ENVIRONMENTAL AND SOCIO-ECONOMIC ASSESSMENT FOR THE PROPOSED CUTBANK RIVER LATERAL LOOP (BALD MOUNTAIN SECTION) PIPELINE PROJECT August 2010 6922 Prepared for: Prepared by: NOVA Gas Transmission Ltd. A Wholly Owned Subsidiary of TERA Environmental Consultants TransCanada PipeLines Limited Suite 1100, 815 - 8th Avenue S.W. Calgary, Alberta T2P 3P2 Calgary, Alberta Ph: 403-265-2885 NOVA Gas Transmission Ltd. Environmental and Socio-economic Assessment Cutbank River Lateral Loop (Bald Mountain Section) August 2010 / 6922 EXECUTIVE SUMMARY NOVA Gas Transmission Ltd. (NGTL), a wholly owned subsidiary of TransCanada PipeLines Limited (TransCanada) is applying to the National Energy Board (NEB) under Section 58 of the NEB Act for authorization to construct and operate the proposed Cutbank River Lateral Loop (Bald Mountain Section) (the Project). The proposed 38 km long, 610 mm O.D. (NPS 24) Project will generally be constructed parallel to the existing Cutbank Lateral on the Alberta System located south of Grande Prairie, Alberta. The Project parallels the existing Cutbank Lateral Pipeline right-of-way and Bald Mountain Road for approximately 88% of its length (33 km). The Project will require a 25 m wide construction right-of-way consisting of 12 m of existing right-of-way and 13 m of new permanent right-of-way when paralleling existing right-of-way or 25 m of new permanent right-of-way at other locations, as well as temporary workspace to be taken within adjacent pipeline rights-of-way where feasible. Design, construction and operation of the pipeline will be in compliance with all applicable codes, standards and regulations. Pending regulatory approval, construction is scheduled to commence in December 2010. NGTL commissioned TERA Environmental Consultants (TERA) to prepare an Environmental and Socio- economic Assessment (ESA) having regard to the NEB Filing Manual, the Online Application System guidance and Section 16(1) of the Canadian Environmental Assessment Act (CEA Act) for approval to construct and operate the proposed Project. This ESA will be included within the Cutbank River Lateral Loop (Bald Mountain Section) Section 58 Application (Application). The following studies were conducted in summer 2010 to support this ESA (Appendices 1 through 7): an Early Summer Rare Plant Survey (TERA); an Aquatic Assessment (TERA); a Wetland Assessment (TERA); a Wildlife Habitat Assessment (TERA); and a Historical Resources Impact Assessment (HRIA) (TERA). The proposed Project is located in a forested setting within the Regional Municipality of Greenview (MD 16). Lands traversed are 100% (38 km) Crown-owned and the proposed route lies entirely within the Green Area of Alberta. Lands traversed on the Cutbank River Lateral Loop (Bald Mountain Section) are 100% wooded (38 km). The nearest community to the proposed pipeline route is the Hamlet of Grovedale (approximately 14 km northeast). The nearest major centre to the proposed pipeline route is the City of Grande Prairie, located approximately 30 km northeast of the Project area. No residences lie within 1 km of the proposed right-of- way. The proposed pipeline route crosses Bald Mountain Creek, which is a Class C watercourse, 12 unnamed tributaries to Bald Mountain Creek, five unnamed tributaries to the Cutbank River and three wetlands. Potential environmental concerns identified by this ESA include: issues relating to strippings conservation; soil erosion control; potential effects on downstream water quality; potential introduction and spread of weeds; potential increase in the spread of bark beetles; incremental loss of remnant native vegetation; and potential effects on wildlife. Watercourse and wetland crossings have been located and construction of the crossings has been planned in a manner which will minimize bank and slope instability, as well as the potential for future erosion. Specific environmental measures have been identified for watercourse and wetland crossing construction, and strippings handling. These measures, along with other protection measures designed to mitigate the potential environmental effects, are identified in the Environmental Protection Plan (EPP) within Appendix 6 of this ESA and on the Environmental Alignment Sheet within Appendix 7 of this ESA. The environmental effects associated with the proposed pipeline route are those that are routinely encountered during pipeline construction in a forested setting. The application of mitigative measures through a comprehensive environmental compliance strategy (environmental protection planning, environmental inspection and post-construction monitoring) will avoid, eliminate and/or minimize potential Project-related adverse effects. Any potential adverse residual effects and cumulative effects that may result from the proposed Project are anticipated to be not significant. Page i NOVA Gas Transmission Ltd. Environmental and Socio-economic Assessment Cutbank River Lateral Loop (Bald Mountain Section) August 2010 / 6922 TABLE OF CONTENTS Page EXECUTIVE SUMMARY ............................................................................................................................... i 1.0 INTRODUCTION...........................................................................................................................1-1 1.1 Project Overview..............................................................................................................1-1 1.2 Project Justification ..........................................................................................................1-4 1.3 Regulatory Framework.....................................................................................................1-4 1.4 Environmental and Socio-Economic Assessment ...........................................................1-4 1.5 Purpose of the Document ................................................................................................1-6 1.6 Project Team....................................................................................................................1-6 1.7 Concordance with the NEB Filing Manual .......................................................................1-7 1.8 Concordance with the CEA Act......................................................................................1-10 2.0 PROJECT DESCRIPTION............................................................................................................2-1 2.1 Project Purpose................................................................................................................2-1 2.2 Alternatives to the Project ................................................................................................2-1 2.3 Location of the Project .....................................................................................................2-1 2.4 Project Components.........................................................................................................2-3 2.5 Construction.....................................................................................................................2-4 2.5.1 Pipeline Installation .............................................................................................2-4 2.5.2 Inspection............................................................................................................2-5 2.5.3 Estimated Workforce Requirements ...................................................................2-5 2.5.4 Environmental Permits/Approvals.......................................................................2-5 2.5.5 Construction Schedule........................................................................................2-6 2.6 Operation and Maintenance.............................................................................................2-6 2.7 Decommissioning and Abandonment ..............................................................................2-7 3.0 COMMUNITY and REGULATORY consultation AND ABORIGINAL engagement......................3-1 3.1 Introduction ......................................................................................................................3-1 3.2 Consultation Objectives and Methods .............................................................................3-1 3.2.1 Consultation Objectives ......................................................................................3-1 3.2.2 Methods ..............................................................................................................3-1 3.2.3 Consultation and Engagement Outcomes ..........................................................3-1 4.0 ROUTE SELECTION ....................................................................................................................4-1 4.1 Control Points...................................................................................................................4-1 4.2 Routing Considerations....................................................................................................4-1 4.3 Proposed Pipeline Route .................................................................................................4-1 5.0 ENVIRONMENTAL AND SOCIO-ECONOMIC SETTING............................................................5-1 6.0 ENVIRONMENTAL AND SOCIO-ECONOMIC EFFECTS ASSESSMENT .................................6-1 6.1 Methodology.....................................................................................................................6-1 6.1.1 Spatial and Temporal