ENVIRONMENTAL CONDITIONS Required of SaskPower for PA 8 Project, January 17, 2002

January 17, 2002 File: M10-3-2 (SPC - PA8; S1-P2)

(Stage 1)

Project: Project #01-042

Mr. Robert Stedwill

Manager

Environmental Programs

SaskPower

2025 Victoria Avenue

REGINA, SK S4P 0S1

Dear Mr. Stedwill:

Re: Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

Saskatchewan Environment and Resource Management (SERM), with assistance from other provincial and federal government review agencies, has completed the environmental screening of SaskPower's Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II ("the project"), as described in the following materials, collectively termed the "proposal:"

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II, 24 August, 2001,

Letter from S. Saylor to R. Seguin: Replacement Pages Project Proposal, PA8 Stage One - Phase II Transmission Line, 7 September, 2001,

E-mail from S. Saylor to R. Seguin: PA8 Clarification/Definition, 4 October, 2001,

Letter from S. Saylor to R. Seguin: PA8 Rebuild Stage One Phase II Project Proposal Supplemental Information - Weyerhaeuser Forest Harvesting, 24 October, 2001,

E-mail from S. Saylor to R. Seguin: Change to page 26 PA8 Phase II Project Proposal (10:00 AM), 11 December, 2001,

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January 17, 2002

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

E-mail from S. Saylor to R. Seguin: Additional Changes to PA8 Phase II Project Proposal (12:58 PM), 11 December, 2001,

Letter from S. Saylor to R. Seguin: Response to PA8 Stage One, Phase II Questions of December 4, 2001, 11 December, 2001, and

Letter from S. Saylor to R. Seguin: Sequence and Timing of work that will follow if environmental approvals are received on the PA8 Rebuild Stage 1 Phase 2 transmission line.

Based on your description of the project, on comments from members of the Environmental Assessment Review Panel, on the environmental-protection commitments in the proposal, and subject to the clarifications and restrictions noted

below, it is our opinion that the project described in the proposal is not a "development" as defined in Section 2 (d) of The Environmental Assessment Act. Accordingly, the Department does not require an additional environmental-impact assessment for the proposed project nor does the proposal require a Ministerial Approval as provided in Section 15 of the Act.

SaskPower may now proceed with applications pursuant to all other regulatory requirements. It is your responsibility to ensure that all necessary approvals are identified and obtained prior to initiating work.

We emphasize that this decision not to require an environmental-impact assessment pursuant to The Environmental Assessment Act is contingent on compliance with the following points:

that the project is undertaken in the manner described in the proposal, except where alterations are required for compliance with other regulatory requirements. This office must be advised if you plan to alter the project significantly from that described in the proposal; and

that you comply with all other regulatory requirements.

Initiation of construction indicates your acceptance of the above points.

1. This letter is NOT a Permit to Construct. It is simply a clearance, issued by the Environmental Assessment Branch, to proceed to obtain other

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January 17, 2002

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

permits and approvals as may be required before you start construction. Additional approvals from SERM and other agencies may be required.

2. As noted above, the Branch's position that this project is not a "development"

is our "view" or "opinion." Saskatchewan courts have ruled that in the event

of a dispute as to whether or not a particular activity is a "development" under The Environmental Assessment Act, the courts will ultimately determine that issue. Most recently, a court ruled on October 7, 1997 that a particular intensive hog-rearing operation is a "development" subject to the full

provisions of the Act, notwithstanding prior determinations of provincial regulatory agencies. That ruling was subsequently reversed on appeal.

It must therefore be emphasized to the proponent in particular that the purpose of providing this opinion is not to determine or decide for the proponent its legal obligations under The Environmental Assessment Act. Rather, its purpose is to provide some certainty that SERM will not initiate a

court action under Section 18 of the Act to require an EIA and ministerial decision.

The proponent is advised, however, that some third party may differ with this opinion and initiate its own legal proceedings with a view to having the courts determine the question of whether or not this project is a "development." If a

court of law concludes that the proponent's project is a "development," the

proponent would likely be required to seek ministerial approval under The Environmental Assessment Act before proceeding any further with the project, notwithstanding the opinion initially expressed by this office. The proponent

may also be liable for damages to any third party, pursuant to Section 23 of the Act, for having proceeded with the development in the absence of ministerial approval.

Accordingly, the proponent is advised by this letter to seek legal advice regarding its obligations under the Act and any potential liabilities of proceeding without a ministerial approval should its project subsequently be determined to be a "development" by a court of law.

3. The proponent should discuss this project with the Prince Albert Forest Nursery as they are licenced water users in the area (SWC, Frank Fox at (306) 446-7451).

4. The proponent must contact Sask. Highways and Transportation (T. J. Krudel,

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January 17, 2002

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

Operations Planning Engineer, (306) 953- 3500) to get specific direction with regard to pole placements and clearance heights required for crossing Highway #2 (see attached).

5. The proponent must contact all the affected RMs to provide details of the construction to avoid possible conflicts with planned future municipal developments. Although public utilities are a permitted activity under the bylaws of rural municipalities a development permit may also be required (MAH, John Nanson at (306) 933-5394).

6. The proponent will obtain the necessary easements for use of a right-of-way on Sask Agriculture and Food (Gordon Bue at (306) 878-8813) and SERM (Chris Dunn at (306) 953-2675) managed lands.

7. The proponent shall not use herbicides for vegetation management on the corridor between SE19-53-26-W2 and SW4-54-26-W2 without the written consent of the affected landowners, occupants or managers*. [*Affected landowners, occupants or managers is herein defined as those who will have their land and/or vegetation directly impacted by this project.]

8. The proponent will, within the proposed planning corridor, deflect the line so as to avoid tree clearing adjacent to plant species at risk (S1 and S2 plants) to the maximum extent possible. The buffer target will be 50 m, as is possible. Further, if after line deflection an S1 species buffer is not met, trees within this buffer which threaten the security of the power line shall be "topped" (as is possible) so as to protect the line and provide some semblance of a "treed over-story" environment for the S1 plants. Should it be necessary to employ topping as a mitigation work then a monitoring scheme to measure the survival of the S1 plant shall be undertaken and reported on annually for three years following construction to assess the value of this approach (CDC, Ann Gerry at (306) 787-1835).

9. The proponent shall locate the corridor, for that portion west of Highway #2 within the Northern Provincial Forest (NPF), with its centre-line approximately 40 m west of the western boundary of the road allowance. Any deviation is to be presented to SERM prior to being undertaken.

10. The proponent shall enter into an agreement with, and to the satisfaction of, SERM respecting the potential compensation which may be required as

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January 17, 2002

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

restitution for lost timber values to Weyerhaeuser Ltd. (SERM, Chris Dunn at (306) 953-2675).

11. The proponent shall from approximately NE9-53-26-W2 and extending southward, that is for the portion of the existing PA8 line which is to be removed/abandoned and not replaced by the new PA8 line, reforest the cleared

corridor with SERM identified species and at standard stocking rates as may be

agreed to by the affected landowners, occupants or managers (SERM, Chris Dunn at (306) 953-2675).

12. The proponent will, along their maintenance trail west of Highway #2 and within the NPF, erect where appropriate and maintain "No Hunting: Occupied Dwelling Within 500 Meters" signs (SERM, Chris Dunn at (306) 953-2675). This service will be made available, as is appropriate, to other affected landowners, occupants or managers. Signs are to be monitored on a bi-weekly basis from 1 September to 31 December and monthly thereafter for each of the first two years post-construction with reports filed with SERM after each inspection. The schedule may be altered, with the consent of SERM, after this initial two year period (SERM, Chris Dunn at (306) 953-2675). Replacement of the signs rests with SPC for the life of the project.

13. The proponent will endeavour to restrict vehicle access to the maintenance road (SERM is to have access). Fences and gates (per the proposal) will be constructed at the entrance and exit points to the NPF west of Highway #2 and at one mile intervals in between. The visual barrier fabric woven into the fence will also be maintained. The effectiveness of this vehicle restriction approach will be monitored on a bi-weekly basis from 1 September to 31 December and monthly thereafter for each of the first two years post-construction with reports filed with SERM after each inspection. The schedule may be altered, with the consent of SERM, after this initial two year period (SERM, Chris Dunn at (306) 953-2675). SPC will apply this type of vehicle control (as appropriate and may be agreed to by affected landowners, occupants or managers) to the line segment extending from SE19-53-26-W2 to the corridor entry into the NPF where the proposed maintenance road will impact upon lands that, pre-construction, are treed.

14. The proponent will be required (as they have employed elsewhere and where mutual consent exists amongst affected landowners, occupants or managers) to deflect the line, as engineering permits, to achieve a preferred line location to address specific local separation distance/visual impact concerns. Final pole

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January 17, 2002

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

and line locations are not to compromise environmental protection (e.g. protection of rare plants).

15. The proponent, in order to partially address the overall ecological impact of the corridor, will

- with respect to construction:

a) utilize the minimum road width and quality required for the safe

transport of equipment, construction and erection of the line,

b) utilize the minimum work area required for construction and erection of the pole structures, approximating a 20 m radius,

c) utilize the minimum clearing required for the stringing of the conductors/wires between pole structures

- with respect to maintenance:

d) reclaim the roadway to the minimum width and quality necessary for maintenance vehicle passage (4X4), approximating 5 m in width,

e) reclaim the work area around the base of the pole structures to the minimum size required for reasonable maintenance eventualities, insulator replacement etc.,

f) the areas retained for maintenance purposes will be seeded down to a grass and/or shrub mixture (native species) that are of a growth form that will not impede maintenance vehicle passage,

g) the area under the conductors will be planted to native grasses with taller (than (f) above) growth form shrubs, that will not threaten the conductors, being permitted to re-establish including augmentation by planting if deemed necessary by SERM (SERM, Chris Dunn at (306) 953-2675)

- with respect to line security:

h) across the width of the corridor, only those trees which immediately threaten line security (or will do so in the next three years) will be selectively cut,

i) clear cutting of a block of trees will only occur where an even height stand occurs which, in its entirety, is threatening the line,

j) where a block of trees is clear cut, SPC will reforest the area, immediately post-construction, to standard tree stocking rates and with species determined by SERM,

k) regenerating trees will be treated as per (h) to (j) above,

l) SPC will discuss and review their long term vegetation management plans for this corridor with, and to the satisfaction of, SERM -

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January 17, 2002

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

East Boreal EcoRegion within one year post-construction, and

m) SPC will apply this type of vegetation sculpting (as may be agreed to by affected landowners, occupants or managers) to the line segment from SE19-53-26-W2 to the corridor entry into the NPF where the proposed line corridor will impact undeveloped road allowances and

cleared buffers that, pre-construction, are treed.

16. The proponent will monitor cowbird activity in the corridor during the breeding/nesting period for the first three years post-construction. The program will be established in conjunction with SERM and reported on

annually (SERM, Chris Dunn at (306) 953-2675).

17. The proponent will, upon the proposed line's abandonment, reforest the corridor within the NPF to standard stocking rates with SERM identified species, with the goal of returning the cleared right-of-way to its previously vegetated state (SERM, Chris Dunn at (306) 953-2675).

18. SPC will apply reforestation, per 17 above, (as may be agreed to by affected landowners, occupants or managers) to the segment from SE19-53-26-W2 to the corridor entry into the NPF where the proposed line corridor will impact undeveloped road allowances and cleared buffers that, pre-construction, are treed.

19. The proponent will conduct all tree clearing outside of the period of 1 May to 30 July or as maybe agreed to by Environment Canada. Should tree clearing be required within this period then a nest/nesting bird survey must be conducted to avoid destroying or disturbing the nest. Under these circumstances a buffer is to be maintained around the nest (Environment Canada, Andrew Smart at (306) 780-6544).

20. The proponent will obtain a Shoreland Alteration Permit for crossing the Little Red River (SERM, Lyle Wallin at (306) 953-2889).

21. The proponent will abide by any conditions imposed by the Department of Fisheries and Oceans, Fisheries Habitat and Coast Guard sections (DFO, Al Merkowsky at (306) 953-8787).

22. The proponent must adhere to all labour standards governing the occupational health and safety of workers.

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January 17, 2002

Project Proposal Prince Albert to Timber Cove (PA8) 72(138)kV Transmission Line Rebuild Stage One - Phase II.

23. Should the project not be commenced within two years of the date of this letter nor completed in a timely fashion, per the schedule identified, then the project is to be resubmitted to the Environmental Assessment Branch, Saskatchewan Environment and Resource Management, for reassessment according to the environmental protection requirements which may be in place at that time.

Should you have any questions regarding the content of this letter, please contact Randy Seguin, Project Manager, at (306) 787-1023.

Yours truly,

Larry Lechner, P. Eng.

Environmental Assessment Branch

Acting for and on behalf of the Minister of

Environment and Resource Management

Phone: 306-787-5786

FAX: 306-787-0930

Attachment

cc: Krista Heisler, EAB

Chris Dunn, East Boreal EcoRegion

Br.