A QUATIC E NVIRONMENTAL S ETTING R EPORT A LBIAN S ANDS E NERGY I NC. M USKEG R IVER M INE E XPANSION P ROJECT SUBMITTED TO: SHELL CANADA LIMITED CALGARY, ALBERTA S UBMITTED BY: AXYS ENVIRONMENTAL C ONSULTING LTD. C ALGARY, ALBERTA I N A SSOCIATION W ITH: N ORTH/SOUTH C ONSULTANTS I NC. C AGARY, ALBERTA AND H YDROCONSULTANT C ALGARY, ALBERTA F EBRUARY 25, 2005 OS1182 AXYS Environmental Consulting Ltd. Aquatic Environmental Setting Report ALBIAN SANDS ENERGY INC MUSKEG RIVER MINE EXPANSION PROJECT Submitted to: Shell Canada Ltd. Calgary, Alberta Submitted by: AXYS Environmental Consulting Ltd. Calgary, Alberta In association with: North/South Consultants Inc. Calgary, Alberta and Hydroconsultant Calgary, Alberta February 25, 2005 OS1182 ALBIAN SANDS ENERGY INC MUSKEG RIVER MINE EXPANSION PROJECT Aquatic Environmental Setting Report Executive Summary Albian Sands Energy Inc. (Albian) is proposing to expand the existing Muskeg River Mine (MRM) located in Shell Lease 13, in the Muskeg River watershed. The Expansion will involve development in the northwest portion of Lease 13 (the ‘West Pit Area’), in the south central portion of Lease 13, between Muskeg River and Jackpine Creek (the ‘Sharkbite’) and in Lease 90. These three development areas constitute the Expansion area or Muskeg River Mine Expansion (MRME) Development Area. This report provides a baseline description of the surface water hydrology, surface water quality, sediment quality and aquatic resources of the region, based on a compilation of available historical information and new baseline studies conducted in 2003-2004 designed to update and supplement the historical information. The aquatic systems in the area may be affected during various phases of the Expansion including construction, operation, and closure. The Expansion activities that may affect the aquatic conditions include: • Muskeg drainage • Overburden dewatering • Mine pit development • Close-circuit drainage systems • Reclamation drainage Objectives The objectives of the environmental setting studies were to: • review, evaluate and summarize available historical information with an emphasis on updating the information base used to support the Shell Jackpine Mine – Phase 1 Environmental Impact Assessment (EIA) also located on Lease 13 (Shell 2002) • identify information gaps based on this review, and design and conduct field studies to supplement the existing information • provide an updated environmental setting description for the MRME Development Area to support an EIA Local and Regional Study Areas The Local Study Area (LSA) used to describe the baseline environmental setting included the entire Muskeg River watershed; the Mills Creek drainage area, including Isadore’s Lake and a number of poorly drained/connected and isolated ponds in the West Pit Area; and the portion of the Athabasca River lying adjacent to the Lease 13 and Lease 90 boundaries (Figure 1-1). The LSA encompasses the entire MRME Development Area including the West Pit Area, the Sharkbite and the whole of Lease 90, including the narrow strip of land lying between Lease 13 and Lease 90. Portions of the LSA outside of the MRME Development Area were included because of: • proximity to the Expansion • potential for direct or indirect effects resulting from the Expansion • the general mobility of aquatic resources throughout the watershed. The Regional Study Area (RSA) considered for the environmental setting included the MRME Development Area, the LSA and the mainstem of the Athabasca River, from just upstream of the AXYS Environmental Consulting Ltd. February 2005 Page i ALBIAN SANDS ENERGY INC MUSKEG RIVER MINE EXPANSION PROJECT Aquatic Environmental Setting Report Clearwater River confluence, and downstream to the Embarras Portage/Old Fort area (Figure 1-2). This RSA is consistent with the RSA’s selected for other EIAs previously completed for oil sands projects located on Lease 13 (i.e., Shell Muskeg River Mine [Shell 1998] and Shell Jackpine Mine-Phase 1 [Shell 2002]). Historical Data Review A large body of historical data and information regarding surface water quality, sediment quality and aquatic resources for lakes, ponds and streams in the LSA and RSA was reviewed as an initial step towards describing the existing environment and baseline conditions. The purpose of this review was to identify information gaps and guide the design process for the 2003/2004 field studies required to fill identified information gaps. The approach taken in writing this report was to provide an update to baseline conditions for the Muskeg River watershed and the Athabasca River in 2000/2001, as presented in the recent Shell Jackpine Mine – Phase 1 EIA and supporting documents (Shell 2002). Therefore, priority was given to recent historical information, while older sources were used mainly where information was sparse or where the older information had particular relevance to the current Expansion. Baseline Field Studies A number of focused field studies were conducted during the fall, winter, spring and summer of 2003/2004, to address identified information gaps and update the existing environmental description. These studies included: • seasonal (fall, winter, spring and summer) collection of hydrological data on key watercouses • seasonal surface water quality studies on key watercourses and waterbodies • fall sediment quality studies • fall water and sediment toxicity studies • fall benthic invertebrate surveys • winter surveys to assess overwintering potential for watercourses and waterbodies • a winter sediment oxygen demand (SOD) study on the Muskeg River • a study of spring fish movements in Jackpine Creek using a two-way fish counting fence, and on an unnamed stream (designated Watercourse S1) with a two-way hoop net array • a spring larval fish drift fish study on Jackpine Creek • an early summer invertebrate drift study on four streams • seasonal (spring and summer) fish inventories on watercourse S1 • seasonal (spring and summer) habitat surveys on watercourse S1 • aquatic macrophyte surveys on three MRME Development Area waterbodies. Results: Climate and Surface Water Hydrology Climatic variables analyzed in this study include air temperature, precipitation, evaporation and evapotranspiration, relative humidity, wind and solar radiation. Primary sources of climatic data include the long-term monitoring station data at Fort McMurray compiled by Atmospheric Monitoring Division of Environment Canada, and shorter-term data at the Aurora climate station, located in Lease 13, compiled by the Regional Aquatic Monitoring Program (RAMP) and oil sands operators. February 2005 AXYS Environmental Consulting Ltd. Page ii ALBIAN SANDS ENERGY INC MUSKEG RIVER MINE EXPANSION PROJECT Aquatic Environmental Setting Report Hydrologic variables analyzed in this study include stream flows, basin water yields, suspended sediments in streams, basin sediment yields and stream geomorphology. Sources of hydrologic data include records of the long-term monitoring stations by Water Survey Division of Environment Canada and short-term monitoring stations by RAMP. Site-specific spot flow and geomorphic data were acquired in 2003/2004 on local streams in the LSA. Relevant annual, seasonal, monthly and daily values for the climatic and hydrologic variables were estimated from the available data. Stream flow analyses considered flood and low flow events of streams in the LSA. The key climatic and hydrologic parameters derived for the LSA are: • Mean annual temperature: 0.4 °C • Mean annual precipitation: 444 mm • Mean annual rainfall: 333 mm • Mean annual snowfall: 111 mm • Mean annual runoff for a typical upland area: 130 mm • Mean annual runoff for a typical lowland area: 50 mm • Mean annual lowland basin sediment yield: 0.0016 mm The key hydrologic statistics of the major streams and Isadore’s Lake in the MRME Development Area are summarized below. Hydrologic Parameters of Streams and Rivers in the LSA Mean Annual 10-Year Maximum Daily 10-Year, 7-Day Name Discharge Discharge Low Flow (m³/s) (m³/s) (m³/s) Athabasca River below Muskeg River 643 3,780 100 confluence Muskeg River at Environment Canada 4.06 48 0.10 Station Jackpine Creek at its 1.14 15 0.003 Mouth Mills Creek at Hwy 63 0.019 0.7 0 Unnamed Tributary to 0.095 0.7 0.005 Muskeg River (S1) Hydrologic Parameters of Isadore’s Lake Hydrologic Parameter Value Mean Annual Lake Surface Inflow 0.022 m³/s Mean Annual Lake Surface Outflow 0.013 to 0.022 m³/s Typical Water Level Fluctuation 0.3 m Mean Water Level 233.74 masl Results: Surface Water Quality, Sediment Quality and Aquatic Resources Muskeg River Watershed Surface Water Quality A number of watercourses and waterbodies were surveyed in 2003/2004 in the Muskeg River and Mills Creek watersheds, which together with the adjacent section of the Athabasaca River make up the LSA. AXYS Environmental Consulting Ltd. February 2005 Page iii ALBIAN SANDS ENERGY INC MUSKEG RIVER MINE EXPANSION PROJECT Aquatic Environmental Setting Report The unnamed streams located in the ‘Sharkbite area’ of the Muskeg River watershed were brown-water systems broadly similar in water quality characteristics to previously surveyed streams in the LSA (e.g., Muskeg Creek, Jackpine Creek, Stanley Creek, Khahago Creek and Wapasu Creek). Watercourses in the Muskeg River watershed were characterized by high colour and organic carbon levels, with periodic low dissolved oxygen (DO) and anoxic events (particularly in the winter). In general, pH only occasionally exceeded the recommended range