AND WHEREAS the Minister is satisfied that all the requirements of the Act have been met, including those required of Premier Tech;

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1 PROVINCE OF SASKATCHEWAN MINISTRY OF ENVIRONMENT MINISTERIAL APPROVAL PURSUANT TO SECTION 15(1)(a) THE ENVIRONMENTAL ASSESSMENT ACT PREMIER TECH HORTICULTURE LTD. SMOKEY RIDGE PEAT HARVESTING PROJECT WHEREAS Premier Tech Horticulture Ltd. (hereinafter called Premier Tech ), applied for ministerial approval as required by subsection 8(1) of The Environmental Assessment Act (hereinafter called the Act ) to develop, operate and reclaim a new 72 hectare peat harvesting operation in the southern portion of the Smokey Ridge bog approximately 21 km northeast of the town of Hudson Bay within the Rural Municipality of Hudson Bay No. 394, Saskatchewan (hereinafter called the development ); AND WHEREAS the Minister of Environment (hereinafter called the Minister ), gave notice of the assessment to be conducted as required by section 10 of the Act; AND WHEREAS an environmental impact statement, consisting of a document entitled Premier Tech Horticulture - Smokey Ridge Peat Harvesting Project: Environmental Impact Statement dated May 2015 (hereinafter called the Statement ) as required by section 9(1)(b) of the Act, was submitted to the Minister; AND WHEREAS the Minister has reviewed the Statement and has made the Statement and review available for public inspection as required by section 11 of the Act; AND WHEREAS the Minister is satisfied that all the requirements of the Act have been met, including those required of Premier Tech; AND WHEREAS the Minister has concluded the development ought to be approved subject to terms and conditions; NOW THEREFORE PURSUANT to section 15(1)(a) of the Act, ministerial approval is hereby given to Premier Tech to proceed with the development subject to the following terms and conditions which form part of this ministerial approval: 1. Premier Tech shall proceed with the development in the manner described in the Statement except where alterations are required by the subsequent terms and conditions of this approval. Smokey Ridge Peat Harvesting Project 15(1)(a) Decision Page 1 of 2

2 2. Premier Tech shall inform the Minister, in the manner described in Section 16(1) of the Act, of any change to the development that does not conform to the terms and conditions of this approval. 3. Premier Tech shall follow the requirements of the laws and regulations of the Province of Saskatchewan respecting the design, construction, operation, maintenance and decommissioning of the development. 4. This approval is not an environmental approval with respect to any ancillary feature of this development that is the responsibility of any proponent other than Premier Tech, for example, power transmission lines, provincial roads, etc. If required, such features will be considered under separate application to be submitted by the responsible party. 5. If the development has not commenced within five years of the issuance date of this approval Premier Tech will resubmit an application for further review in light of the circumstances of the day. 6. This ministerial approval takes effect on the date of signing. Dated at Regina, Saskatchewan this 22 nd day of July, 2015 Original signed by ISSUED BY: Herb Cox Minister of Environment Smokey Ridge Peat Harvesting Project 15(1)(a) Decision Page 2 of 2

3 REASONS FOR DECISION MINISTERIAL APPROVAL PURSUANT TO SECTION 15(1)(a) THE ENVIRONMENTAL ASSESSMENT ACT PREMIER TECH HORTICULTURE LTD. SMOKEY RIDGE PEAT HARVESTING PROJECT Introduction The Environmental Assessment Act (hereinafter called the Act ) states that a person shall not proceed with a development, as defined in the Act, until ministerial approval has been received. It further sets requirements for a process of Environmental Impact Assessment (EIA) intended to inform the Minister of Environment (hereinafter called the Minister ) of the potential impacts of a development prior to making a decision regarding the development. On June 6, 2014, the Environmental Assessment Branch (EAB) received a project proposal from Premier Tech Horticulture Ltd. (hereinafter called Premier Tech ) for the Smokey Ridge Peat Harvesting Project. The project proposal was sent to the Saskatchewan Environmental Assessment Review Panel (SEARP) for technical review. Following the technical review, the project was determined to be a development under Section 2(d) of the Act. Premier Tech was therefore required to conduct an EIA and submit findings in an Environmental Impact Statement (EIS). In May 2015, Premier Tech submitted the final EIS seeking approval under section 15(1)(a) of the Act. The EIS underwent both technical review and a 30-day public review. I am therefore satisfied that the requirements of the Act have been met. Background The proposed project will harvest 72 hectares (ha) of Sphagnum peat in the 162 ha Smokey Ridge bog over 10 years. The bog is located approximately 21 km northeast of the town of Hudson Bay in the Rural Municipality (RM) of Hudson Bay No. 394 on land designated under The Wildlife Habitat Protection Act (WHPA). The project will include: construction of two borrow pits; the upgrade of 1.25 km of existing trail and construction of an internal bog road; perimeter drainage and discharge ditches; and associated site infrastructure. The project closure activities will include decommissioning and reclamation once the harvesting activity is completed. Smokey Ridge Peat Harvesting Project 15(1)(a) Reasons for Decision Page 1 of 6

4 Environmental Assessment Public notice of the EIA was first given in October 2014 pursuant to section 10 of the Act. Premier Tech prepared and submitted the initial EIS entitled Premier Tech Horticulture Smokey Ridge Peat Harvesting Project to the Ministry of Environment (hereinafter called the ministry ) in January The EIS underwent technical review by SEARP and was found to be deficient in the information provided in various sections, which led to additional information being requested from Premier Tech prior to the EIA proceeding to the public review phase. Premier Tech subsequently submitted a revised EIS on May 11, 2015 that satisfied the requests for additional information. The final EIS (hereinafter called "the Statement") and the technical review comments document prepared by the EAB were then made available for public review from June 1, 2015 to June 30, 2015 pursuant to Section 11 of the Act. No comments were received from the public during this period. Having made my decision to issue a ministerial approval, the Act requires the Minister, pursuant to subsection 15(2), to state the reasons for the decision. Reasons for Decision Potential Impacts The Statement submitted by Premier Tech describes the development and its potential adverse impacts on the environment. Potential impacts considered during the EIA include effects to local hydrology, vegetation, wildlife including Woodland Caribou and other environmental components. Terrestrial Environment The Smokey Ridge bog is located within the Boreal Plain Ecozone between Wapagoose Creek to the north which enters the Overflowing River and the Red Deer River to the south which flows into Red Deer Lake in Manitoba. The area south of Smokey Ridge bog is flat and comprised of agricultural lands interspersed with woodlands along the Red Deer River. The project area consists of a raised bog surrounded by fen. The dominant vegetation in the bog area is black spruce (Picea mariana) with an understory of sphagnum moss (Sphagnum spp.) and Labrador tea (Rhododendron groenlandicum). The dominant vegetation in the fen area includes sedges (Carex spp.), willows (Salix spp.), cattails (Typha spp.), and dwarf birch (Betula glandulosa). The peat will be harvested from the unsaturated upper layer of the bog, which is approximately Smokey Ridge Peat Harvesting Project 15(1)(a) Reasons for Decision Page 2 of 6

5 150 to 250 cm deep, where the water table fluctuates. A residual peat layer of at least 50 cm will remain after harvesting has been completed. This layer is critically important in facilitating the restoration of the peatland during reclamation activities. Premier Tech has proposed vegetation donor sites which will be delineated prior to construction and protected to allow re-introduction of peatland vegetation once operations are complete. This will help ensure effective reclamation of the harvested bog and re-vegetation with representative species. Further details regarding the site decommissioning and restoration plan will be developed through the permitting phase of project development. Premier Tech s vegetation surveys did not identify any species in the project area which are federally-listed under the Species at Risk Act (SARA) or protected under The Wildlife Act. In addition, no weed species listed under The Weed Control Act were identified in the project area. A weed management program will be implemented as part of the vegetation management plan for the project; this will include monitoring for weed species during construction and operation. Mitigation to prevent significant impacts to vegetation communities includes: avoiding sensitive areas; using existing access routes or trails whenever possible; and implementing appropriate weed control measures should weeds be detected. Although the project is located in the SK2 caribou range as defined in the federal recovery strategy for woodland caribou, the landscape around the project area has been highly disturbed by previous and existing human development, including agriculture and forestry activities. Woodland caribou are considered to have a low likelihood of occupying the project area because caribou require large, intact areas of suitable habitat to spatially distribute themselves away from areas with high density of alternate prey species and predators. No woodland caribou were detected during track and aerial surveys conducted during the EIA or on trail cameras in the area. Minor impacts to wildlife will largely be due to sensory disturbance during construction and operation of the project. Impacts will be limited in duration and are not expected to result in significant adverse impacts to wildlife populations, distribution or health. Premier Tech presents a detailed evaluation of potential impacts, potential mitigation measures and a commitment to carry out monitoring and adaptive management should significant issues arise. A monitoring program will be implemented for the life of the project to determine the effectiveness of mitigations included in the wildlife and wildlife habitat protection plan and the woodland caribou mitigation plan. Based on mitigations developed to minimize impacts to land, vegetation and wildlife habitat and the disturbed nature of the area surrounding the project location, I am satisfied there will be no significant residual impacts to the terrestrial environment. Hydrogeology and Surface Water Environment Impacts to peatland hydrology are expected to result due to changes in peat soil properties affecting the storage of water in, and flow from, the peatland. Hydrology will be largely Smokey Ridge Peat Harvesting Project 15(1)(a) Reasons for Decision Page 3 of 6

6 restored following reclamation activities which will include blocking the drain after the project is completed and mulching and reintroduction of peatland vegetation from donor sites. Drainage is proposed to be discharged to an adjacent peatland which will provide natural filtration for loose organic material released with surface runoff water from the drainage network. Implementation of environmental design features and appropriate mitigation (i.e., erosion control practices) are expected to limit effects from erosion. Premier Tech has committed to weekly water quality monitoring during the construction of the ditch network and monthly monitoring during operations. Drainage water quality will be monitored within the drainage ditches and the receiving environment to confirm that there will be no effect on surface water quality. Based on the limited scale of the project and the mitigations proposed including restoration and re-vegetation activities, I am satisfied that no significant residual impacts to hydrogeology or the surface water environment will result from this development. Atmospheric and Acoustic Environment Airborne emissions will be generated during construction, operation, decommissioning and restoration of the project. Emissions may arise from fugitive dust from the access road, vehicle operation, during the preparation of the bog surface for cutting and during extraction, storage and transportation of the peat. Results of the residual effects analysis indicate that ambient concentrations of particulate matter at the 1,000 m boundary will be compliant with the Saskatchewan Ambient Air Quality Standards (SAAQS). Given there are no human receptors within 2.8 km of the proposed project, peat dust is 40% water by weight and contains no known deleterious substances and considering the proposed dust suppression measure, effects of peat dust emissions on air quality are predicted to be negligible. Other mitigation proposed to minimize air emissions include: ensuring diesel-powered equipment is running efficiently; enforcing speed limits to reduce dust; applying water as a dust suppressant; not idling vehicles; and re-vegetating stripped areas and stockpiles where possible. I am satisfied with Premier Tech s commitment to implement appropriate emission and dust control measures, verified through monitoring, throughout the life of the project and as a result, significant impacts to the atmospheric environment are not anticipated. Decommissioning, Reclamation and Abandonment Premier Tech will decommission and reclaim disturbed areas once harvesting activities are completed. Restoration of the disturbed areas will be completed to a post-harvest land use objective as directed by the Ministry of Agriculture. This will be accomplished through the Smokey Ridge Peat Harvesting Project 15(1)(a) Reasons for Decision Page 4 of 6

7 reconfiguration of the drainage ditches to allow for natural recovery of water levels within the peatlands. Undisturbed donor sites of Sphagnum will be maintained within the Smokey Ridge peatland during operations. Donor moss will then be introduced to facilitate the reestablishment of the Sphagnum-dominated vegetation communities. A detailed plan for decommissioning, reclamation and abandonment will be developed in consultation with the appropriate regulatory agencies prior to construction. Heritage and Socio-Economic The project was reviewed by the Heritage Conservation Branch (HCB) and it was determined there are no known conflicts with heritage resources within the project footprint. Clearance letters under Section 63 of The Heritage Property Act were issued and a Heritage Resource Impact Assessment was not required. The project will result in a small increase in traffic. Given the low volume of traffic and mitigation proposed, the residual effects on traffic are expected to be negligible. Project residual effects on employment and economy are expected to be modest and positive. Premier Tech has adequately examined and addressed all the heritage resource and socioeconomic impacts of the project. Based on the findings, I am satisfied with Premier Tech s assessments. Engagement Activities Premier Tech initiated engagement activities in May 2014 and continued through 2015, to provide information about the project through various meetings, telephone conversations, s and onsite presentations. Premier Tech conducted meetings with First Nation and Métis communities to gather information on the potential of the project to impact Treaty or Aboriginal rights. Concerns raised during meetings by First Nation and Métis communities centered on potential impacts to wildlife and the environment, traditional land use activities in the region, access to the site and increased traffic, decommissioning and restoration activities, potential employment opportunities and economic development. Project specific concerns raised during engagement and consultation activities were addressed by Premier Tech during the meetings and have been documented in the EIS. The review period for the EIA, provided an additional opportunity to review development details and provide comments. Comments were received from Opaskwayak Cree Nation (OCN). OCN comments indicate the project is not likely have significant adverse effects on the ability of OCN members to hunt, fish, trap, harvest medicine plants and carry out other traditional activities. Other project specific concerns raised by OCN related to wildlife, vegetation communities, water and proposed restoration activities. No other comments were received during the review period. Smokey Ridge Peat Harvesting Project 15(1)(a) Reasons for Decision Page 5 of 6

8 Premier Tech has committed to ongoing engagement activities as required through the subsequent licensing and permitting phase. The EIS adequately addressed the concerns raised during engagement and consultation activities. Conclusion The Ministry of Environment and review agencies are satisfied that, if the mitigative and environmental protection measures outlined in the EIS are implemented, adverse effects can be minimized and benefits enhanced. This conclusion is based on Premier Tech s commitments as documented in the Statement; on the ability of the Minister of Environment to impose specific conditions at this time; and on the knowledge that additional environmental protection requirements can be imposed through terms and conditions forming part of permits and licences required by provincial legislation. I have concluded that any adverse environmental effects associated with Premier Tech s Smokey Ridge Peat Harvesting Project can be eliminated or minimized. Approval under the Act, therefore, has been granted to Premier Tech for the development as described in the Statement. The ministerial approval for the development includes terms and conditions designed to promote the elimination and control of adverse environmental effects associated with the development. Included are requirements that Premier Tech: (a) (b) (c) proceed with the development in accordance with the Statement; provide notification of any change; follow the requirements of other applicable laws and regulations. These conditions, plus the measures proposed in the Statement and the regulatory framework applicable to the development, now and in the future, are adequate to address all issues related to the development. Dated at Regina, Saskatchewan this 22 nd day of July, 2015 Original Signed by ISSUED BY: Herb Cox Minister of Environment Smokey Ridge Peat Harvesting Project 15(1)(a) Reasons for Decision Page 6 of 6