VERIFICATION REPORT FOR THE MAGRATH AND CHIN CHUTE WIND POWER PROJECTS (2016) Prepared for: Suncor Energy Inc. c/o Blue Source Canada ULC Suite 700, 717-7th Ave SW Calgary, AB T2P 0Z3 Prepared by: Stantec Consulting Ltd. 400-655 Tyee Road Victoria BC V9A 6X5 Project Number: 123220447 March 3, 2017 VERIFICATION REPORT FOR THE MAGRATH AND CHIN CHUTE WIND POWER PROJECTS (2016) March 3, 2017 EXECUTIVE SUMMARY A summary of the verification of the Magrath and Chin Chute Wind Power Projects (the Project) for the period of January 1, 2016 to December 31, 2016 is provided in Table E.1. Table E.1 Verification Summary Project Name Magrath and Chin Chute Wind Power Projects Project Start Date • Magrath Project: October, 2004 • Chin Chute Project: November, 2006 Credit Start Date • Magrath Project: January 1, 2005 (start of 5-year extension is January 1, 2013) • Chin Chute Project: May 1, 2007 (start of 5-year extension is May 1, 2015) Credit Duration Period • Magrath Project: January 1, 2005 – December 31, 2017 • Chin Chute Project: May 1, 2007 – April 30, 2020 Verification Period January 1, 2016 – December 31, 2016 Expected Lifetime of the • Magrath Project: Over 25 years Project • Chin Chute Project: Over 25 years Authorized Project Kelsey Lank, Carbon Solutions Analyst Proponent Blue Source Canada ULC Suite 700, 717-7th Ave SW Calgary, AB T2P 0Z3 Phone: (403) 262-3026 x228 Email:[email protected] Web: http://www.bluesourcecan.com E.1 VERIFICATION REPORT FOR THE MAGRATH AND CHIN CHUTE WIND POWER PROJECTS (2016) March 3, 2017 Table E.1 Verification Summary Applicable Quantification Quantification Protocol for Wind-Powered Electricity Generation Protocol (version 1.0, March 2008) Ownership The Project is owned by Enbridge Wind Power General Partnership (Enbridge), Acciona Wind Energy Canada Inc. (Acciona), and Suncor Energy Inc. (Suncor). The Project is operated by Acciona. Suncor has been authorized to act on behalf of the other two partners and will register all applicable emission reduction credits from the Project. On January 1, 2017, Suncor Energy Products Inc. (SEPI) amalgamated with Suncor Energy Inc. The resulting entity is Suncor Energy Inc. Other Environmental This Project is not generating Renewable Energy Certificates (RECs) or other Attributes environmental benefits/attributes. Project Registration The Project is registered under the Canadian Standards Association (CSA) Group Alberta Offset Registry. GHG Assertion The fundamental assertions to be verified are: • Magrath Project - the creation of 53,127 t CO2e in GHG emission reductions for the period of January 1 – December 31, 2016 resulting from the production of electricity using wind turbines instead of fossil fuel combustion at the Magrath Power Project, located near Magrath, AB; and • Chin Chute Project - the creation of 56,576 t CO2e in GHG emission reductions for the period of January 1 – December 31, 2016 resulting from the production of electricity using wind turbines instead of fossil fuel combustion at the Chin Chute Power Project, located near Taber, AB. Level of Assurance The Specified Gas Emitters Regulation (SGER) and Alberta Environment and Parks (AEP) require the verifier to conduct sufficient procedures to deliver a reasonable level of assurance. The verification was planned and executed accordingly. Verification Criteria • Climate Change and Emissions Management Act (the Act), SA 2003, c C-16.7; • Specified Gas Emitters Regulation, Alta Reg. 139/200, with amendments up to and including Alberta Regulation 104/2015 (Regulation); • Technical Guidance for Offset Project Developers (version 4.0, February 2013); • Quantification Protocol for Wind-Powered Electricity Generation (version 1.0, March 2008); and • The Carbon Offset Emission Handbook (March 2015, V1.0). Verification Objective The objective of the verification was to assess whether the Project Reports dated February 23, 2017 and the GHG Assertions satisfy the following AEP requirements: • Climate Change and Emissions Management Act; • Specified Gas Emitters Regulation; • Technical Guidance for Offset Project Developers (version 4.0, February 2013); • Quantification Protocol for Wind-Powered Electricity Generation (version 1.0, March 2008); • The Carbon Offset Emission Handbook (March 2015, V1.0). E.2 VERIFICATION REPORT FOR THE MAGRATH AND CHIN CHUTE WIND POWER PROJECTS (2016) March 3, 2017 Table E.1 Verification Summary Verification Standards The verification was conducted in accordance with ISO 14064:3, ISO 14065, and guidance contained within the Technical Guidance for Greenhouse Gas Verification at Reasonable Level Assurance, January 2013, version 1.0. Project Activity For the verification period the Project activities are eligible under the SGER to generate offsets as they meet the following conditions. • Result from actions taken on or after January 1, 2002 – the Project began operation after this date. • Be real, demonstrable, and quantifiable – the Project has been verified according to the Verification Criteria above. • Not be required by law – the Project is not required by any current or proposed law. • Have clearly established ownership – the Project Developer has provided sufficient and appropriate evidence that Suncor Energy Inc. owns the offset credits generated by the Magrath and Chin Chute Wind Power Projects and that the joint venture partners of the Projects acknowledge that Suncor Energy Inc. is serializing the credits on their behalf. • Be counted once for compliance purposes – the Project offset credits are serialized on the Alberta Emission Offset Registry (AEOR). • Be verified by a qualified third party – Stantec is a qualified third party (see Section 1.0, 3.1 and Statement of Qualifications). • Have occurred in Alberta – the Project is physically located in Alberta. Verification Summary No unresolved material misstatements were identified in the Project Reports dated February 27, 2017 and the GHG Assertions as submitted. The GHG Assertions for the Projects are deemed to be fairly presented and substantiated by sufficient and appropriate evidence. A reasonable level assurance verification statement for each Project was issued. Verification Team Lead Verifier Daniel Hegg, M.Sc., CEM Designated Signing Michael Murphy, P.Eng. (formerly Vicki Corning, P.Eng.) Authority and Quality Reviewer Project Manager Daniel Hegg, M.Sc., CEM Independent Peer Nicole Flanagan, M.A.Sc., P.Eng. Reviewer Verifiers Orasa Webber, M.Eng.; Christina Varner, P.Eng. Verification Timeframe October 2016 to March 2017 Site Visit Date November 17, 2016 Report Date March 3, 2017 E.3 VERIFICATION REPORT FOR THE MAGRATH AND CHIN CHUTE WIND POWER PROJECTS (2016) March 3, 2017 TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................................................E. 1 1.0 INTRODUCTION ......................................................................................................................... 1 1.1 INTENDED USER .............................................................................................................................. 1 1.2 PROJECT DESCRIPTION ................................................................................................................. 1 1.2.1 Location ....................................................................................................................... 1 1.2.2 Processes and Activities............................................................................................. 2 1.2.3 Summary of Changes ................................................................................................ 3 1.3 GHG ASSERTION ............................................................................................................................ 3 2.0 VERIFICATION METHODOLOGY ............................................................................................... 5 2.1 VERIFICATION OBJECTIVES ........................................................................................................... 5 2.2 LEVEL OF ASSURANCE .................................................................................................................. 5 2.3 VERIFICATION CRITERIA ................................................................................................................ 5 2.4 VERIFICATION STANDARDS .......................................................................................................... 5 2.5 VERIFICATION SCOPE ................................................................................................................... 5 2.6 MATERIALITY ................................................................................................................................... 6 2.7 VERIFICATION PLAN ...................................................................................................................... 6 3.0 VERIFICATION TEAM: QUALIFICATIONS, ROLES AND RESPONSIBILITIES ................................. 7 3.1 STATEMENT OF COMPLIANCE WITH THE SGER ........................................................................... 8 4.0 VERIFICATION STRATEGY .......................................................................................................... 9 4.1 INHERENT RISK ................................................................................................................................ 9 4.2 CONTROL RISK ..............................................................................................................................