SUPPLEMENTAL PHASE II ENVIRONMENTAL SITE ASSESSMENT APPLEBY MALL 5111 NEW STREET AND 499 & 505 APPLEBY LINE BURLINGTON, ONTARIO

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1 SUPPLEMENTAL PHASE II ENVIRONMENTAL SITE ASSESSMENT APPLEBY MALL 5111 NEW STREET AND 499 & 505 APPLEBY LINE BURLINGTON, ONTARIO

2 SUPPLEMENTAL PHASE II ENVIRONMENTAL SITE ASSESSMENT APPLEBY MALL 5111 NEW STREET AND 499 & 505 APPLEBY LINE BURLINGTON, ONTARIO Prepared for: FIRST CAPITAL (APPLEBY) CORPORATION 85 Hanna Avenue, Suite 400 Toronto, Ontario M6K 3S3 Prepared by: WATTERS ENVIRONMENTAL GROUP INC Langstaff Road, Suite 1003 Concord, Ontario L4K 3S3 April 30, 2008 Reference No

3 SUPPLEMENTAL PHASE II ENVIRONMENTAL SITE ASSESSMENT APPLEBY MALL 5111 NEW STREET AND 499 & 505 APPLEBY LINE BURLINGTON, ONTARIO Prepared by: Hali Zigomanis Site Assessment Specialist Reviewed by: Kevin French, P.Eng., QP ESA, Vice President Project Manager & Project Director April 30, 2008 Reference No

4 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page i EXECUTIVE SUMMARY Watters Environmental Group Inc. (Watters Environmental) was retained by First Capital (Appleby) Corporation (First Capital) to conduct a Supplemental Phase II Environmental Site Assessment (Supplemental Phase II ESA) of a vacant parcel of land located at 505 Appleby Line, in Burlington, Ontario (hereafter referred to as the Subject Land ). Watters Environmental notes that the Subject Land is part of a larger property, which comprises a commercial plaza (i.e., the ) located at 5111 New Street and a retail store (i.e., The Beer Store) located at 499 Appleby Line (hereafter collectively referred to as the Site ). Watters Environmental understands that the Subject Land and the Site are currently owned by First Capital and managed by FCB Property Management Services (FCB). Watters Environmental also understands that First Capital is seeking a Record of Site Condition (RSC) for the Site as per Ontario Regulation 153/04 (i.e., Records of Site Condition Part XV.1 of the Act, made under the Ontario Environmental Protection Act, R.S.O. 1990) (hereafter referred to as the RSC Regulation ), as amended by Ontario Regulations 366/05 and 444/06. As such, the purpose of Watters Environmental s Supplemental Phase II ESA was to provide First Capital with an evaluation of known and/or potential environmental issues at the Subject Land resulting from current and/or historic activities conducted at the Subject Land, the Site and/or adjacent properties in accordance with the requirements of the RSC Regulation. Prior to commencing with the Supplemental Phase II ESA activities at the Subject Land, Watters Environmental completed a Phase I ESA for the Site for First Capital. The results of the Phase I ESA are included in the Watters Environmental report entitled Phase I Environmental Site Assessment,, 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario, dated March 31, 2008, which is provided under a separate cover. Watters Environmental Group Inc. Reference No April 30, 2008

5 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page ii Based on the Phase I ESA completed for the Site by Watters Environmental, it was Watters Environmental s opinion that there were no significant environmental concerns with respect to the current environmental condition of soil or groundwater at the Site, including the Subject Land. Watters Environmental notes that, although the northwestern portion of the Site (i.e., the Subject Land) was formerly occupied by a gasoline service station and automotive repair facility, that area of the Site was previously investigated and remediated by others and no residual issues were identified. Regardless, Watters Environmental notes that since the Phase I ESA was completed in preparation for filing an RSC for the Site, a baseline Phase II ESA was required, despite the fact that the Subject Land has previously been remediated by others. As such, Watters Environmental recommended that a supplemental soil and groundwater investigation be completed in the northwestern portion of the Site to satisfy the mandatory requirements of the RSC Regulation. The Supplemental Phase II ESA completed at the Subject Land by Watters Environmental initially comprised completing a geophysical survey on April 10, 2008 using a combination of electromagnetic and ground penetrating radar surveying techniques. The geophysical survey results did not identify the presence of any current USTs in the areas investigated at the Subject Land. Following the clearance of underground services at the Subject Land by the public utility companies and a private utility locating contractor, five boreholes (i.e., WBH1 through WBH5) were then advanced to allow soil samples to be collected from various locations to assess environmental soil quality at the Subject Land on April 10, In addition, three existing groundwater monitoring wells at the Subject Land (i.e., MW-3, BH102 and BH104) were monitored, purged and sampled by Watters Environmental on April 10 and 24, Selected soil and groundwater samples collected from the Subject Land as part of the Supplemental Phase II ESA were submitted for laboratory analysis of lead, volatile organic compound (VOC) parameters, including benzene, toluene, ethylbenzene and xylenes (collectively referred to as BTEX ), petroleum hydrocarbon (PHC) and/or polycyclic aromatic hydrocarbon (PAH) parameters. Watters Environmental Group Inc. Reference No April 30, 2008

6 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page iii Based on the results of the Supplemental Phase II ESA completed at the Subject Land, Watters Environmental presents the following observations, conclusions and recommendations: No visual or olfactory indications of potential environmental impact or elevated total organic vapour readings were observed or recorded by Watters Environmental for the soil samples recovered from the boreholes advanced at the Subject Land as part of the Supplemental Phase II ESA, with the following exceptions. At location WBH2, a questionable/ unidentifiable odour was observed in the soil sample collected from a depth between approximately 0.61 to 1.22 metres below ground surface (mbgs). In addition, PHC-type odours were observed in soil samples collected from WBH3 at depths ranging from approximately 1.83 to 3.05 mbgs. The results of the laboratory analysis of the soil samples collected from the Subject Land by Watters Environmental for lead, BTEX, PHC and/or PAH parameters indicated that all of the results were either not detected at concentrations above the laboratory detection limits (DLs), or were present at levels below the generic assessment standards. As such, all laboratory analytical results for lead, BTEX, PHC and/or PAH parameters in the soil samples submitted from the Subject Land as part of the Supplemental Phase II ESA met the generic assessment standards. Free-phase product (i.e., non-aqueous phase liquid) was not observed by Watters Environmental during the borehole drilling or soil sampling activities completed at the Subject Land as part of the Supplemental Phase II ESA. No evidence of environmental impacts (i.e., sheens, odours and/or free-phase product) was observed by Watters Environmental in the groundwater during the groundwater monitoring, purging and sampling activities completed at the Subject Land. The results of the laboratory analysis of the groundwater samples collected from the Subject Land by Watters Environmental for lead and/or VOC (including BTEX) parameters indicated that all of the results were either not detected at concentrations above the laboratory DLs, or were present at levels below the generic assessment standards. As such, all laboratory analytical results for lead and/or VOC (including BTEX) parameters in the groundwater samples submitted from the Subject Land as part of the Supplemental Phase II ESA met the generic assessment standards. Watters Environmental Group Inc. Reference No April 30, 2008

7 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page iv The results of the various Quality Assurance/Quality Control analyses completed indicate that the laboratory analytical results from the Supplemental Phase II ESA are considered accurate and representative of actual soil and groundwater quality conditions at the Subject Land. As such, it is Watters Environmental s opinion that the environmental quality of the soil and groundwater at the Subject Land meets the current generic assessment standards for all of the parameters analyzed, and that no further assessment or remediation work is required at the Subject Land in this regard at this time. If the groundwater monitoring wells present at the Subject Land are no longer necessary, consideration should be given to properly decommissioning them in accordance with applicable regulations. Watters Environmental Group Inc. Reference No April 30, 2008

8 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page v TABLE OF CONTENTS SECTION PAGE EXECUTIVE SUMMARY... i 1.0 INTRODUCTION BACKGROUND SITE DESCRIPTION PREVIOUS ENVIRONMENTAL REPORTS PARAMETERS OF INTEREST GENERIC ASSESSMENT STANDARDS FIELD INVESTIGATION ACTIVITIES GEOPHYSICAL SURVEY BOREHOLE DRILLING AND SAMPLING PROGRAM GROUNDWATER MONITORING AND SAMPLING PROGRAM LABORATORY ANALYSES QUALITY ASSURANCE/QUALITY CONTROL INVESTIGATION FINDINGS STRATIGRAPHY HYDROGEOLOGY FIELD OBSERVATIONS SOIL ANALYTICAL RESULTS GROUNDWATER ANALYTICAL RESULTS QUALITY ASSURANCE/QUALITY CONTROL CONCLUSIONS AND RECOMMENDATIONS QUALIFICATIONS AND LIMITATIONS...24 Watters Environmental Group Inc. Reference No April 30, 2008

9 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page vi TABLE OF CONTENTS (Continued) LIST OF FIGURES Figure 1: Figure 2: Figure 3: Site Location Map Site Layout Subject Land Layout and Sampling Location Plan LIST OF APPENDICES Appendix A: Survey Plans for the Site and Subject Land Appendix B: Groundwater Assumption Documentation Appendix C: Geophysical Survey Report Appendix D: Borehole Logs Appendix E: Laboratory Certificates of Analysis Appendix F: Qualifications of Watters Environmental and Key Personnel involved with this Phase II ESA Watters Environmental Group Inc. Reference No April 30, 2008

10 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page INTRODUCTION Watters Environmental Group Inc. (Watters Environmental) was retained by First Capital (Appleby) Corporation (First Capital) to conduct a Supplemental Phase II Environmental Site Assessment (Supplemental Phase II ESA) of a vacant parcel of land located at 505 Appleby Line, in Burlington, Ontario (hereafter referred to as the Subject Land ). Watters Environmental notes that the Subject Land is part of a larger property, which comprises a commercial plaza (i.e., the ) located at 5111 New Street and a retail store (i.e., The Beer Store) located at 499 Appleby Line (hereafter collectively referred to as the Site ) (Figure 1). Watters Environmental understands that the Subject Land and the Site are currently owned by First Capital and managed by FCB Property Management Services (FCB). A more detailed description of the Subject Land and Site is provided in Section 2.0. Watters Environmental also understands that First Capital is seeking a Record of Site Condition (RSC) for the Site as per Ontario Regulation 153/04 (i.e., Records of Site Condition Part XV.1 of the Act, made under the Ontario Environmental Protection Act, R.S.O. 1990) (hereafter referred to as the RSC Regulation ), as amended by Ontario Regulations 366/05 and 444/06. As such, the purpose of Watters Environmental s Supplemental Phase II ESA was to provide First Capital with an evaluation of known and/or potential environmental issues at the Subject Land resulting from current and/or historic activities conducted at the Subject Land, the Site and/or adjacent properties in accordance with the requirements of the RSC Regulation. Prior to commencing with the Supplemental Phase II ESA activities at the Subject Land, Watters Environmental completed a Phase I ESA for the Site for First Capital. The results of the Phase I ESA are included in the Watters Environmental report entitled Phase I Environmental Site Assessment,, 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario, dated March 31, 2008, which is provided under a separate cover (see Section 2.2). Background information, including a description of the Subject Land and Site, a review of available previous environmental reports, and a listing of parameters of interest for the Subject Land is presented in Section 2.0. Applicable environmental soil and groundwater quality assessment criteria are presented in Section 3.0. Details of Watters Environmental s investigation activities into the environmental condition of soil and groundwater at the Subject Land are presented in Section 4.0. The findings and interpretation of Watters Environmental s investigation activities are presented in Section 5.0. Conclusions and recommendations are presented in Section 6.0. Qualifications and limitations for the work completed and the corresponding findings are provided in Section 7.0. Watters Environmental Group Inc. Reference No April 30, 2008

11 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 2 Watters Environmental conducted this work according to its standard Phase II ESA procedures, which reflect the requirements of the following document: Phase II Environmental Site Assessment, Canadian Standards Association (CSA) standard CSA Z769-00, dated March Watters Environmental Group Inc. Reference No April 30, 2008

12 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page BACKGROUND 2.1 SITE DESCRIPTION For the purposes of this report the portion of New Street that is located adjacent to the Site is inferred to run in an east to west direction, although it is actually oriented in a northeast to southwest direction. The Site encompasses the area located north of New Street, east of Appleby Line, south of Pinedale Avenue and west of Timber Lane, in an area of mixed residential and commercial land uses (Figure 2). The current municipal addresses for the Site are: 5111 New Street, Burlington, Ontario L7L 1V2 and 499 & 505 Appleby Line, Burlington, Ontario L7L 2Y1. The Site is legally described as PT LT 5, CON 2 NEL SDS, PTS 3 & 4, 20R15307; BURLINGTON. 'S/T ' (PARTIALLY RELEASED BY HR213454) and PART BLK A, PL1367 PTS 1 & 2, 20R15307; BURLINGTON. S/T (PARTIALLY RELEASED BY HR213454). The Site is currently owned by First Capital, and is occupied by the for use as a multi-tenant commercial plaza and The Beer Store for use as a retail store. Operations at the Site include retail sales, health and fitness, financial and food preparation, as well as associated storage areas, staff rooms, washroom facilities and mechanical rooms. As noted in Section 1.0, the municipal address for the Subject Land is 505 Appleby Line, Burlington, Ontario L7L 2Y1. The Subject Land is located on the northwestern portion of the Site, immediately southeast of the intersection of Appleby Line and Pinedale Avenue. The Site is generally a rectangular-shaped property, approximately 7 hectares (17.3 acres) in area and contains two buildings (the Site Buildings ): one approximately 540 square metre, single-storey building, situated on the northwest portion of the Site (Site Building A), and; one approximately 18,000 square metre, single-storey retail plaza building, situated on the southern portion of the Site (Site Building B). Collectively, the Site Buildings cover approximately 26% of the total Site area. Watters Environmental observed that much of the exterior portions of the Site were asphalt-paved, with minimal landscaped areas on the perimeter of the Site. The Site is provided with fencing along a portion of the eastern perimeter. The general layout of the Site is presented as Figure 2. A survey plan for the Site is included in Appendix A. Watters Environmental Group Inc. Reference No April 30, 2008

13 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 4 The Subject Land is generally square-shaped, approximately 0.42 hectares (1.03 acres) in area and currently consists of vacant land; however, it was formerly occupied by a retail gasoline service station and automotive repair facility (see Section 2.2). Watters Environmental observed that much of the Subject Land was asphalt-paved, with a mixture of dirt, gravel and grass covering the western portions. The general layout of the Subject Land is presented as Figure 3. A survey plan for the Subject Land is included in Appendix A. The Site is located in an area of Burlington that is relatively flat, with an average ground elevation of approximately 90 metres above mean sea level. The ground surface in the vicinity of the Site slopes generally to the south. Surface water runoff from the Site is conveyed via overland flow to catch basins located in the asphalt-paved parking lot areas of the Site. Appleby Creek is located approximately 300 metres east of the Site and drains into Lake Ontario, which is located approximately 1.5 kilometres south of the Site. Based on published geological reports, and on Watters Environmental s previous experience in this area of Burlington, groundwater is expected to be present at a depth of less than 6.0 metres below ground surface (mbgs). Based on the general topography of the Site and surrounding area, Watters Environmental anticipates that near surface groundwater generally flows to the southsoutheast (i.e., relative to true north). Native geology in the vicinity of the Site (i.e., underlying any imported fill materials) is expected to be glaciolacustrine deposits of silt and clay with minor sand (Ontario Ministry of Northern Development and Mines Map 2556). These deposits are expected to have a low-to-moderate permeability with respect to groundwater flow and contaminant migration. Bedrock in the vicinity of the Site is expected to be shale, limestone, dolostone and siltstone of the Queenston Formation (Ontario Ministry of Northern Development and Mines Map 2544). 2.2 PREVIOUS ENVIRONMENTAL REPORTS The following previous environmental report relating to the Site was prepared by Watters Environmental for First Capital: Phase I Environmental Site Assessment,, 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario, dated March 31, 2008 (the Watters Environmental 2008 Phase I ESA Report ). The following previous environmental reports relating to the Site were either prepared by Watters Environmental for First Capital, or were provided to Watters Environmental by First Watters Environmental Group Inc. Reference No April 30, 2008

14 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 5 Capital for review, and are included and reviewed in the Watters Environmental 2008 Phase I ESA Report: Peer Review of Previous Environmental Reports and Limited Groundwater Sampling and Analysis Event,, 5111 New Street, Burlington, Ontario, dated May 2007; Environmental Site Assessment, Shell Canada Gasoline Retail Facility, 505 Appleby Line, Burlington, Ontario, report prepared for Shell Canada Products Limited (Shell), prepared by Intera Information Technologies Corporation (Intera), dated May 11, 1995; Shell Station Decommissioning Review,, Burlington, Ontario, prepared for Tipase Management/Leasing Limited (Tipase), prepared by Trow Consulting Engineers Ltd. (Trow), dated December 13, 1995; Follow-up Intrusive Investigation, 505 Appleby Line, Burlington, Ontario, report prepared for Tipase, prepared by Trow, dated October 28, 1996 (the Trow 1996 Phase II ESA Report ); Phase II Environmental Site Assessment, Former Appleby Shell Station, 505 Appleby Line, Burlington, Ontario, report prepared for Atwater Developments Limited, prepared by Trow, dated April 24, 1997; Phase I Environmental Site Assessment, 5111 New Street, Burlington, Ontario, report prepared for Strathallen Capital Corporation, prepared by Trow Associates Inc. (Trow), dated July 4, 2003; and Phase II Environmental Subsurface Investigation, 505 Appleby Line (at Pinedale Avenue), Burlington, Ontario, report prepared for First Capital, prepared by Jacques Whitford Environment Limited, dated April 6, Watters Environmental Group Inc. Reference No April 30, 2008

15 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 6 Watters Environmental notes that the northwestern portion of the Site (i.e., situated at the southeastern corner of Appleby Line and Pinedale Avenue) was formerly occupied by a retail Shell gasoline station that had a municipally address of 505 Appleby Line. The Trow 1996 Phase II ESA Report makes reference to another report that was prepared for this portion of the Site by Intera entitled Soil Excavation Program, and dated January 30, This Intera report was not available to Watters Environmental for review, but was reviewed by Trow as part of its work and apparently describes the removal and remediation of the underground storage tanks (USTs) that were formerly present on the Shell portion of the Site. Other than those mentioned above, Watters Environmental is not aware of any other previous reports addressing environmental, geological or hydrogeological characteristics of the Site. Portions of the above-noted reports that were available for review have been referenced or included in this report as necessary. Based on the Phase I ESA completed for the Site by Watters Environmental, it was Watters Environmental s opinion that there were no significant environmental concerns with respect to the current environmental condition of soil or groundwater at the Site, including the Subject Land. Watters Environmental notes that, although the northwestern portion of the Site (i.e., the Subject Land) was formerly occupied by a gasoline service station and automotive repair facility, that area of the Site was previously investigated and remediated by others and no residual issues were identified. Regardless, Watters Environmental notes that since the Phase I ESA was completed in preparation for filing an RSC for the Site, a baseline Phase II ESA was required, despite the fact that the Site has previously been remediated by others. As such, Watters Environmental recommended that a supplemental soil and groundwater investigation be completed in the northwestern portion of the Site to satisfy the mandatory requirements of the RSC Regulation. 2.3 PARAMETERS OF INTEREST Based on the results of the Phase I ESA completed for the Site by Watters Environmental, the following were considered to be parameters of interest for the Supplemental Phase II ESA investigation: Lead; Volatile organic compound (VOC) parameters, including benzene, toluene, ethylbenzene and xylenes (collectively referred to as BTEX ); Watters Environmental Group Inc. Reference No April 30, 2008

16 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 7 Petroleum hydrocarbon (PHC) parameters in the F1 (i.e., C 6 to C 10 ), F2 (i.e., >C 10 to C 16 ), F3 (i.e., >C 16 to C 34 ), F4 (i.e., >C 34 ) and F4G molecular weight ranges; and Polycyclic aromatic hydrocarbon (PAH) parameters. Selected soil and groundwater samples collected from the Subject Land during the Watters Environmental Supplemental Phase II ESA were therefore screened for the potential presence of these parameters and submitted for laboratory analysis accordingly (see Section 4.4). Watters Environmental Group Inc. Reference No April 30, 2008

17 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page GENERIC ASSESSMENT STANDARDS As of October 1, 2004, the Brownfield Statute Law Amendment Act, 2001 (i.e., Bill 56) and Ontario Regulation 153/04 (the RSC Regulation ) (i.e., Records of Site Condition made under Part XV.1 of the Ontario Environmental Protection Act) came into force. The Ontario Ministry of the Environment (MOE) document entitled, Soil, Ground Water and Sediment Standards for Use Under Part XV.1 of the Environmental Protection Act (dated March 9, 2004) (hereafter referred to in this report as the Standard ) is used for assessing and/or remediating property in Ontario, and includes: Soil quality standards for agricultural, residential and/or parkland and commercial and/or industrial property uses; Soil quality standards based on depth of assessment/remediation and soil texture; and Soil and groundwater quality standards for potable and non-potable groundwater conditions. The evaluation of the presence or absence of environmental impacts at a property is most commonly determined through a generic approach using the numerical standards presented in the Standard. There are two approaches when using the generic standards: (i) the full-depth approach, which utilizes standards established for soils in the upper 1.5 mbgs and applies to soils at any depth, and (ii) the stratified approach, which utilizes different clean-up standards for soils at depths of greater than 1.5 mbgs). In order to confirm groundwater use in the vicinity of the Site, Watters Environmental submitted letters to both the City of Burlington (the City) and the Regional Municipality of Halton (the Region) notifying them that an assumption was being made that the groundwater under the Site and Subject Land was not used as a raw water supply for a drinking water system. The documentation submitted by Watters Environmental is included in Appendix B. At the time of preparation of this report, final responses from the City and Region had not been received. Regardless, it is Watters Environmental s opinion that the non-potable groundwater condition is appropriate for the Site and Subject Land. Should any subsequent correspondence be received from the City or the Region contrary to this opinion, Watters Environmental will notify First Capital immediately and prepare a revised version of this report. Watters Environmental Group Inc. Reference No April 30, 2008

18 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 9 As part of the current Supplemental Phase II ESA activities completed at the Subject Land by Watters Environmental, a composite soil sample was analyzed for grain size distribution. The results of this testing are included in Appendix E of this report and show that the soils at the Subject Land contain approximately 88% of particles that are less than 75 microns and, as such, the soils are considered to have a medium to fine-grained texture. Given the specific characteristics of the Site and Subject Land, Watters Environmental has therefore compared the soil and groundwater quality data from the Supplemental Phase II ESA to the stated generic assessment standards for commercial and/or industrial sites, with medium to fine-textured soils, in a non-potable groundwater situation, and for full depth remediation (i.e., Table 3 of the Standard). These soil and groundwater quality standards are hereafter referred to as the generic assessment standards. Watters Environmental notes that, unlike the case for soils, there are currently no generic assessment standards for PHC parameters in groundwater that are applicable to the Subject Land. Watters Environmental Group Inc. Reference No April 30, 2008

19 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page FIELD INVESTIGATION ACTIVITIES All fieldwork activities undertaken at the Subject Land by Watters Environmental and its subcontractors during the Supplemental Phase II ESA were completed in accordance with Watters Environmental s Health & Safety Plan, a copy of which is retained within Watters Environmental s files. 4.1 GEOPHYSICAL SURVEY Watters Environmental understands that the USTs associated with the former gasoline service station and automotive repair facility at the Subject Land were removed by others; however, to confirm that the USTs were no longer present, a geophysical survey was completed at the Subject Land on April 10, 2008 by Geophysics GPR International Inc. The geophysical survey was completed using a combination of electromagnetic and ground penetrating radar surveying techniques. The geophysical survey results did not identify the presence of any current USTs in the areas investigated at the Subject Land. A copy of the geophysical survey report is included as Appendix C of this report. 4.2 BOREHOLE DRILLING AND SAMPLING PROGRAM The fieldwork for Watters Environmental s Supplemental Phase II ESA was carried between April 10 and 24, 2008, following the clearance of underground services at the Subject Land by the public utility companies and a private utility locating contractor, and involved the advancement of five boreholes (i.e., WBH1 through WBH5) to allow soil samples to be collected from various locations to assess environmental soil quality at the Subject Land. In addition, three existing groundwater monitoring wells at the Subject Land (i.e., MW-3, BH102 and BH104) were monitored, purged and sampled by Watters Environmental during the Supplemental Phase II ESA. The approximate locations of the boreholes drilled at the Subject Land by Watters Environmental during the Supplemental Phase II ESA and the location of the existing monitoring wells present at the Subject Land are shown on Figure 3. Borehole logs for Watters Environmental s boreholes are included as Appendix D. The following table summarizes the rationale for the boreholes drilled and the groundwater monitoring well sampling completed at the Subject Land, by Watters Environmental as part of the Supplemental Phase II ESA: Watters Environmental Group Inc. Reference No April 30, 2008

20 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 11 Rationale for Sample Collection Locations Sample Collection Locations WBH1 WBH2 WBH3 WBH4 WBH5 MW-3 BH-102 BH-104 Sample Type Borehole Borehole Borehole Borehole Borehole Groundwater Groundwater Groundwater Rationale To assess general environmental soil quality in the northwestern portion of the Subject Land in the vicinity of the former USTs at the Subject Land. To assess general environmental soil quality in the eastern portion of the Subject Land and to confirm the depth to bedrock in this area of the Subject Land. To assess general environmental soil quality in the west-central portion of the Subject Land in the vicinity of the former pump island at the Subject Land. To assess general environmental soil quality in the east-central portion of the Subject Land in the vicinity of a former fuel oil UST. To assess general environmental soil quality in the south-central portion of the Subject Land and to confirm the depth to bedrock in this area of the Subject Land. To assess the current environmental groundwater quality in the northwestern portion of the Subject Land in the vicinity of the former USTs at the Subject Land. To assess the current environmental groundwater quality in the west-central portion of the Subject Land in the vicinity of the former pump island at the Subject Land. To assess the current environmental groundwater quality in the south-central portion of the Subject Land in an inferred downgradient location at the Subject Land. Watters Environmental Group Inc. Reference No April 30, 2008

21 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 12 B.U.D. Environmental Drilling Services Ltd. of London, Ontario completed the drilling activities at the Subject Land using a B57 truck-mounted drilling rig, equipped with hollow stem augers and standard split spoon sampling equipment. Drilling supervision and field sampling activities were conducted by Watters Environmental personnel, following Watters Environmental s standard field protocols for soil and groundwater quality investigations, which follow or exceed the protocols accepted by the MOE and the environmental consulting industry in Ontario. A description of the stratigraphy encountered in the boreholes completed at the Subject Land by Watters Environmental is presented as Section 5.1. Representative soil samples were generally collected from regular intervals in each of the boreholes. Field screening for total organic vapours (TOVs) in the soil samples were completed utilizing a Gastechtor 1238ME (Gastech) portable hydrocarbon-surveying instrument. The Gastech used was capable of detecting vapours typically emitted by PHC-based fuels, oils and some solvents. The soil samples were also examined in the field for visual and/or olfactory indications of potential environmental impact. Watters Environmental retained selected soil samples collected from the Subject Land for potential laboratory analyses. The soil samples selected by Watters Environmental for laboratory analysis generally represented the worst case samples that appeared most likely to be environmentally impacted, based on field visual and olfactory observations, TOV readings and/or sampling location (see Section 4.4). A summary of Watters Environmental s field observations recorded for soil samples collected from the Subject Land is presented as Section 5.3. The soil samples collected from the Subject Land were recorded on a Chain-of-Custody form, a copy of which was retained within Watters Environmental s files upon sample submission. The samples were packed by Watters Environmental in an ice-chilled cooler, with the Chain-of-Custody form inside, and shipped directly to the laboratory. 4.3 GROUNDWATER MONITORING AND SAMPLING PROGRAM Groundwater monitoring at the Subject Land generally consisted of measuring the depth-towater in all of the existing groundwater monitoring wells at the Subject Land (i.e., MW-3, MW- 7, BH102 through BH105 and BH109) using an electronic water level tape. In addition, Watters Environmental purged the equivalent of three well volumes or until the wells were purged dry using dedicated sampling equipment from three of the existing groundwater monitoring wells (i.e., MW-3, BH102 and BH104) and collected representative groundwater samples from these groundwater monitoring wells for laboratory analysis (see Section 4.4). Watters Environmental Group Inc. Reference No April 30, 2008

22 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 13 The groundwater samples collected from the Subject Land by Watters Environmental were placed directly into the appropriate laboratory prepared sterile sample containers for the parameters of interest and preservatives were introduced, as required. The groundwater samples collected from the Subject Land were recorded on Chain-of-Custody forms, copies of which were retained within Watters Environmental s files upon sample submission. The groundwater samples were packed by Watters Environmental in ice-chilled coolers, with the Chain-of-Custody forms inside, and delivered directly to the laboratory. The existing groundwater monitoring wells at the Subject Land were monitored on April 10 and 24, Groundwater monitoring wells MW-3 and BH104 were purged and sampled by Watters Environmental on April 10, 2008, while groundwater monitoring well BH102 was purged and sampled by Watters Environmental on April 24, A discussion of the inferred hydrogeology of the Subject Land is presented in Section LABORATORY ANALYSES The laboratory analytical testing for soil and groundwater samples collected from the Subject Land by Watters Environmental during the Supplemental Phase II ESA was completed by AGAT Laboratories (AGAT) located in Mississauga, Ontario, which is accredited by the Canadian Association of Environmental Analytical Laboratories. The following table lists the soil and groundwater samples submitted for laboratory analysis from each of the boreholes drilled at the Subject Land by Watters Environmental during the Supplemental Phase II ESA, as well as the existing groundwater monitoring wells sampled at the Subject Land (i.e., MW-3, BH102 and BH104) by Watters Environmental during the Supplemental Phase II ESA: Laboratory Analytical Testing Requirements Sampling Location Sample ID Soil Sample Depth (mbgs) Laboratory Analyses Soil Groundwater WBH1 WBH to 2.44 Lead, BTEX, PHC Not Applicable (No groundwater monitoring well installed) Watters Environmental Group Inc. Reference No April 30, 2008

23 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 14 Laboratory Analytical Testing Requirements (Continued) Sampling Location Sample ID Soil Sample Depth (mbgs) Laboratory Analyses Soil Groundwater WBH2 Not Applicable Not Applicable Not Analyzed WBH to 3.05 Lead, BTEX, PHC WBH3 WBH3-8 (Blind Duplicate of WBH3-5) 2.44 to 3.05 Lead, BTEX, PHC Not Applicable (No groundwater monitoring wells installed) WBH4 WBH to 1.83 BTEX, PHC, PAH WBH5 Not Applicable Not Applicable Not Analyzed MW-3 MW-3 Not Applicable Not Applicable Lead, BTEX BH102 BH102 Not Applicable Not Applicable Lead, BTEX BH104 Not Applicable Not Applicable Lead, VOC BH104 BH204 (Blind Duplicate of BH104) Not Applicable Not Applicable Lead, VOC Laboratory Certificates of Analysis for the soil and groundwater samples collected from the Subject Land by Watters Environmental during the Supplemental Phase II ESA are included as Appendix E. The results of the laboratory analysis of the soil and groundwater samples collected from the Subject Land during the Supplemental Phase II ESA are presented in Sections 5.4 and 5.5, respectively. Watters Environmental Group Inc. Reference No April 30, 2008

24 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page QUALITY ASSURANCE/QUALITY CONTROL For quality assurance/quality control (QA/QC) purposes, and in addition to the internal QA/QC testing completed by the laboratory during each sampling event, Watters Environmental collected a blind duplicate soil sample from a depth between 2.44 and 3.05 mbgs at borehole location WBH3 (i.e., sample WBH3-5, duplicate labelled as sample WBH3-8) for lead, BTEX and PHC parameters analysis. In addition, a blind duplicate groundwater sample was collected from groundwater monitoring well BH104 (i.e., labelled as sample BH204) at the Subject Land for lead and VOC parameters analysis. The results of the QA/QC program for the Supplemental Phase II ESA are presented and discussed in Section 5.6. Watters Environmental Group Inc. Reference No April 30, 2008

25 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page INVESTIGATION FINDINGS 5.1 STRATIGRAPHY The stratigraphic information recorded by Watters Environmental during the Supplemental Phase II ESA at the Subject Land is presented on the borehole logs provided in Appendix D. A summary of this information is provided below. The stratigraphic information recorded by Watters Environmental during the Supplemental Phase II ESA activities at the Subject Land indicates that the soil profile generally consisted of a surficial layer of sand and gravel at all locations, with the exception of location WBH3, which had a surface layer of mixed silt, sand, clay and gravel fill. Generally, underlying these surficial units was a native silty clay unit ranging in thickness between 1.91 to 5.18 mbgs (i.e., the maximum depth sampled during the Phase II ESA). A sand layer was observed between 0.61 and 1.22 mbgs at borehole location WBH1. Occasional weathered bedrock fragments were noted in the silty clay unit at all borehole locations, except location WBH2. Watters Environmental notes that drilling refusal on inferred weathered bedrock was encountered at the Subject Land during the Supplemental Phase II ESA at all borehole locations, with the exception of location WBH5. Drilling refusal ranged in depths between 1.91 to 4.88 mbgs. Based on the stratigraphic information available for the Subject Lands from the Supplemental Phase II ESA and previous Phase II ESA activities, Watters Environmental calculated that the average depth to bedrock at the Subject Land was approximately 3.3 mbgs. As such, the Subject Land is not considered a Shallow Soil Property as per the RSC Regulation. 5.2 HYDROGEOLOGY As noted in Section 4.2, the most recent depth to the groundwater was measured in the existing groundwater monitoring wells present at the Subject Land on April 24, These depths are summarized in the following table: Watters Environmental Group Inc. Reference No April 30, 2008

26 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 17 Groundwater Level Monitoring Data (April 24, 2008) Groundwater Monitoring Well Reference Elevation (m amsl) 1 Depth to Groundwater (mbgs) Groundwater Elevation (m amsl) 1 MW MW MW BH BH BH BH BH Notes: 1 m amsl = metres above mean sea level The existing groundwater monitoring wells at the Subject Land were accurately located in plan and surveyed relative to geodetic elevation by A.J. Clarke and Associates Ltd. on April 25, These elevation data are also presented in the table above. The resulting A.J. Clarke and Associates Ltd. survey plan for the Subject Land is including in Appendix A. It can be seen from the above table that the depth to groundwater at the Subject Land ranged from 2.23 to 3.84 mbgs on April 24, The corresponding groundwater elevation at the Subject Land ranged from to m amsl on that date. Watters Environmental Group Inc. Reference No April 30, 2008

27 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 18 Based on these groundwater data, it is apparent that the depth to water measurement recorded for groundwater monitoring well MW-6 on April 24, 2008 is anomalously low relative to the other measurements. As such, the corresponding groundwater elevation data from that location was not used in the interpretation of the groundwater flow pattern at the Subject Land. The groundwater elevation data for the remaining groundwater monitoring wells at the Subject Land indicates that the groundwater at the Subject Land generally flows to the south (i.e., relative to true north). This is in close agreement with the inferred groundwater flow direction of southsoutheast as noted in Section FIELD OBSERVATIONS As indicated on the borehole logs in Appendix D, no visual or olfactory indications of potential environmental impact (i.e., such as PHC or other chemical-type staining or odours), or deleterious fill materials (i.e., such as refuse or significant debris), were observed by Watters Environmental in the soil samples recovered from the boreholes advanced at the Subject Land as part of the Supplemental Phase II ESA, with the following exceptions. At location WBH2, a questionable/unidentifiable odour was observed in the soil sample collected from a depth between approximately 0.61 to 1.22 mbgs. In addition, PHC-type odours were observed in soil samples collected from WBH3 at depths ranging from approximately 1.83 to 3.05 mbgs. Field screening results for TOVs in the soil samples ranged from 0.0 to 275 parts per million by volume (ppm v ). Watters Environmental notes that these levels of TOVs are generally not indicative of environmental impact; however, laboratory analyses are required to confirm this opinion. Free-phase product (i.e., non-aqueous phase liquid) was not observed by Watters Environmental during the borehole drilling or soil sampling activities completed at the Subject Land as part of the Supplemental Phase II ESA. No evidence of environmental impacts (i.e., sheens, odours and/or free phase product) was observed by Watters Environmental in the groundwater samples collected during the groundwater purging and sampling activities completed at the Subject Land. 5.4 SOIL ANALYTICAL RESULTS As noted previously, the laboratory Certificates of Analyses for the soil samples collected from the Subject Land during the Supplemental Phase II ESA are included in Appendix E. The sample collection locations are shown on Figure 3. Descriptions of the analytical results for the parameters of interest identified in Section 2.3 are presented in the following sections. Watters Environmental Group Inc. Reference No April 30, 2008

28 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 19 Lead Lead in the soil samples submitted from the Subject Land for laboratory analysis was either not detected at concentrations above the laboratory detection limits (DLs), or was present at concentrations below the generic assessment standards. As such, all soil samples submitted from the Subject Land for lead analysis met the generic assessment standards. BTEX All BTEX parameters in the soil samples submitted from the Subject Land for laboratory analysis were not detected at levels above the laboratory DLs. As such, all soil samples submitted from the Subject Land for BTEX parameter analysis met the generic assessment standards. PHC All PHC parameters in the soil samples submitted from the Subject Land for laboratory analysis were not detected at levels above the laboratory DLs. As such, all soil samples submitted from the Subject Land for PHC parameter analysis met the generic assessment standards. PAH All PAH parameters in the soil samples submitted from the Subject Land for laboratory analysis were not detected at levels above the laboratory DLs. As such, all soil samples submitted from the Subject Land for PAH parameter analysis met the generic assessment standards. 5.5 GROUNDWATER ANALYTICAL RESULTS As noted, the laboratory Certificates of Analyses for the groundwater samples collected from the Subject Land during the Supplemental Phase II ESA are included in Appendix E. The sample collection locations are shown on Figure 2. Descriptions of the analytical results for the parameters of interest identified in Section 2.3 are presented in the following sections. Lead Lead in the groundwater samples submitted from the Subject Land for laboratory analysis was either not detected at levels above the laboratory DLs, or was present at levels below the generic assessment standards. As such, all groundwater samples submitted from the Subject Land for lead analysis met the generic assessment standards. Watters Environmental Group Inc. Reference No April 30, 2008

29 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 20 VOCs (including BTEX) All VOC (including BTEX) parameters in the groundwater samples submitted from the Subject Land for laboratory analysis were either not detected at levels above the laboratory DLs, or were present at levels below the generic assessment standards. As such, all groundwater samples submitted from the Subject Land for VOC (including BTEX) parameter analysis met the generic assessment standards. 5.6 QUALITY ASSURANCE/QUALITY CONTROL As noted in Section 4.5, a blind duplicate soil sample was collected from borehole location WBH3 (i.e., sample WBH3-5, duplicate labelled as sample WBH3-8) for lead, BTEX and PHC parameter analysis for QA/QC purposes. The results of these analyses are included on the Laboratory Certificates of Analysis in Appendix E and are discussed below. The results of the laboratory analyses of the duplicate soil samples collected from location WBH3 indicated that all BTEX and PHC parameter concentrations for both samples were identical to each other (i.e., all non-detect), and that lead was detected in the two duplicate samples at concentrations representing less than a 20% variance between the samples, which is considered acceptable. In addition, a blind duplicate groundwater sample was collected from groundwater monitoring well BH104 (i.e., labelled as sample BH204) for lead and VOC (including BTEX) parameter analysis for QA/QC purposes. The results of these analyses are also included on the Laboratory Certificates of Analysis in Appendix E and are discussed below. The results of the laboratory analyses of the duplicate groundwater samples collected from location BH104 indicated that all lead and VOC (including BTEX) parameter concentrations for both samples were either identical to each other (i.e., mostly non-detected), or were detected at concentrations representing less than a 20% variance between the samples, which is considered acceptable. The analytical laboratory also conducted its own internal QA/QC program involving calibration verification standards, laboratory control standards, surrogate recovery analyses, laboratory duplicates and method blanks. The results of the analytical laboratory s internal QA/QC program are included with the Laboratory Certificates of Analysis in Appendix E, the results of which were all reported to be acceptable. Watters Environmental Group Inc. Reference No April 30, 2008

30 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 21 As such, the results of the various QA/QC analyses completed indicate that the laboratory analytical results from the Supplemental Phase II ESA are considered accurate and representative of actual soil and groundwater quality conditions at the Subject Land. Watters Environmental Group Inc. Reference No April 30, 2008

31 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page CONCLUSIONS AND RECOMMENDATIONS Based on the results of the Supplemental Phase II ESA completed at the Subject Land, Watters Environmental presents the following observations, conclusions and recommendations: No visual or olfactory indications of potential environmental impact or elevated TOV readings were observed or recorded by Watters Environmental for the soil samples recovered from the boreholes advanced at the Subject Land as part of the Supplemental Phase II ESA, with the following exceptions. At location WBH2, a questionable/ unidentifiable odour was observed in the soil sample collected from a depth between approximately 0.61 to 1.22 mbgs. In addition, PHC-type odours were observed in soil samples collected from WBH3 at depths ranging from approximately 1.83 to 3.05 mbgs. The results of the laboratory analysis of the soil samples collected from the Subject Land by Watters Environmental for lead, BTEX, PHC and/or PAH parameters indicated that all of the results were either not detected at concentrations above the laboratory DLs, or were present at levels below the generic assessment standards. As such, all laboratory analytical results for lead, BTEX, PHC and/or PAH parameters in the soil samples submitted from the Subject Land as part of the Supplemental Phase II ESA met the generic assessment standards. Free-phase product (i.e., non-aqueous phase liquid) was not observed by Watters Environmental during the borehole drilling or soil sampling activities completed at the Subject Land as part of the Supplemental Phase II ESA. No evidence of environmental impacts (i.e., sheens, odours and/or free-phase product) was observed by Watters Environmental in the groundwater during the groundwater monitoring, purging and sampling activities completed at the Subject Land. The results of the laboratory analysis of the groundwater samples collected from the Subject Land by Watters Environmental for lead and/or VOC (including BTEX) parameters indicated that all of the results were either not detected at concentrations above the laboratory DLs, or were present at levels below the generic assessment standards. As such, all laboratory analytical results for lead and/or VOC (including BTEX) parameters in the groundwater samples submitted from the Subject Land as part of the Supplemental Phase II ESA met the generic assessment standards. Watters Environmental Group Inc. Reference No April 30, 2008

32 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page 23 The results of the various QA/QC analyses completed indicate that the laboratory analytical results from the Supplemental Phase II ESA are considered accurate and representative of actual soil and groundwater quality conditions at the Subject Land. As such, it is Watters Environmental s opinion that the environmental quality of the soil and groundwater at the Subject Land meets the current generic assessment standards for all of the parameters analyzed, and that no further assessment or remediation work is required at the Subject Land in this regard at this time. If the groundwater monitoring wells present at the Subject Land are no longer necessary, consideration should be given to properly decommissioning them in accordance with applicable regulations. Watters Environmental Group Inc. Reference No April 30, 2008

33 Supplemental Phase II Environmental Site Assessment 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario Page QUALIFICATIONS AND LIMITATIONS Watters Environmental has prepared this report for the exclusive use of First Capital in evaluating the environmental condition of the Subject Land at the time of the site reconnaissance. At the direction of First Capital, Watters Environmental also hereby extends reliance on this report to First Capital s insurer, Chubb Insurance Company of Canada. Watters Environmental will not be responsible for the use of this report by any other party, or reliance on or any decision to be made based on it without the prior written consent of Watters Environmental. Watters Environmental accepts no responsibility for damages, if any, by any other party as a result of decisions or actions based on this report. This environmental assessment was conducted in accordance with Watters Environmental s proposed scope of work, verbal requests from the client and generally accepted environmental assessment practices in Ontario at the time of the assessment. No other warranty, expressed or implied, is made. This environmental assessment was designed to investigate the environmental impact situation currently known and/or reasonably expected to be present at the Subject Land, reflecting Watters Environmental s best judgment and experience. This report should in no way be construed as a definitive representation of any and all environmental impacts that may be present at the Subject Land resulting from past or current practices. This assessment was conducted using representative borehole and groundwater monitoring well investigation data. Data interpolations between physical testing points are open to interpretation. As such, it is not feasible to conclude absolutely the conditions that may exist in the subsurface. Inferred conditions assume that homogeneous conditions exist, when in fact they may not. Subsurface conditions will vary between testing points and are likely to change with time. No assurance is made regarding changes in conditions subsequent to the time of the investigation. The findings contained in this report may be based, in part, upon information provided by others. No assurance is made regarding the accuracy of the information not generated by Watters Environmental. This report is complete only as an entire document, and no section is intended to be used separately. Watters Environmental Group Inc. Reference No April 30, 2008

34 FIGURES

35 Inferred Near-Surface Groundwater Flow Direction at the Site Site Location First Capital (Appleby) Corporation 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario SOURCE: SCALE: Not Available Project No Figure 1: Site Location Map

36 Inferred Near-Surface Groundwater Flow Direction at the Site Pinedale Avenue U U U U U U U Subject Land Parking Lot Seasonal Garden Centre Site Building A Appleby Line W W R W Timber Lane Site Building B W Ramp Parking Lot New Street Legend: U Approximate Site Boundary Site Building Fence Former Underground Storage (UST) Landscaped / Grassed Area Paved Area First Capital (Appleby) Corporation 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario NOT TO SCALE Project No Figure 2: Site Layout

37 Measured Near-Surface Groundwater Flow Direction at the Site Pinedale Avenue BH106 BH101 U U U U U MW-3 WBH1 MW-7 BH Ap p leby Line BH-4 Former Pump Island BH102 MW-1 WBH3 BH105 MW-2 BH107 Former Service Station BH U U WBH2 WBH4 BH110 BH BH103 BH-5 MW-6 WBH5 BH109 Legend: Approximate Site Boundary Former Site Building / Feature U Former Underground Storage Tank Landscaped / Grassed Area Paved Area Existing Monitoring Well Location Previous Borehole Location Watters Borehole Location First Capital (Appleby) Corporation 5111 New Street and 499 & 505 Appleby Line, Burlington, Ontario NOT TO SCALE Figure 3: Project No. Subject Land Layout and Sampling Location Plan

38 APPENDIX A Survey Plans for the Site and Subject Land

39

40

41 APPENDIX B Groundwater Assumption Documentation

42 Watters Environmental Group Inc Langstaff Road, Suite 1003 Concord, Ontario L4K 3S3 Tel: (416) Fax: (416) May 9, 2008 Via and Regular Mail Ms. Kim Phillips, City Clerk Clerks Office, City Hall City of Burlington 426 Brant Street, P.O. Box 5013 Burlington, Ontario L7R 3Z6 Dear Ms. Phillips: Reference: Notification of Assumption that Groundwater Under in Burlington, Ontario is Not a Raw Water Supply for a Drinking Water System Watters Environmental Group Inc. (Watters Environmental) is preparing a Record of Site Condition (RSC) for the property located at 5111 New Street, 499 Appleby Line and also formerly including 505 Appleby Line in Burlington, Ontario, on behalf of First Capital (Appleby) Corporation (the RSC property ). Under Ontario Regulation 153/04, the municipality must be informed if the Qualified Person assumes that the groundwater under the RSC property does not, or will not, serve as a raw water supply for a drinking water system. Please note that we have also issued a copy of this letter to Halton Region. The current and intended future use of the RSC property at 5111 New Street, 499 Appleby Line and also formerly including 505 Appleby Line is commercial. Watters Environmental also understands that the RSC property currently uses water supplied by Halton Region for all drinking and domestic needs, and will continue to do so in the future. The RSC will also specify that the property will not be used for agricultural purposes in the future. Based on the information above, Watters Environmental believes that the RSC property meets the criteria for a non-potable site condition, as defined in Reg. 153/04. Unless the City of Burlington objects to this designation, it is our intention to apply this designation in preparing the RSC. If the City of Burlington has any objection to our proposed assumption of a non-potable groundwater condition for this property, please let us know as soon as possible and describe the reason(s). We trust that the information provided in this letter is sufficient. Should you have any questions or require any additional information, please contact the undersigned at Ext Yours very truly, WATTERS ENVIRONMENTAL GROUP INC. Kevin French, P.Eng., QP Vice President

43 Watters Environmental Group Inc Langstaff Road, Suite 1003 Concord, Ontario L4K 3S3 Tel: (416) Fax: (416) May 9, 2008 Via and Regular Mail Mr. John McIntosh Infrastructure Planning Planning and Public Works Department Halton Region 1151 Bronte Road Oakville, Ontario L6M 3L1 Dear Mr. McIntosh: Reference: Notification of Assumption that Groundwater Under in Burlington, Ontario is Not a Raw Water Supply for a Drinking Water System Watters Environmental Group Inc. (Watters Environmental) is preparing a Record of Site Condition (RSC) for the property located at 5111 New Street, 499 Appleby Line and also formerly including 505 Appleby Line in Burlington, Ontario, on behalf of First Capital (Appleby) Corporation (the RSC property ). Under Ontario Regulation 153/04, the municipality must be informed if the Qualified Person assumes that the groundwater under the RSC property does not, or will not, serve as a raw water supply for a drinking water system. Please note that we have also issued a copy of this letter to the City of Burlington. The current and intended future use of the RSC property at 5111 New Street, 499 Appleby Line and also formerly including 505 Appleby Line is commercial. Watters Environmental also understands that the RSC property currently uses water supplied by Halton Region for all drinking and domestic needs, and will continue to do so in the future. The RSC will also specify that the property will not be used for agricultural purposes in the future. Based on the information above, Watters Environmental believes that the RSC property meets the criteria for a non-potable site condition, as defined in Reg. 153/04. Unless Halton Region objects to this designation, it is our intention to apply this designation in preparing the RSC. If Halton Region has any objection to our proposed assumption of a non-potable groundwater condition for this property, please let us know as soon as possible and describe the reason(s). We trust that the information provided in this letter is sufficient. Should you have any questions or require any additional information, please contact the undersigned at Ext Yours very truly, WATTERS ENVIRONMENTAL GROUP INC. Kevin French, P.Eng., QP Vice President

44 APPENDIX C Geophysical Survey Report

45

46

47 APPENDIX D Borehole Logs

48

49

50

51

52

53 APPENDIX E Laboratory Certificates of Analysis

54

55

56 CLIENT NAME: WATTERS ENVIRONMENTAL GROUP INC Certificate of Analysis AGAT WORK ORDER: 08T PROJECT NO: Lead in Soil 5623 McADAM ROAD MISSISSAUGA, ON CANADA L4Z 1N9 ATTENTION TO: STEVE DENSTEDT PH: (905) FAX: (905) DATE SAMPLED: Apr 10, 2008 DATE RECEIVED: Apr 11, 2008 DATE REPORTED: Apr 18, 2008 SAMPLE TYPE: Soil Lead Unit G / S RDL WBH WBH WBH µg/g Comments: RDL - Reported Detection Limit; G / S - Guideline / Standard: Refers to T3(ICC) CERTIFICATE OF ANALYSIS (V1) Certified By: Results relate only to the items tested Page 1 of 8

57 CLIENT NAME: WATTERS ENVIRONMENTAL GROUP INC Certificate of Analysis AGAT WORK ORDER: 08T PROJECT NO: (P & T) - BTEX - Water 5623 McADAM ROAD MISSISSAUGA, ON CANADA L4Z 1N9 ATTENTION TO: STEVE DENSTEDT PH: (905) FAX: (905) DATE SAMPLED: Apr 10, 2008 DATE RECEIVED: Apr 11, 2008 DATE REPORTED: Apr 18, 2008 SAMPLE TYPE: Water Benzene Toluene Ethylbenzene m & p - Xylene o - Xylene Xylenes (Total) Unit G / S RDL MW µg/l µg/l µg/l <0.05 µg/l µg/l 0.04 <0.04 µg/l Comments: RDL - Reported Detection Limit; G / S - Guideline / Standard: Refers to T3(NPGW) Results relate only to the items tested. Surrogate Recovery for Toluene-d8:108 % Surrogate Recovery for 4-Bromofluorobenzene: 96% CERTIFICATE OF ANALYSIS (V1) Certified By: Results relate only to the items tested Page 2 of 8

58 CLIENT NAME: WATTERS ENVIRONMENTAL GROUP INC Certificate of Analysis AGAT WORK ORDER: 08T PROJECT NO: McADAM ROAD MISSISSAUGA, ON CANADA L4Z 1N9 O. Reg Petroleum Hydrocarbons F1 - F4 (C6 - C50) in Soil ATTENTION TO: STEVE DENSTEDT PH: (905) FAX: (905) DATE SAMPLED: Apr 10, 2008 DATE RECEIVED: Apr 11, 2008 DATE REPORTED: Apr 18, 2008 SAMPLE TYPE: Soil Benzene Toluene Ethylbenzene Xylenes (Total) C6 - C10 (F1) C6 - C10 (F1 minus BTEX) C>10 - C16 (F2) C>16 - C34 (F3) C>34 - C50 (F4) Gravimetric Heavy Hydrocarbons Moisture Content Unit G / S RDL WBH WBH WBH µg/g <0.10 <0.10 <0.10 µg/g <0.08 <0.08 <0.08 µg/g <0.05 <0.05 <0.05 µg/g <0.07 <0.07 <0.07 µg/g 5 <5 <5 <5 µg/g <5 <5 <5 µg/g <10 <10 <10 µg/g <50 <50 <50 µg/g <50 <50 <50 µg/g <50 <50 <50 % Comments: RDL - Reported Detection Limit; G / S - Guideline / Standard: Refers to T3(ICC) Results are based on sample dry weight. The C6-C10 fraction is calculated using toluene response factor. The C10 - C16, C16 - C34, and C34 - C50 fractions are calculated using the average response factor for n-c10, n-c16, and n-c34. Gravimetric Heavy Hydrocarbons are not included in the Total C16-C50 and are only determined if the chromatogram of the C34 - C50 hydrocarbons indicates that hydrocarbons >C50 are present. Total C6 - C50 results are corrected for BTEX contributions. This method complies with the Reference Method for the CWS PHC and is validated for use in the laboratory. nc6 and nc10 response factors are within 30% of Toluene response factor. nc10, nc16 and nc34 response factors are within 10% of their average. C50 response factor is within 70% of nc10 + nc16 + nc34 average. Linearity is within 15%. Extraction and holding times were met for this sample. Fractions 1-4 are quantified with the contribution of PAHs. Under Ontario Regulation 153, results are considered valid without determining the PAH contribution if not requested by the client. Quality Control Data is available upon request. CERTIFICATE OF ANALYSIS (V1) Certified By: Results relate only to the items tested Page 3 of 8

59 CLIENT NAME: WATTERS ENVIRONMENTAL GROUP INC Certificate of Analysis AGAT WORK ORDER: 08T PROJECT NO: McADAM ROAD MISSISSAUGA, ON CANADA L4Z 1N9 ATTENTION TO: STEVE DENSTEDT O. Reg Petroleum Hydrocarbons F1 - F4 (C6 - C50) in Soil (PAHs Incl.) PH: (905) FAX: (905) DATE SAMPLED: Apr 10, 2008 DATE RECEIVED: Apr 11, 2008 DATE REPORTED: Apr 18, 2008 SAMPLE TYPE: Soil Benzene Toluene Ethylbenzene Xylenes (Total) C6 - C10 (F1) C6 - C10 (F1 minus BTEX) C>10 - C16 (F2) C>10 - C16 (F2 minus Naphthalene) C>16 - C34 (F3) C>16 - C34 (F3 minus PAHs) C>34 - C50 (F4) Gravimetric Heavy Hydrocarbons Moisture Content Unit G / S RDL WBH µg/g <0.10 µg/g <0.08 µg/g <0.05 µg/g <0.07 µg/g 5 <5 µg/g <5 µg/g <10 µg/g <10 µg/g <50 µg/g <50 µg/g <50 µg/g <50 % Comments: RDL - Reported Detection Limit; G / S - Guideline / Standard: Refers to T3(ICC) Results are based on sample dry weight. The C6-C10 fraction is calculated using toluene response factor. The C10 - C16, C16 - C34, and C34 - C50 fractions are calculated using the average response factor for n-c10, n-c16, and n-c34. Gravimetric Heavy Hydrocarbons are not included in the Total C16-C50 and are only determined if the chromatogram of the C34 - C50 hydrocarbons indicates that hydrocarbons >C50 are present. Total C6 - C50 results are corrected for BTEX and PAH contributions. This method complies with the Reference Method for the CWS PHC and is validated for use in the laboratory. nc6 and nc10 response factors are within 30% of Toluene response factor. nc10, nc16 and nc34 response factors are within 10% of their average. C50 response factor is within 70% of nc10 + nc16 + nc34 average. Linearity is within 15%. Extraction and holding times were met for this sample. CERTIFICATE OF ANALYSIS (V1) Certified By: Results relate only to the items tested Page 4 of 8

60 CLIENT NAME: WATTERS ENVIRONMENTAL GROUP INC Certificate of Analysis AGAT WORK ORDER: 08T PROJECT NO: O. Reg. 153 PAHs in Soil 5623 McADAM ROAD MISSISSAUGA, ON CANADA L4Z 1N9 ATTENTION TO: STEVE DENSTEDT PH: (905) FAX: (905) DATE SAMPLED: Apr 10, 2008 DATE RECEIVED: Apr 11, 2008 DATE REPORTED: Apr 18, 2008 SAMPLE TYPE: Soil Acenaphthene Acenaphthylene Anthracene Benzo(a)anthracene Benzo(a)pyrene Benzo(b)fluoranthene Benzo(g,h,i)perylene Benzo(k)fluoranthene Chrysene Dibenzo(a,h)anthracene Fluoranthene Fluorene Indeno(1,2,3-cd)pyrene Naphthalene Phenanthrene Pyrene Unit G / S RDL WBH µg/g <0.03 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.02 µg/g <0.03 µg/g <0.02 µg/g <0.02 Comments: RDL - Reported Detection Limit; G / S - Guideline / Standard: Refers to T3(ICC) Results are based on the dry weight of the soil. Surrogate Recovery of Chrysene-d12: 70%. Percent moisture: %. Results relate only to the items tested. CERTIFICATE OF ANALYSIS (V1) Certified By: Results relate only to the items tested Page 5 of 8

61 CLIENT NAME: WATTERS ENVIRONMENTAL GROUP INC Certificate of Analysis AGAT WORK ORDER: 08T PROJECT NO: O. Regulation Volatile Organic Compounds in Water 5623 McADAM ROAD MISSISSAUGA, ON CANADA L4Z 1N9 ATTENTION TO: STEVE DENSTEDT PH: (905) FAX: (905) DATE SAMPLED: Apr 10, 2008 DATE RECEIVED: Apr 11, 2008 DATE REPORTED: Apr 18, 2008 SAMPLE TYPE: Water Acetone Benzene Bromodichloromethane Bromoform Bromomethane Carbon Tetrachloride Chlorobenzene Chloroethane Chloroform Chloromethane Dibromochloromethane 1,3-Dichlorobenzene 1,4-Dichlorobenzene 1,2-Dichlorobenzene 1,1-Dichloroethane 1,2 - Dichloroethane 1,1 Dichloroethene 1,2-Dichloropropane 1,3-Dichloropropene (Cis + Trans) Ethylbenzene Ethylene Dibromide 2-Hexanone Methyl Ethyl Ketone Methyl Isobutyl Ketone Methyl tert-butyl ether Methylene Chloride Styrene 1,1,1,2-Tetrachloroethane 1,1,2,2-Tetrachloroethane Tetrachloroethene Toluene Unit G / S RDL BH BH µg/l <0.50 <0.50 µg/l µg/l <0.20 <0.20 µg/l <0.10 <0.10 µg/l <0.20 <0.20 µg/l <0.20 <0.20 µg/l <0.10 <0.10 µg/l 0.20 <0.20 <0.20 µg/l <0.20 <0.20 µg/l 0.40 <0.40 <0.40 µg/l <0.10 <0.10 µg/l <0.10 <0.10 µg/l <0.10 <0.10 µg/l <0.10 <0.10 µg/l <0.30 <0.30 µg/l <0.20 <0.20 µg/l <0.30 <0.30 µg/l <0.20 <0.20 µg/l <0.30 <0.30 µg/l µg/l <0.20 <0.20 µg/l 0.30 <0.30 <0.30 µg/l <0.90 <0.90 µg/l <0.30 <0.30 µg/l <0.20 <0.20 µg/l <0.30 <0.30 µg/l <0.10 <0.10 µg/l <0.10 <0.10 µg/l <0.10 <0.10 µg/l <0.10 <0.10 µg/l CERTIFICATE OF ANALYSIS (V1) Certified By: Results relate only to the items tested Page 6 of 8

62 CLIENT NAME: WATTERS ENVIRONMENTAL GROUP INC Certificate of Analysis AGAT WORK ORDER: 08T PROJECT NO: O. Regulation Volatile Organic Compounds in Water 5623 McADAM ROAD MISSISSAUGA, ON CANADA L4Z 1N9 ATTENTION TO: STEVE DENSTEDT PH: (905) FAX: (905) DATE SAMPLED: Apr 10, 2008 DATE RECEIVED: Apr 11, 2008 DATE REPORTED: Apr 18, 2008 SAMPLE TYPE: Water 1,2,4-Trichlorobenzene 1,1,1-Trichloroethane 1,1,2-Trichloroethane Trichloroethylene Trichlorofluoromethane Vinyl Chloride Xylenes (Total) cis- 1,2-Dichloroethylene cis-1,3-dichloropropene m & p-xylene o-xylene trans- 1,2-dichloroethylene trans-1,3-dichloropropene Unit G / S RDL BH BH µg/l <0.30 <0.30 µg/l <0.30 <0.30 µg/l <0.20 <0.20 µg/l <0.20 <0.20 µg/l 0.40 <0.40 <0.40 µg/l <0.17 <0.17 µg/l µg/l <0.20 <0.20 ug/l 0.20 <0.20 <0.20 µg/l µg/l µg/l <0.20 <0.20 µg/l 0.30 <0.30 <0.30 Comments: RDL - Reported Detection Limit; G / S - Guideline / Standard: Refers to T3(NPGW) Results relate only to the items tested. Surrogate Recovery for Toluene-d8: 111% Surrogate Recovery for 4-Bromofluorobenzene:104 % Results relate only to the items tested. Surrogate Recovery for Toluene-d8: 112% Surrogate Recovery for 4-Bromofluorobenzene:122 % CERTIFICATE OF ANALYSIS (V1) Certified By: Results relate only to the items tested Page 7 of 8