Sun Gro Horticulture Canada Ltd. Hay Point Peat Mine Development October, 2011 Manitoba Environment Act Proposal – Final 10-0293-01 EXECUTIVE SUMMARY Kontzamanis Graumann Smith MacMillan Inc. (KGS Group) was contracted by Sun Gro Horticulture Canada Ltd. (Sun Gro) to prepare a Manitoba Environment Act Proposal (EAP) for the proposed peat mining development at Hay Point Bog. Sun Gro would like to obtain an Environmental Act Licence for peat harvesting operations at the Hay Point Bog. The proposed peat mine development will not likely result in significant adverse environmental effects, based on the available information for this project, the environment, the assessment of environmental effects outlined in this environmental assessment report, and application of proposed mitigation measures, including conducting the required follow-up. Sun Gro is the largest producer of peat moss in North America and the largest distributor of peat moss and peat-based growing media products. In order to sustain their current needs it is necessary to develop bog sites in the Interlake region for future peat moss harvesting. Sun Gro had secured these leases approximately 16 years ago in anticipation of this future need. The purpose of the proposed development is to continue to provide quality peat-based growing media products to meet the demand of their distribution network in over 40 countries worldwide. The scope of the project includes planning, designing, constructing, operating, maintaining and eventual decommissioning and restoration of the proposed peat development at Hay Point Bog. The scope of the assessment included identification, assessment and mitigation of adverse environmental effects of the project, and evaluation of the significance of residual environmental effects. The scope of the assessment also included consideration of direct and indirect biophysical and socio-economic effects, including cumulative environmental effects. The Class 2 peat mining development will include an access road, bog roads, drainage ditch system with settling ponds and an on-site facility and equipment storage area. Major project activities include providing access, clearing vegetation and surface soils, harvesting and stockpiling unprocessed peat, excavating and trenching, transporting peat and restoring harvested peatland. The environmental assessment of the proposed peat development was carried out based on project information provided by Sun Gro and the advice document from Manitoba Conservation. Additional considerations included environmental information acquired from literature, internet searches, and publications by the peat industry and environmental organizations; contacts with federal and provincial government representatives; consultations with stakeholders; and site investigations by the project team. Information regarding the proposed peat development project has been provided to stakeholders in the region through various means, including phone conversations and letters. Stakeholders included Manitoba Conservation (in particular Parks and Natural Areas Branch), Grindstone Cottage Owners Association, Hecla Oasis Resort, Hecla Tourism Association, Rural Municipality (RM) of Bifrost and Peguis First Nation. Concerns expressed by the stakeholders and mitigation measures to address these have been discussed throughout this EAP. i Sun Gro Horticulture Canada Ltd. Hay Point Peat Mine Development October, 2011 Manitoba Environment Act Proposal – Final 10-0293-01 Potential environmental effects of the proposed peat mine development were identified using scoping methods, interaction matrix techniques, public comments, advice from specialists and professional judgment. Effects of accidents and malfunctions, effects of the environment on the project and cumulative environmental effects were also determined. Mitigation measures were identified to eliminate, reduce and control environmental effects determined to be adverse. Follow-up was proposed to verify the accuracy of the assessment and determine the effectiveness of the mitigation measures. Significance of the residual environmental effects remaining after mitigation was then evaluated. Potential adverse environmental effects of the proposed peat mine development assessed to be major in the environmental assessment included the loss and disturbance of soil (harvested peat), risk of fire (and explosions), and potential for accidents during the transportation of peat. Additional environmental effects assessed to be potentially moderate included; increased dust and particulates; modified drainage pattern; increased sediment levels in surface water; change in receiving water quality; disturbance of fish habitat; loss of wetlands and herpetile habitat; clearing of vegetation; loss of wildlife habitat; contamination of soil and surface water; increased traffic and the associated public attitude. Positive effects identified included improvements in economic conditions, business opportunities and employment, as well as an increase in dust control and, during restoration, an increase in diversity of flora and fauna. With mitigation and follow-up, the residual effects of the project for all of the potential adverse effects were determined to be not significant. There are no known historic resources or federally protected endangered plants and animals in the vicinity of the proposed peat mine development area. Mitigation for potential adverse effects identified for the proposed peat mine development included a wide variety of design and proposed measures, regulatory requirements and management practices. Some of the more important mitigation measures to address the adverse effects included: • Minimizing surface area disturbed and leaving non-commercial peat reserves in place; • Draining water to sedimentation ponds and discharging to the existing drainage system; • Instructing employees on proper harvest equipment operation to minimize dust; • Moistening stockpiles, regular removal of stockpiled materials and covering loads being hauled from the site; • Using low sulphur fuels, muffling vehicles and equipment, and requiring a high standard of maintenance of vehicles and equipment and limiting unnecessary long-term idling; • Preventing leaks, spills and releases and requiring drip trays for equipment and secondary containment for fuel storage; • Designating fuel storage and re-fueling areas and providing spill clean-up equipment and materials; • Preparing and regular updates of emergency response plan including fire; and • Implementing a mine closure plan to restore vegetation, surface water to predevelopment conditions; • Ensure workers are aware of provincially rare orchid species outside of development area. ii Sun Gro Horticulture Canada Ltd. Hay Point Peat Mine Development October, 2011 Manitoba Environment Act Proposal – Final 10-0293-01 Follow-up identified for the proposed peat mine development included a variety of inspecting, monitoring, record keeping and reporting requirements. Proposed inspection involves periodic observations of the project and local areas for microclimatic changes, dust accumulation, VOC sources, leaks, spills and releases, potential soil contamination, noise levels, surface water runoff, erosion and maintenance of re-vegetated areas. Proposed monitoring includes periodic sampling of surface water quality as required and semi-annual monitoring of surface water quality. Record keeping includes maintaining operation files, documentation related to mitigation measures and follow-up implemented such as the mine closure plan and tracking public complaints. Reporting requirements for the proposed peat mine development will be placed in the public registry for the project and an annual summary of the detailed reports filed immediately following incidents that require implementation of the emergency response plan. The proposed peat mine development project will not likely result in significant adverse environmental effects, based on the available information on the project and the environment, the assessment of environmental effects outlined in this environmental assessment report, and the application of proposed mitigation measures and conducting of required follow-up. iii Sun Gro Horticulture Canada Ltd. Hay Point Peat Mine Development October, 2011 Manitoba Environment Act Proposal – Final 10-0293-01 TABLE OF CONTENTS PAGE EXECUTIVE SUMMARY.................................................................................................. i 1.0 INTRODUCTION.................................................................................................. 1 1.1 CORPORATE INFORMATION ......................................................................... 1 1.2 ENVIRONMENTAL ASSESSMENT.................................................................. 2 1.3 PREVIOUS STUDIES AND ACTIVITIES.......................................................... 2 1.4 REPORT ORGANIZATION............................................................................... 2 2.0 SCOPE................................................................................................................. 5 2.1 SCOPE OF THE PROJECT.............................................................................. 5 2.2 SCOPE OF THE ASSESSMENT...................................................................... 5 3.0 PROJECT DESCRIPTION ................................................................................... 7 3.1 OVERVIEW......................................................................................................