Enforcement Actions 1 Jul Sep Compliance Assurance, Operations Division

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1 Compliance Assurance, Operations Division

2 Administrative Penalties Envirofor Preservers (Alta) Ltd. & Taiga Building Products Ltd. Strathcona County SE W4 10-Jul-15 Assessed: $10, (e), 227(j) The Companies operate the Strathcona Wood Treatment Plant pursuant to an Approval. They contravened the approval with the release from the Industrial Runoff Control System in excess of the approved limits; failing to, prior to the release, monitor the parameters specified in the approval; and failing to obtain authorization from the Director prior to releasing. Paid 23 July West Fraser Mills Ltd. (Sundre Forest Products Inc.) Clearwater County NW W5 NW W5 17-Jul-15 Assessed: $30, PLA 59.3(b), 54(1)(e) 187/2011; 165(1) 60/1973; 100(1)(b) The Company removed timber and disturbed ground within 30 meters of a fish bearing permanent watercourse on or before October 3, 2013, and on or before July 18, 2013 which was an operating ground rule incorporated as a term and condition of timber disposition FMA Paid 25 August Tiger Calcium Services Inc. MD Lesser Slave River SW W5 31-Jul-15 Assessed: $4, (e) The Company operates the Slave Lake Chemical (Calcium Chloride) Manufacturing Plant pursuant to an Approval. It contravened its approval when it submitted the second soil monitoring proposal late and failed to immediately report to the Director any contravention of the terms and conditions of the approval. Paid 27 August Madson, Patrick Lorne and Richard Alexander MD of Fairview SE W6 05-Aug-15 Assessed: $1, PLA 56(1)(d) The Parties entered on and occupied public land for the purpose of cutting hay without being the holder of a disposition or authorization under the Public Lands Act. Seehta Forest Products Ltd. MD of Opportunity SW W5 07-Aug-15 Assessed: $5, (1)(n) 60/1973; 100(1)(b) The Company contravened its Standard Operating Condition 1 of Schedule A in its Coniferous Timber Licence CTLS by failing to comply with its Operating Ground Rules, which includes a requirement to comply with the 15/11 Utilization Standard in section when it failed to utilize merchantable balsam fir at the Wapiti stock yard. Paid 28 September Canadian Forest Products Ltd. Clear Hills County NE W6 10-Aug-15 Assessed: $120, (1)(n) The Company contravened its Standard Operating Condition 2 of Schedule A in its Coniferous Timber Licence CTLP by failing to comply with its Page 2 of 12

3 Administrative Penalties 60/1973; 100(1)(b) Operating Ground Rules, which includes the requirement to comply with the 15/11 Utilization Standard in section when it failed to utilize merchantable timber in the Hines Creek Storage Yard. Paid 16 September Blue Ridge Lumber Inc. MD of Greenview S W5 S W5 12-Aug-15 Assessed: $15, (1)(n) 60/1973; 100(1)(b) The Company contravened term and condition 16(1) in its Forest Management Agreement when it failed to conduct its timber harvesting operation in accordance with its Operating Ground Rules. It operated when soil conditions were above field capacity (saturated) and failed to cease operations when instances of multiple ruts in a limited area were created during unfavourable ground conditions. Paid 28 September Grant, Collin Charles County of Barrhead SW W5 21-Sep-15 PLA 56(1)(m) Collin Charles Grant is the holder of Grazing Lease Disposition GRL He contravened a term of this grazing lease disposition by making range improvements; in particular he cultivated approximately acres without prior written approval. Page 3 of 12

4 Amended Environmental Protection Orders Leduc County Leduc County NE W4 18-Sep Amendment No. 2 issued to EPO-2015/01-UAR by deleting the phrase "September 8, 2015" and replacing it with "October 20, 2015" in Clause 6 and deleting the phrase "September 15, 2015" and replacing it with "October 27, 2015" in Clause 7. All other clauses of the EPO remain in force Alberta Ltd. Vulcan County W W4 23-Sep Amendment No. 1 issued to EPO-2015/02-SSR to implement further monitoring activities to assess the potential adverse effects of the Substance on the environment. Page 4 of 12

5 Enforcement Orders Dunvegan River Rat Society and Rombs, Clint Saddle Hills County SW W6 05-Aug-15 PLA 20 Alberta Environment and Parks ["AEP"] identified the existence of a variety of structures, personal effects, and other items located on an island in the Peace River, which are public lands legally described as SW W6M. A Public Lands officer with AEP inspected the lands and noted the presence of the following, including but not limited to: a wood cabin with tin roofing, the rear passenger compartment of a school bus, a wood deck and sauna, an outhouse, a storage facility constructed of tin and fiberglass, a metal structure used to house a generator, a pathway, including steps and railings. [the "Unauthorized Structures and Property"] On March 18, 2014 AEP affixed the Unauthorized Structures and Property with a public notice requiring its removal within 60 days. On May 6, 2014, Clint Rombs, as the agent of the Dunvegan River Rat Society, formally claimed ownership to the Unauthorized Structures and Property. The Parties requested and received several extensions to comply with the public notice, allowing them time to submit an application for a recreational lease disposition for the Crown Lands located on the island. To date, no application has been received and the unauthorized structures and property are still present on the Crown Lands. The Parties shall remove all unauthorized structures and property belonging to or associated with them; Remove all waste and debris associated with unauthorized use and occupation of Crown lands and; notify the Director within 15 days of completion of the work. Idland, Brian and Future Oilfield Investments Ltd. Red Deer County NW W5 11-Aug-15 WA 36(1) Future Oilfield Investments Ltd. ["FOIL"] is the registered owner of the lands legally described as NW W5M, located in Red Deer County, Alberta ["NW 12"] and Brian Idland is a Director and the operating mind at all times material to the events in this Order. FOIL holds valid Water Act Approval No.'s and for the purposes of erosion control. On November 5, 2014, Environment and Parks received a public complaint that work was being done along the Red Deer River adjacent to NW 12. A site inspection observed that an earthen berm had been constructed between the erosion control works authorized by the Approvals. In the course of the Investigation Idland acknowledged that the Berm was placed on his behalf and at his request. The construction and continued operation of the Berm, in its Page 5 of 12

6 Enforcement Orders current state, may alter or may become capable of altering the flow or level of water, and may cause or may become capable of causing siltation of water or the erosion of the bed and shore of the Red Deer River, and may cause or become capable of causing an effect on the aquatic environment of the Red Deer River. Environment and Parks has never issued an approval under the Water Act to FOIL, Idland or anyone for the construction and operation of the Berm, and the construction and operation of the Berm is not otherwise authorized under the Water Act. The Parties shall, by August 25, 2015, submit to the Director a written remedial plan prepared and signed by a qualified water resource engineer; Conduct all work in a manner that does not cause nor is capable of causing an adverse effect to the aquatic environment; and, within 14 days of completion of the requirements in the Order, submit a final written report, prepared and signed by a professional engineer describing the work undertaken to comply with this Order. Dunphy, Darrin MD of Greenview NE W5 26-Aug-15 PLA 20 On May 22, 2013, a Public Lands Officer with the Department of Alberta Environment and Parks ["AEP'] discovered the presence of various personal effects and structures belonging to Darrin Dunphy located on public lands legally described as W5M, adjacent to Lot 3 in the Eagle Bay Subdivision abutting Sturgeon Lake, in the Municipal District of Greenview No. 16, Alberta. Inspection of the Crown Lands noted the presence of the following, including but not limited to: an elevated board walk, a floating dock and, a mulched trail leading to the elevated boardwalk [the "Unauthorized Structures and Property"]. Darrin Dunphy confirmed that he had constructed and placed the Unauthorized Structures and Property on the Crown Lands and once advised by AEP that this is a contravention of the Public Lands Act indicated he would remove them by the end of July, On September 4, 2013 Darrin Dunphy informed AEP that the Unauthorized Structures and Property had not been removed from the Crown Lands nor did he intend to remove them. AEP has no records of having issued any authorization to Darrin Dunphy to occupy the Crown Lands for any purposes. Darrin Dunphy must, by October 31, 2015, vacate and remove all the Unauthorized Structures and Property from the Crown Lands in a manner with minimal disturbance to the environment, and; notify the Director of compliance within 15 days of completion of the work required. Page 6 of 12

7 Environmental Protection Orders Alberta Ltd. Vulcan County W W4 20-Jul The Company operates an agriculture operation and has a fertilizer storage tank on land it owns located at W 1/ W4M, which is immediately adjacent to the Little Bow River. On July 15, 2015, a third party filled the Company's fertilizer storage tank with some volume of liquid urea ammonium nitrate fertilizer [the "Substance"], whereas the tank ruptured and approximately 9800 L of the Substance was released onto the Site and migrated into and under the soil and offsite towards the Little Bow River. On July 16 and 17, 2015, employees of the Alberta Environmental Monitoring, Evaluation and Reporting Agency (AEMERA) and the Alberta Support and Emergency Response Team (ASERT) observed 100+ dead fish in the Little Bow River, from the Site to approximately 1 km downstream. A Contractor hired by the Company's insurer constructed a trench, approximately 30-40cm deep and approximately three metres from the water's edge; installed 4 bell holes, straw bales, and a silt fence on the river's bank; and using a vacuum truck, recovered liquids that collected in the trench and bell holes [the "Contractor's Actions"]. The Director is of the opinion that a release of a substance has occurred, has caused, is causing or may cause an adverse effect on the environment. Inspection and analysis show that the Substance continued to migrate into the water of the Little Bow River and the Contractor's Actions are not sufficient to confine the effects of the substances or manage the substances in such a manner as to prevent adverse effect. The Company shall immediately and continuously prevent any and all amounts of the Substance form entering the water, bed or shore of the Little Bow River; Submit in writing to the Director all raw data, analytical results, written reports and verbal reports relating to the release; Submit a detailed written Delineation and Excavation Plan signed by a registered professional engineer; Implement the Delineation and Excavation Plan; Submit and Implement a written Aquatic Environmental Assessment Plan as approved by the Director. Notice of Appeal received by the Environmental Appeals Board July 24, Page 7 of 12

8 Prosecutions Seaholm, Randal 06-Aug-15 : $1, (j), 61 Count 2: "Co-accused Ag Air North Ltd." On or between August 24, 2012, and August 25, 2012, both dates inclusive, at or near Falher, in the Province of Alberta, did commence or continue any activity that is designated by the regulations as requiring a registration without holding the required registration, to wit: did offer or provide a service involving the use or application of a pesticide listed in Schedule 2 for hire or reward without being the holder of a valid pesticide service registration contrary to section 7(1)(a) of the Pesticide (Ministerial) and did thereby commit an offence contrary to sections 61 and 227(j) of the Environmental Protection and Enhancement Act, evidence of the said offence having first come to the attention of the Director on May 27, Pled guilty and was sentenced to a fine of $ The court also imposed a one-year stop order prohibiting him from applying pesticide from an aircraft and from owning, holding shares in, or acting as director, officer, employee, or agent of a company that applies pesticides from an aircraft.fine paid 6 August Greenways, Peter J. 12-Aug-15 : $25, Count 19: "Co-accused Greenways Inc." On or between the 13th day of August 2007 and the 23rd day of May 2012, at or near Edmonton, Alberta, did accept for transportation or storage hazardous waste without the hazardous waste being accompanied by a manifest that is completed in accordance with the regulations, accurately identifies the quantity, composition and points of origin and destination of the hazardous waste and contains the personal identification number of each person consigning, transporting or accepting the waste, contrary to s. 191 of the Environmental Protection and Enhancement Act, and did thereby commit an offence contrary to section 227(j) of the Environmental Protection and Enhancement Act. Pled guilty and was sentenced to a global penalty of $50, The judge also imposed a publication order and a two-year stop order. The latter prohibits him from: possessing or transporting any hazardous waste or hazardous recyclable in any public place; purchasing or acquiring any hazardous waste or hazardous recyclable; owning, holding shares in or acting as a director, officer, employee or agent of any corporation or other entity that purchases or acquires any hazardous waste or hazardous recyclable.' Page 8 of 12

9 Prosecutions Greenways, Peter J. 12-Aug-15 : $25, Count 20: "Co-accused Centennial Zinc Plating Ltd." On or between the 13th day of August 2007 and the 23rd day of May 2012, at or near Edmonton, Alberta did consign or transport hazardous waste without the waste being accompanied by a manifest that is completed in accordance with the regulations, accurately identifies the quantity, composition and points of origin and destination of the hazardous waste and contains the personal identification number of each person consigning, transporting or accepting the waste, contrary to s. 191 of the Environmental Protection and Enhancement Act, and did thereby commit an offence contrary to section 227(j) of the Environmental Protection and Enhancement Act. Pled guilty and was sentenced to a global penalty of $50, The judge also imposed a publication order and a two-year stop order. The latter prohibits him from: possessing or transporting any hazardous waste or hazardous recyclable in any public place; purchasing or acquiring any hazardous waste or hazardous recyclable; owning, holding shares in or acting as a director, officer, employee or agent of any corporation or other entity that purchases or acquires any hazardous waste or hazardous recyclable. Page 9 of 12

10 Tickets No Activity Page 10 of 12

11 Warning Letters Kalinski, Nick MD of Bonnyville NW W4 06-Jul-15 60/1973; 112 Mr. Kalinski failed to produce production records in the required Form TM 97 Production Journal during the December 11, 2013 manufacturing inspection. Foothills Forest Products Inc. Grande Cache W6 08-Jul The Company contracted McNeil Construction Ltd. to conduct harvest operations and they cut outside of the boundary set out at W6M, Block at or near Grande Cache, Alberta on our about September 12, 2014.' McNeil Construction Ltd. Grande Cache W6 08-Jul The Company was contracted by Foothills Forest Products Inc. to conduct harvest operations and they cut outside of the boundary set out at W6M, Block at or near Grande Cache, Alberta on our about September 12, TBL Construction Ltd. Parkland County SW W5 25-Aug-15 WA 142(1)(h) An Inspection on November 13, 2014 identified unauthorized works in a waterbody. Tri-Arrow Industrial Recovery Inc. Edmonton Plan 5419NY, Block B, Lot 1E Plan 6056MC, Block B, Lot 1A,1C 2- Sep The Company conducted an unauthorized activity, the operation of a facility that is engaged in the storage of hazardous waste, being more than 10 tonnes of hazardous waste being stored at the facility at any one time. Whitemud Water Co-op Ltd. Edmonton NE W4 3- Sep The Company failed to comply with the Code of Practice for a Waterworks System Consisting Solely of a Water Distribution System, being, but not limited to, the lack of a certified operator, late submission of annual reports, lack of reporting contraventions and an incomplete drinking water safety plan which was due by December 31, Fowler, Perry Lac Ste. Anne County SE W5 30-Sep-15 WA 142(1)(n) Mr. Fowler conducted an activity, the unauthorized diversion of water from a waterbody on April 26, Page 11 of 12

12 Water Management Orders No Activity Page 12 of 12

ENFORCEMENT OF THE ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT WATER ACT

ENFORCEMENT OF THE ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT And WATER ACT 1 Jul 2011-30 Sep 2011 November 2011 Environmental Operations Alberta Environment Administrative Penalties Canadian Natural