existing infrastructure (e.g., roads, oil and gas infrastructure, power lines, rail lines);

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1 DATE November 7, 2012 PROJECT No /1042 TO Ms. Erin O'Krancy Legacy Oil + Gas Inc. FROM Melanie Failler melanie_failler@golder.com RE: ENVIRONMENTAL DESKTOP SCREENING FOR THE PROPOSED LEGACY TO W1M PIPELINE ROUTE Legacy Oil + Gas Inc. (Legacy) is proposing to construct the Legacy W1M to W1M pipeline, located approximately 12 km southeast of Pierson, Manitoba. The approximately 6 km long pipeline right-of-way (ROW) has not been finalized; however, Legacy has provided a survey plan showing a proposed pipeline route (see attached). The purpose of this environmental desktop screening is to provide a summary of the current land uses that will be crossed by the pipeline route and the documented species at risk potentially using the habitat types present along the route and adjacent areas. This is intended to assist the Manitoba Environmental Approvals Branch in determining if the pipeline is located in areas sensitive to environmental disturbance and consequently, the need for an environmental assessment under the Manitoba Environment Act. Pipelines greater than 10 km in length, or which are located in areas sensitive to environmental disturbance, are listed as a Class 2 development under the Classes of Development Regulation under the Manitoba Environment Act. Although the route is less than 10 km in length, a portion (SW W1M) is located approximately 60 m south of Gainsborough Creek, which is fish bearing. Consequently, the Environmental Approvals Branch of the Manitoba Conservation and Water Stewardship Division has requested a description of the vegetation and land use along the entire route. Legacy is proposing to survey a 20 m wide pipeline ROW that will include the installation of a 6 inch diameter oil pipeline and a 4 inch diameter gas pipeline from Legacy s W1M to EOG s W1M riser site. Temporary workspaces will be required at road crossings. The Google Earth image (2005) was reviewed to screen for the following: current land use (e.g., cultivated land vs. pasture); existing infrastructure (e.g., roads, oil and gas infrastructure, power lines, rail lines); proximity of wetlands and riparian areas; and proximity of native habitat (e.g., grassland, shrubland, and treed). Golder Associates Ltd th Street East, Saskatoon, Saskatchewan, Canada S7H 0T4 Tel: +1 (306) Fax: +1 (306) Golder Associates: Operations in Africa, Asia, Australasia, Europe, North America and South America Golder, Golder Associates and the GA globe design are trademarks of Golder Associates Corporation.

2 Ms. Erin O'Krancy /1042 Legacy Oil + Gas Inc. November 7, 2012 Information received on October 22, 2012 from the Manitoba Conservation Data Centre indicated that one species of concern has been documented in several quarter sections crossed by the proposed pipeline route (Table 1). Table 1: Sensitive Species That May Occur in the Proposed Project Area (a) Provincial Common Name Scientific Name SARA Status (b) MBESA(c) Lanius ludovicianus loggerhead shrike T S2 E excubitorides Source: Manitoba Conservation Data Centre (2012). Notes: (a) Species At Risk Act T - Threatened, a species likely to become endangered if limiting factors are not reversed. (b) Manitoba Conservation Data Centre Species of Conservation Concern 2 Rare throughout its range or in the province (6 to 20 occurrences). May be vulnerable to extirpation. S Province-wide (subnational). (c) Manitoba Endangered Species Act E - Endangered, a species indigenous to Manitoba, which is threatened with imminent extinction or with extirpation throughout all or a significant portion of its Manitoba range. The majority of the route appears to cross cultivated land that supports several shelterbelts running either parallel to or perpendicular to the proposed route (Table 2). Depending on the final alignment of the ROW, clearing of portions of the shelterbelts may be required. Approximately 200 m of native grassland will be crossed in SW W1M. Table 2: Quarter Sections Crossed by the Pipeline Corridor Quarter Habitat Sensitivity Section (W1M) Recorded Listed Species NE cultivated route adjacent to a shelterbelt for approximately 120 m and is in the vicinity of a low area loggerhead shrike NW cultivated route crosses approximately 40 m of shelterbelts loggerhead shrike SW cultivated none none SE cultivated none loggerhead shrike approximately 200 m of native pasture will be crossed by the route SW cultivated/native small, low area is in the vicinity of the route approximately 60 m from Gainsborough Creek none SE cultivated route crosses two shelterbelts approximately 150 m from Gainsborough Creek none SW cultivated none loggerhead shrike SE cultivated route crosses three shelterbelts and a dry slough loggerhead shrike SW cultivated none loggerhead shrike 2/3

3 Ms. Erin O'Krancy /1042 Legacy Oil + Gas Inc. November 7, 2012 Based on the Google Earth image, the pipeline corridor is located approximately 60 m south of Gainsborough Creek at its closest point. The extent of the wetlands and low areas will depend on seasonal conditions and water levels. It is possible that additional low areas may be encountered by the route, but according to the Google Earth image, these have either been cultivated or were dry when the image was taken. Construction is scheduled to occur during the first quarter of 2013, under dry or frozen ground conditions, which will avoid the sensitive breeding period for listed species identified in the area. Based on the timing of construction, it is anticipated that adverse effects on listed species, including the loggerhead shrike, will likely be low. n:\active\2012\1361\ legacy oil + gas se sask_sw mb\screenings\task 1047 legacy pipeline to w1m s03072\screening\ tech memo november 7, 2012.docx 3/3

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