ENFORCEMENT OF THE ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT WATER ACT

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1 ENFORCEMENT OF THE ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT And TER ACT 1 Apr Jun 2013 September 2013 Compliance Assurance, Operations Division

2 Administrative Penalties Eng-Con Holdings Ltd. SW W4 08-Apr-13 Assessed: $2, COPOS 9(1) Eng-Con failed to comply with the requirements of the Code of Practice for Outfall Structures on Waterbodies, being failure to take all measures possible to control erosion and sedimentation from entering Whitemud Creek. Paid 26 April Pidhirney, Brian Leslieville SW W5 26-Apr-13 Assessed: $3, On or about February 1, 2012, Mr. Pidhirney conducted an activity, the burning of prohibited debris in an open fire, without having obtained an approval as required. Paid 24 May Peregrine General Pest Control Inc. Calgary Plan , Block 13, Lot May-13 Assessed: $3, (1) The Company contravened its Pesticide Service Registration by applying a pesticide, Rozol, in a manner that did not comply with the manufacturers label requiring the pesticide to be applied in locations not accessible to children and pets and in tamper-resistant bait stations. Paid 29 May ISL Engineering and Land Services Ltd. Ardrossan NE W4 17-May-13 Assessed: $5, (1) The Company conducted an unauthorized activity, the partial filling or drainage and grading of a wetland, an activity that has or may alter the flow, direction of flow or level of water or change the location of the water or the direction of flow, and is capable of causing an effect on the aquatic environment. Paid 28 May Flatiron Constructors Canada Limited S W W4 31-May-13 Graham Infrastructure Ltd W4 S W4 31-May-13 Jardeg Construction Services Ltd. S W W4 31-May-13 SEE DETAILS: "NorthwestConnect General Partnership" Page 2 of 21

3 Administrative Penalties Northwestconnect Inc. S W W4 31-May-13 Northwestconnect Investments Inc. S W W4 31-May-13 Northwestconnect General Partnership W4 S W4 31-May-13 Assessed: $5, The Parties contravened Approval No (Horseshoe Creek) during dewatering, for not pumping water into a vegetated area a minimum of 100 metres from any watercourse. Global paid 14 June Parsons Canada Ltd W4 S W4 31-May-13 SEE DETAILS: "NorthwestConnect General Partnership" Flatiron Constructors Canada Limited W W W4 06-Jun-13 Graham Infrastructure Ltd W4 W W4 06-Jun-13 Jardeg Construction Services Ltd. W W W4 06-Jun-13 Page 3 of 21

4 Administrative Penalties Northwestconnect Investments Inc. W W W4 06-Jun-13 Northwestconnect Inc. W W W4 06-Jun-13 Northwestconnect General Partnership W W W4 06-Jun-13 Assessed: $7, The Parties contravened Approval No (Moran Lake) by failing to install any erosion and sediment controls in the ditches west of Pond 8, failing to modify, maintain and repair erosion controls as needed, or failing to ensure erosion control remained in place until vegetation has become sufficiently established. Global paid 14 June Parsons Canada Ltd. W W W4 06-Jun-13 SEE DETAILS: "NorthwestConnect General Partnership" Flatiron Constructors Canada Limited W W4 12-Jun-13 Graham Infrastructure Ltd. W W4 12-Jun-13 Jardeg Construction Services Ltd. W W4 12-Jun-13 Page 4 of 21

5 Administrative Penalties Northwestconnect General Partnership W W4 12-Jun-13 Assessed: $42, The Parties contravened Approval No (Kirk Lake) by failing to modify, maintain or repair erosion controls as needed, in particular at culverts C1-28, C1-13, C1-25, C1-18, C1-22A, C1-28A, C1-31A, the silt fence at culvert C1-19, the silt fence located in the northwest quadrant of Kirk Lake, the riprap located in the southeast quadrant of Kirk Lake, and within the west Henday ditch north of culvert C1-31A; failing to immediately report to the Director a contravention of term 4.1(b) of the Approval for failing to modify, maintain or repair erosion controls as needed, in particular at culverts C1-13, C1-25 and C1-18; failing to remove the sediment build up at culverts C1-19, C1-18 and C1-31A; failing to pump water into a vegetated area a minimum of 100 metres from any watercourse during dewatering; and failing to install erosion controls on the exposed slopes at C1-22A. Global paid 14 June 2013 Northwestconnect Inc. W W4 12-Jun-13 Northwestconnect Investments Inc. W W4 12-Jun-13 Parsons Canada Ltd. W W4 12-Jun-13 Page 5 of 21

6 Amended Environmental Protection Orders McInnis, Jerry E. Red Deer County Plan , Block 2, Lot 3B 17-Apr-13 Amendment No. 1 issued to EPO-2013/06-CR deleting "May 10, 2013" in Clause 1 and replacing with "June 10, 2013" and; deleting "June 7, 2013" in Clause 3(d) and replacing with "July 8, 2013". Kingkorp Ltd. Parkland County NW W5 17-Jun Amendment No. 1 issued to EPO-2013/19-CR substituting July 31, 2013 for May 31, 2013 in clause 2; October 15, 2013 for August 30, 2013 in clause 4(d); and substituting October 31, 2014 for September 30, 2014 in clause 8. Page 6 of 21

7 Enforcement Orders Dockman & Associates Ltd. and Dockman, Michael Louis Rocky View County N W4 30-May (e) 149 Dockman & Associates Ltd. holds an Approval for the construction, operation and reclamation of the East Airdrie (Sharp Hill) Waterworks System and Michael Louis Dockman is the sole Director of the Company. The facility's approval expires on June 1, Inspections conducted in both 2012 and 2013 found numerous instances of non-compliance which could result in drinking water that does not meet Environment and Sustainable Resource Development's [ESRD] requirements and could potentially affect the health of residents. ESRD has made numerous efforts to help bring this water treatment facility back into compliance. The Parties have failed to immediately report contraventions of the terms and conditions of the approval, failed to take corrective actions, failed to submit written reports to the Director as required, and failed to take the necessary steps to submit an application for approval renewal. The parties must as of June 2, 2013, cease all operations associated with the approval and continue operation of the facility to supply potable water to the residents in a safe manner, according to the operational and monitoring requirements set out within the order and; Submit an Application for a Registration under the Code of Practice for a Waterworks System consisting solely of a Water Distribution System, signed and stamped by a qualified professional currently registered with the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Page 7 of 21

8 Enforcement Orders Smoky Valley Aggregate Inc. and Rycroft, Braden County of Grande Prairie SE W6 NE W6 07-Jun Smoky Valley Aggregate Inc. is the legal entity and Braden Rycroft is sole director and decision maker for a privately owned development known as the "River Stone Golf Course & Campground", being a 75 lot recreational development (holiday trailer park) in the County of Grande Prairie, Alberta. [the "RV Park"] The parties also direct and operate a water diversion, water supply with disinfection and distribution system for the RV Park which provides water from the surface water pond to the lots within the park for domestic purposes. An inspection conducted by Environment and Sustainable Resource Development ["ESRD"] on June 5, 2013 identified the parties failed to acquire a Licence for the diversion of water to the pond; failed to acquire an Approval under the Environmental Protection and Enhancement Act ["EPEA"] prior to constructing and operating a waterworks system; failed to have a certified operator in place to operate the Waterworks System; failed to provide required water treatment consisting of at a minimum chemical addition, flocculation, coagulation, clarification and filtration and; failed to meet the waterworks system standards and design requirements as set out in the Standards and Guidelines for Municipal Waterworks, Wastewater and Storm Drainage Systems. ESRD has not received any applications from the Parties, nor issued any approvals, licences, or registrations under either EPEA or the Water Act in relation to the waterworks system. The Parties shall immediately not divert or continue to divert any water from the pond as a source for the waterworks system; not operate or continue to operate the waterworks system utilizing the pond as source water; not permit any person from obtaining water from the unauthorized system and from any other unauthorized source of water located within the Golf Course and RV Park. Smoky Valley Aggregate Inc. and Rycroft, Braden County of Grande Prairie NE W6 SE W6 07-Jun /203 4(1)(a) Smoky Valley Aggregate Inc. is the legal entity and Braden Rycroft is sole director and decision maker for a privately owned development known as the "River Stone Golf Course & Campground", being a 75 lot recreational development (holiday trailer park) in the County of Grande Prairie, Alberta. [the "RV Park"] The parties also direct and operate a water diversion, water supply with disinfection and distribution system for the RV Park which provides water from the surface water pond to the lots within the park for domestic purposes. An inspection conducted by Environment and Sustainable Resource Development ["ESRD"] on June 5, 2013 identified the parties failed to acquire a Licence for the diversion of water to the pond; failed to acquire an Approval under the Environmental Protection and Enhancement Act ["EPEA"] prior to constructing and operating a waterworks system; failed to have a certified operator in place to operate the Waterworks System; failed to provide required water treatment consisting of at a minimum chemical addition, flocculation, coagulation, clarification and filtration and; failed to meet the waterworks system Page 8 of 21

9 Enforcement Orders standards and design requirements as set out in the Standards and Guidelines for Municipal Waterworks, Wastewater and Storm Drainage Systems. ESRD has not received any applications from the Parties, nor issued any approvals, licences, or registrations under either EPEA or the Water Act in relation to the waterworks system. The Parties shall immediately not divert or continue to divert any water from the pond as a source for the waterworks system; not operate or continue to operate the waterworks system utilizing the pond as source water; not permit any person from obtaining water from the unauthorized system and from any other unauthorized source of water located within the Golf Course and RV Park. Page 9 of 21

10 Sallee Oil Ltd. Leduc County SE W4 Enforcement Actions Environmental Protection Orders 03-Apr-13 Sallee Oil Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Alberta Ltd. Leduc County SW W4 SE W4 04-Apr Alberta Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Bracknell Corporation Flagstaff County SE W4 04-Apr-13 Bracknell Corporation ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Page 10 of 21

11 Environmental Protection Orders Coho Resources Limited Woodlands County SE W5 04-Apr-13 Coho Resources Limited ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is necessary in order to conserve and reclaim the site and that a release of one or more substances into the environment may occur, is occurring or has occurred that may cause, is causing or has caused an adverse effect on the environment. The Company shall submit and implement an Investigative Plan; submit and implement a Remedial Plan; submit and implement a Reclamation Plan; and apply for a reclamation certificate once the criteria has been met. Page 11 of 21

12 Environmental Protection Orders Slate Energy Inc. Sturgeon County NW W4 04-Apr-13 Slate Energy Inc. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Slate Energy Inc. Sturgeon County SE W4 04-Apr-13 Slate Energy Inc. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Slate Energy Inc. Sturgeon County SW W4 04-Apr-13 Slate Energy Inc. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the wells and facility. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is necessary in order to conserve and reclaim the site and that a release of one or more substances into the environment may occur, is occurring or has occurred that may cause, is causing or has caused an adverse effect on the environment. The Company shall submit and implement an Investigative Plan; submit and implement a Remedial Plan; submit and implement a Reclamation Plan; and apply for a reclamation certificate once the criteria has been met. Starvest Capital Inc. MD of Clear Hills SE W5 04-Apr-13 Starvest Capital Inc. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Page 12 of 21

13 Environmental Protection Orders Sallee Oil Ltd. MD of Wainwright SW W4 04-Apr-13 Sallee Oil Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well on the land legally described as W4M. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is necessary in order to conserve and reclaim the site and that a release of one or more substances into the environment may occur, is occurring or has occurred that may cause, is causing or has caused an adverse effect on the environment. The Company shall submit and implement an Investigative Plan; submit and implement a Remedial Plan; submit and implement a Reclamation Plan; and apply for a reclamation certificate once the criteria has been met. Sallee Oil Ltd. MD of Wainwright SW W4 04-Apr-13 Sallee Oil Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well on the land legally described as W4M. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is necessary in order to conserve and reclaim the site and that a release of one or more substances into the environment may occur, is occurring or has occurred that may cause, is causing or has caused an adverse effect on the environment. The Company shall submit and implement an Investigative Plan; submit and implement a Remedial Plan; submit and implement a Reclamation Plan; and apply for a reclamation certificate once the criteria has been met. Sallee Oil Ltd. County of Thorhild SW W4 04-Apr-13 Sallee Oil Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Page 13 of 21

14 Environmental Protection Orders Aspen Endeavour Resources Inc. Strathcona County NW W4 08-Apr-13 Aspen Endeavor Resources Inc. ["The Company"] was authorized by the Energy Resources Conservation Board ["ERCB"] to drill the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Kingkorp Ltd. Parkland County NW W5 10-Apr Kingkorp Ltd., formerly known as Calistar Construction Services Ltd., [the "Operator"] has operated a gravel pit on a portion of land legally described as NW W5M in Parkland County, Alberta. The Operator obtained an Approval on July 12, 2004 for the opening up, operation and reclamation of the Pit on the Land. By letter dated October 1, 2004, the Operator was advised that, as a result of regulatory changes, it must obtain a registration for the Pit under the Code of practice. The approval expired on November 1, 2009, and to date Alberta Environment and Sustainable Resource Development ["ESRD"] has not received a registration application nor issued a registration for the Pit. On March 29, 2013 ESRD attended the site and observed that the Land had not been reclaimed. The Operator has failed to conserve and reclaim the Pit, and to meet the reclamation obligations in the Act, the and the Code of Practice. The Operator shall immediately cease operation of the Pit; Submit and Implement a written Reclamation Plan; Within 14 days of completion of all reclamation work under the plan submit a final report; and apply for a Reclamation Certificate. Page 14 of 21

15 Environmental Protection Orders Savant Energy Ltd. County of Vermilion River NW W4 12-Apr-13 Savant Energy Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Savant Energy Ltd. County of Barrhead NE W5 12-Apr-13 Savant Energy Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Savant Energy Ltd. County of Vermilion River SW W4 12-Apr-13 Savant Energy Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Savant Energy Ltd. County of Vermilion River NW W4 12-Apr-13 Savant Energy Ltd. ["The Company"] was licenced or otherwise authorized by the Energy Resources Conservation Board ["ERCB"] to operate the well. Alberta Environment and Sustainable Resource Development ["ESRD"] has not issued reclamation certificates for the Site. ESRD is of the opinion that work is Page 15 of 21

16 Environmental Protection Orders Page 16 of 21

17 Prosecutions Buoy, Brian David 13-May-13 : $20, (a) Count 3: "Co-accused Enviro Scan Technologies Inc." On or about the 28th day of December, 2009, at or near, in the Province of Alberta did knowingly provide false or misleading information pursuant to a requirement under the Environmental Protection and Enhancement Act to provide information, contrary to section 227(a) of the Environmental Protection and Enhancement Act, evidence of the said offence having first come to the attention of the Director on November 4, Pled guilty and was sentenced to a $20,000 fine and is under a stop order. He is also required to write about his offence and the effect it has had on him for a publication of the Environmental Services Association of Alberta. Ulliac, Jason Denis 27-May-13 : $10, (2)(a) Count 1: "Co-accused Ulliac Oilfield Consulting Ltd." On or about the 27th day of April, 2011, at or near Fort McMurray, in the Province of Alberta did knowingly provide false or misleading information, data, records, reports or documents pursuant to a requirement under the Water Act to provide them, to wit: the volume of water diverted from a water body known as the North Water Source, contrary to section 142(2)(a) of the Water Act. Pled guilty and was sentenced to a global penalty of $10, Under the terms of a creative sentencing order, Ulliac will pay a $1,000 fine to the Government of Alberta with the remaining $9,000 to be put in a trust for the RiverWatch Institute of Alberta, an organization dedicated to educating junior and senior high school students about water quality and management. Ulliac is also prevented from seeking professional designations related to the oil sands industry for a period of one year, and will arrange for the publishing of an article regarding the offence in the Environmental Services Association of Alberta's Weekly News publication. Brown, Stephen 26-Jun-13 : $10, (1)(a) Count 2: "Co-accused Brownstone Environmental Services Ltd." On or about the 16th day of October 2010 at or near Bonnyville, in the Province of Alberta did provide a false or misleading document pursuant to a requirement under the Water Act to provide it, contrary to section 142(l)(a) of the Water Act. Pled guilty and was sentenced to a $10,000 fine, $9, of which will go towards creative sentencing to assist in funding the RiverWatch Institute of Alberta Education Project. Page 17 of 21

18 Tickets No Activity Page 18 of 21

19 Warning Letters EnCana Corporation Wheatland County NE W4 08-Apr-13 36(1) The Company conducted an unauthorized activity, the construction of a road through a Class III wetland in October of Petluk, Stephen Northern Sunrise County SE W5 15-Apr-13 24/97 5(1) Mr. Petluk conducted an activity, the application of pesticide resulting in damage to crops on an adjacent property on or about June 28, Kyoto Fuels Corporation County of Lethbridge Plan , Block 1, Lot Apr (e) The Company operates the Lethbridge Biorefinery pursuant to an Approval. It contravened its approval by failing to submit the groundwater monitoring program and annual reports required between October 1, 2008 and March 31, Killick, Ron Clearwater County SE W5 30-Apr (1) Mr. Killick failed to report a release of a substance into the environment in the winter of Bradford Homes Ltd Calgary NE W5 15-May-13 36(1) The Company conducted an activity, the filling in of two Class II wetlands without obtaining an approval during the fall of Rio Tinto Alcan Inc. Sherwood Park SE W4 19-Jun (e) The Company operates the Strathcona Coke Calcining Plant pursuant to an Approval. It contravened its approval with late submission of the Fugitive Particulate Minimization Study which was to be submitted on December 31, 2010, but was not received until May 1, University of Alberta Plan 221ET, Block 1, 2 19-Jun (1) The University of Alberta discovered a release of Halon from the fire suppression system on February 21, 2013, and reported on March 5, The actual release date and length of time that the Halon was released is unknown but it is estimated that 21 kilograms was released. Page 19 of 21

20 Patry, Joyce County of Athabasca NE W4 SW W4 Warning Letters 26-Jun /98 3(3) SEE DETAILS: "Patry, Bernard" Patry, Bernard County of Athabasca NE W4 SW W4 26-Jun /98 4(1) Mr. and Mrs. Patry constructed unauthorized water crossings in an unnamed creek commencing on or about January 4, Alberta Ltd. Lacombe County 27-Jun-13 The company conducted an activity, the burning of prohibited debris by means SW W4 61 of an open fire without an approval on December 28, S & S Shippy Construction Ltd. Lacombe County SW W4 27-Jun The company conducted an activity, the burning of prohibited debris by means of an open fire without an approval on December 28, Page 20 of 21

21 No Activity Water Management Orders Page 21 of 21

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