Pacific Coast Terminals Co. Ltd. Project Environmental Review Document Proposed Potash Handling and Storage System

Transcription

1 Paci ic Coast Terminals Co. Ltd. Project Environmental Review Document Proposed Potash Handling and Storage System Prepared for: Port Metro Vancouver 100 The Pointe 999 Canada Place Vancouver, British Columbia V6C 3T4 Submitted by: Andre Olivier, P.Eng. Manager, Engineering and Environment Pacific Coast Terminals Co. Ltd Columbia Port Moody, British Columbia V3H 5J9 Prepared by: Andrew MacKay, M.E.S., EP Envirochem Services Inc. # West Esplanade North Vancouver, British Columbia V7M 1A5 April 30, 2014

2 PCT Potash Handling System Project Environmental Review Document i EXECUTIVE SUMMARY This document was prepared as a requirement of the Port Metro Vancouver project permitting process. It includes project rationale, an overview of existing conditions, proposed installation details, environmental controls during construction and operations, communications and steps taken to protect First Nations cultural heritage. The document was prepared through a collaborative effort among the following organizations: PCT and K&S Canada, representing the ownership groups Envirochem Services Inc, general environmental management and permitting coordination CH2MHILL, engineering design and project management Kerr Wood Leidal Associates Ltd., site services and water management upgrades Envirowest Consulting Inc., fisheries and marine habitat impact assessment and mitigation GL Williams & Associates, fisheries and marine habitat impact assessment and mitigation Senes Arcadis Consultants, detailed air emissions inventory Kleanza Consulting, archaeological impact assessment Openspace Architecture, Potash storage building architectural design. PCT has ee i ope atio at the Po t Mood site si e the ea l 96 s. To date, a ide a iet of commodities have been safely transferred from land to vessels bound for international markets. However, since the period, tonnage handled of key commodities, Monoethylene Glycol (MEG) and Sulphur, have declined 40% and 64% respectively. To ensure future viability of the terminal, PCT decided to expand operations including the proposed Potash handling system. The PCT/KSPC Potash handling system will be a vital link in the potash supply chain that begins with the $4.1 Billion mine in Saskatchewan, ending in export markets world-wide. Three grades of Potash will be introduced to the stable, low risk operating environment at PCT. The proposed project will be preceded by several separately permitted site improvements including water management system upgrades (e.g., clarifier installation) and decommissioning of the secondary settling pond. After backfilling, the former pond area will be the location of the Potash storage building. In summary, the proposed Potash handling system project will involve installing and operating the following key assets: New railcar bottom dumper building including below ground dumper vault, indexer and two dedicated high efficiency baghouses for dust control; A new conveyor network beginning at the railcar bottom dumper tunnels to the proposed Potash storage building. Dust will be controlled by new conveyor transfer point baghouses. Additionally, conveyors will either be covered or fully enclosed (e.g., within a tube). The existing Shiploading conveyor from the proposed building to Berth II will also be covered;

3 PCT Potash Handling System Project Environmental Review Document ii A new fully enclosed 160,000 MT Potash storage steel/wood building, with two new automated stacker/reclaimers and a two way belt system for optimal commodity handling efficiency. Rip rap will be installed in the foreshore to provide lateral support for the Potash building while also preventing shoreline erosion. Water treatment system upgrades including isolated drainage systems separating potash from sulphur and installation of a new settling and aeration basin and a water storage tank system. Rail track re-alignment in the main yard extending west to Reed Point Marina. Careful designs were prepared to minimize disturbance to existing utilities and foreshore habitat. Modification to the existing Berth II quadrant shiploader with three new chutes and chute support towers. Two new baghouses will be installed for dust control on the shiploader, one each for the transfer conveyor and the spout. Installation of two new substations that provide additional electrical power drawn from BC Hydro grid for the Potash handling system. PCT enjoys a positive relationship with the local community which continues to built-up operational excellence, innovative design and honest two-way communication. That approach has been carried forward to the proposed Potash handling system where project planning has strived to achieve a balance between economic, operational efficiencies and facilitating highest a d est la d use while preventing or minimizing environmental, social or cultural impacts. From creating jobs, boosting local commerce to dust control, protecting foreshore ha itat a d Fi st Natio s he itage p ese atio, PCT s p oposed $170 million Potash handling s ste lea l suppo ts the PMV Visio fo a effi ie t a d sustai a le Gate a.

4 PCT Potash Handling System Project Environmental Review Document Page iii TABLE OF CONTENTS 1.0 INTRODUCTION PROJECT RATIONALE EXISTING CONDITIONS AT PCT Sulphur Handling System Profile MEG Handling System Profile Canola Handling System Profile Wastewater Treatment System Upgrades Secondary Pond Decommissioning Environmental Management System PROPOSED PROJECT Planned Installations Railcar Unloading Area Conveyors, Conveyor Tunnels and Transfer Towers Potash Storage Building and Staker/Reclaimers Ship Loader Modifications Rail Track Modifications Water Treatment System Upgrades Substations Control Systems Project Schedule Project Permit Summary About Potash ENVIRONMENTAL MANAGEMENT Construction Environmental Management Air Emissions Surface Water Ground Water Foreshore and Marine Habitat Soil Management Waste Management... 49

5 PCT Potash Handling System Project Environmental Review Document Page iv Hazardous Materials Management Noise and Vibration Traffic Heritage Preservation Operations Environmental Management Air Emissions Water Management Waste Management Noise Visual Impact Vessel Traffic FIRST NATIONS HERITAGE PRESERVATION COMMUNICATIONS OVERVIEW CONCLUSION... 69

6 PCT Potash Handling System Project Environmental Review Document Page v LIST OF FIGURES Figure 1. Pacific Coast Terminals Location, Port Moody Arm, Port Moody, BC... 1 Figure 2. Potash Supply Chain Summary... 4 Figure 3. City of Port Moody Land Use Map... 6 Figure 4. Typical Section of Decommissioned Secondary Settling Pond... 9 Figure 5. Potash Handling System, Railcar Unloading, Potash Storage and Transfer to Ship Figure 6. Potash Handling System-Ship Loading Figure 7. Site Plan - Main Facilities Figure 8. Site Plan, Extension of Y-Track to Accommodate Empty Rail Cars Figure 9. Potash Unloading Area, Plan View Figure 10. Potash Unloading Area, Sectional View Figure 11. Unloading Area Underground conveyor tunnels Figure 12. Conveyors Feeding the Potash Building, Plan View Figure 13. Above Ground Conveyors, Model View Figure 14. Potash Storage Building, Plan View Figure 15. Potash Storage Building, Section Figure 16. Potash Storage Building, Model View from North Figure 17. Potash Storage Building, Model View from West Figure 18. Typical Staker/ Reclaimer Cross Section Figure 19. Ship Loader and Spout Storage Rack Figure 20. Track Y Extension from PCT to Reed Point Marina Figure 21. Section at Retaining Wall Figure 22. Section at Rip Rap Slope Figure 23. Preliminary Layout (Plan) of Barge Landing Area Figure 24. Preliminary Layout (Sections) of Barge Landing Area Figure 25. Modified Drainage for the Proposed Potash Handling System Figure 26. Water Treatment System Process Flow Diagram Figure 27. Design Footprint of Proposed Storage Building on Existing Habitat Types Figure 28. Rail Extension - Design Footprint of Proposed Works on Existing Habitat Types Figure 29. Preliminary Layout of Kyle Creek Spit... 40

7 PCT Potash Handling System Project Environmental Review Document Page vi Figure 30. Preliminary Layout of Reed Island Figure 31. Location of Beach Created Through Removal of Existing Rip Rap Figure 32. Historical Soil Quality near Railcar Dumper Pit and Tunnel Excavation Areas Figure 33. PCT Site Historical Soil Quality near Planned Installations Figure 34. Existing and New Stationary Emission Sources Figure 35. Rendering of Potash Storage Building from South Slope Figure 36. Rendering of Storage Building from Rocky Point Park Figure 37. Rendering of Storage Building from Pleasantside Figure 38. Known Archaeological Sites near PCT LIST OF TABLES Table 1: Potash Handling System Capacity Table 2: Construction Project Milestone Summary Table 3: Summary of Project Permits Table 4: Summary of Potash Properties Table 5: Summary of Potential Construction Environmental Issues and Controls Table 6: Summary of Potential Excavation Groundwater Locations and Controls Table 7: Habitat Budget Table 8: Waste Inventory and Management Table 9: Potential Construction Noise Sources and Duration Table 10: Summary of Potential Operating Environmental Issues and Controls Table 11: Historical and Projected Future Commodity Handling at PCT Table 12: Projected Site Wide PCT Air Emissions in 2015 and Table 13: Expected Air Emissions from Potash Handling System Construction Table 14: Fabric Filter (Baghouse) Location Summary Table 15: Vessel Transit History and Forecast... 64

8 PCT Potash Handling System Project Environmental Review Document Page vii LIST OF APPENDICIES (see under separate copy) Appendix 1.1: Appendix 1.2: Appendix 1.3: Appendix 1.4: Appendix 1.5: Appendix 1.6: Appendix 1.7: Appendix 1.8: Appendix 1.9: Appendix 1.10: Appendix 1.11: Appendix 2.0: Appendix 3.0: Appendix 4.0: Appendix 5.0: Appendix 6.0: Appendix 7.0: Location Plan and Site Plans Potash Handling System Process Flow Diagrams Railcar Unloading Area Drawings Conveyor and Transfer Tower Drawings Potash Storage Building Drawings Code Concepts Report by Gage Babcock & Associates Rail Modification and Extension Drawings Water Treatment System Upgrades Electrical Substations Material Safety Datasheets Model Views Construction Equipment and Vehicle Inventory Historical Soil Analytical Data Chance Find Procedure Detailed Air Emissions Inventory Dust Collection System Drawings and Specifications Summary of PCT Project Communications

9 PCT Potash Handling System Project Environmental Review Document Page INTRODUCTION Pacific Coast Terminals Co. Ltd. (PCT) is a bulk commodity marine shipping terminal located at the east end of Burrard Inlet, an area also known as Port Moody Arm (see Figure 1). PCT also recognizes that it is operating within the traditional territories, including the Salish Sea, of several First Nations such as the Musqueam, Squamish, Tsleil-Waututh and Stó:lō. The terminal has been operational in its current location, Port Metro Vancouver (PMV) leased land, since the ea l 96 s a d has lo g si e esta lished itself as a positi e part of the unique Port Moody community. Figure 1. Pacific Coast Terminals Location, Port Moody Arm, Port Moody, BC Currently PCT primarily handles sulphur and monoethylene glycol (MEG) and temporarily handles steel making coal. However, recent declines in sulphur and MEG tonnage through PCT have prompted operational changes to handle other commodities to improve the financial viability of the terminal. In order to achieve this goal, PCT has committed to the following sequence of five (5) carefully planned and vital projects: 1. Navigation Channel dredging in Port Moody Arm, to enable greater scheduling flexibility and safety for vessels transiting to and from PCT subsequent to the planned operational modifications. This project is currently under review by Environment Canada (EC) and the Department of Fisheries and Oceans (DFO). 2. Installation of a Canola Handling System that will involve handling, temporary storage and marine loading of food grade cooking oil bound for export markets. This project was permitted by PMV in March 2014 and commissioning is expected in early Waste water systems upgrade including clarifier installation.

10 PCT Potash Handling System Project Environmental Review Document Page 2 4. Secondary Pond Remediation, including pond sediment characterization and removal and backfilled to adjacent grade. Improvements will reduce seismic risk and environmental liability for site contamination. 5. Installation of a state-of-the-art Potash handling system, with construction planned to begin in January 2015 and commissioning by late Q This document has been assembled to provide the basis for obtaining the requisite PMV project permit exclusively for the proposed Potash handling system at PCT. PCT is a vital component of the Potash supply chain that begins in a new $4.1 billion mine owned by K&S Canada (KSPC) near Moose Jaw, Saskatchewan. The mine is currently under construction with a similar commission schedule as the proposed handling system at PCT. From the open pit mine, Potash will be transported in covered rail cars for approximately 1900 kilometres to PCT where it will be unloaded, stored under dry conditions in a new building and subsequently shipped to multiple international destinations world-wide for industrial and agricultural applications (see Error! Reference source not found.). Potash will be introduced to the PCT site where only compatible, low risk commodities including Canola, Monoethylene Glycol and Sulphur are handled. New installations and modification to existing infrastructure will be required. Careful attention has been provided to design a highly efficient Potash handling system that minimizes environmental and community impacts. In summary, key system and product attributes for the new Potash handling system include: Introduction of three grades of potash that will be unloaded, stored and shipped. There will be one industrial (white) and two fertilizer grades (standard and granular (pink). Potash, a non-reactive, non-toxic naturally occurring mineral to the stable operating environment at PCT. New railcar bottom dumper building including below ground dumper vault, indexer and two dedicated high efficiency baghouses for dust control; A new conveyor network beginning at the railcar bottom dumper tunnels to the proposed Potash storage building. Dust will be controlled by new conveyor transfer point baghouses. Additionally, conveyors will either be covered or fully enclosed (e.g., within a tube). The existing Shiploading conveyor from the proposed building to Berth II will also be covered;

11 PCT Potash Handling System Project Environmental Review Document Page 3 A new fully enclosed 160,000 MT Potash storage steel/wood building, with two new automated stacker/reclaimers and a two way belt system for optimal commodity handling efficiency. Rip rap will be installed in the foreshore to provide lateral support for the Potash building while also preventing shoreline erosion. Water treatment system upgrades including isolated drainage systems separating potash from sulphur and installation of a new settling and aeration basin and a water storage tank system. Rail track re-alignment in the main yard extending west to Reed Point Marina. Careful designs were generated to minimize disturbance to existing utilities and foreshore habitat. Modification to the existing Berth II quadrant shiploader with three new chutes and chute support towers. Two new baghouses will be installed for dust control on the shiploader, one each for the transfer conveyor and the spout. Installation of two new substations that provide additional electrical power drawn from BC Hydro grid for the Potash handling system. PCT has submitted this document as required by the PMV Project Review Process. It provides an overview of existing operations and site conditions, engineering details on the proposed Potash handling system, environmental mitigation for both construction and operations, cultural preservation and an overview of public and First Nations communications to date. Accordingly PCT is confident that the proposed Potash handling system supports the PMV commitme t fo efficient and reliable movement of goods through the port while integrating environmental, social and economic sustainability initiatives into all areas of port operations.

12 PCT Potash Handling System Project Environmental Review Document Page 4 K&S Canada Legacy Mine, Saskatchewan Planned capacity of 2.86 million MT / yr by 2023 Valued at $4.1 Billion (Cdn.) Covered railcar 1900 km. to PCT No dust during transport Railcar unloading at Pacific Coast Terminals Covered conveyors to new 160,000 MT shed Shiploader with dedicated dust control unit(s) Potash shipped to multiple export markets including China, India and South America Local distribution to end users for use in industrial and agricultural applications (e.g., fertilizer) Figure 2. Potash Supply Chain Summary

13 PCT Potash Handling System Project Environmental Review Document Page PROJECT RATIONALE PCT has ee i ope atio at the Po t Mood site si e the ea l 96 s. To date, a wide variety of commodities have been safely transferred from land to ocean going vessels bound for international markets. However, since the period, tonnage handled of key commodities, Monoethylene Glycol (MEG) and Sulphur, have declined 40% and 64% respectively. To ensure future viability of the terminal, PCT decided to expand operations to include Canola Oil (under construction at this time) and more recently, Potash. Adding Potash to the PCT site makes good sense as it will provide numerous socio-economic benefits while minimizing environmental impact. The project and subsequent operations will play an important role in the local economy given some recent trends: PCT is currently the third largest taxpayer in the City of Port Moody and after the full expansion will be the largest single taxpayer. Major industry in Port Moody currently contributes 14% of all tax revenue (equal to $6.6 million). As a result of the downsizing of industry (two oil refineries and the sawmill have significantly reduced operations and Andres Wines closed down) in the community, this has fallen from a high of almost 50% contribution back in the 1980s. The City has publicly raised concern about the diminishing major industrial tax base in the community. Members of the City of Port Moody council all expressed support and e thusias fo PCT s pla ed e pa sio p oje ts a d the e efits it ill p o ide to the Cit in terms of jobs and increased tax revenue. For over 50 years, PCT has provided economic stability in Port Moody. This currently involves generating several million dollars a year in taxes, salaries and purchasing in the local (and regional) community. The planned $170,000,000 Potash handling system project alone is expected to generate numerous economic benefits including the creation of over 500 man (person) years of work, local and regional materials purchasing (estimated value of $3million) and an additional long-term tax revenue stream. At the same time the company has been mindful to minimize potential nuisance associated with industrial sites. Steps taken range include noise barrier installations, community notification in advance of planned maintenance activities that may generate non-continuous noises, working within Port Moody noise by-law limits and contractor workforce staging to minimize local traffic. It is important to note that the proposed Potash project is also highly compatible with the latest version of the City of Port Moody Official Community Plan (February 2014). PCT is located on la d desig ated as general industrial (see Figure 3Error! Reference source not found.). The OCP, which defines the general industrial designation as de elop e t of hea i dustrial uses su h as a ufa turi g a d port related uses, remains compatible with the PCT operation. Further o e, the OCP i dust ial poli states that, the future employment needs of Port Mood ill e et a u er of strategies su h as supporti g e isti g i dustrial

14 PCT Potash Handling System Project Environmental Review Document Page 6 usi esses. Furthermore, the overall project planning approach also supports other community goals including sustainability by considering multiple decision-making values (e.g., economic, environmental, social and cultural) and implementing energy efficiency options during design and construction. Figure 3. City of Port Moody Land Use Map

15 PCT Potash Handling System Project Environmental Review Document Page EXISTING CONDITIONS AT PCT Potash will be introduced to a very stable and reliable industrial environment handling only low risk bulk commodities. PCT has an excellent operations track record backed by fully functional Environmental and Health & Safety management systems. At the time of submitting this application document, PCT continues to handle sulphur and MEG. Construction of the Canola handling system and waste water treatment plant upgrades are well underway with expected completion in late 2014, early Additionally, a separate application was submitted to the PMV in late March 2014 to decommission the secondary treatment (settling) pond. The backfilled pond will be the location of the proposed potash building, a key asset in the proposed Potash handling system. Existing conditions, including planned projects preceding Potash handling system installations, are provided below. 3.1 Sulphur Handling System Profile Current sulphur operations at PCT involve, in summary, the following activities: Rail delivery to site by Canadian Pacific Railway (CP). Open-topped gondola cars are unloaded at the rotary dumper located at the east side of the te i al adja e t to CP Rail s ai li e ail right-of-way. Conveyors load sulphur direct to ship or to an outdoor storage area with a storage capacity of up to 220,000 MT. An automated stacker/reclaimer (StakRake) traverses the piles and sulphur is either stockpiled or reclaimed to the Quadrant Shiploader via contained conveyor system to PCT s Be th #. This e th is dedi ated to loadi g ulk a gos a d is spe iall desig ed to handle sulphur. Berth #1 is dedicated to liquids loading; however it can be used as a lay-by berth for larger vessels. Ship loading at both berths which can accommodate Panamax-sized vessels up to 70,000 dead-weight tonnes (DWT). Since handling a peak sulphur throughput of 4.4 million MT in 2004, sulphur handling volumes have gradually declined by over 64% to 1.6 million MT in 2013.

16 PCT Potash Handling System Project Environmental Review Document Page MEG Handling System Profile Handling and transfer of MEG at PCT is done through a closed loop system that first involves rail transfer to site by Canadian Pacific Railway to a contained unloading station. Glycol is then bottom unloaded from the railcars through two gravity assisted pumps to six (6) storage tanks through aboveground stainless steel pipelines. From storage tanks glycol is pumped at Berth 1 and loaded to vessels using the counter balanced marine loading arm. The system includes extensive fail-safe features including: Variable speed pumps and a surge tank located at Berth 1 to protect system overpressurizing; Recovery of residual glycol from the marine loading arm into a dedicated vessel at Berth 1 using a Nitrogen purge; Storage tanks with automated valves on inlets and outlets that close on power failures and emergency shutdown; Overfilling protection including interlocks between rail car unloading pump and high tank levels; Emergency shutdown stations at all operator stations: railcar unloading, marine loading and at the control building; Portable and mobile control system tablet interfaces allowing supervisors to continuously monitor systems while roaming the site; and A portable emergency shutdown given to vessels to stop shore-side pumps and close valves during an emergency. 3.3 Canola Handling System Profile The canola handling system, currently under construction, will involve modifications to existing infrastructure as well as adding new equipment predominantly located in the site uplands. Key system and product attributes include: Storing and handling Canola (vegetable) oil which is a non-toxic, non-flammable and non-reactive food grade commodity; Modification of the existing contained MEG rail car unloading facility to accommodate canola railcars; Installation of three (3) new tanks providing total storage capacity of 45,000 MT; New carbon steel above ground pipe installations including interstitially monitored double-walled piping at two sensitive locations: Schoolhouse Creek and the dock loading area; Installation of containment boom around each ship while loading canola; Reinforced concrete containment for the canola tank farm;

17 PCT Potash Handling System Project Environmental Review Document Page 9 Many system fail-safe features similar to the MEG system including pressure controls, tank level alarms and emergency shut-down. 3.4 Wastewater Treatment System Upgrades Numerous wastewater treatment system upgrades are underway and / or planned prior to potash handling system installations. Concurrent with the Canola system is construction of the sulphur waste water treatment plant, pump stations, clarifier and sludge dewatering building. These works have been submitted for approval under separate permit amendments and project permits issued by Metro Vancouver and Port Metro Vancouver respectively. After the clarifier construction is completed, PCT will undertake secondary settling pond decommissioning. 3.5 Secondary Pond Decommissioning In March 2014, an application was submitted to PMV for the secondary settling pond decommissioning project. In summary, the project will involve: Assessing existing sludge quality and quantity (volume); Draining wastewater from the pond; Removing, dewatering and disposing or re-use of sludge; Backfilling the pond with engineered fill to existing adjacent grades (Figure 4Error! Reference source not found. below); Directing construction surface and ground water as well as pond and sludge dewatering ope atio s to PCT s e isti g aste ate system. Figure 4. Typical Section of Decommissioned Secondary Settling Pond

18 PCT Potash Handling System Project Environmental Review Document Page Environmental Management System PCT maintains an active environmental management system (EMS) and regularly updated emergency response (contingency) plan. The EMS provides guidance to both PCT staff and contractors for continual environmental performance improvement. In 2014, PCT joined Green Marine, a highly respected marine industry standard for environmental management which includes annual self-assessments and external third party performance verifications every two years. PCT has invested more than $90 million in terminal improvements, all with a focus on environmental protection. PCT has also created a salt marsh for marine habitat enhancement, planted over 2,000 trees, installed site wastewater treatment, replaced several hydrocarbon powered vehicles with electric cars and introduced dust suppression and noise reduction systems. PCT is also proud supporters of community environmental groups such as local fish hatcheries and the Port Moody Ecological Society. The site contingency plan describes the organization and procedures to follow in numerous scenarios including fire and product loss. PCT has retained Quantum Murray and Western Canada Marine Response Corporation to act as first responders to an environmental emergency. PCT has a comprehensive employee-training programme including WHMIS, fire and safety, EMS, Transportation of Dangerous Goods and emergency response. Overall, the introduction of Potash will be highly compatible with existing conditions and bulk commodities currently handled at PCT.

19 PCT Potash Handling System Project Environmental Review Document Page PROPOSED PROJECT This section describes the proposed facilities that will be used to handle potash at (PCT). In general, potash will arrive on site in covered bottom unloading railcars and will be brought into the new railcar unloading building one car at a time. Within this enclosed environment, potash will be released from the bottom of each railcar onto an underground conveyor located in a tunnel beneath the train tracks. Dust collection systems will capture dust originating from this process. The conveyor will daylight above ground near the existing maintenance building and the potash will continue through a series of new transfer towers before entering the new Potash Storage Building. Within the storage building, three grades of potash will be handled by two automated stacker / reclaimers and reversible conveyor systems. Potash will be transferred and loaded into ships usi g PCT s e isting sulphur ship loading equipment, modified to accommodate potash. Dust will be minimized by covering or completely enclosing all conveyors and by installing dust collection systems on all transfer points. Upgrades to the electrical power supply and distribution system, water treatment system and rail yard at PCT will be required to support the project. A general overview of the potash system is illustrated in Figure and Error! Reference source not found.further below. Figure 5. Potash Handling System, Railcar Unloading, Potash Storage and Transfer to Ship

20 PCT Potash Handling System Project Environmental Review Document Page 12 Figure 6. Potash Handling System-Ship Loading More information on the components of the potash handling system is provided below. Construction, operations and environmental information is presented in Section Planned Installations The main components of the potash handling project are shown on Figure 7 Site Plan Main Facilities (railcar dumper building, conveyors and storage building) and Figure 8 (railbed extension area) below. Location plan and site plan drawings are included in Appendix 1.1. Figure 7. Site Plan - Main Facilities

21 PCT Potash Handling System Project Environmental Review Document Page 13 Figure 8. Site Plan, Extension of Y-Track to Accommodate Empty Rail Cars The capacity of the potash handling system is shown in Table 1 below. Table 1: Potash Handling System Capacity Area Unit Value Notes Railcar unloading cars/hr. 40 Receiving capacity tonnes/hr. 4,000 (nominal capacity) Stacking rate tonnes/hr. 3,000 Reclaiming rate tonnes/hr. 3,500 Storage capacity Industrial: Standard: Granular: tonnes tonnes tonnes 40,000 60,000 60,000 (nominal capacity/per machine) nominal capacity per machine Shiploading capacity: tonnes/hr. 5,000 maximum design capacity Overall capacity 2016: 2020: tonnes/yr. tonnes/yr. 36,000 2,200,000 startup Q The main equipment that will be used to transfer the potash throughout the new facilities is shown in the Process Flow Diagrams (PFDs) provided in Appendix 1.2.

22 PCT Potash Handling System Project Environmental Review Document Page Railcar Unloading Area The railcar unloading facilities are designed to automatically unload a potash train of approximately 180 cars in a single eight hour shift. Railcars are spotted by CP Rail on the south side of the unloading building and then indexed through the Potash storage building one at a ti e. E pt ail a s a e a u ulated o PCT s X-track and newly extended Y-track. The new railcar unloading building is approximately 50 m long, 11 m wide and 8 m high. It is a simple wooden frame structure that covers the material receiving pit and is large enough to enclose the automated railcar indexing equipment, bottom opener/closer and rail car shaker. The ends of the storage building are open to allow free passage of trains through the dumper pit and the building is high enough to accommodate the required CP Rail clearances. The unloading pit is approximately 8.5 m deep and houses the reception hopper, belt feeder valves and material receiving conveyor. Stair access is provided at both ends for maintenance. A dust control system is provided to keep both the storage building and pit free of dust during unloading operations. A plan and sectional views of the potash unloading area are shown in Figure 9 and Figure 10 below. Additional drawings are included in Appendix 1.3. Figure 9. Potash Unloading Area, Plan View

23 PCT Potash Handling System Project Environmental Review Document Page 15 Figure 10. Potash Unloading Area, Sectional View The unloading pit will be constructed using secant piles to provide the structural and water retaining structure. Once the secant piles are installed, the pit will be excavated using excavators and/or hydro vac trucks. The excavated materials will be reused onsite as fill or removed from site depending on the environmental and geotechnical properties. The excavation may require minor dewatering during the excavation process Conveyors, Conveyor Tunnels and Transfer Towers Potash is unloaded onto underground conveyor C-41 and is conveyed north to an underground transfer point, where it is placed onto conveyor C-42. The underground transfer point includes ladder access and a dust control system. A plan view of the potash unloading area underground conveyor tunnels is shown in Figure 11 below.

24 PCT Potash Handling System Project Environmental Review Document Page 16 Maintenance Bldg. Conveyor C-42 Emerging Point Sulphur Stockpile Railcar Unloading Area Underground Transfer Conveyor C-41 Figure 11. Unloading Area Underground conveyor tunnels After the emerging point, conveyor C-42 becomes a fully enclosed conveyor and gallery. No material from the conveyor system will be able to fall to the ground. This provides safety to a fairly busy maintenance area and ensures no potash gets into the sulphur area surface water collection system. Potash travels on conveyor C-42 to transfer tower T-42, and then to transfer tower T-43 and into the storage building via transfer towers T-44 and T-45. All transfer towers are fully enclosed and equipped with dust control systems. Conveyors after T-42 are covered. Plan and model views of the above-ground conveyors between transfer tower T-42 and the Potash Storage Building are shown in Figure 12 and Figure 13 below. Additional drawings are included in Appendix 1.4.

25 PCT Potash Handling System Project Environmental Review Document Page 17 Transfer Tower T-45 Transfer Tower T-43 Transfer Tower T-42 Conveyor C-43 Transfer Tower T-44 Conveyor C-42 Figure 12. Conveyors Feeding the Potash Building, Plan View Figure 13. Above Ground Conveyors, Model View The underground conveyor tunnels will be constructed in a similar method using a combination of secant piles and open cut excavation. The excavated materials will be reused onsite as fill or removed from site depending on the environmental and geotechnical properties. The tunnels will be cast in place concrete which will then be backfilled using recycled or import material.

26 PCT Potash Handling System Project Environmental Review Document Page 18 The above ground conveyors will be erected on the ground and lifted into place and attached to the transfer towers using cranes. The foundations of the transfer towers will be cast in place concrete footings Potash Storage Building and Staker/Reclaimers The proposed potash storage building is approximately 264m long, 83m wide and 34m high at the peak. It is designed to store up to 160,000 tonnes of potash in three different grades; standard, granular and industrial. A concrete separation wall will be installed between the fertilizer (standard/granular) and industrial grades to maintain product quality. The storage building will be constructed using steel frames to support a wooden roof and will sit on driven pile supported concrete foundations. Long and narrow wooden building extensions will be added to the north end of the storage building to house the tripper portion of the stacker/reclaimer equipment when it is at the north end of the building. The storage building will be located adjacent to the water and will be designed to current seismic codes. Soil densification by means of stone columns will be implemented between the storage building foundation and the shoreline. The stone columns will be installed along the foreshore to improve the ground response to a seismic event. Shoreline improvements using rip rap embankments are also planned. Fire truck access is provided by road access all around the building. Plan and section views of the Potash Storage Building are shown on Figure 14 and Figure 15 below. Model views of the Potash Storage Building are shown on Figure 16 and Figure 17 immediately following. Additional drawings are included in Appendix 1.5. Figure 14. Potash Storage Building, Plan View

27 PCT Potash Handling System Project Environmental Review Document Page 19 Figure 15. Potash Storage Building, Section Figure 16. Potash Storage Building, Model View from North

28 PCT Potash Handling System Project Environmental Review Document Page 20 Figure 17. Potash Storage Building, Model View from West The storage building is a purely industrial structure that does not normally support a substantial human occupancy and is therefore considered a special structure under the National Building Code of Canada. As such, it is intended to comply with the general definition of a building per the NBCC for the purpose of good design only. Alternative measures/solutions for life safety that are considered appropriate for special purpose industrial structures will be proposed. This is discussed in more detail in the Code Concepts Report by Gage Babcock & Associates included in Appendix 1.6.

29 PCT Potash Handling System Project Environmental Review Document Page 21 The storage building is required to keep the potash dry and maintain product quality. The potash stockpiles within the building are managed by two automated stacker/reclaimer machines. The two machines are located on either side of the building and travel the length of the building on rails to create the stockpiles (stacking) or transfer potash from the stockpiles to the ship loading system (reclaiming). A row of concrete columns run the length of the building are used to support an elevated central rail system to support the stacker/reclaimer booms. Reversible conveyors C-51 and C-52 run along each long wall and work with the stacker/reclaimers to achieve this function. A typical stacker/reclaimer is shown on Figure 18 below. Additional drawings are included in Appendix 1.5. Figure 18. Typical Staker/ Reclaimer Cross Section The sub grade preparation for the Potash Storage Building will include both stone columns and piles. The stone columns will be installed along the foreshore to improve the ground response to a seismic event. The piles will be installed to provide a foundation for the Stacker/Reclaimer and the building itself. The storage building will be erected from sections of building or equipment (trucked or barged to site) and assembled onsite and erected in place using cranes Ship Loader Modifications PCT s e isti g ship loade ill e odified so that it a e used fo oth sulphu a d potash. These modifications will include: Two additional potash loading spouts and a new structure that will be used to store the loading spouts when not in use. One potash sampling system. Two dust control systems; one of the transfer point between conveyor C-89 and the ship loader and one for the loading point. Structural modifications to accommodate the new product.

30 PCT Potash Handling System Project Environmental Review Document Page 22 The loading spout storage structure is shown on Figure 19 below. Figure 19. Ship Loader and Spout Storage Rack The modifications to the ship loader will include new equipment delivered to site via trucks or barge and assembled and installed in place using cranes Rail Track Modifications Some modifications and additions need to be made to the existing rail infrastructure at PCT in order to accommodate both the full and empty potash railcars. The odifi atio s i lude se e al e osso e s et ee e isti g t a ks i PCT s ail a d. Some existing track needs to be modified (straightened or re-routed) to allow for the new crossovers to be installed. The new track includes Track P (approximately 200m) that will run through the new Unloading Building and an extension of Track Y (approximately 500m) from the northern end of PCT towards Reed Point Marina. The new Track Y extension will be used for storage of empty potash railcars and will be located adjacent to Track X, currently used for storage of empty sulphur railcars. The existing bank will generally be moved seaward a few metres to accommodate the new track. The land reclamation will be backfilled with hydraulic fill materials and contained by a lock block wall along the northern end and rip rap along the southern end. Several drainage culverts will require extension or modification and two of I pe ial Oil s pipeli es lo ated i a si gle ight of way) will be crossed and protected.

31 PCT Potash Handling System Project Environmental Review Document Page 23 A plan view, wall section and a rip rap section for the Track Y extension shoreline protection area shown on Figure 20, Figure 21, and Figure 22Error! Reference source not found. below. Drawings of all rail track modifications are included in Appendix 1.7. Figure 20. Track Y Extension from PCT to Reed Point Marina Figure 21. Section at Retaining Wall

32 PCT Potash Handling System Project Environmental Review Document Page 24 Figure 22. Section at Rip Rap Slope This construction will involve land based construction activities using excavators and tracked machinery with materials being delivered by barge. The plan for staff and equipment staging is temporary access from Reed Point Marina. A temporary road will be constructed from Reed Point Marina to the construction area for the new Track Y extension. The access road will be removed once construction is complete. The plan for material delivery is to develop a barge landing between Reed Point and the PCT Terminal to act as a delivery point for fill materials. During construction, this will be the staging point for both the structural fill and lock block wall as well as the new rip rap for the shore. The barge landing area will be built with recovered rip rap (that is being replaced for new construction), aggregate fill and larger rip rap. The barge landing will then be converted into an islet that will include fish and wildlife habitat offsets for the project (see section for more details). A preliminary layout for the barge landing area is depicted by Figure 23 and Figure 24. The preliminary layout presents all of the salient features of the barge loading facility. Advanced design will define details and specifications for construction. The advanced design process will investigate prospective means to decrease the footprint on the nearshore subtidal environment; this process will maintain the delivery of intertidal habitat offsets to the project.

33 PCT Potash Handling System Project Environmental Review Document Page 25 Figure 23. Preliminary Layout (Plan) of Barge Landing Area Figure 24. Preliminary Layout (Sections) of Barge Landing Area

34 PCT Potash Handling System Project Environmental Review Document Page Water Treatment System Upgrades The proposed Potash handling fa ilit ill e ui e odifi atio s a d i p o e e ts to PCT s water, stormwater and wastewater systems in order to supply water to the Potash infrastructure and in order to treat wastewater generated from the potash handling operations. The complete report provides details on the proposed improvements and modifications that ill e e ui ed to the site s ate, sto ate a d aste ate s ste s a d othe elated site services (see Appendix 1.8). The proposed modifications to the site servi es at PCT s te i al involve the following upgrades: Water System Upgrades: Fire water lines will be upgraded and extended to provide fire water to the potash dumper building and the potash storage warehouse. Stormwater System Upgrades: Storm runoff from the potash warehouse roof will be directed to the ocean. Runoff from the north side of the warehouse will drain directly to the ocean. Runoff from the south side will enter a storm drain and will normally flow to the ocean. Water quality of the runoff will be monitored, and if it is found that the runoff is impacted, the roof u off ill e di e ted to the site s sulphu aste ate t eat e t s ste. Storm runoff from areas potentially impacted with potash fines (such as under the conveyors and near the west end of the potash storage warehouse) will be directed to a new potash wastewater treatment system (see Figure 25Error! Reference source not found. which shows modified drainage). Wastewater System Upgrades: The site s aste ate ill e seg egated into two separate wastewater systems, one for aste ate that o tai s potash esiduals Potash Waste ate, a d o e fo aste ate that does ot o tai potash esiduals Sulphu Waste ate : o A second, new wastewater treatment system will be constructed to treat aste ate that o tai s potash esiduals. Be ause so e of the fa ilit s conveyors will be shared between potash and sulphur operations, wastewater from these areas will contain both potash and sulphur residuals, and will be directed to the potash aste ate t eat e t s ste. o PCT s e isti g aste ate t eat e t a d e li g s ste ill e dedi ated fo wastewater that does not contain potash residuals, and will be called the Sulphu Waste ate T eat e t S ste. The t eated Sulphu Wastewater will continue to be either recycled, or discharged to sanitary sewer in the same general manner as the current practices. The Potash Wastewater must be segregated, treated and discharged directly to the sanitary sewer with no opportunities for recycling because the chlorides in the Potash

35 PCT Potash Handling System Project Environmental Review Document Page 27 KCl ould ause o osio p o le s to PCT s steel i f ast u tu e if the t eated wastewater was recycled. In order to segregate the two water systems, certain pump stations will be dedicated for the potash wastewater systems, and others will be dedicated for the sulphur-only (or non-potash) wastewater systems. The potash wastewater treatment system will be similar to the existing PCT wastewater treatment system, and will include two parallel primary settling basins for grit removal and oil skimmers to remove residual oils. The primary settling basins have been sized to treat the 10 year, 24 hour storm event, which equates to 42 L/s, given the catchment area of potash impacted surfaces. The primary settling basins will be followed by an aeration chamber, where mixing and ph adjustment will occur. The treated wastewater will then be pumped into a storage tank prior to discharge to the municipal sanitary sewer. The storage tank will be sized to accommodate a 1-in-5 year storm event when discharging at a flow rate of 15 L/s to the sanitary sewer. During extreme storm events, PCT will implement operational management tools such as limiting upstream flows, turning off pump stations to allow local pooling of water on site, increasing the flow rate from the Potash Wastewater treatment system to the sanitary sewer in order to limit the risk of overflow events. See Figure 26Error! Reference source not found. which shows a summary of the upgraded water treatment process. Other site service upgrades that will be involved include re-grading certain areas and paving.

36 PCT Potash Handling System Project Environmental Review Document Page 28 Figure 25. Modified Drainage for the Proposed Potash Handling System

37 PCT Potash Handling System Project Environmental Review Document Page 29 Figure 26. Water Treatment System Process Flow Diagram

38 PCT Potash Handling System Project Environmental Review Document Page Substations There will be four important installations to power the Potash handling system. These are described below (and see drawings in Appendix 1.9). Substation A A new 25 kv substation will provide the increased power requirements to the entire site. This replaces the existing 12.5 kv service at the northwest side of the property. A new power distribution center and transformers will distribute the power to the existing site and the new Substation D. Substation D Substation D is a new electrical building which will supply power to most of the potash project electrical loads, including the conveyors, stacker/reclaimers and dust collection systems. MCC 5/7 Electrical Building The power for the potash unloading building and associated equipment will be supplied from the existing MCC 5/7 electrical building. Substation C The new water treatment electrical loads will be supplied out of the existing Substation C electrical building. In general, the wiring for the potash project will utilize teck 90 cables on cable tray Control Systems New infrastructure, including the automated Potash storage staker / reclaimers will be integrated into the existing distributed control system (DCS) infrastructure at PCT. Please see Appendix 1.11 for 3D model views of the proposed installations.

39 PCT Potash Handling System Project Environmental Review Document Page Project Schedule Key project milestones are presented in the Table 2 below. Table 2: Construction Project Milestone Summary Milestones 4.3 Project Permit Summary Several project permits are required from municipal and federal regulators as well as approvals from public and private infrastructure owners that may be affected by the proposed project. These requirements and their status are summarized in Table 3 below. Table 3: Summary of Project Permits Regulator / Infrastructure Owner Metro Vancouver Department of Fisheries and Oceans (DFO) Metro Vancouver Imperial Oil Company (IOCO) City of Port Moody Permit / Approval Required Air permit amendment for adding potash works (particulate emissions) Date Submit permit application April 2014 Begin detailed engineering April 2014 Receive permit approval, commence civil site works January 2015 Mechanical Completion August 2016 Complete commissioning September 30, 2016 Ready to receive first potash shipment November 1, 2016 Response to Request for Review Application regarding railbed and potash shed rip rap foreshore impacts and mitigation. (Application for Authorization may subsequently be required). Effluent permit amendment for modified works (potash waste water treatment and drainage system) and increased discharge flow. Approval to extend rail tracks above dormant pipelines and protection Approval to extend rail tracks affecting storm water outfalls and mitigation Status Scheduled May 29, 2014 submission Scheduled May 2, 2014 submission Process underway Process underway Process underway Port Metro Vancouver Building permits for proposed Potash Building Detailed design development

40 PCT Potash Handling System Project Environmental Review Document Page About Potash PCT will handle three grades of potash which will be compatible with the other commodities (Canola Oil, Sulphur and Glycol) already existing on site. These potash products are non-toxic with no occupational exposure limits and no special storage restrictions (other than to be kept indoors to protect product quality and integrity. The hite pellet o pa ted p odu t ill e used for a wide variety of industrial applications ranging from aluminum recycling and metal electroplating to chemical manufacturing (e.g., potassium hydroxide) and outdoor use for snow and ice melting. The other two products, Kali dustfree and granular, are both used as fertilizers, namely fruit and vegetable growth as well as rice, wheat, grains and sugar. Potash product properties are summarized in Table 4 below. More detailed product information is listed in relevant material safety data sheets provided in Appendix Table 4: Summary of Potash Properties Potash Products Chemical Name Product Characteristics Appearance Odour Non- Reactive Non- Flammable Non- Toxic Water Soluble Potassium Chloride 99% KCl Compacted Potassium Chloride (KCl), 99% White, pellets Very faint 60er Kali dustfree Potassium Chloride (KCl), >94% Pink, crystalline Very faint 60er Kali gran.b Potassium Chloride (KCl), >94% Pink, granular Very faint

41 PCT Potash Handling System Project Environmental Review Document Page ENVIRONMENTAL MANAGEMENT Environmental management is integral to doing business at PCT. Our dynamic environmental management program addresses environmental issues that may occur from construction and long-term operations. Careful consideration has been taken to anticipate prospective issues and to implement effective plans and controls to prevent or minimize their impact. 5.1 Construction Environmental Management Potential issues during the construction of the potash handling system, including wastewater treatment system upgrades are summarized in Table 5. Additional details are provided in sections immediately following. A comprehensive Construction Environmental Management Plan (CEMP) will be prepared to mitigate these issues, including preservation of potential archaeological artifacts, at all stages of construction. Table 5: Summary of Potential Construction Environmental Issues and Controls Potential Environmental Issues Activities / Sources Key Controls Air Emissions Excavations (dumper pit and tunnels); mobile equipment exhaust Water truck, road sweeper; covered soil stockpiles and / or immediate removal f o site hot load Anti-idling; lower emissions engines (EPA Tier ratings II or better) Surface Water Quality Excavations, mobile equipment Containment to site and diversion to water treatment plant Groundwater Control Excavation dewatering Secant walls for diversion; contingency pumping low volumes to water treatment plant Foreshore Habitat Alteration Potash Building rip-rap installation and tree removal Railbed expansion including tree removal Pre-work environmental assessmentdesign to minimize footprint (impacts); creative plan for construction staging with conversion to compensation island; restorative planting Contaminated Soil Dumper pit, tunnel and conveyor tower pad excavations Solid Waste Handling Generation of construction waste and related packaging; organic waste (lunchrooms) Review existing soil conditions (reports) Additional exploratory sampling and analysis Coordinated material segregation and recycling between contractors

42 PCT Potash Handling System Project Environmental Review Document Page 34 Potential Environmental Issues Fuel and Chemical Spills Activities / Sources Product storage and transfer (e.g., equipment re-fuelling) Noise and Vibration Secant piling; stone columns; structural piling; tree removal Traffic Delivery and service vehicles to and from site Heritage Preservation Artifact discovery in excavations and foreshore Key Controls Hazardous material containment, handling procedures, spill kits, awareness Work within Sound Level Bylaw daily work hour limits (7:00 am 8:00 pm); Community Notification; minimize duration where possible Scheduling, Community Notification, coordination with City of Port Moody, designated truck routes (contract condition) Equipment operator awareness including Chance Find Procedure Air Emissions Dust Control Several steps will be taken to prevent and control dust to facilitate a safe and productive work environment while preventing off-site nuisance. These controls will include: C e a d site safet oo di ato o se atio s asual o ito i g ; Road sweeper for dust collection; Water truck for interim (daily) dust control between road sweeping Covered soil stockpiles (if excavated soils not immediately disposed off-site) Vehicle wash (wheel wash) on-site prior to departing the property (i.e., avoid tracking mud and / or dust off-site to local roads). Vehicle Emissions Control Unless vehicles or equipment are in active use, idling will be prohibited to prevent unwarranted emissions. Vehicle Emissions Quality All on-site equipment and applicable transient vehicles coming to and from the construction site are anticipated to have US EPA Tier II engine emission ratings (or better) for better air emissions quality on and off-site. See Appendix 2 for equipment and vehicle types and ratings.

43 PCT Potash Handling System Project Environmental Review Document Page Surface Water In keeping with current practice, all surface water will be contained and treated on site before either discharging to the Metro Vancouver (GVS&DD) sanitary system and / or recycled on site (e.g., dust suppression). The recently upgraded water treatment system (i.e., installed Q3 2014) will have the design capacity to treat water sources during construction including seasonal precipitation (rain / snow melt) and relatively minor demand (e.g., water volumes and solids) resulting from water truck dust suppression spraying. An exception may arise during excavation dewatering (see section 5.1.3) Ground Water Groundwater will need to be managed for planned excavations at the dumper pit and tunnels and for installations at potash building (see Table 6 below for a summary of potential locations and controls). Table 6: Summary of Potential Excavation Groundwater Locations and Controls Location Water Control Method(s) Dumper Pit and Connecting Conveyor Tunnels Potash Building Underground Transfer Points 1. Secant wall, remaining as dumper building and tunnel walls. This is the primary control 2. Dewater pumps for contingency, diversion to PCT water treatment system or surface water treatment before temporary discharge to ocean (with prior sampling and Ministry of Environment notification / approval). 1. Dewater pumps discharging to PCT water treatment system or surface water treatment before temporary discharge to ocean (with prior sampling and Ministry of Environment notification / approval). Secant piles will be the primary method of groundwater control, essentially diverting the water table away from the excavated worksite. Continuous pile walls will be established to an approximate depth of 12m by sequential drilling and concrete filling. The secant walls will serve two purposes: groundwater deflection and they will also remain in place as structural foundations for the railcar dumper pit and connecting conveyor tunnels. Dewatering pumps, with diversion to the PCT water treatment system, have successfully been used for the Canola handling system construction project. Final dewatering and treatment options will be made at a more detailed stage of construction execution planning.

44 PCT Potash Handling System Project Environmental Review Document Page Foreshore and Marine Habitat Registered professional biologists evaluated the existing foreshore habitat adjacent to PCT, from Schoolhouse Creek to Reed Point Marina on several occasions in early Described below are key findings, followed by an assessment of design impacts and off-set recommendations. Marine shorelines consist of backshore, intertidal, and subtidal zones, which are typically defined by higher high water level (HHWL) and lower low water level (LLWL), both large tides. A summary of tide elevations are presented below. Datum Reference: 0.0m Chart Datum = -3.05m Geodetic Datum = 27.43m PCT Datum Tidal Datum Chart (m) Geodetic (m) PCT (m) Extreme high tide HHWL, large tide HHWL, mean tide Mean water level LLWL, mean tide LLWL, large tide Extreme low tide The alignment and character of the existing shoreline is the product of terminal operations. Characteristic habitat types that occur at and about the project location include: Backshore (land above HHWL large tide) at the potash warehouse location, a row of planted coniferous trees along the top of bank that provide landscaping and screening of industrial operations; at the rail extension location, a row of planted deciduous shrubs and naturally occurring trees along the top of the stresswall, and naturally occurring deciduous and coniferous trees and associated understorey vegetation west to the terminal rock rip rap installed to provide shoreline armouring, which is partly shaded by the trees and is unvegetated.

45 PCT Potash Handling System Project Environmental Review Document Page 37 Intertidal (between HHWL and LLWL large tides) rock rip rap installed to provide bank armouring, which consists of mid-tide elevation rocks vegetated by macroalgae (i.e. rockweed, Fucus gardneri) and colonized by attaching invertebrates (i.e. barnacles and mussels); generally, rockweed occurs on the rock rip rap up to approximately 0.8 m geodetic; barnacles occur on the rip rap up to approximately 1.2 m geodetic; at the potash warehouse location, mudflat extends from the toe of rip rap (ranging from 0.05 to -0.8 m geodetic) seaward; mudflat is largely unvegetated, except for rockweed that has attached to scattered gravel and cobble once associated with shoreline armouring; mudflat is comprised fine sands, silts and clays that are predominantly of fluvial origin; at the rail extension location, beach extending from the toe of rip rap (from approximately -1.0 m geodetic) seaward; the beach consists of sand and gravel with shell hash, particularly seaward of the rock scour protection at the base of the stress wall, and becomes coarser with a cobble, gravel veneer at about Reed Point and to the terminal; the coarser cobble and large gravel typically supports a dense covering of rockweed; east of Reed Point, rock armour of the upper slope has fallen to the lower beach; a discontinuous boulder veneer covers much of the gentle sloping beach; this veneer supports a dense cover of rockweed Design Impacts to Existing Habitats The proposed location of the potash warehouse is located within the southeast area of the terminal operation at the present location of the stormwater effluent treatment ponds. The design of the warehouse impacts backshore vegetation, rip rap and mudflat. All of the aesthetic landscaping is lost; all trees are lost to the design footprint of the road. Existing rip rap is largely covered by design rip rap. A narrow strip of mudflat is impacted by the design toe of the rip rap slope for part of the project shoreline. Design impacts are considered permanent impacts to habitats. Habitat types permanently impacted by the project are depicted by Figure 27. Permanent impacts attributable to the current design of proposed works include 1220 m 2 of backshore trees/shrubs, 2330 m 2 of rip rap, and 285 m 2 of mudflat.

46 PCT Potash Handling System Project Environmental Review Document Page 38 Figure 27. Design Footprint of Proposed Storage Building on Existing Habitat Types The rail extension from the terminal westward to approximately the eastern limit of Reed Point Marina engages approximately 600 m of shoreline. The design, from approximately Reed Point Marina to Reed Point, encapsulates shoreline features constructed for the West Coast Express project. These include a concrete stresswall, rip rap scour protection at the base of the wall, and the narrow strip of shrub plantings immediately landward of the top of the wall. The design of the rail extension impacts backshore vegetation, rip rap and beach. Backshore vegetation retained occurs entirely at Reed Point. Backshore vegetation associated with the top of the stresswall, west of Reed Point, and associated with the top of bank armour, east of Reed Point, is lost. Existing rip rap and other bank armour is largely covered by the design rip rap. Beach is impacted east of Reed Point by design rip rap. Design impacts are considered permanent impacts to habitats. Habitat types impacted by the project are depicted by Figure 28. Permanent impacts attributable to the current design of proposed works include 2040 m 2 of backshore trees/shrubs, 3300 m 2 of rip rap, and 820 m 2 of beach.

47 PCT Potash Handling System Project Environmental Review Document Page 39 Figure 28. Rail Extension - Design Footprint of Proposed Works on Existing Habitat Types Habitat Offsets to Impacts The focus in the development of offsets to permanent impacts to habitats is upon the creation of habitat types that are limiting in the context of life history requirements of some fishery species that reside within Port Moody Arm. Habitat types that have been developed to design pursue the creation of such habitat types, duly considering impacts their respective design footprints upon existing habitat types and their importance to fishery species within Port Moody Arm. Kyle Creek Spit The estuary of Schoolhouse and Kyle creeks occurs within the southwest corner of Port Moody. The channel of Kyle Creek has little interface with riparian woodland; riparian woodland is a rare habitat type within the estuary. Riparian woodland is an important habitat type for juvenile salmon. Juvenile salmon are particularly prevalent within the estuary during their outmigration to the ocean, usually from March to August of any given year. The salmon will move through creek channels during both ebb and flood tides, and during slack low tide. They pursue invertebrate prey that have their origins within the channels, and within proximal habitat types, such as intertidal mudflats and marshes, and riparian woodlands.

48 PCT Potash Handling System Project Environmental Review Document Page 40 The preliminary layout of of Kyle Creek Spit is presented by Figure 29. The design spit creates riparian woodland (670 m 2 ), intertidal marsh (190 m 2 ), and cobble beach (575 m 2 ). The design footprint occurs upon intertidal mudflat. The design does not markedly encumber fluvial drainage of Kyle Creek or dendritic drainage of intertidal flats. The design results in the loss of 935 m 2 of intertidal mudflat. Intertidal mudflat of the Schoolhouse and Kyle creeks estuary encompasses 17.7 ha. The relative impact to intertidal mudflat is small. The capacity of estuary mudflat to sustain fishery species is not unduly affected. Any negative effects are substantially exceeded by the positive effects of design habitats upon the capacity of the estuary, in particular at and about Kyle Creek, to sustain life history functions for salmon. It is this net benefit to juvenile salmon that is foundation of the offset the spit provides to permanent impacts associated with both the potash building and the rail extension. Figure 29. Preliminary Layout of Kyle Creek Spit

49 PCT Potash Handling System Project Environmental Review Document Page 41 Reed Island The eastern half of Port Moody Arm (east and south of Reed Point Marina) is a shallow marine feature. It is largely characterized by peripheral intertidal flats. The shallow subtidal environment is largely characterized by fine sands, silts and clays. Abrupt vertical features, such as bedrock bluffs, typically do not transcend the bottom of the arm to the high water mark. Hard substrates that occur within the photic zone of Port Moody Arm provide ideal attachment for macroalgae, such as rockweed within the intertidal zone, and sugarkelp (Laminaria saccharina) within the subtidal zone. Macroalgae provide habitat for a myriad of invertebrates that are prey for fishery species. Macroalgae within the shallow subtidal are particularly important in providing cover and refuge for the juvenile life history stages of fishery species. These species, such as Dungeness crab (Metacarcinus magister), often shift back and forth between habitat types, such as shallow subtidal flats and kelp stands. Hard substrates, dependent upon configuration within the water column, and independent of macroalgae, can function as a reef and provide important habitat for species that exploit reef environments. Reefs provide structural complexity important to the life history stages of fishery species. This complexity is particularly important within a homogenous waterscape that is the bottom of Port Moody Arm. The preliminary layout for Reed Island is presented by Figure 30 Reed Island is created from the temporary barge landing area. Aggregates above the intertidal zone are removed utilized for construction of the rail extension. Aggregates comprising the temporary fill road are also removed and utilized for rail construction. The integration of the barge landing area and the island designs substantively reduces temporary impacts of fish and fish habitats within Port Moody Arm. The island incorporates intertidal marsh (520 m 2 ), beach (350 m 2 ), intertidal reef (1035 m 2 ) and subtidal reef (2125 m 2 ). The design footprint occurs predominantly on subtidal mudflat. Substrates along the shoreward subtidal margin of the design footprint consist of a mix of cobble, gravel, sand, mud and shells. The loss of subtidal mudflat attributable to the preliminary layout is 3955 m 2. Subtidal mudflat within the eastern end of Port Moody Arm (east of western pipeline of IOCO refinery) encompasses ha. The relative impact to subtidal mudflat is small. The capacity of subtidal mudflat of Port Moody Arm to sustain fishery species is not unduly affected. Any negative effects are substantially exceeded by the positive effects of design habitats upon the capacity of Port Moody Arm to sustain life history functions for fishery species. It is this exceedance that substantively offsets permanent impacts to habitats associated with both the potash building and the rail extension.

50 PCT Potash Handling System Project Environmental Review Document Page 42 Figure 30. Preliminary Layout of Reed Island Reed Point Beach The design of the rail extension mitigates impacts to beach habitat through burial of the toe of rip rap armour, both at the base of the vertical retaining wall west of Reed Point and along the seaward margin of the rip rap slope east of Reed Point, within native beach substrates. The residual permanent impact to the beach habitat type is partly offset by the creation of new beach (190 m 2 ) west of Reed Point at and about the base of the vertical retaining wall. Existing rip rap is removed and replaced by native beach substrates salvaged during construction of the shoreline treatments. It is an element of the engineering design of proposed works. Figure 31 displays the location of the new beach.

51 PCT Potash Handling System Project Environmental Review Document Page 43 Figure 31. Location of Beach Created Through Removal of Existing Rip Rap Habitat Account The habitat budget (Table 7) accounts for permanent impacts to fish habitats and habitat offsets attributable to the current design of proposed works and the preliminary layout of offset habitats. Temporary impacts attributable to temporary construction features, such as temporary construction roads, are not included in the budget. Habitats affected by temporary features, such as the salt marsh at Reed Point, will be restored. The budget presents habitat types that are specific in character (e.g. substrate, vegetation, location according tidal water level). The rip rap habitat type, however, is relatively general in character. Existing rip rap varying dramatically in rock size, slope and elevation; a typical crosssection does not exist for the entire project shoreline. It does, however, traverse only backshore and intertidal environments. Existing rip rap does not engage the subtidal environment within the design footprint of the project. A large component of existing rip rap occurs within the intertidal zone. This is important in that this element of the shoreline environment, that has its origins with development, does sustain habitat for fish. At high tide, it provides refuge and prey for fish. The encrusting invertebrate and algal communities founded on rip rap sustain habitat for numerous invertebrates that are important prey for fish.

52 PCT Potash Handling System Project Environmental Review Document Page 44 It is logistically and cost prohibitive to survey existing rip rap to define whether it is backshore or intertidal. In lieu of such information it is worthy to note that design rip rap largely offsets impacts to rip rap that occurs within the intertidal zone. This rip rap that is associated with the design of proposed works, and the functions it provides as fish habitat, is substantively augmented by intertidal rip rap and boulders that will define part of Reed Island constructed as part of the overall project. The context of rip rap as a habitat feature, for the purposes of a habitat budget for this project, is adequately expressed as two categories: backshore/intertidal rip rap; and, subtidal rip rap. Subtidal rip rap is a reef feature associated with the slopes of Reed Island. The backshore and intertidal portions of the vertical wall associated with the rail extension are not included in the habitat budget. The backshore vegetation impacted by proposed works has little value as fish habitat. The vegetation occurs well above the higher high water elevation (large tide). As such, there is little overhang above the surface of the water during any tide; the prospect of insect drop to the surface where it is available as prey for fish is poor. The contribution of particulate organics (i.e. leaf and needle drop) to the aquatic environment is inconsequential in sustaining invertebrate herbivores and detrivores that are prey for fishery species. The production of such herbivores and detrivores is largely dependent upon intertidal and subtidal alga. Shading of backshore vegetation typically occurs upon rip rap and the nearshore intertidal beach and mudflat. Where shading is relatively intense, it limits the cover of alga, an important element of the nearshore ecology of the arm. Shading does not benefit shore spawners (i.e. surf smelt (Hypomesus preticosus) and sand lance (Ammodytes hexapterus)). Substrates are too fine along the potash warehouse shoreline to sustain successful spawning. Substrates are too coarse along the rail extension shoreline, east of Reed Point, for spawning. At Reed Point, where substrates could prospectively sustain successful spawning, backshore vegetation is retained relatively intact. Backshore vegetation west of Reed Point is comprised predominantly of shrubs; the vegetation rarely shades beach substrates. In any regard, shore spawning has not been documented within the shoreline environments of proposed works.

53 PCT Potash Handling System Project Environmental Review Document Page 45 Table 7: Habitat Budget Habitat Type Impacted (Loss m 2 ) Offset (Gain m 2 ) Backshore Woodland Riparian Woodland Intertidal Marsh Intertidal Beach Intertidal Mudflat Backshore/Intertidal Rip Rap Subtidal Rip Rap Subtidal Flat Soil Management A total of approximately 10,000m 3 of soil (predominantly fill) will be excavated from three (3) primary areas: the railcar dumper pit, connected conveyor tunnels and new conveyor tower footings. Historical information from a historical Phase II Environmental Site Assessment at the site (Seacor, 2006) indicates from nearby boreholes that the fill material conforms to CSR and CCME soil quality criteria for industrial land use (as well as residential land use). See Figure 32 for relative locations (BH and BH 06-18) of historical samples in the vicinity of planned dumper pit and tunnel excavations, and see Figure 33 for additional historical soil sample locations in the vicinity of potential shallow footings. Analytical information is provided Appendix 3 as tables S1A [Historical analytical results for metals in soil (CSR)], S1B [Historical analytical results for metals in soil (CCME)], and S2 [Historical analytical results for petroleum hydrocarbons in soil (CSR)]. Overall, the historical data suggests soil quality in the general project area is of residential quality. Additional exploratory sampling will be conducted to further characterize and confirm the soil quality before final handling, transport, and disposal options are determined. Pending these additional analytical test results, possible outcomes for final deposit include:

54 PCT Potash Handling System Project Environmental Review Document Page 46 re-use on site (e.g., up to 3,500m 3 ); re-use off site at other industrial, commercial or residential developments (if within applicable CSR Schedule 7 standards); and / or disposal to a licensed landfill. Consideration will also be given to identify the most efficient transportation with the lowest environmental footprint possible. Options will include but not be limited to: hot loading soil from excavations directly to truck transport to end-user(s) or landfill; hot loading soil from excavations directly to truck, transfer to a nearby barge (e.g., from the adjacent sawmill site and subsequently delivered to a site via tug and barge; or combined with temporary on-site storage (stockpiles) before truck / barge delivery to final destinations.

55 PCT Potash Handling System Project Environmental Review Document Page 47 Figure 32. Historical Soil Quality near Railcar Dumper Pit and Tunnel Excavation Areas

56 PCT Potash Handling System Project Environmental Review Document Page 48 Figure 33. PCT Site Historical Soil Quality near Planned Installations

57 PCT Potash Handling System Project Environmental Review Document Page Waste Management Construction activities will generate a variety of inert, solid non-hazardous waste. The project construction team will employ a prioritized approach to waste generation and management as follows: Prevention, avoid excessive waste generation through bulk purchases with instructions to eliminate / minimize packaging where practical; Re-use construction material on site where practical; Recycle construction materials and packaging; and lowest priority Dispose materials that cannot be re-used or recycled at a licensed local landfill (e.g., City of Vancouver landfill). Effective waste management will be a condition of contractors. To facilitate waste segregation, dumpsters for specified waste materials will be arranged. The expected waste stream and handling options are summarized in Table 8 below. Table 8: Waste Inventory and Management Solid Waste Handling Options Re-Use On-Site Recycle Disposal Asphalt Excavation Soil (fill)* Trees** Dimensional Wood Wood Pallets Paper and Cardboard Scrap Metal Paint*** Organics (Lunchroom) Plastic Wrap *approximately 3500m 3 from dumper and tunnel excavations **compost ***partly finished cans to Transfer Station, dry cans to municipal waste

58 PCT Potash Handling System Project Environmental Review Document Page 50 Hazardous waste generation is expected to be minimal and may include small volumes of: residual concrete sealant, solvent and mineral spirits (associated with painting); and used sorbent pads for cleaning up small fuel and /or lubricant spills should they occur. Unless the materials such as sealants and solvents can be re-used by contractors for subsequent job sites, they will be submitted to licensed transfer stations. Used sorbents will be disposed as hazardous waste with licensed operators with applicable manifests for waste tracking Hazardous Materials Management The volume of hazardous materials used for construction purposes, including equipment fuels, is planned to be kept to a minimum. All products will be approved by a safety coordinator prior to use on site. Small volume hazardous materials such as spray paints, solvents and sealants will be stored in designated prefabricated fireproof sheds. Small volume fuels (gasoline and diesel) will be stored in 20L jerry cans and placed in containment when not in active use. Note that mobile refuelling services will be contracted to provide diesel to equipment on-site - bulk fuel storage will therefore not be required. Propane cylinders will stored at required distances from other combustible and flammable products. All products will be used and stored in compliance with the National Fire Code Noise and Vibration Noise and vibration will result from primarily piling and site preparation activities. Sources and planned durations are summarized in Table 9 below. Table 9: Potential Construction Noise Sources and Duration Source Estimated Duration (Days) Secant piling (drill / crane engines and generator) 60 Stone columns 55 Structural piling traditional pile driver (steel pipes) 30 Tree removal excavators to remove trees for railbed extension and Potash building rip rap installation areas Vibration is expected to be limited to the PCT site and not be a nuisance off-site at nearby properties that are predominantly zoned industrial and commercial, including the adjacent rail yard. 20

59 PCT Potash Handling System Project Environmental Review Document Page 51 Every attempt will be made during construction planning to limit noise duration including the possibility of overlapping activities. Other initiatives to minimize noise will include complying with the Port Moody Sound Level Bylaw requirement to limit construction activities between 7:00 am -8:00 pm. As a courtesy to the community, notices will be placed in local newspapers and possibly other media to alert them of planned construction activities. PCT management will also record and respond to attributable complaints on a timely basis Traffic The use of local roadways will increase during the construction phase as a result of equipment and material deliveries, site services and contract labour transits. This will involve an estimate of approximately 7,500 trips over the construction period (see Appendix 2 for an estimate of transient vehicle trips and a list of on-site equipment). To minimize potential traffic delays in Port Moody, particularly on approach to PCT, several steps will be taken, such as (but not limited to): Using designated truck routes which will be a condition for contractors (e.g., haulers, deliveries); Coordination with City of Port Moody planners; Where possible, deliveries by barge to completely avoid road use; Avoidance of typical local morning and afternoon rush hours; and Courtesy project notifications (reminders) in local media sources (e.g., newspapers, websites) and on the PCT website Heritage Preservation The project site is located within asserted traditional territories of several First Nations. By the time construction begins, a comprehensive Archaeological Impact Assessment (AIA see section 6.0) will have either identified existing artifacts or prospective locations for finding artifacts, particularly after examining the railcar dumper pit and conveyor tunnel bore holes. An additional opportunity for identifying cultural materials will occur with excavation equipment operators during construction. Operators will be trained on a Chance Find procedure (see Appendix 4) which provides instruction to recognize possible artifacts. The procedure includes a stop work requirement in case artifacts are encountered. A trained archaeologist may also be on site at selected excavation intervals to further enhance identification of cultural materials.

60 PCT Potash Handling System Project Environmental Review Document Page Operations Environmental Management Once construction is complete, the project will transition to long-term operations. The transition will include a highly detailed sequence of commissioning procedures and system testing before the handling system operates at full capacity. In addition to numerous engineering safeguards, personnel will be trained on the new operating system procedures and relevant environmental protection requirements. Key operating environmental management requirements are summarized in Table 10 with additional detail immediately following. Table 10: Summary of Potential Operating Environmental Issues and Controls Potential Environmental Issue Air Emissions Water Management Waste Management Noise Visual Impact Vessel Traffic Activities / Sources Mobile Sources: rail, vessel Point sources: particulate from product transfer at railcar dumper, conveyors, Shiploader Potash affected water from minor conveyor and building losses Off-spec from yard; Water treatment plant solids during maintenance Baghouses, conveyors Rail operations Vessels New installations: building, conveyors, dumper and foreshore Inner Harbour, Port Moody Arm Key Controls Inventory and review compatibility with local conditions Highly efficient dust prevention and collection designs including covered or enclosed conveyors and baghouses at conveyor transfer points Contained, dedicated potash water drainage to treatment plant Recycled; landfilled Licensed landfill At existing noise levels, compliant with Sound Level Bylaw Existing automated rail track monitoring system Not expected to exceed existing vessel sound levels Building design - shape, elevation, colour (tbd) Aesthetic planting where feasible Effective planning / scheduling Pilotage for safe operation (vessels not controlled by PCT

61 PCT Potash Handling System Project Environmental Review Document Page Air Emissions Many proven engineered and procedural controls to protect air quality will be effectively implemented, including the use of clean electrical power to run the entire operation. However the new mobile sources (e.g., rail, vessels) transiting PCT and stationary sources (e.g., rail dumper, conveyors, shiploader) from the proposed Potash handling system will change the emission profile of the site. Project planning has included conducting a detailed emissions inventory and particulate (dust) controls, both of which are described below Detailed Air Emissions Inventory The scope for the detailed site wide emissions inventory covered mobile and stationary sources as follows: sulphur, coal, glycol and canola handling for the year 2015; sulphur, glycol, canola and potash handling for the year 2020; and air emissions associated with the construction of infrastructure required to handle potash. The difference between the 2015 and 2020 emission inventories considers the incorporation of Potash handling to overall site wide air emissions. Note that PCT plans to discontinue handling coal after the Potash handling system is commissioned. Air emissions from proposed potash handling activities will be controlled with dust collectors at all transfer points, while commodity transportation by rail (CP Rail) and marine vessels will otherwise generate the vast majority of emissions to air. PCT (and /or its partner K&S Canada) has no direct control of vessels or rail operations other than the scheduling frequency for commodity transportation. However, rail and marine vessel scheduling efficiency is a vital component in terminal planning logistics, including effectively managing costs. Furthermore, the marine and rail transportation industries are separately governed to manage air emissions (including the PMV Air / Eco-Action programmes which involve using low sulphur fuels while in port). The air contaminants considered for this emission inventory include carbon monoxide (CO), sulphur dioxide (SO 2 ), nitrogen oxides (NO X ), inhalable particulate matter (PM 10 ), respirable particulate matter (PM 2.5 ), total volatile organic compounds (VOC), ammonia (NH 3 ), diesel particulate matter (DPM), black carbon, and greenhouse gases (GHG) such as carbon dioxide (CO 2 ), methane (CH 4 ) and nitrous oxide (N 2 O).

62 PCT Potash Handling System Project Environmental Review Document Page 54 PCT itself is directly responsible for few of the significant air emission sources at the facility, which is based on the reliance on other companies to supply the necessary shipping, rail and trucking transport. As such, a large part of the effort to compile the emission inventory involved determining the engine characteristics of transportation sources managed elsewhere. It is anticipated that PCT will handle up to 2,200,000 tonnes of potash annually, on its way to markets in Asia and other parts of the world. Table 11 outlines recent historical and projected future commodity handling at PCT. Table 11: Historical and Projected Future Commodity Handling at PCT Year Commodity (tonnes per year) Sulphur Coal Potash Glycol Canola ,289, , ,025, , , ,735, , , ,580, , , ,500, , , , ,500, , , , ,380, ,000 36, , , ,300,000-1,000, , , ,220,000-1,250, , , ,140,000-1,500, , , ,060,000-2,200, , ,000 Changes in site wide air emissions from the baseline year 2015 to the future year 2020 are shown in Table 12 and total emissions associated with the construction of potash infrastructure at PCT (Table 13). The results indicate that: Site-wide emissions of CO would remain relatively unchanged in 2020, but would increase in the supply chain portion of the inventory, primarily due to ship emissions; NOx, VOC, SO2, DPM, BC and GHG emissions would increase for both site-wide and supply chain emissions; PM10 and PM2.5 emissions would decrease from levels in 2015 due to the reduction in fugitive dust from coal exports.

63 PCT Potash Handling System Project Environmental Review Document Page 55 A previous emission inventory completed for PCT operations from 2001 to 2005 is also presented for comparison purposes. It is noted that emission estimation methodologies have changed since this previous inventory was completed; however, there have been significant reductions in site-wide emissions based on improvements in marine and locomotive engine technologies, which results in lower predicted site-wide emissions in 2015 and 2020 in comparison to historic emission rates. Overall, the estimated emissions of CO, NOx, VOC, SO 2, combustion-related PM 10 and PM 2.5, and fugitive dust are lower for 2015 and 2020 than the estimates provided for the period. Please see Appendix 5 for the complete air emissions inventory report for more details.

64 PCT Potash Handling System Project Environmental Review Document Page 56 Table 12: Projected Site Wide PCT Air Emissions in 2015 and 2020 Year Emission Contaminant (tonnes for assessment year) Source CO NOx VOC SO 2 PM 10 PM 2.5 DPM BC CO 2 CH 4 N 2O CO 2e20 CO 2e100 NH 3 Ships Rail Trucking neg neg neg. neg neg. Light Duty Vehicle Off-Road Fugitive Dust Total , Ships Rail Trucking neg neg. neg neg. neg neg. Light Duty Vehicle Off-Road Fugitive Dust Total , Table 13: Expected Air Emissions from Potash Handling System Construction Contaminant (total emissions - tonnes) CO NOx VOC SO 2 PM 10 PM 2.5 DPM BC CO 2 CH 4 N 2O CO 2e20 CO 2e100 NH

65 PCT Potash Handling System Project Environmental Review Document Page Stationary Source Controls As introduced in section 4, PCT will be installing best available technology (BAT) for the prevention and control of particulate dust generated by transfer operations. The site map in Figure 34 shows the nine new emission points (in red hexagons): seven are associated with conveyor transfer points and two with the shiploader. Highly effective designs to control potential fugitive dust from the handling system will include: Fully enclosed or covered conveyors and fully enclosed transfer towers (previously mentioned in Section 4.2); Conveyor transfer points will each have attendant fabric filter dust collection systems aghouses, ith t pi al 99.9% dust e o al efficiency. See Table 14 which provides a summary of fabric filter locations. Note that final design and supplier selection are to be finalized. Table 14: Fabric Filter (Baghouse) Location Summary Operation / Location Emission Point # Dust Control Units Railcar Dumper Building 31, 32 2 Underground Conveyor Transfer 33 1 Tower T-42 (for conveyor transfers C42 to C43) 34 1 Transfer Tower T-43 (for conveyor transfers between C43, C44 and C55) 35 1 Transfer Tower T-44 (for conveyor transfers C44 to C51 and C51 to C53) Transfer Tower T-45 (for conveyor C45 to C52; C52 to C54 and C53 to C54) Transfer Conveyor to Shiploader (C89 to Shiploader) Shiploader (at ship hold) 39 1 Please see Appendix 6 for dust collection drawings (and related system specifications for Shiploader units).

66 PCT Potash Handling System Project Environmental Review Document Page 58 Figure 34. Existing and New Stationary Emission Sources

67 PCT Potash Handling System Project Environmental Review Document Page Water Management The new water treatment and drainage system described in section will be fully commissioned prior to Potash transfer operations. As previously stated, all surface water on site will be contained and directed to the water treatment system before discharge to the Metro Vancouver sanitary sewer or recycled for use on site. The system will be designed and operated for compliance to an amendment effluent permit issued by Metro Vancouver (GVS&DD) and the applicable sanitary by-law requirements. The treatment system will be subject to routine maintenance to ensure optimal performance Waste Management Waste will be generated from potash handling and water treatment plant maintenance. For e a ple, d off-spe p odu t a a ise he potash o es i to o ta t ith dirt / grits in the rail dumper building, near conveyors and / or at the ship loader. Sludges are expected from slops tanks and basins in the water treatment system. These sources and their planned management are described below: Waste Water Treatment System Maintenance Skimmed oils will be collected in slop oil tanks. Excess water will be decanted back to the wastewater system. Oils and associated sludge will be shipped off-site for disposal. Settling basin solids will be removed routinely with a front end loader, and disposed to offsite at a licensed facility. Aeration basin solids will be removed every few years by vacuum truck and will be disposed off-site by at a licensed facility. Solids or sludge that will accumulate in the potash wastewater storage tank will be decanted back into the Primary Settling Basins. Overall, the potash wastewater treatment operations, including system maintenance, are not expected to generate nuisance odours on or off-site. Off-spec Potash Solids Very small volumes of dry potash may fall out of primary means of containment (e.g., conveyors, Potash storage building) during temporary operational spills. Potash that is not o ta i ated i.e., o i g i to o ta t ith Sulphu, di t ill e etu ed to the building for export pending an assessment of quality. Dry potash that cannot be re-introduced to the handling system for export will be disposed off-site at a licensed facility.

68 PCT Potash Handling System Project Environmental Review Document Page Noise With similar design and operating activities, excluding the fully enclosed storage building, the proposed Potash system is expected to have the same low noise profile as the existing Sulphur handling system. Potash operations including railcar unloading, conveyors, dust collectors with silencers (e.g. see Sandvik specifications in Appendix 6) and ship loading are not expected to generate noise levels above existing sound levels. The system will be designed to operate with the limits indicated in the City of Port Moody Sound Level Bylaw. Railcar delivery and marine vessel transiting can create noises (continuous and non-continuous) above background that may be noticed by local citizens. Although these sou ds a e pa t of PCT s histo a d p ese t da ope atio s, the o pa takes reasonable steps to attenuate noise, including: Working with CP on operating practices; Rail lubrication; Sound barriers; Rail sound level monitoring at Berth 1 connected to operator control systems; and Equipment upgrades (plastic conveyor rollers, electric motor upgrades, etc.) Visual Impact The appearance of the PCT site will change with the introduction of the new Potash handling system, however numerous design considerations were included to minimize potential visual impacts. Potash Storage Building A large number design options were examined to determine the optimal balance of minimizing visual impacts while maintaining long term durability and operational performance. Various building shapes, material stock-pile configurations, material handling equipment and methods, exterior colours and building heights were considered. Operationally, Potash stock pile volumes have been maximized while minimizing the storage space required. This includes minimal clearances for the stacker / reclaimer operations.

69 PCT Potash Handling System Project Environmental Review Document Page 61 Several renderings of the proposed Potash storage building were superimposed into photographs taken from various vantage points in Port Moody. The renderings were prepared and studied to maintain view corridors to the North Shore for the homes to the south of the site as much as possible. This included lowering the storage building height to allow a view to the opposing shoreline (e.g., Pleasantside) for most of the overlooking homes located on the south slope. While best practical efforts were made to minimize visual impacts, some homes on the south of the terminal will have partially obstructed views (see Figure 35). Figure 35. Rendering of Potash Storage Building from South Slope After the building size and shape had been optimized to minimize its overall impact on the community, the colour was then explored. The Architectural team reviewed many options for p o idi g a ost effe ti e a d du a le solutio. It as dete i ed that a Fo est G ee olou was best suited for the building as it blends in with the adjacent backgrounds better than anything else explored (see Figures 36 and 37) and considering previous community feedback on other projects.

70 PCT Potash Handling System Project Environmental Review Document Page 62 Figure 36. Rendering of Storage Building from Rocky Point Park Figure 37. Rendering of Storage Building from Pleasantside

71 PCT Potash Handling System Project Environmental Review Document Page 63 Tree Removal and Replacement As noted in section 5.1.4, all existing trees east and west of Reed Point Marina will be removed for the railbed foreshore extension, with the exception of a small stand at Reed Point. Additionally, trees adjacent to the Potash building must be removed for the planned access road and rip rap installation adjacent to the building. Preliminary concepts are to re-plant targeted tree species for aesthetic and / or ecological values. Initial locations include the proposed compensation island, in and about the mouth Kyle Creek, Reed Point as part of temporary road deactivation and possibly constructed planters adjacent to the Potash Building rip rap top of bank (without blocking the access road). Note that the dark green colour of the Potash building exterior is intended to help mitigate the visual change associated with tree removal in that vicinity Vessel Traffic The new potash handling system will require on average approximately four vessels per month, assuming 50,000 MT per ship loading event. Inclusive of all other commodities that will be transferred at PCT, this will result in planned peak of 141 vessels per year (an average of 12 per month). This represents as a modest but consistent increase from 2010, but below the historic peak of 182 vessels per year reached in Please see Table 15 below for details. As part of efficient terminal operations, vessels will only transit to and from PCT as required to mobilize commodities to export markets. As per routine procedure, vessel transits are coordinated with the PMV and captained by members of the local pilotage association for safe passage through the Inner Harbour and Port Moody Arm. This commitment to safety will consistently be implemented and coordinated with other prospective marine projects in Burrard Inlet (Salish Sea) should they come to fruition.

72 PCT Potash Handling System Project Environmental Review Document Page 64 Table 15: Vessel Transit History and Forecast Year Drybulk Tankers Liquid Tankers Total Tankers E E E E E E E

73 PCT Potash Handling System Project Environmental Review Document Page FIRST NATIONS HERITAGE PRESERVATION As previously stated, PCT recognizes that it is operating within traditional territories of multiple First Nations, including but not limited to the Musqueam, Squamish, Tsleil-Waututh a d Stó:lō Natio s. Gi e the p oje t a ea s lo atio ithi Fi st Natio s te ito ies a d p o i it to known archaeological sites (Figure 38), as ell as the p oje t s s ope i ludi g ultiple excavations that penetrate through native soil depths, PCT is voluntarily undertaking a comprehensive Archaeological Impact Assessment (AIA) to preserve subsurface cultural artifacts that may be present within the project area. The objectives of an AIA are to: identify, record, and assess archaeological sites within the PCT project sites; identify and evaluate possible impacts to these (potential) archaeological sites that may be caused by any future development of the property (namely the Potash handling project); and, recommend appropriate impact mitigation management actions (if required). In March 2014, archaeologists were contracted from Kleanza Consulting Ltd. to conduct the AIA. In summary, the AIA will involve three sequential phases of field planning, field work and reporting as follows: Phase I: Field Planning A desktop review including basic archaeological, historical and ethnographic background research involving review of readily available articles, reports, records and maps. The Remote Access to Archaeological Data (RAAD) database administered by the provincial Archaeological Branch will be consulted to determine if any previously recorded archaeological sites are located within or nearby the project area. This stage may include a visit to provincial and local archives as well as examination of archival and air photos of the project area(s). Liaison with First Nations to review available traditional use information and sharing draft reports and maps. Inlailawatash Forestry Limited Partnership (owned by Tsleil-Waututh) has agreed to provide mapping and background research services. Assembling and submitting archaeological permit applications. Inviting First Nations representatives to participate in a site visit.

74 PCT Potash Handling System Project Environmental Review Document Page 66 Phase II: Field Visit Field investigations will be conducted to locate, record and evaluate archaeological sites (potentially) present in the project area. The field crew will be comprised of two archaeologists and up to three First Nations Field Technicians. Field investigations will include any of foot traverses to observe the project area for possible archaeological evidence; subsurface testing using relevant tools and equipment ranging from shovels and possibly excavators near surface and augers to investigate more deeply buried sediments; and recording and marking of archaeological site(s) if discovered. Phase III: Reporting Key tasks will include data analysis, reporting writing, mapping and development of any required mitigation recommendations. The report will be submitted to participating First Nations and the Archaeology Branch. The Branch will also be notified of any archaeological site s a e dis o e ed. A Cha e Fi d p o edu e ill also e ge e ated a d p o ided to construction excavation operations to further improve the detection of artifacts potentially not identified during field investigations. At the time of submitting this document, several elements of the AIA were underway or near completion, including: Preliminary information sharing with Squamish and Tsleil-Waututh Nations regarding potash handling system design and invitation for PCT project site tour Meetings between PCT staff, Kleanza archaeologist, and Port Metro Vancouver Aboriginal Affairs staff to discuss the AIA approach (March 31, 2014); Review of borehole sample material remaining from geotechnical investigations in the foreshore area near Reed Point Marina (April 22, 2014); Submission of archaeological permit application documents to Musqueam, Squamish, Tsleil- Waututh a d the Stó:lō Ap il, 4 ; Preliminary subsurface investigation plans. Field work is expected to take place in June 2014 pending reception of First Nation permits.

75 PCT Potash Handling System Project Environmental Review Document Page 67 Figure 38. Known Archaeological Sites near PCT

76 PCT Potash Handling System Project Environmental Review Document Page COMMUNICATIONS OVERVIEW In July 2012, PCT announced its intentions to undertake a significant expansion of its facilities for handling canola oil and potash. A third project was also announced to widen the navigation channel. Since that time, PCT s o u it e gage e t effo ts i luded o u i atio s ith all Port Moody residents, municipal, provincial and federal elected officials, local community organizations, businesses and First Nations. Communication methods have included: Company Newsletters (regular publication); Special Company Newsletter (focused on expansion); PCT Website Updates; Media Advertising; Media Articles; Presentation to Port Moody City Council; Presentations to Community Organizations; Community Open Houses; Social Media; and as noted in section 6.0 above, Preliminary information sharing with some First Nations (e.g., Squamish, TWN) The G o i g Ou Busi ess se tio of the PCT e site p o ides a o goi g efe e e fo the proposed potash expansion project. Information includes an overview of potash, a summary of terminal improvements and a short video illustrating the site expansion (see bottom of presentation and rendering page: Many of these activities will continue during the PMV project review period, including voluntary information sharing with local First Nations (i.e., Squamish, TWN, Musqueam and Stó:lō). First Nations representatives will be informed that these information sharing sessions will in no way su stitute PMV s legal dut to o sult a d a e ei g u de take olu ta il the PCT project team to develop long-term relationships well beyond the project timeline. Please see Appendix 7 for details on PCT communications and examples of community engagement to date (April 30, 2014).

77 PCT Potash Handling System Project Environmental Review Document Page CONCLUSION The PCT/KSPC Potash handling system is a vital link in the potash supply chain that begins with the $4.1 Billion mine in Saskatchewan and ending in export markets world-wide. PCT enjoys a positive relationship with the local community which continues to built-up operational excellence, innovative design and honest two-way communication. That approach has been carried forward to the proposed Potash handling system where project planning has strived to achieve a balance between economic, operational efficiencies and fa ilitati g highest a d est la d use while preventing or minimizing environmental, social or cultural impacts. From creating jobs and boosting local commerce to and dust control, protecting foreshore habitat and First Natio s he itage p ese atio, PCT s p oposed Potash handling system clearly supports the PMV Visio fo a effi ie t a d sustai a le Gate a.