52 5.34 18.90 300 3.54 17.12 129 19.08 62.76 0.01 17.55 5.35 18.90 300 3.53 17.09 130 19.09 62.80 0.01 17.59 5.36 18.90 300 3.53 17.06 132 19.12 62.88 0.02 17.67 5.39 18.90 300 3.51 16.98 134 19.13 62.93 0.02 17.72 5.40 18.90 300 3.50 16.93 136 19.14 62.96 0.01 17.75 5.41 18.90 300 3.49 16.90 138 19.17 63.06 0.03 17.85 5.44 18.90 300 3.47 16.81 140 19.19 63.13 0.02 17.91 5.46 18.90 300 3.46 16.75 145 19.21 63.17 0.01 17.96 5.48 18.90 300 3.45 16.70 150 19.24 63.29 0.04 18.08 5.51 18.90 300 3.43 16.60 150.5 19.66 64.67 0.42 19.46 5.93 13.23 350 2.23 17.99 151 19.87 65.35 0.20 20.13 6.14 13.23 350 2.16 17.39 152 19.99 65.76 0.13 20.54 6.26 13.23 350 2.11 17.04 153 20.05 65.95 0.06 20.73 6.32 13.23 350 2.09 16.88 154 20.10 66.12 0.05 20.90 6.37 13.23 350 2.08 16.75 155 20.13 66.22 0.03 21.00 6.40 13.23 350 2.07 16.67 156 20.16 66.32 0.03 21.10 6.43 13.23 350 2.06 16.59 157 20.18 66.38 0.02 21.16 6.45 13.23 350 2.05 16.54 158 20.20 66.45 0.02 21.23 6.47 13.23 350 2.04 16.49 159 20.22 66.51 0.02 21.29 6.49 13.23 350 2.04 16.44 160 20.24 66.58 0.02 21.36 6.51 13.23 350 2.03 16.39 162 20.28 66.69 0.04 21.47 6.55 13.23 350 2.02 16.30 164 20.30 66.78 0.03 21.56 6.57 13.23 350 2.01 16.24 166 20.32 66.84 0.02 21.62 6.59 13.23 350 2.01 16.19 168 20.34 66.91 0.02 21.69 6.61 13.23 350 2.00 16.14 170 20.35 66.94 0.01 21.72 6.62 13.23 350 2.00 16.11 175 20.385 67.06 0.04 21.83 6.66 13.23 350 1.99 16.03 180 20.42 67.17 0.04 21.95 6.69 13.23 350 1.98 15.95 180.5 20.59 67.73 0.17 22.51 6.86 13.99 370 2.04 16.44 181 20.63 67.86 0.04 22.64 6.9 13.99 370 2.03 16.34 182 20.67 67.99 0.04 22.77 6.94 13.99 370 2.02 16.25 183 20.69 68.06 0.02 22.83 6.96 13.99 370 2.01 16.20 184 20.715 68.14 0.02 22.92 6.985 13.99 370 2.00 16.15 185 20.73 68.19 0.02 22.97 7 13.99 370 2.00 16.11 186 20.74 68.22 0.01 23.00 7.01 13.99 370 2.00 16.09 187 20.76 68.29 0.02 23.06 7.03 13.99 370 1.99 16.04 188 20.76 68.29 0.00 23.06 7.03 13.99 370 1.99 16.04 189 20.77 68.32 0.01 23.10 7.04 13.99 370 1.99 16.02 190 20.775 68.34 0.00 23.11 7.045 13.99 370 1.99 16.01 192 20.795 68.40 0.02 23.18 7.065 13.99 370 1.98 15.96 194 20.81 68.45 0.01 23.23 7.08 13.99 370 1.98 15.93 196 20.82 68.49 0.01 23.26 7.09 13.99 370 1.97 15.91 198 20.835 68.54 0.02 23.31 7.105 13.99 370 1.97 15.87 200 20.845 68.57 0.01 23.34 7.115 13.99 370 1.97 15.85 205 20.865 68.63 0.02 23.41 7.135 13.99 370 1.96 15.81 210 20.9 68.75 0.04 23.52 7.17 13.99 370 1.95 15.73

Project No: 15-032-2 Date: January 2016 0.00

5.00

10.00 Step 1: 100 USgpm Q/s 20.5 US gpm/ft Step 2: 150 USgpm Static Water Level 13.8 m (45.2 ft) Q/s 20.1 US gpm/ft Step 3: 200 USgpm 15.00 Q/s 18.3 US gpm/ft Step 4: 250 USgpm Pump shut off Q/s 17.3 US gpm/ft Step 5: 300 USgpm Q/s 16.6 US gpm/ft Depth to water (m)water to Depth Step 6: 350 USgpm Q/s 16.0 US gpm/ft 20.00

Step 7: 370 USgpm Q/s 15.8 US gpm/ft

25.00

Pump intake depth 26.6 m (87.3 ft)

30.00 0 50 100 150 200 250

Elapsed Time [minutes]

TITLE Panorama Well 15-02 Figure D4 - Variable Rate Step Test Hydrograph

DRAWN JOB NO. WG TEST DATE Dec 14, 2015 15-032-02 CHECKED RR SCALE na DWG. NO. na REVIEWED DRAWING DATE Jan, 2016 FIGURE NO. Project No: 15-32-02, Table D4 -Panorama Constant Rate Test, December 15-18, 2015.

Well depth = 32.3 m (106ft) Well diameter = 10 in Measurement method = Flow Meter Pump Depth = 85 ft

Time since Specific Capacity Water level Water level pump Water level Drawdown Drawdown Pumping Rate Pumping Rate Comments Real Time measurement measurement started, t changes (m) (ft) (m) (l/s) (USgpm) (btoc) (m) (btoc) (ft) (minutes) L/s/m Usgpm/ft STATIC 13:10 0.00 13.81 45.43 -- 0.00 0.00 0.00 0 -- -- 0.50 16.74 55.07 2.93 9.61 2.93 20.48 325 6.988 33.809 1 17.17 56.48 0.43 11.02 3.36 20.48 325 6.094 29.482 2 18.02 59.28 0.85 13.81 4.21 20.48 325 4.863 23.530 3 18.30 60.20 0.28 14.73 4.49 20.48 325 4.560 22.062 4 18.50 60.86 0.20 15.39 4.69 20.48 325 4.366 21.122 5 18.66 61.38 0.16 15.91 4.85 20.48 325 4.222 20.425 6 18.77 61.74 0.11 16.27 4.96 20.48 325 4.128 19.972 8 18.91 62.20 0.14 16.73 5.10 20.48 325 4.015 19.424 9 18.99 62.47 0.08 16.99 5.18 20.48 325 3.953 19.124 10 19.03 62.60 0.04 17.13 5.22 20.48 325 3.922 18.977 12 19.11 62.86 0.08 17.39 5.30 20.48 325 3.863 18.691 14 19.17 63.06 0.06 17.59 5.36 20.48 325 3.820 18.481 16 19.23 63.26 0.06 17.78 5.42 20.48 325 3.778 18.277 18 19.27 63.39 0.04 17.91 5.46 20.48 325 3.750 18.143 20 19.31 63.52 0.04 18.04 5.50 20.48 325 3.723 18.011 25 19.375 63.73 0.07 18.26 5.57 20.48 325 3.679 17.801 30 19.42 63.88 0.05 18.41 5.61 20.48 325 3.650 17.658 35 19.47 64.03 0.04 18.55 5.66 20.48 325 3.621 17.517 40 19.51 64.18 0.05 18.70 5.70 20.48 325 3.592 17.379 45 19.54 64.26 0.02 18.78 5.73 20.48 325 3.576 17.303 50 19.58 64.39 0.04 18.91 5.77 20.48 325 3.552 17.183 60 19.63 64.57 0.05 19.09 5.82 20.48 325 3.518 17.021 80 19.73 64.90 0.10 19.42 5.92 20.48 325 3.459 16.733 100 19.81 65.16 0.08 19.69 6.00 20.48 325 3.413 16.510 120 19.88 65.39 0.07 19.91 6.07 20.48 325 3.373 16.320 170 19.88 65.38 0.00 19.90 6.07 20.48 325 3.376 16.333 200 19.97 65.69 0.09 20.21 6.16 20.48 325 3.324 16.081 260 20.04 65.92 0.07 20.44 6.23 20.48 325 3.287 15.900 320 20.16 66.30 0.12 20.82 6.35 20.48 325 3.227 15.612 380 20.31 66.79 0.15 21.31 6.50 20.48 325 3.152 15.252 440 20.40 67.11 0.09 21.62 6.59 20.48 325 3.107 15.032 500 20.51 67.45 0.11 21.97 6.70 20.48 325 3.058 14.796 560 20.58 67.70 0.07 22.21 6.77 20.48 325 3.024 14.632 620 20.66 67.96 0.08 22.47 6.85 20.48 325 2.989 14.461 680 20.70 68.09 0.04 22.60 6.89 20.48 325 2.972 14.377 740 20.54 67.57 -0.16 22.08 6.73 20.48 325 3.042 14.719 800 20.80 68.42 0.26 22.93 6.99 20.48 325 2.929 14.172 860 20.83 68.52 0.03 23.03 7.02 20.48 325 2.917 14.111 920 20.88 68.68 0.05 23.20 7.07 20.48 325 2.896 14.011 980 20.90 68.75 0.02 23.26 7.09 20.48 325 2.888 13.972 1040 20.98 69.01 0.08 23.52 7.17 20.48 325 2.856 13.816 1100 21 69.08 0.02 23.59 7.19 20.48 325 2.848 13.777 1160 21.04 69.21 0.04 23.72 7.23 20.48 325 2.832 13.701 1220 21.07 69.31 0.03 23.82 7.26 20.48 325 2.820 13.645 1280 21.1 69.41 0.03 23.92 7.29 20.48 325 2.809 13.588 1340 21.13 69.51 0.03 24.02 7.32 20.48 325 2.797 13.533 1400 21.14 69.54 0.01 24.05 7.33 20.48 325 2.793 13.514 1460 21.19 69.70 0.05 24.21 7.38 20.48 325 2.774 13.423 1520 21.215 69.79 0.02 24.29 7.405 20.48 325 2.765 13.377 1580 21.24 69.87 0.02 24.38 7.43 20.48 325 2.756 13.332 1640 21.265 69.95 0.03 24.46 7.455 20.48 325 2.746 13.288 1700 21.29 70.03 0.02 24.54 7.48 20.48 325 2.737 13.243 1760 21.33 70.16 0.04 24.67 7.52 20.48 325 2.723 13.173 1820 21.375 70.31 0.05 24.82 7.565 20.48 325 2.707 13.095 1880 21.405 70.41 0.03 24.92 7.60 20.48 325 2.696 13.043 1940 21.42 70.44 0.01 24.95 7.61 20.48 325 2.692 13.026 2000 21.45 70.56 0.04 25.07 7.64 20.48 325 2.680 12.966 2060 21.47 70.61 0.02 25.11 7.66 20.48 325 2.675 12.941 2120 21.49 70.69 0.02 25.20 7.68 20.48 325 2.666 12.898 2180 21.51 70.76 0.02 25.26 7.70 20.48 325 2.659 12.865 2240 21.52 70.79 0.01 25.30 7.71 20.48 325 2.656 12.848 2300 21.56 70.92 0.04 25.43 7.75 20.48 325 2.642 12.782 2360 21.56 70.92 0.00 25.43 7.75 20.48 325 2.642 12.782 2420 21.58 70.99 0.02 25.49 7.77 20.48 325 2.635 12.749 2480 21.60 71.05 0.02 25.56 7.79 20.48 325 2.628 12.716 2540 21.63 71.15 0.03 25.66 7.82 20.48 325 2.618 12.668 2600 21.66 71.25 0.03 25.75 7.85 20.48 325 2.608 12.619 2660 21.67 71.28 0.01 25.79 7.86 20.48 325 2.605 12.603 2720 21.68 71.32 0.01 25.82 7.87 20.48 325 2.602 12.587 2780 21.70 71.38 0.02 25.89 7.89 20.48 325 2.595 12.555 2840 21.72 71.43 0.02 25.94 7.91 20.48 325 2.590 12.531 2900 21.74 71.50 0.02 26.00 7.93 20.48 325 2.584 12.500 2960 21.74 71.51 0.00 26.02 7.93 20.48 325 2.582 12.492 3020 21.76 71.56 0.02 26.07 7.95 20.48 325 2.577 12.47 3080 21.78 71.63 0.02 26.13 7.97 20.48 325 2.571 12.437 3140 21.79 71.66 0.01 26.16 7.98 20.48 325 2.567 12.421 3200 21.80 71.69 0.01 26.20 7.99 20.48 325 2.564 12.41 3260 21.81 71.74 0.01 26.25 8.00 20.48 325 2.559 12.383 3320 21.84 71.83 0.03 26.33 8.03 20.48 325 2.551 12.344 3380 21.84 71.84 0.00 26.35 8.03 20.48 325 2.550 12.34 3440 21.86 71.91 0.02 26.41 8.05 20.48 325 2.543 12.306 3500 21.87 71.94 0.01 26.44 8.06 20.48 325 2.540 12.290 3560 21.88 71.97 0.01 26.48 8.07 20.48 325 2.537 12.28 3620 21.90 72.02 0.02 26.53 8.09 20.48 325 2.532 12.252 3680 21.90 72.02 0.00 26.53 8.09 20.48 325 2.532 12.252 3740 21.92 72.11 0.03 26.61 8.11 20.48 325 2.525 12.21 3800 21.92 72.11 0.00 26.61 8.11 20.48 325 2.525 12.215 3860 21.94 72.17 0.02 26.67 8.13 20.48 325 2.518 12.185 3920 21.95 72.20 0.01 26.71 8.14 20.48 325 2.515 12.17 3980 21.95 72.20 0.00 26.71 8.14 20.48 325 2.515 12.170 4040 21.98 72.30 0.03 26.80 8.17 20.48 325 2.506 12.125 4100 21.99 72.34 0.01 26.84 8.18 20.48 325 2.503 12.11 4160 22.01 72.40 0.02 26.90 8.20 20.48 325 2.497 12.080 4220 22.02 72.43 0.01 26.94 8.21 20.48 325 2.494 12.066 4280 22.03 72.47 0.01 26.97 8.22 20.48 325 2.491 12.05 Recovery 4280.5 18.69 61.48 -3.34 16.01 4.88 20.48 325 4.196 20.30 4281 18.49 60.82 -0.20 15.35 4.68 20.48 325 4.375 21.17 4282 18.19 59.84 -0.30 14.37 4.38 20.48 325 4.675 22.62 4283 18.20 59.87 0.01 14.40 4.39 20.48 325 4.664 22.56 4284 17.90 58.88 -0.30 13.42 4.09 20.48 325 5.006 24.22 4285 17.80 58.55 -0.10 13.09 3.99 20.48 325 5.132 24.83 4286 17.72 58.29 -0.08 12.83 3.91 20.48 325 5.237 25.34 4287 17.645 58.04 -0.07 12.58 3.835 20.48 325 5.339 25.83 4288 17.59 57.86 -0.05 12.40 3.78 20.48 325 5.417 26.21 4289 17.54 57.70 -0.05 12.24 3.73 20.48 325 5.489 26.56 4290 17.5 57.57 -0.04 12.11 3.69 20.48 325 5.549 26.85 4292 17.42 57.30 -0.08 11.84 3.61 20.48 325 5.672 27.44 4294 17.36 57.11 -0.06 11.65 3.55 20.48 325 5.768 27.90 4296 17.305 56.92 -0.05 11.47 3.495 20.48 325 5.858 28.34 4298 17.26 56.78 -0.04 11.32 3.45 20.48 325 5.935 28.71 4300 17.22 56.64 -0.04 11.19 3.41 20.48 325 6.004 29.05 4305 17.13 56.35 -0.09 10.89 3.32 20.48 325 6.167 29.84 4310 17.055 56.10 -0.07 10.65 3.245 20.48 325 6.310 30.53 4320 16.92 55.66 -0.13 10.20 3.11 20.48 325 6.584 31.85 4330 16.82 55.33 -0.10 9.88 3.01 20.48 325 6.802 32.91 4340 16.715 54.98 -0.11 9.53 2.905 20.48 325 7.048 34.10 4350 16.55 54.44 -0.16 8.99 2.74 20.48 325 7.473 36.15 4370 16.42 54.01 -0.13 8.56 2.61 20.48 325 7.845 37.95 4390 16.31 53.65 -0.11 8.20 2.5 20.48 325 8.190 39.62 4410 16.22 53.36 -0.09 7.91 2.41 20.48 325 8.496 41.10 4430 16.095 52.94 -0.13 7.50 2.285 20.48 325 8.961 43.35 4450 16.05 52.80 -0.04 7.35 2.24 20.48 325 9.141 44.22

Project No: 15-032-02 Date: January 2016 -2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00 15-02 available drawdown 13.2 m TW15-02 WPN47784

Water Level Drawdown (m) Drawdown Level Water 16.00 MW1 18.00 TW15-01 15-02 Transducer 20.00 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Elapsed Time [minutes]

TITLE Panorama Well 15-02 Figure D5 - Constant Rate Test Hydrogrpah 20.48L/s (325 US gpm)

DRAWN WG DATE Dec 15-18, 2015 JOB NO. 15-32-02 CHECKED RR SCALE na DWG. NO. na REVIEWED FILE NO. FIGURE NO. 0.00

100 days

10.00 Static Water Level 13.82 m (45.3 ft) Break in slope at ~300 min inferred to be intercept with negative recharge boundary.

20.00

Sustainable Yield Calculation - 325 US gpm Parameters (btoc) Static water level = 13.81 m (45.3 ft) suggested pump intake 26.5 m (87 ft) Total well depth = 32.5 m (106.5 ft); Top of screen assembly = 27.3 m (89.5 ft) 30.00 Suggested pump intake depth = 26.5 m (87 ft)

Depth to Water (m btoc) Water to Depth Available drawdown = 26.5 m - 13.81 = 12.69 m (41.6 ft) 100-day drawdown projection = 10.2 m (33.4 ft) Q = 0.7 x available drawdown x (pumping rate/ 100 -day drawdown) Q = 0.7 x 12.69 m x (325 / 10.2) Q = 283 USgpm

40.00 1 10 100 1,000 10,000 100,000 1,000,000

Elapsed Time [minutes]

TITLE Panorama Production Well 15-02 Figure D6 - Semi Log Plot - 72 hour Constant Rate Pumping Test at 20.48 L/s (325 US gpm)

DRAWN WG DATE Dec 15-18, 2015 JOB NO. 15-032-02 CHECKED RR SCALE na DWG. NO. na REVIEWED FILE NO. FIGURE NO.

Appendix E Laboratory Water Quality Reports

WWAL Project 15-032-02 Panorama Mountain Resort Groundwater Development Program: Phase 2 February 2016

Appendix F Field Sieve Analyses

WWAL Project 15-032-02 Panorama Mountain Resort Groundwater Development Program: Phase 2 February 2016

Appendix G Aqtesolv Pump Test Analysis

WWAL Project 15-032-02 Panorama Mountain Resort Groundwater Development Program: Phase 2 February 2016