Issue Date: March 17, 2016 Page 3 of 78 Marine Environmental Effects Monitoring Plan Revision: 0 Environmental Document # BAF-PH1-830-P16-0046 TABLE OF CONTENTS 1 INTRODUCTION........................................................................................................................ 6 1.1 CORPORATE COMMITMENTS AND REGULATORY REQUIREMENTS..........................................6 2 EEM APPROACH ..................................................................................................................... 11 2.1 PROGRAM SELECTION CRITERIA .......................................................................................... 14 3 MARINE ECOLOGICAL EFFECTS MONITORING (MEEMP — ECOSYSTEM) ............................ 15 3.1 QUESTIONS FOR HYPOTHESIS FORMULATION ..................................................................... 15 3.2 MARINE ECOSYSTEM EEM CANDIDATE STUDIES SELECTION ................................................. 16 3.2.1 Benthic Habitat ............................................................................................................ 16 3.2.2 Sediment Quality .......................................................................................................... 17 3.2.3 Marine Water Quality ................................................................................................... 18 3.2.4 Epibenthic Community.................................................................................................. 18 3.2.5 Sculpin Species ............................................................................................................. 19 3.2.6 Arctic Char ................................................................................................................... 20 3.2.7 Aquatic Invasive Species ............................................................................................... 20 3.3 MARINE ECOLOGY STUDY SCHEDULE ................................................................................... 21 3.4 MARINE ECOLOGY EEM STUDY DESIGN AND DESCRIPTIONS................................................. 22 3.4.1 Sampling Design ........................................................................................................... 22 3.4.2 Statistical Design .......................................................................................................... 24 3.4.3 Benthic Habitat ............................................................................................................ 27 3.4.4 Sediment Quality .......................................................................................................... 28 3.4.5 Water Quality............................................................................................................... 33 3.4.6 Finfish Species .............................................................................................................. 37 3.4.7 Aquatic Invasive Species ............................................................................................... 41 4 MARINE MAMMAL EFFECTS MONITORING (MEEMP — MAMMALS) .................................. 47 4.1 QUESTIONS FOR HYPOTHESIS FORMULATION ..................................................................... 47 4.2 MARINE MAMMAL EEM CANDIDATE STUDIES SELECTION .................................................... 47 4.3 EEM STUDY SCHEDULE ........................................................................................................ 48 4.4 EEM STUDY DESIGN AND DESCRIPTIONS ............................................................................. 48 4.4.1 Rationale and Background............................................................................................. 48 4.4.2 Study Area and Key Species ........................................................................................... 49 4.4.3 Statistical Approach ...................................................................................................... 51 4.4.4 Ship-based Observers.................................................................................................... 53 4.4.5 Shore-based Study of Narwhals ..................................................................................... 54 The information contained herein is proprietary to Baffinland Iron Mines Corporation and is used solely for the purpose for w hich it is supplied. It shall not be disclosed in w hole or in part, to any other party , w ithout the ex press permission in w riting by Baffinland Iron Mines Corporation. Note: This is an UNCONTROLLED COPY printed for reference purposes and v alid only on 1/26/16 Issue Date: March 17, 2016 Page 4 of 78 Marine Environmental Effects Monitoring Plan Revision: 0 Environmental Document # BAF-PH1-830-P16-0046 4.4.6 Aerial Surveys............................................................................................................... 60 4.4.7 Acoustic Monitoring ..................................................................................................... 64 5 ASSESSMENT OF EEM RESULTS AND MANAGEMENT RESPONSE ........................................ 68 5.1 FRAMEWORK FOR EVALUATION OF EFFECTS ....................................................................... 71 6 QUALITY ASSURANCE AND QUALITY CONTROL ................................................................... 73 7 REPORTING ............................................................................................................................ 74 8 REFERENCES ........................................................................................................................... 75 LIST OF TABLES Table 1.1 Summary of Marine VEC Interactions Relative to EIS Predictions and NIRB Project Certificate Conditions..................................................................................................8 Table 3.1 Summary of EEM Studies According to Current Program Level. .................................... 17 Table 3.2 Marine Ecology EEM Master Schedule........................................................................ 21 Table 3.3 Marine Ecology EEM Monthly Schedule...................................................................... 22 Table 3.4 Summary of Benthic Epifauna and Habitat Study Design. ............................................ 29 Table 3.5 Summary of Sediment Quality Study Design. .............................................................. 30 Table 3.6 Early Warning Indicators (Triggers) for Sediment Quality............................................. 32 Table 3.7 Summary of Marine Water Quality Monitoring Study Design. ...................................... 36 Table 3.8 Early Warning Indicators (Triggers) for Water Quality.................................................. 37 Table 3.9 Total Fish Catch Comparison, 2010, 2013 and 2014..................................................... 38 Table 3.10 Summary of Sculpin Study Design. ............................................................................. 39 Table 3.11 Summary of Arctic Char Study Design......................................................................... 40 Table 3.12 Recommended Study Components for a Marine Aquatic Invasive Species Environmental Effects Monitoring Program. ............................................................... 42 Table 4.1 Summary of EEM – Mammal Studies According to Current Program Level.................... 48 Table 4.2 Summary of Shore-based Narwhal Study Design. ........................................................ 56 Table 4.3 Summary of Aerial Survey Effort (Baseline Data) for Marine Mammals in the Study Area in Support of ERP Monitoring............................................................................. 60 Table 4.4 Summary of Aerial Survey Study Design. .................................................................... 63 Table 4.5 Summary of Acoustic Study Design. ........................................................................... 67 Table 5.1 Rating Criteria for the Evaluation of Effects. ............................................................... 72 The information contained herein is proprietary to Baffinland Iron Mines Corporation and is used solely for the purpose for w hich it is supplied. It shall not be disclosed in w hole or in part, to any other party , w ithout the ex press permission in w riting by Baffinland Iron Mines Corporation. Note: This is an UNCONTROLLED COPY printed for reference purposes and v alid only on 1/26/16 Issue Date: March 17, 2016 Page 5 of 78 Marine Environmental Effects Monitoring Plan Revision: 0 Environmental Document # BAF-PH1-830-P16-0046 LIST OF FIGURES Figure 2.1 Follow-up Threshold Exceedance Procedures.............................................................. 13 Figure 3.1 Radial Gradient Study Design and Sediment Sampling Locations. ................................. 25 Figure 3.2 Water Quality Sampling Sites..................................................................................... 35 Figure 3.3 Aquatic Invasive Species Monitoring Study Design. ..................................................... 43 Figure 4.1 Study Areas for Marine Mammal and Acoustic Monitoring Studies. ............................. 50 Figure 4.2 The Observation Platform at Bruce Head, 2014. ......................................................... 55 Figure 4.3 The Stratified Study Area (SSA) for Shore-based Observations of Narwhal Relative Abundance and Distribution at Bruce Head. ............................................................... 58 Figure